Northeast Dairy Magazine | Q4 2022

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10 25 100 15 200 20 75 30 50 45 90 Celebrating Fourth Quarter 2022 nedairyfoods.org CONVENTION 2022 Event Highlights/ Photos MEET NDSA PRESIDENT Q/A with Melissa Fryer SUSTAINABILITY Can Seaweed Help Reach Net Zero? MEMBER PROFILE Dopkins Focuses on Dairy

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Fourth Quarter 2022 • 1
Stay Connected www.nedairyfoods.org www.neastda.org 5407 EAST CIRCLE DRIVE #277 SUITE 108 CICERO, NY 13039 315-452-MILK (6455) 2 • Northeast Dairy Foods Association, Inc. Features Front Desk 04 PRESIDENT’S MESSAGE, NDFA Milk Business Full of Milestones
05 Q/A WITH NEW NDSA PRESIDENT Melissa Fryer Takes the Lead
10 EXECUTIVE VP MESSAGE 2022 Has Been a Busy Year
12 LEGISLATIVE REPORT Collaboration and Community in Northeast
14 SOMETHING TO CONSIDER Midterms 2022: New Faces, New Issues and New Challenges
18 ECONOMIC OUTLOOK Uncertainties Make Predicting 2023 Challenging
33 Other Member Celebrations 34 Will Dairy and Seaweed Industries Work Together To Reach Net-Zero? BY
37 SOMETHING TO CONSIDER THE Legacy of Louis Pasteur BY
contents Fourth Quarter 2022 • Volume 5, No. 4 Business Celebrating Member Milestones PAGE 24 17 401(k) Plan Investment Options: Crytocurrencies BY TYLER M. OWEN, CPA, CFE 57 Unique Considerations in Farm Equipment Leases BY CARI B. RICKNER, ESQ. 59 Watch Your Back! How to Life Safely 60 Advertisers’ Index
MICHELLE K. TYNAN
GARY LATTA

Northeast Dairy Foods Association, Inc.

EXECUTIVE VICE PRESIDENT

James “Ozzie” Orsillo

DIRECTOR OF REGULATORY AFFAIRS

Paul Harvey

BUSINESS OPERATIONS MAWNAGER

Leanne Ziemba

PRESIDENT Daniel Lausch Lactalis American Group VICE PRESIDENT

Jodi Smith Krzysiak Upstate Niagara Cooperative

TREASURER Randi Muzumdar HP Hood LLC

SECRETARY Ryan Elliott Byrne Dairy

Northeast Dairy Suppliers Association, Inc.

Northeast Dairy Magazine Team

EXECUTIVE EDITOR

James “Ozzie” Orsillo oo@nedairyfoods.org

PUBLISHER/DIRECTOR OF SALES

Bill Brod billbrod@nedairymedia.com

EDITOR

Caroline K. Reff creff@nedairymedia.com

CONTENT DIRECTOR

Steve Guglielmo steveg@nedairymedia.com

GRAPHIC DESIGNER

Robin Barnes

SALES

Tim Hudson thudson@nedairymedia.com

Lesli Mitchell lmitchell@nedairymedia.com Hannah Gray hannahg@nedairymedia.com

CONTRIBUTORS

Tyler Owen, Cari B. Rincker, Esq., Michelle K. Tynan

PRODUCED BY

Northeast Dairy Media

Editorial correspondence should be directed to editor@nedairymedia.com. Advertising correspondence and materials should be sent to billbrod@nedairymedia.com.

POSTMASTER: Send address changes to lz@nedairyfoods.org.

An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, North east Dairy Media, is responsible for the contents thereof or the opinions of the contributors.

The entire contents are © 2022 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned.

Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.

NED Magazine | Fourth Quarter 2022 • 3
2022 • Volume 5, No. 4
contents Fourth Quarter
PRESIDENT Melissa Fryer Alfa Laval VICE PRESIDENT Paul Knoerl Evergreen Packaging
TREASURER Ryan Osterhout KCO Resource Management
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SECRETARY Bruce Alling Double H Plastics, Inc. Member News
Annual Dairy Convention Treated to Variety of Speakers
2022 Northeast Dairy Convention
Thank You, Convention Sponsors
Winner Announced: Bruce W. Krupke Scholarship 52 MEMBER PROFILE Communication, Engagement Key. To Dopkins’ Success
Member and Industry News
Welcome New Members
Leanne’s Kitchen

The milk business is full of milestones that have marked major changes and really moved the dairy business forward. Think about dairy farmers milking cows by hand and then converting to vacuum-powered milking machines and then maybe a generation or so later constructing a milking parlor where the cows walk to the people doing the udder prep. Or, farm milk delivered to the milk plant by horse and wagon and then later small trucks (but still in milk cans). As bulk milk picked up from the dairy farms started to be hauled on single axle milk tankers, and then ten wheelers and triaxles, and then finally 18-wheel tractor trailers, payloads improved over the last few decades.

Milk Business Is Full of Milestones

Talk to any older dairy farmers and they can tell you what year their family purchased the current property, what year they purchased their first bulk tank and what year they changed to their current milk market. They will certainly be able to tell you how many cows they milked in the year that their family started dairy farming and how many acres they farmed that first year in order to raise the crops necessary to feed their dairy cattle.

Similar milestones happen with dairy processing plants, like celebrating the first year of processing and the volume of milk processed or cases of finished prod uct packaged, shipped and sold on the first day or the first week. Determining the number of paid employees in that first year and how many paying custom ers helped that dairy processor survive

that first-year are both milestones to be noted.

Throughout this issue of Northeast Dairy magazine, you will read about many interesting companies and personal milestones. One example of a milestone is the New York State Cheese Manufacturers Association, which will be celebrating 80 years as an organi zation in 2023. It was one of the four organizations involved in our annual August joint convention at the Landing Hotel in Schenectady, New York. I really enjoyed this year’s convention, and I could have listened to the presentation about electrifying tractor trailers all day. I hope next year’s convention in Mount Pocono, Pennsylvania, will be as fun and fulfilling as this year’s convention. Read and enjoy!

4 • Northeast Dairy Foods Association, Inc. Front Desk
JULY 12, 2023 Annual Dairy Customer Appreciation Clambake and Pig Roast THE SPINNING WHEEL EVENT CENTER N. Syracuse, New York Bruce W. Krupke Memorial Golf Tournament ROGUE’S ROOST GOLF COURSE Bridgeport, New York AUG 16-18, 2023 Annual Dairy Convention 2023 MOUNT AIRY CASINO Mount Pocono, Pennsylvania SAVE THE DATES | 2023 MEMBER EVENTS

The Northeast Dairy Suppliers Association, Inc., welcomes Melissa Fryer as its new president of the board of directors.

Fryer is a sales engineer with over 25 years of experience in engineering and marketing heat transfer solutions for the food, beverage and pharmaceutical industries. She has extensive experience collaborating with sales, marketing, manufacturing, engineering and purchas ing to complete the sales and project process. Fryer is currently the sanitary heat exchanger business development manager at Alfa Laval. Alfa Laval has long been a member of NDSA. Prior to joining the company in 2017, she was a segment manager, food and beverage, for Kelvion, and sanitary PHE market manager for API Heat Transfer. Earlier in her career, she worked in a number of roles as a process engineer and applica tion engineer. Fryer is a graduate of the University of Buffalo with a degree in chemical engineering.

Fryer joined the NDSA board in 2015, and eventually joined the exec utive board, where she most recently served as vice president. Northeast Dairy magazine sat down with Fryer to learn more about her and her thoughts on

Northeast Dairy Foods Association, Inc.

Melissa Fryer Takes the Lead as President of NDSA Board

moving the association forward and what direction she thinks the dairy industry is headed.

Q: How did you first get involved in the Northeast Dairy Suppliers Association?

A: I had worked in the dairy indus try for a long time and moved back to Central New York in 2001. Sometime after that, I heard about the NDSA clam bake, which was happening every year down the street from me. It sounded like a good networking opportunity and a fun time, so in 2010 I joined the asso ciation, and I started attending. During one clambake while volunteering along side Leanne Ziemba and Bruce Krupke, Bruce said, “Why don’t you join the NDSA board of directors?” That was 2015. A couple of years later, Bruce asked me to join the executive board, which I did, eventually working my way up to the position of president in 2022. My decision to get more involved with NDSA is something I’ll never regret. It’s a great group of professionals that brings end users and suppliers together. I have enjoyed participating on the board and contributing to our efforts to proactively move the association forward.

Q: Tell us about your own career path and current job duties.

A: I earned my degree in chemi cal engineering from the University of Buffalo and began my career in the paint industry at Pratt and Lambert. Unfortunately, after working my way up from formulator to the plant’s process engineer, the company was bought and the Buffalo facility closed in 1996. I was offered a position as an application engineer with APV, and my food heat transfer journey began. I’ve been in the food processing industry ever since. If you would have told my 18-year-old self that I was going to work in dairy and food processing, I would never have believed you. I consider myself quite fortunate to be a part of this industry. I consistently tell people that I’m not sure how I got into this industry but I’m pretty sure I can’t, nor want, to get out. The dairy industry, from both suppliers to end users, is like a big family.

Q: What are your primary goals as president of the NDSA board?

A: One of my primary goals it to continue to increase our membership and attendance at our signature event

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Front Desk

a great group of professionals that brings end users and suppliers together. I have enjoyed participating on the board and contributing to our efforts to proactively move the association forward.

– the Bruce W. Krupke Memorial Golf Tournament and Clambake. We are continually looking for ways to enhance and encourage the supplier/end user rela tionships. The annual NDSA events offer excellent opportunities for networking and professional exchange. I believe by highlighting and promoting the potential to develop valuable working relation ships and partnerships will help NDSA meet these goals.

Another goal I plan to work on is continuing to promote a positive percep tion and advocating for a fairer repre sentation of the dairy industry. Like all NDSA members, I am passionate about the dairy industry and the good we provide our state, country and world. Unfortunately, we are often confronted with the challenges of misinformation or misunderstanding of our products and what we do. We, as an organization, and as individual members, need to work together to repudiate and educate using

factual industry information on the bene fits of dairy and the strides that are being made to be more sustainable. It is hard to believe we are at a place where dairy products are often portrayed as harmful.

Q: Why would you tell members that it’s important to stay active in the association?

A: First of all, I would like to take this opportunity to thank all of our members for their continued support of the NDSA. Without it, the NSDA would not be able to offer the programs and events we do. That being said, we are always looking for members to take a more active roll within the association. Ozzie Orsillo and I frequently talk about how to increase engagement through attendance at our events, and increased use the informa tion provided on our website or in this

magazine. As we move away from the chaos the pandemic, COVID shutdowns and restrictions inflicted on our compa nies and their employees, I hope to see the NDSA become a more active and robust organization. We need to make sure that NDSA membership brings value to suppli ers and end users alike. I firmly believe our annual clambake and golf outing is one of the best kept secrets in our indus try. It provides our members with one of best opportunities in the dairy industry to see and be seen. Without a doubt, we all have a great time enjoying the food, drinks, games, and opportunity to connect with old friends and colleagues. It also offers attendees the chance to build their networks as they search for the next big project or opportunity. CONTINUED ON NEXT PAGE ►

FINANCING THE DAIRY INDUSTRY

NED Magazine | Fourth Quarter 2022 • 7 Front Desk
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My decision to get more involved with NDSA is something I’ll never regret. It’s

Q: From a suppliers perspective, what do you see as the biggest challenge(s) facing the dairy industry right now? What should members prepare for as they start to think about 2023?

A: Supply chain issues will continue to plague the industry and affect lead times and costs. Inflation will be top economic concern for the foreseeable future as raw material, equipment and borrowing costs continue to rise. There are still many dairy projects being planned and several moving forward, which is good news. Only time will tell if these economic and supply pressures force projects in the preliminary stages to be placed on hold, or if those already

started will be scaled back. Any retrac tion or slowing of projects being let will have a direct impact of a suppliers success in 2023. These concerns high light the benefits of being a member of NDSA. Our membership has a wealth of expertise to share to help navigate the bumpy economic terrain ahead. There is also our magazine, pointing out trends or talking about issues of importance to the industry, like sustainability, that are going to impact us all. There are however many reasons to remain opti mistic. This industry has shown, time and time again, that it will weather tough times, and I’m sure this will be another example to reference in the future.

Q: How can members reach out to you?

A: I encourage members to reach out to me via email at melissa. fryer@alfalaval.com with a ny ideas, concerns, or most importantly, if they want to find out how to become more involved with NDSA. If anyone has a contact or customer they feel would benefit from NDSA membership, please encourage them to join or to contact myself or any of the board members with questions.

8 • Northeast Dairy Foods Association, Inc. Front Desk
Catch up on the previous issues of Northeast Dairy Magazine. Visit issuu.com⁄nedmagazine
If you’d like to feature your company catalog in the next Weekly Dairy Newsroom contact Lesli Mitchell lmitchell@nedairymedia.com. The NED Supplier Catalog Library issuu.com/ndsacatalogs

2022 Has Been a Busy Year for the Association, Dairy Industry

Dear Members and Friends,

The dairy industry, from farm to table, is full of folks who provide great nutritious foods to the American public, many of whom the public is unaware of. Starting with our farmers who tirelessly work their fields and herds to produce the elixir for all the dairy products we love so much, MILK! Then, on to everyone who transports, processes, packages and sells these dairy products. This industry not only feeds the American public but provides stable and purposeful employment for many individuals and families. Yet, attracting prospective employees to this industry is a struggle. In my opinion, employment in this industry should be marketed just as wholesomely as the products this industry provides. With our economy floundering and jobs in industries directly tied to the economy being in jeopardy, DAIRY is the place to be for stability and financial security. Yes, milk class usage is shifting from fluid to other products. But, overall, the dairy industry is as solid as ever with a very bright future.

LOOKING TO PROMOTE EMPLOYMENT AND CAREER OPPORTUNITIES IN OUR INDUSTRY?

Our friends at Cornell University, specifically Kim Bukowski, a director on the NDFA board, and Anika Zuber Gianforte with Cornell Dairy Foods Extension have started a pilot program coined High School Bootcamp, where they connect with high schools promoting employment and career opportunities in the industry. They gave a great presentation on this at our Annual Convention. To enhance this program, Kim and Anika want to collaborate with dairy food processors and manufacturers for the next Bootcamp. So, if your company would like more information on how to participate, please

contact our office for assistance. You could discover and hire the next rising star in our industry!

2022: A YEAR OF CHALLENGES AND CELEBRATIONS

As we close out a year full of ups and downs on so many levels, we want to look back on some highlights and peek forward to the great things to come.

This year presented great challenges and within those challenges rose the resilience of this industry through those companies who are celebrating milestones in their businesses. You will read more about each of these companies in the pages that follow, but our sincere congratulations go out to Lineage Logistics for 10 years, RWS for 20 years, Herbein for 50 years, Tremcar and Nelson-Jameson for 75 years, and DSM Food Specialties for 110 years! If you’re celebrating a milestone anniversary in 2023 – 10, 20, 25, 50, 75 or 100 years or more – please let us know, so we can include your accomplishments in next year’s milestone edition.

IMPROVING THE FMMO

The Federal Milk Marketing Order Forum was held mid-October in Kansas City, Missouri, where representatives throughout the dairy community met to discuss ways to improve the FMMO for everyone – a task that will take time and the consensus of dairy community to achieve. We will continue to monitor the progress of this matter and share information as it becomes available.

2022 ANNUAL CONVENTION A SUCCESS

Our Annual Convention was a complete success with the best lineup of private and public professionals speaking for our members. See Gary Latta’s summary on page 40 about what

10 • Northeast
Front Desk
Dairy Foods Association, Inc.

each had to share and other highlights of our event throughout this issue of the magazine. My sincere thanks goes out to all of our speakers, partners, sponsors and the entire team who made the convention possible. It was great to see so many familiar faces and have a chance to not only discuss the issues of the day but also have some time to network and socialize with those who attended this event. It’s not too early to think about attending next year’s convention, which will be held at the Mount Airy Casino in Mt. Pocono, Pennsylvania on Aug. 16 to 18, 2023.

As we look to 2023, you might also mark your calendars for May 17 for our Northeast Dairy Blender to be held in Buffalo, New York. The venue and details are still in the works, but information will be forthcoming as soon as possible. And, while the weather is getting colder, it’s a great time to plan on a warm, sunny day of golf and good food at the July 12, 2023, Bruce W. Krupke Memorial Golf Tournament and Clambake, which will again be held at Rogues Roost Golf Club and the Spinning Wheel Restaurant in N. Syracuse, New York.

MANY THANKS TO OUR DAIRY FAMILY

I would like to thank all of the members of the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Suppliers Association, Inc., not only for their support of our organizations but also for the hard work each did to succeed at every level during 2022. Thank you to our NDFA and NDSA board members who guide our association, and a special thanks to our dedicated office staff, Leanne Ziemba and Paul Harvey, who help get the work done every day, as well as our own expert on all things dairy, Gary Latta. Also, let’s give a shout out to our team at our award-winning Northeast Dairy magazine for putting together four great issues in 2022 on topics that keep us up-to-date and also promote our industry and celebrate our membership across the region.

May you enjoy plenty of milk, butter, cheese, ice cream and other delicious dairy products as you gather around the table this holiday season!

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Legislative

Regulations Report

It is very hard to imagine that 2022 is coming to a close and we will have made one complete rotation around the sun. We have all endured a year of constant change and unpredictability within the dairy foods industry, but together we have had several opportunities to connect as an association and to present our mission to key stakeholders within our association region.

CONVENTION

In August, we had our annual convention in which we had Commissioner Richard Ball (Department of Agriculture and Markets), Commissioner Hope Knight (Empire State Development), and several other New York State officials and industry leaders speak about the work their organizations are doing to ensure the success of the dairy agriculture indus try. Following our convention, we planned two opportunities to meet with officials from these departments following our convention.

In September, we met with Allison Argust to discuss the mission of the Northeast Dairy Foods Association and how Empire State Development can be an integral role in the success of both new and existing dairy agriculture industry in New York State. She also attended our convention in August and stated she was impressed with the passion and dedication to the dairy industry possessed by our members. Our conversa tions have included the need to address workforce shortages in many of our member production facilities and the need for

LEGISLATIVE UPDATE

Collaboration and Community Throughout the Northeast

more communication and cooperation between regional Empire State Development offices and local municipalities when making FAST NY applications. If you are not familiar with the program, FAST NY is a shovel-ready site program that will assist municipalities with preparing available commercial sites with public utilities and other infrastructure as potential sites for manufacturing and distribution businesses. Applications will be opening soon, so if you are thinking about expanding your operations in New York, please do not hesitate to reach out to us for more information on the program.

In September, we also had the distinct privilege of attending one day of the National Association of State Departments of Agriculture’s annual meeting in Saratoga Springs, New York. During this event, we were able to introduce the Northeast Dairy Foods Association to agriculture leaders from Maine, New Hampshire, Vermont, Massachusetts, Connecticut and Rhode Island. While speaking with a few of these leaders about the organization, many remembered the organization from working with former Executive Vice President of Northeast Dairy Foods Association Bruce W. Krupke. It was an excellent opportunity to reconnect with these individuals in prepara tion for the upcoming legislative sessions that will start at the beginnings of the new year.

COLLABORATION

In October, we participated in the most recent Dairy Think Tank meeting held at the New York State Fairgrounds. Northeast

12 • Northeast Dairy Foods Association, Inc.
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Dairy Foods Association board member Kim Bukowski and Anika Zuber Gianforte, dairy processing specialist at Cornell Dairy Foods Extension, presented the work they did this past summer with the High School Bootcamp Program to other dairy agriculture-minded organizations, including SUNY Morrisville and the Northeast Dairy Producers Association, as well as with representatives from other state agencies, including the New York State Department of Labor and Empire State Development. Commissioner Richard Ball, Deputy Commissioner Jennifer Trodden and Senior Advisor for Food Policy Jade Kraft facili tated excellent dialogue on how the dairy agriculture industry and state agencies can continue to work together to strengthen communities through jobs and overall regional economic development.

COMMUNITY

On Sept. 1, we had the great pleasure of attending the Dairy Day breakfast at the Great New York State Fair. It was such a great opportunity to see many of our members there and expe rience fellowship to celebrate the awarding of excellence for New York State produced products from a variety of members including HP Hood, Agrimark, Lactalis, Great Lakes Cheese and BelGioioso. You can view the full list of categories and winners on the Great New York State Fair website.

That same day, we also participated in the job fair at the C&S Companies Science and Industry Building. During the day, we spoke with fair goers about job opportunities in the dairy agriculture industry and provided information as to how to apply for jobs with our member organizations. Several people came by the booth and expressed interest in careers, and we are hopeful that they will pursue opportunities with our member companies.

MAINE MILK COMMISSION AND VERMONT DAIRY INDUSTRY REVITALIZATION TASK FORCE

In September, Maine and Vermont each started lines of inquiry as to how to continue to support the dairy agriculture industry in their states. Both states have seen a steady decline in the number of dairy farms, as well as the lack of dairy food production.

Since 1935, Maine Milk Commission licenses have been set at $1 per license. The number of current licenses issued in the state ranges from 40 to 50 licenses per year. The additional fee of 5 cents per hundredweight has also remained unchanged since 1975. Thus, there is a great disparity between the appli cation and production payments in Maine versus that of the other seven states with the association region.

Legislative + Regulations Report

The necessity for these discussions also stems from the need to make the Maine Milk Commission revenue financially solvent since it operates outside of regular state funding and is subject to the volatility of milk market price regulations. Increases in administrative costs, primarily in the areas of personnel and compensation (regular wages, unemployment, retirement, pension, etc.), have contributed to the reduction of overall staff supporting the Commission.

Vermont is looking to also raise funds by adding a surcharge to dairy products sold in the state in attempt to subsidize dairy production in the state. This surcharge would be added to dairy agriculture products that use animal milk produced in Vermont but that are not manufactured in the state. Legislation that was introduced in the last legislative session (VT S. 83 20212022) has raised constitutional questions that the Vermont Dairy Industry Revitalization Taskforce has been charged with answering, specifically if the state is able to levy such a surcharge.

The Northeast Diary Foods Association staff will continue to monitor these issues as we head into the next legislation.

ON THE HORIZON

As we head towards the end of the year, we will be starting new legislative sessions in seven of our eight member states. While many issues are going to be up for discussion, there are several factors that will hinge on what happens in these states. I encourage you to read my second piece, The Midterms Part III, to see my analysis of how the election results will shape the next four years of both state and federal policy.

Paul Harvey is the director of regulatory affairs for the Northeast Dairy Foods Association, Inc.

NED Magazine | Fourth Quarter 2022 • 13

MIDTERMS 2022

Mid-Term Elections Bring New Faces, New Issues and New Challenges

It is the end of the old year with a new year approaching rapidly. A new year brings a clean slate and the ability to set new goals for ourselves. In politics, this is espe cially true with new faces, new issues, new ideas and new challenges, and sometime old ones, that confront state legislatures around the country.

We have all seen our fair share of “political waves” like the Regan Revolution in 1980, the Contract with America in 1994 or the Tea Party wave in 2010, and Republicans had predicted this was going to be the wave of similar proportions. However, the “red tsunami” never lived up to the results. While the GOP will most likely have a majority in the United States House of Representatives, it will be by fewer than 10 seats, thus making deal making, bi-partisanship, and compromise that much more necessary. For states within our association, there were not many surprises but still some changes that will certainly bring an era of new leadership to our state legislatures.

CONNECTICUT

Gov. Ned Lamont won re-election by a 5% wider margin than he had when he won his first term in 2018. Lamont never received a plurality of the votes in 2018 due to the popularity of a third party candidate. Most incumbents in the Connecticut General Assembly also won re-election, but a half dozen races still have yet to be determined at the time of this writing. These races, however, will have a small impact on already guaranteed Democratic majorities in the General Assembly. Sen. Richard Blumenthal also won re-election, as well as the entire current Connecticut congressional delegation. Democratic Rep. Jahana Hayes was able to eke out a narrow victory over Republican George Logan in her northwest and western Connecticut-based congressional district. Hayes currently serves on the House Agriculture Committee, and, if she stays there, will be an important voice on the upcoming Farm Bill.

MAINE

Democratic Gov. Janet Mills won re-election against former Republican Governor Paul LePage, who attempted to harness support with voter dissatisfaction over high energy prices, especially home heating oil costs and inflation. Mills spoke with reporters outside Becky’s Diner, a favorite Election Day hotspot in Portland, Maine, about the issues facing the Democratic-held legislature, including high energy prices and inflation affecting the cost of basic necessities, such as groceries and gas, when the chamber reconvenes in December.

Rep. Jared Golden, from Maine’s Second Congressional District, leads former Republican congressman Bruce Poliquin. Ranked-choice voting will determine who ultimately receives more than 50% of the vote as required by Maine law. The Second Congressional District has always split its tickets when it comes to elections, and this time was not different. Golden even attended a campaign event this past summer with LePage.

MASSACHUSETTS

Outgoing Republican Gov. Charlie Baker will be succeeded by Democratic Governor-elect Maura Healey, who will be the first woman to lead the Bay State. In her victory speech, Healey stated she would focus on promoting green jobs, expanding affordable housing and improving transportation across the state.

Democrats will also retain the super-majorities of both chambers within the Massachusetts General Court, although a small handful of races have yet to be decided.

NEW HAMPSHIRE

Republican Gov. Chris Sununu handily won re-election, while incumbents Sen. Maggie Hassan, Rep. Chris Pappas, and Rep. Ann McLane Kuster won their races with sizable margins given the political headwinds. Pappas, in particular,

14 • Northeast Dairy Foods Association, Inc. NED Magazine | Fourth Quarter 2022 • 14
Something to Consider

Something to Consider

was supposed to face a tougher fight for re-election when the New Hampshire General Court wanted to make his district more favorable to Republicans. Sununu, however, vowed to veto any map that would either put both representatives in the same district or that would favor a change in composition in the congressional delegation. The issue eventually went before the New Hampshire Supreme Court where a special master drew lines comparable to the existing boundaries

In the New Hampshire General Court, Republicans will likely hold their 14-10 majority in the Senate. In the State House, Republicans hold a narrow advantage of six seats of 203-197, but 16 recount requests were submitted to the New Hampshire Secretary of State’s office, which means that ballots will go through a manual count to determine the winner. To demonstrate how close some of these races are, Coos District 7 based out of Campton, New Hampshire, only had a four-vote difference between the two candidates.

NEW JERSEY

New Jersey did not hold any state-level elections this year. Elections will be held next year for the New Jersey State Legislature.

However, there was a change in the Garden State’s congres sional delegation. Democratic Rep. Tom Malinowski, repre senting New Jersey’s Seventh Congressional District, lost to Republican Thomas Kean Jr., a member of New Jersey’s General Assembly. Malinowski’s loss is widely attributed to redistricting in the state, which shifted away from the more moderate suburbs of Newark to more conservative areas in the western part of the state boarding Pennsylvania to his district.

NEW YORK

New Yorker’s had an unusually active summer and fall campaign due to a competitive governor’s race and high-stakes congressional races after a court-ordered redistricting. Where as previous Democratic governors maintained comfortable leads over their Republican opponents, over the course of the polling season, Gov. Kathy Hochul, who became governor after the resignation of former Gov. Andrew Cuomo due to misconduct allegations, struggled to address issues of crime and punishment facing the state, particularly in regards to changes made to New York’s bail reform measures. Although most regions of the state saw reductions in overall violent crimes, Republican gubernatorial candidate Rep. Lee Zeldin toured the

NED Magazine | Fourth Quarter 2022 • 15 15 • Northeast Dairy Foods Association, Inc.

Something to Consider

state, hammering Hochul and New York Democrats in various instances on how bail reform had failed. Despite various other missteps earlier in her tenure, Hochul was elected to her first full-term as governor. She is the first woman and first Upstate New Yorker to hold the office in over 100 years.

In New York’s Congressional races, Republicans flipped three congressional seats: one encompassing the outer New York City suburbs and Hudson Valley and two encompassing Long Island and outer Queens. Inflation, crime and safety played a big role in the outcomes in these elections and proved to be successful in moving suburban voters to vote for Republican candidates in the historically Democratic suburbs. Some analysts also say that the redistricting fiasco, which caused a fractured primary early this year, resulted in a more Republican-friendly map. Personally, I think that it was both the message and the messengers.

In the state legislature, half a dozen Democratic incum bents in both the Assembly and the Senate lost their seats to Republican challengers. Four of these members were sitting chairs of various committees in both chambers. Democratic Assemblyman Steve Englebright, chairman of the power Environmental Conservation committee, is narrowly trailing his Republican challenger, Edward Flood. Sen. Michelle Hinchey and Assemblywoman Donna Lupardo, chairs of the Agriculture Committee in their respective chambers, each won re-election. While Democrats will retain their majorities in each chamber, whether they are veto-proof will remain to be seen.

RHODE ISLAND

Gov. Dan McKee was elected for his first full four-year term with almost 60% of the vote after succeeding Gina Raimondo, who was chosen by President Joe Biden to serve as secretary of commerce. Congressman-Elect Democrat Seth Magaziner, who was formerly Rhode Island’s state treasurer, surprised many pollsters and pundits by a larger-than-expected margin of victory in the state’s 2nd Congressional District. Republican candidate and former Cranston mayor Allan Fung ran a socially moderate campaign and was expected to give Magaziner a tough race, given Magaziner’s low name recognition and late primary victory that did not occur until early September.

In the Rhode Island General Assembly, Democrats main tained their veto-proof majorities in both the Senate and House of Representatives. In his victory speech, McKee referenced his “RI 2030” plan revolving around improving education, workforce and family issues.

VERMONT

Gov. Phil Scott had a strong showing election night, garner ing more votes than Senator-Elect Peter Welch and United States At-Large Representative-Elect Becca Balint. Welch ran to replace Sen. Patrick Leahy, who is retiring after nearly 50 years in the upper chamber. Representative-Elect Becca Balint was the leader of the Vermont State Senate before running for Vermont’s only congressional seat. While Democratic nominee for governor, Brenda Siegel, touted her top issues of housing and recovery from the opioid epidemic, Scott emphasized growing Vermont’s economy and workforce and maintains the status quo when it comes to how he has overseen operations within the state. However, Democrats were able to succeed in expanding their veto-proof majorities in both chambers of the General Assembly.

Vermonters will have to wait and see if they will be able to continue their influence in the area of agriculture policy as they have since Leahy has been in office. Leahy served as the chairman of the Senate Agriculture, Nutrition, and Forestry Committee from 1987-1995 and has always fiercely advo cated environmental policies that would conserve Vermont’s natural resources and promote its dairy industry. Leahy also served as the chairman of the influential Senate Judiciary Committee, which oversees federal judicial appointments, including the Supreme Court, from 2001- 2003 and 20072015, and chairman of the powerful Senate Appropriations Committee, which oversees funding levels for federal spend ing, since 2021.

Paul Harvey is the director of regulatory affairs for the Northeast Dairy Foods Association, Inc.

Editor’s note: This article was written just after Election Day, so the information contained here may have since changed.

16 • Northeast
Dairy Foods Association, Inc.

401(k) Plan Investment Options: Cryptocurrencies

In March 2022, the U.S. Department of Labor issued Compliance Assistance Release No. 2022-01 – 401(k) Plan Investments in “Cryptocurrencies” (Crypto Release). According to Crypto Release, certain firms have been marketing cryptocurrencies to 401(k) plans as potential investment options for plan participants. The Department of Labor cautions plan fiduciaries to exercise extreme care before they consider adding a cryptocurrency option to a 401(k) plan. The following is a summary of high lights from the Crypto Release:

Under the Employee Retirement Income Security Act or ERISA, fiduciaries must act solely in the financial interests of plan participants and adhere to an exacting standard of profes sional care. Fiduciaries who breach those duties are personally liable for any losses to the plan resulting from that breach. A fiduciary’s consideration of whether to include an option for participants to invest in cryptocurrencies is subject to these exacting responsibilities.

Fiduciaries have an obligation to ensure the prudence of such investment options and may not shift responsibilities to identify and avoid imprudent investment options to plan partic ipants. The Department of Labor has expressed concern about a fiduciary’s decision to expose plan participants to investments in crypto currencies for the following reasons:

• Speculative and Volatile Investments: Cryptocurrencies have been subject to extreme price volatility, which may be due to the many uncertainties associated with valuing these assets, speculative conduct, the amount of fictitious trading reported, widely published incidents of theft and fraud and other factors.

• The Challenge for Plan Participants to Make Informed Investment Decisions : Cryptocurrencies are often promoted as innovative investments that offer investors unique potential for outsized profits. These investments

can all too easily attract investments from inexpert plan participants with great expectations of high returns and little appreciation of the risks the investments post to their retirement investments.

• Custodial and Recordkeeping Concerns : Cryptocurrencies are not held like traditional plan assets in trust or custodial accounts, readily valued and available to pay benefits and plan expenses. Instead, they gener ally exist as lines of computer code in a digital wallet. Methods of holding cryptocurrencies can be vulnerable to hackers and theft.

• Valuation Concerns: Experts have fundamental disagree ments about important aspects of the cryptocurrency market, noting that none of the proposed models for valuing cryptocurrencies are as sound or academically defensible as traditional discounted cash flow analysis for equities or interest and credit models for debt.

• Evolving Regulatory Environment: Rules and regu lations governing the cryptocurrency markets may be evolving, and some market participants may be oper ating outside of existing regulatory frameworks or not complying with them.

Based on these risks and the nuances of investing in cryp tocurrency, the Employee Benefits Security Administration anticipates investigating plans that offer cryptocurrency invest ment options and may take action to protect the interests of plan participants. Plan fiduciaries should fully consider cryp tocurrency risks before adding a cryptocurrency option to a 401(k) plan’s investment menu.

Tyler M. Owen, CPA, CFE, is a senior manager at Dopkins & Company, LLP, a member of the Northeast Dairy Suppliers Association, Inc.

NED Magazine | Fourth Quarter 2022 • 17 Money Matters

ECONOMIC OUTLOOK

AS 2022 Ends, Many Uncertainties Make Predicting 2023 Challenging

The annual inflation rate for the U.S. is 8.2% for the 12 months ending September 2022 after rising 8.3% previously, according to U.S. Labor Department data published Oct. 13. The next inflation update is scheduled for release on Nov. 10 (as of this writing) and more upward adjust ments are expected as the U.S. Federal Reserve tries to reign in red hot inflation. Inflation in Europe is currently 9.1%, the highest on record, as the cost of energy for filling cars, heating and other uses ravages its economy.

The U.S. Federal Reserve and the European Central Bank continue to announce rate hikes as they attempt to reign in economic activity. The war in Ukraine continues to stress global energy markets exacerbated by Russia’s decision to halt gas supplies to Europe through the Nord Stream pipeline. Europe had become reliant on Russia for much of its energy and is now facing a real threat of natural gas shortages as winter approaches. Discussions are now taking place in Europe to consider gas cap options and energy rationing. No longer getting supplies from Russia, Europe is buying oil and natural gas from the U.S., which increases energy prices here at home.

NEW RECORDS OF U.S. DAIRY CONSUMPTION

Good news was released in early October that Americans are consuming dairy products at a rate that is achiev ing new records. The USDA’s Economic Research Service data shows per capita consumption of dairy grew by 12.4 pounds over the previous year. This continues a 50-year growth trend that began in 1975 when the USDA started tracking annual consumption of dairy products. Average U.S. per capita dairy

consumption was 667 pounds on a milkfat basis in 2021 compared to 539 pounds in 1975 when the USDA began tracking this data. The products showing the most impressive growth are cheese, butter and yogurt.

In just the last ten years, U.S. per capita consumption of cheese rose 13%, butter is up 18% and yogurt is up 2%. Year 2021 was up 4% over the past five years, up 9% over the past 15 years and up 19% over the past 30 years. It is clear that Americans love their dairy products,

18 • Northeast Dairy Foods Association, Inc. Economic
Outlook

and demand appears to be holding up quite well despite the current inflationary environment.

FOOD, ENERGY CONTRIBUTING TO THE LARGEST OVERALL RISE IN PRICES

In mid-October, the U.S. Bureau of Labor Statistics Division of Consumer Prices and Price Indexes released its September 2022 results. The Consumer Price Index is a measure of the aver age change over time in the prices paid by consumers for a market basket of consumer goods and services. The CPI reflects spending patterns and rose 0.1% in August and 0.4% in September. During the past 12 months, the index for all items increased 8.2% with food among of the largest contributors to the overall rise. The September figures were tempered down a bit because gasoline prices dipped for a short while. Gasoline is again on the rise following the Saudis announcement that they will not be increasing oil production anytime soon.

The energy index has climbed 19.8% over the 12-month period from September 2021 to September this

year. Within this energy index we see the gasoline index up 18.2%, the elec tricity index up 15.5%, the natural gas index up 33.1%, and the fuel oil index up a whopping 58.1%. Diesel prices are even higher than gasoline prices. AAA reports that diesel prices have increased by 50% since this time last year to $5.324 per gallon in October, following an all-time high of $5.816 per gallon in June. According to the Energy Information Administration (eia), the U.S. has only enough diesel to last for 25 days because its stockpiles are “unac ceptably low.”

The food at home index has climbed 13% over the last 12 months, September 2021 to September 2022. Over the same 12-month period, the index for cereals and bakery increased 16.2%, with dairy and related products rising 15.9%. Other grocery store items like eggs, poultry, fish, and meats show increases between 9% and 15.7%.

BUTTER AND MARGARINE TOP THE CHARTS

In the dairy aisle, few items have increased more than butter and margarine.

Economic Outlook

Margarine prices have jumped by 44% in the last 12 months from September 2021 to 2022. Butter prices have risen 27% over the same period. One must wonder if high margarine prices are helping to drive consumers to butter. Most of the margarine increase is attributable to poor weather and the war in Ukraine. Soy, palm, sunflower and rapeseed are the oils used to make margarine. A severe drought in Canada has led to a 35% reduction in rapeseed plant production used to make canola oil. Canada is the world’s largest exporter of canola oil. Butter prices have escalated due to a tight market globally. New Zealand, Australia and the EU have seen sharp drops in milk production that has led to a drop in butter production. High global butter prices have driven U.S. butter exports to help fill the gaps, thus tightening inventories here and keeping domestic prices high. With lower stocks and higher exports, U.S. consumers can expect higher butter prices heading into the holidays. Butter prices at the Chicago Mercantile Exchange have risen to $3.20 a pound. Cheese manufacturers must compete with butter manufacturers for

NED Magazine | Fourth Quarter 2022 • 19
1.30 1.40 1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 2.70 2.80 2.90 3.00 3.10 3.20 3.30 3.40 U.S. $ PER POUND 11/11/2022 GRAPH USDA, DMN; SOURCE CME GROUP USDA/AMS/Dairy Market News, Madison, Wisconsin, (608)422-8587 Dairy Market News website:
Weekly Average Cash Grade AA
Prices 2018 2019 2020 2021 2022
1.10 1.20
http://www.ams.usda.gov/market-news/dairy CME
Butter

Economic Outlook

Source: USDA - National Agricultural Statistics Service - Charts and Maps - Butter: Cold Storage Stocks by Month and Year, US

available milk supplies, and, with butter prices so high, cheese makers could be at a procurement disadvantage. If so, it would serve to support higher cheese prices throughout the holiday seasons.

U.S. CONSUMERS MAKE GROCERY BUYING ADJUSTMENTS

Food and beverage analyst Emily Moquin with the Industry Intelligence Team recently reported observations on how U.S. consumers have been adjusting their grocery buying habits during these high prices and inflationary times. She points out that consumers’ concerns over the cost of dairy have escalated the most, up 10 percentage points in her surveys. Dairy’s 15.9% category price growth is one of the steepest increases of any food category. According to her surveys, 82% of shoppers say they, at least sometimes, now try to save money on groceries at the store. In the past, consumers have compared prices or purchased generic brands. However, recently, a growing number of consumers are simply choos ing to buy less. She wonders if reduced demand from consumers limiting purchases will serve to help bring prices back down. So far, dairy sales have held up quite well despite higher retail prices.

U.S. DAIRY EXPORTS NEAR 20%

Though high, U.S dairy prices have trended below most global competitors. This, plus the fact that global competitors simply do not have enough product, have driven U.S. exports. U. S. dairy exports are now approaching 18-20% of national production. Many believe the U.S. is poised to become the dominant dairy player in global export sales in the near future. Historically, the EU has been the world’s top exporter. Recently, crippling energy costs, labor expenses, feed costs, fertilizer costs, weather, and environ mental compliance are squeezing the EU’s ability to maintain its milk produc tion. Some believe EU milk production and dairy manufacturing may retract to the point of just serving its domestic market.

U.S. dairy exports are up about 7% from a year ago. Cheese exports are playing a large part in keeping CME prices above $2 a pound heading into the holidays. While cheddar production has been down around 2%, exports are up near 11.5%. Butter exports are now up a whopping 116%. Whey exports are up almost 30%, attributable to sales in China as their hog industry rebounds and whey is used in feed. Nonfat dry milk

and skim milk powder exports have been down by 17%, but exports of whole milk powder are up just over 51%. According to the U.S. Dairy Export Council, much of this year’s increase in U.S. dairy exports have been to Mexico, Central America, the Caribbean and China.

CANADA’S USMCA COMMITMENT?

We have heard little regarding the second U.S. challenge to Canada on meeting their USMCA dairy commit ments. The U.S. is again challenging Canada’s allocation measures of dairy tariff rate quota that are manipulated to restrict access to eligible applicants. Eligible applicants would be retailers, foodservice distributors, and the like. The U.S. prevailed in its first challenge, but Canada has so far refused to comply. U.S. Trade Representative Katherine Tai, USDA Secretary Vilsack, members of Congress, the USDEC and several industry trade groups have expressed outrage, calling for the levy of tariffs against Canada.

HAPPENINGS ON CAPITOL HILL

Congressional Hearings leading up to the 2023 Farm Bill have begun within both the House Agriculture Committee and the Senate Committee on Agriculture, Nutrition & Forestry. Some members of Congress have been holding meetings and listening sessions with district constituents. The American Farm Bureau Federation recently issued its 2023 Farm Bill priorities outlining its support of principles to be used as a guide for development of the various programs in the new bill. Among its dairy priorities are additional transparency to milk checks, modified block voting flexibility, eliminating the “no” vote on referendums resulting in the elimina tion of milk orders, retaining the Dairy Margin Coverage program and opposing legislation that would eliminate flavored

20 • Northeast Dairy Foods Association, Inc.

Milk Production

milk in schools. Details and more infor mation on their priorities regarding dairy and other segments of agriculture can be found on the American Farm Bureau Federation website at fb.org.

Discussions of Federal Milk Marketing Order modernization have formally begun with a forum hosted by the American Farm Bureau Federation in October in Kansas City, Missouri. The three-day event kicked off USDA Secretary Tom Vilsack’s wish that the dairy community get together and work on ideas that will galvanize the indus try before any hearings. Early reports of this forum are positive, and partici pants appeared to favor maintaining the milk marketing order system with some modifications and improvements. The last major reform took place over two decades ago, and much has been learned since then that can be used to help make the system better. Participants believe that USDA hearings to address Federal Milk Marketing Orders will take place in 2023.

In late September, New York’s Sen. Kirsten Gillibrand, chair of the Senate Agriculture Subcommittee on Livestock, Dairy and Poultry, held a video press conference calling for the U.S. Government Accountability Office to evaluate the workability of the federal milk pricing system. Gillibrand claimed the system leaves many of New York state’s small and mid-size farms at risk of adequate pay. This recent request of a GAO evaluation follows Gillibrand’s legislation named the Dairy Pricing Opportunity Act that she introduced last year claiming it would help pave the way for reforming and modernizing federal milk pricing. More information on Gillibrand’s letter to the GAO and the Dairy Pricing Opportunity Act can be found on her Congressional website at www.gillibrand.senate.gov/.

On Sept. 6, the New York Farm

ISSN:

Released October 20, 2022, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United Stat es Department of Agriculture (USDA).

September Milk Produ ction up 1.6 Percent

Milk production in the 24 major States during September totaled 17.5 billion pounds, up 1.6 percent from September 2021. August revised production, at 18.2 billion pounds, was up 1.8 percent from August 2021. The August revision represented an increase of 13 million pounds or 0.1 percent from last month's preliminary production estimate.

Production per cow in the 24 major States averaged 1,961 pounds for September, 26 pounds above September 2021.

The number of milk cows on farms in the 24 major States was 8.93 million head, 19,000 head more than September 2021, but 2,000 head less than August 2022.

July September Milk Production up 1.2 Percent

Milk production in the United States during the July September quarter totaled 5 6.5 billion pounds, up 1.2 percent from the July September quarter last year.

Monthly Milk Production 24 Selected States

Million pounds

19,000

18,500

18,000

17,500

17,000

The average number of milk cows in the United States during the quarter was 9.41 million head, unchanged from the April June quarter, but 29,000 head less than the same period last year. 16,500

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Laborers Wage Board voted 2 to 1 in favor of submitting its recommenda tion for a 40-hour overtime threshold. The recommendation has a 10-year phase-in period where the threshold is to be reduced four hours every two years. Phase-in would begin January 2024 until the 40-hour threshold is met in 2032. On Sept. 30, the recommenda tion was accepted by New York State Labor Commissioner Roberta Reardon. Farmers would be reimbursed from the state treasury for the overtime portion of the labor expense. The State Division of Budget estimates this overtime expense

credit to be $184 million between 2024 through 2027. Once fully implemented in 2032, the annual cost of the state reim bursement will be around $153 million.

For some, the commissioner’s deci sion is touted as a victory for farm workers. On the other hand, it is seen as a threat to the future of family farms in New York. Further, the decision will jeopardize the ability of New York’s processors and manufactures to compete in the regional, national and international marketplace. Farmers, manufacturers and supporting agribusinesses have made enormous financial investments in New

NED Magazine | Fourth Quarter 2022 • 21
Economic Outlook
1949 1557
2021 2022

Economic Outlook

York over decades—a fact likely not considered in the recommendation. In late October, Cornell University released a new report, How New York Farmers Adapted to New Farm Labor Overtime Requirements. The report highlights the challenges farms face with a 60-hour overtime threshold and reducing it to 40-hours will be arduous. The full report is available at the Cornell University College of Agriculture and Life Sciences website at https://cals.cornell.edu/.

MILK PRODUCTION IMPACTED

Milk production growth has been constrained in 2022 by the high cost of feed, fertilizer, labor, energy, drought, inflation and rising interest rates. Dairy farms have been cautious and some what hesitant to expand despite high

milk prices. The USDA’s October Milk Production report shows negative month-to-month growth from January to May, no change in June, and then inching up July through September. September 2022 milk production among the top 24 major states was up 1.6% compared to the same month last year. It appears the turning point was sometime after June. Could high prices finally be encouraging some cautious expansion on the part of producers?

September’s milk production per cow in the 24 major states was reported up 26 pounds from the same month last year. The number of milk cows on farms in the 24 major states was up 19,000 head from September last year, but 2,000 head less than August 2022. September milk production within the 24 major states

was New York up 2.2%, Vermont no change and Pennsylvania down 0.1%.

Considering the latest expansion trends, the USDA’s forecast made in October, elevated the average number of cows by 5,000 head and increased the annual production per cow to 24,110 pounds. It is expecting a brisker rate of expansion in late 2022. With more cows and more production per cow, the USDA increased its expectation of 2022 milk production by 0.4 billion pounds up to 226.9 billion pounds.

Higher export volume is anticipated for the rest of the year. U.S. products are expected to remain price competitive in the global marketplace and robust demand from other countries should persist for the remainder of 2022 and into 2023. The 2022 forecast price for cheese

22 • Northeast Dairy Foods Association, Inc.
2 Chart 2. 12-month percent change in CPI for All Urban Consumers (CPI-U), not seasonally adjusted, Sep. 2021 - Sep. 2022 Percent change All items All items less food and energy 4 5 6 7 8 9 10 Sep'21 Oct NovDec Jan Feb Mar Apr May JunJul Aug Sep'22 1
Not seasonally adjusted.

was raised 3 cents to $2.10 and butter raised 3 cents to $2.88. The2022 forecast for nonfat dry milk was left unchanged at $1.69 per pound, and dry whey was lowered a tiny bit to 60 cents per pound.

Using these new product forecasts, the USDA estimates 2022 Class III milk to be $21.90 per hundredweight. This is an increase of 25 cents from its forecast issued in September. The 2022 forecast for Class IV milk was increased 15 cents to $24.60 per cwt. The 2022 all-milk price forecast was raised 15 cents to $25.60 per cwt.

For 2023, the USDA uses much of the same logic. Exports should remain brisk. More milk cows are anticipated and output per cow will increase. The USDA is likely factoring in the probability that high milk prices will eventually encourage more milk production. For 2023, the average number of milk cows was increased 10,000 head and milk per cow adjusted up by 20 pounds to 24,320 pounds. Annual milk production for 2023 was raised 0.4 billion pounds to 229.2 billion pounds.

The 2023 forecast for cheese was raised 1.5 cents to $1.98 per pound, and butter raised 5.5 cents to $2.44 per pound. The 2023 forecast for dry whey was left unchanged at 48 cents per pound, and nonfat dry milk was reduced one cent to $1.49 per pound.

With higher cheese prices and steady whey prices in 2023, the Class III forecast has been increased 10 cents to $19.80 per cwt. The Class IV price forecast was also raised 15 cents to $21 per cwt. With these adjustments, the 2023 all-milk price was raised 20 cents to $22.90 per cwt.

The all-milk price forecast for 2023 is $2.70 per cwt less than 2022, but $4.37 per cwt above 2021. An abundance of variables currently in play make fore casting a challenge, including weather events, inflation, rising interest rates, high input costs, labor issues, war,

CPI MILK, FRESH, WHOLE, FORTIFIED, PER GAL. (3.8 LIT) IN U.S. CITY AVERAGE

energy, legislation and uncertainty. Exports and domestic demand are expected to remain favorable which should support higher milk prices for the remainder of 2022 and into 2023. The 2023 all-milk price forecast of $22.90 is $2.70 below the $25.60 anticipated for 2022, but $4.37 higher than the $18.53 received in 2021.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

NED Magazine | Fourth Quarter 2022 • 23
Economic Outlook
Source: U.S. BUREAU OF LABOR STATISTICS
10 25 100 15 200 20 75 30 50 45 90 Celebrating 24 • Northeast Dairy Foods Association, Inc.

A Tried and True Commitment to the Dairy Industry

The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association would like to congratulate members who have celebrated milestone anniversaries this year. Our members are celebrating as many as 130 years in business in 2022! And we applaud all for keeping our industry growing and doing their parts to keep putting delicious, quality dairy products on tables throughout the Northeast and beyond. The information on the following pages was submitted by members who responded to the questionnaire we put out over the past few months. Even if you didn’t choose to participate, we wish every one of our members celebrating a milestone in 2022 a round of applause for their accomplishments and contributions to the dairy industry.

25 100 200 30 50 45

NELSON-JAMESON:

75 YEARS

“Since 1947, Nelson-Jameson has focused on one thing – ensuring food businesses have the supplies and support they need to produce quality products efficiently and profitably,” said Mike Rindy, president.

Nelson-Jameson celebrates 75 years in 2022 of sourcing everything from equipment and cleaning chemicals to ingredients and food packaging for the food, dairy and beverage industry. The company represents over 850 vendors and distributes over 55,000 products in categories that include processing and flow control, safety, sanitation and jani torial, production and material handling, building and facility maintenance, labo ratory and QA/QC and packaging and ingredients.

In 1947, Nelson-Jameson was established in a vacant cheese factory in Toluca, Illinois by Earl Nelson and

Years of Success

100 15 75 10
NED Magazine | Fourth Quarter 2022 • 25
1-800-826-8302 • nelsonjameson.com sales@nelsonjameson.com Forward-Thinking Forward-Thinking Forward-Thinking Solutions Solutions Food Safety Food Safety Nelson-Jameson Nelson-Jameson Marsh eld Marsh eld Endeavor Endeavor Growth Beverage Beverage Support Texas Wisconsin California Seek Seek Seek Integrity Fair Fair Icon Icon Icon Respected Respected Customer-Focused Welcoming Welcoming Caring Caring Family Family Family Family Pro table Pro table Cheese Cheese Cheese Cheese Sincere Sincere Sincere Trustworthy Trustworthy Distributor Distributor Engaging Friendly Friendly Service Team Dairy Dairy Food Food Ethical Ethical Commitment Commitment Commitment Dedication Dedication Strive Strive Seek Support Support Honest Honest Honest Value Value Value Proud Proud Principled Principled Programs Programs Programs Idaho 1947 1947 Toluca Toluca Toluca Golden Rule Golden Rule Solutions Solutions Food Safety Nelson-Jameson Nelson-Jameson Marsh eld Marsh eld Endeavor Growth Growth Relevant Relevant Relevant Beverage Beverage Pennsylvania Seek Integrity Integrity Integrity Fair Fair Fair Icon Icon Respected Customer-Focused Welcoming Welcoming Caring Caring Pro table Sincere Trustworthy Trustworthy Distributor Distributor Engaging Engaging Friendly Friendly Generous Generous Generous Generous Service Service Service Team Team Team Dairy Dairy Food Food Ethical Ethical Commitment Dedication Dedication Strive Support Support Honest Value Proud Proud Principled Principled Programs 1947 Toluca Golden Rule Golden Rule Nelson-Jameson Pro table Solutions Cheese Programs Programs Toluca

his father, Ted, along with partners Herb Jameson and Bob Dougherty. Their intent was to create a dairy equipment and supply business that would serve as a comprehensive resource for dairy plants. However, the partners soon realized that Illinois was not the best location. So, Ted Nelson and Jameson poured over dairy production maps and made the decision to move the business to Marshfield, Wisconsin — the heart of dairy. Soon after, Jameson and Dougherty left to pursue other business opportunities, leaving the company in the hands of the Nelsons.

Today, the Nelson family is cele brating four generations of its family business. Currently, Adam Nelson is the chairman of the board, and Amanda Nelson Sasse is director of e-commerce. Ann-Marie Nelson Brine is a minority owner, functioning as the secretary of both of the company’s advisory board and board of directors. In 2022, Mike Rindy joined the company as president with more than 30 years of experience in the food and dairy industry.

Today, the company’s tagline — “Your Safe, Quality Food Is Our Business” has probably never rung more true. Nelson-Jameson has been working closely with each customer to understand individual needs and provide “quality, consistent products that keep a laser focus on food safety. Customers have an increased focus on environmental and biological testing, sampling supplies, sanitation products and supplies, processing items, mate rial handling products and cleaning chemicals.

From building a color-coded program to prevent cross contamination to estab lishing strong environmental monitoring programs, Nelson-Jameson has long been committed to continuous improvement by engaging with researchers, regulators, professional organizations, suppliers and

26 • Northeast
Dairy Foods Association, Inc.

other experts in the industry. Not only does the company help customers incor porate these best practices into plants, it also provides additional information through workshops, learning resources and trials.

“We are committed to providing a bridge of communication and under standing between our customers and suppliers that brings a firm grasp of the challenges and best practices that contribute to ensuring a safe food supply and help our customers navigate and exceed the regulatory expectations out

there,” said Rindy.

With this level of commitment, Nelson-Jameson is confident it has the solutions among its 110,000 items from 1,200-plus vendors that are specifically selected to service dairy, food and sani tary processors, as well as farmers and growers. It also prides itself on customer service that provides a one-stop-shop ping experience.

Nelson-Jameson prides itself on oper ating under the Golden Rule (treat others as you’d like to be treated), as is evident through its deep sense of connection

within the family, its 200-plus employees and its customers. At Nelson-Jameson fosters real relationships with real people that know the industry, which has been a benefit to the company and everyone it serves.

Nelson-Jameson is thrilled to cele brate 75 years of business success, something it attributes to its employ ees, customers, supply partners and community.

Nelson-Jameson is a member of the Northeast Dairy Suppliers Association, Inc.

TREMCAR: 60 YEARS

Tremcar is a manufacturer of tank trailers and tank trucks for the North American market. Its production output includes stainless steel and aluminum tanks. It also specializes in manufactur ing vacuum tanks dedicated to cleaning the environment: sanitary sewer, hydro excavation, vacuum sump and other specialized tanks. Tremcar’s expertise in is the ability to custom make what the customer needs. The company has production plants in the U.S., and Tremcar International exports to Latin America, the Caribbean and as far away as Argentina.

Tremcar was founded in 1962 by the Tougas brothers, Aldé and Léo, under the name of A & L Tougas Ltd. The two

brothers were welders by trade. The busi ness specialized in the fabrication of stainless steel tankers trailers dedicated to the transportation of milk between the farms and the dairies of Québec.

Over the next two decades the busi ness grew with the expansion of the dairy industry in Quebec. A & L Tougas revamped its production to keep up with the evolution of bulk milk transport. The company evolved fast from building its first milk truck in 1962 to building i’s first tank trailer in 1964. Soon, the company began to build larger tank trailers which were needed to meet the transportation needs of the dairy farms of Eastern Canada and New England.

In 1989, the Tremblay family acquired A & L Tougas and changed its

name to Tremcar. The long-term mission was to maintain – but also improve –the company’s hard-earned reputation for excellence and product quality. To achieve this goal, Tremcar had to restruc ture work procedure to optimize produc tion. Several employees were able to witness and participate in the company’s evolution and assure its growth. This was carried out in accordance with the values of the company. At the end of the 1980s, the business’s annual sales was about $3 million.

When A & L Tougas was bought by Jacques Tremblay in the late 1980s, the company only had a few dozen employ ees. Today, Tremcar has a team of over 500 employees to meet the needs of its customers across America. Specializing

NED Magazine | Fourth Quarter 2022 • 27

in the manufacture of aluminum and stainless steel tank trailers, it continues a good growth curve. Since its inception, Tremcar has placed great importance on the needs and wants of its customers and employees. The former take advan tage of the versatile knowledge of each person within the company in order to manufacture custom-made tank trailers that meet their exact needs.

Facility workers are often encour aged to acquire new knowledge and progress in their careers. “We work hard to promote the expertise of our employees. It is common to see them gain in know-how and climb the ladder to become important executives, for example,” said Daniel Tremblay.

He first joined his father’s company in 1992, while pursuing graduate studies in economics before occupying several positions that led him to the title of pres ident in 2005. His passion, his years of experience in manufacturing and his university studies in economics allowed him to make strategic decisions that benefit both customers and employees.

When A&L Tougas was acquired, one of the company’s first goal was to expand distribution. Over the years, it

has acquired several other companies. Tremcar started buying companies that were struggling in the tank market. The first was Technova.

As the company is always in search of development, its acquisition of Technova in May 1992, was carried out with the aim of obtaining greater exper tise in the production of tanks intended for the transport of chemical products. This company will be renamed Tremcar Drummond.

Each of these acquisitions has improved Tremcar’s expertise in stain less steel and aluminum products and the expansion of its facilities provided space for optimization and perfection of their manufacturing products and processes. The Tremblay family seized the oppor tunity to invest with buyouts and invest in upgrades whenever funds permitted.

Tremcar now operates manufactur ing plants in Strasburg, Ohio, Haverhill, MA, Montreal, Saint-Jean-sur-Richelieu and Saint Césaire in Quebec, and in London, Ontario. It has service centers in Strasburg, OH, Haverhill, MA, SaintJean-sur Richelieu, QC, London, On, Saskatoon, SK and Edmonton, AB. The company has dealers that offer aftersales

service in Wisconsin, Michigan, New Jersey, Pennsylvania, Texas and Costa Rica. Tremcar employs more than 500 workers across North America. Today, the company’s annual sales have skyrocketed to $160 million.

Throughout 2022 and 2023 Tremcar has and will organize events to celebrate 60 years with customers and employ ees across North America. Officially incorporated on Oct. 24, 1962, every occasion to celebrate before and after is welcomed!

Building tanks for milk hauler has been the primary industry for Tremcar since 1962. The company organized special events with the Milk Haulers in Lubbock, Texas, for example, inviting them to Montreal last July. In September, the company organized a golf tourna ment and an open house where all employees, family members and the community were invited. Events will continue through December and into the beginning of 2023 with special edition clothing (ball caps, hoodies, T-Shirts and polos) especially fabricated for the 60 years!

Tremcar is a member of the Northeast Dairy Suppliers Association, Inc.

28 • Northeast Dairy Foods Association, Inc.

handed the baton to the current managing partner, David Stonesifer, in 2019. But, while Herbein has grown over the years, the important things haven’t changed. The firm has grown from humble beginning to become a leading CPA advisory firm and is closing in on becoming one of the 100 largest CPA firms in the country.

“For our team, it’s all about entering new markets, expanding our value prop osition, re-envisioning what we do for our clients – and being bold and innova tive at the same time,” said Stonesifer. “While we look ahead, learning from our past is how we are thriving today and building our tomorrow. And, as we

NED Magazine | Fourth Quarter 2022 • 29
TANKS FOR A LIFE TIME SINCE 1962 ✔ We Lease ✔ We sell ✔ We service ANDY MULVEY ALEX LAFOREST PETE TURKALJ TOM GIOVANNI KEVEN ADAMS SMOKY DORAMUS 3 locations to better service you and see available tanks MEET The Dream Team For All Your Tank Needs 1- 800 363-2158 • TREMCAR.COM WE HAVE MULTIPLE FOOD GRADE TANKS IN STOCK United Tank Trailer, Detroit, MI Stainless and Repair, Marshfield, WI Tremcar USA, Strasburg, OH 1 2 3 TANKS FOR A LIFE TIME SINCE 1962 ✔ We Lease ✔ We sell ✔ We service ANDY MULVEY ALEX LAFOREST PETE TURKALJ TOM GIOVANNI SMOKY DORAMUS 3 locations to better service you and see available tanks MEET The Dream Team For All Your Tank Needs 1- 800 363-2158 • TREMCAR.COM WE HAVE MULTIPLE FOOD GRADE TANKS IN STOCK United Tank Trailer, Detroit, MI Stainless and Repair, Marshfield, WI Tremcar USA, Strasburg, OH 1 2 3 TOM GIOVANNI TANKS FOR A LIFE TIME SINCE 1962 We L ease We sell We servic e WE HAVE MULTIPLE FOOD GRADE TANKS IN STO CK ALEX LAFOREST PETE TURKALJ MEET The 1- 800 363-2158 WE HAVE MULTIPLE FOOD GRADE TANKS IN TANKS FOR A LIFE TIME SINCE 1962 ✔ We Lease ✔ We sell ✔ We service ANDY MULVEY LAFOREST TOM GIOVANNI KEVEN ADAMS 3 locations to better service you and see available tanks Dream Team For All Your Tank Needs 363-2158 TREMCAR.COM MULTIPLE GRADE STOCK United Tank Trailer, Detroit, MI Stainless and Repair, Marshfield, WI Tremcar USA, Strasburg, OH 1 2 3 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.

evolve, some things will stay the same.”

Herbein is committed to putting clients at the center of everything it does, creating an outstanding experience for every team member and doing every thing it can to build an exceptional team member experience and make the places where we live and work stronger.

One specific way Herbein is achiev ing these goals is adapting for long-term success by bringing new teams into its family. In 2022 alone, it joined forced with to CPA firms – Cappelletti, Pinter & Company and the LaMastra Group, as well as Ohio-based Watterson &. Associates, an organizational psychol ogy firm. These mergers come on the heels of two key combinations in 2021 when Herbein joined with CPA firm Tubiello-Harr & Associates and Mosteller + Associates, the area’s most comprehensive HR solutions partner. The company also expanded inter nationally for the first time with an October 2022 opening of a new office in the Philippines.

The Herbein teams are collaborat ing “on all cylinders” as it endeavors to provide a seamless experience for its clients, while also understanding that work needs to hold greater meaning

today than ever before.

“In the third year of the pandemic, the war for talent is on, with more people reconsidering where they work and how they work,” said Melissa Rebholz, direc tor of human relations. “We’re commit ted to providing our team with a renewed and revised sense of purpose in their work, social and interpersonal connec tions with colleagues and managers, as well as a sense of shared identity.”

“Our HR team has been outstanding in its conversations with our people, as we strive to understand what keeps them here with us,” added Managing Partner David Stonesifer. “And, as a result, we continue to do exceptionally well in maintaining team continuity, which, in turn, allows us to maintain high client service.”

Maintaining that high client service has required two operating tracks for the firms – building on its traditional business and seeking opportunities in new services and geographies with more innovation, integration and breaking down of silos to redefine relationships. The company. Has also continued to make progress in areas of diversity and inclusion and has taken meaningful action to support its commitment through

Horizon, its’ firmwide DEIA initiative.

As the firm continues to look towards the future it does so with an expectation that goes beyond compliance with its clients, as the industry is moving more towards advisory services. It intends to focus on anticipating and responding to these needs and drive mutual growth through advisory services that are rele vant to today’s business environment.

In recognition of 50 years in busi ness, Herbein celebrated in a number of ways. Team members outlined their favorite moments on its intranet, and the firm recently. Published a commemo rative book that examined these shared experiences. Key moments are being shared on social media, as well. And, in October, the firm gathered for a three-day retreat. Herbein has also hosted several client events to express its gratitude for the trust they place in the firm. In addition, Herbein created a “50 for 50” program, which, at first, intended to donated $50,000 to nonprofit organiza tions. The response was so overwhelm ing, however, that the firm upped the program to over $76,000 to ensure that every submission received some level of support. And, finally, Herbein refreshed its brand identity and website as a nod to its 50th anniversary and a demonstration of its strength and stability.

“Our incredibly talented team members have done so much to set our firm up for our next 50 years. In 2022, Herbein continues to create even greater value for our team, our clients and our community,” said Stonesifer. “We are confident in our strategic direction and believe our purpose-led approach will help clients thrive and communities prosper for years to come. As Herbein looks ahead to our next half century, our entrepreneurial spirit drive us forward.”

Herbein is a member of the Northeast Dairy Suppliers Association, Inc.

30 • Northeast Dairy
Foods Association, Inc.

RWS DESIGN AND CONTROLS: 20 YEARS

In 2002, Dave Smith, Mike Rehberg and Ed Wirth formed RWS Design and Controls. The trio had worked together at Dean Foods and decided to strike out on their own, forming what was initially started as a controls and instrumenta tion company. Then, in 2004, Greg Graves joined as a fourth principal of the company, having also worked with the others at Dean Foods.

In the years that followed, the company has transformed into a nation ally recognized, full-service process inte gration firm, with a specialty in ESL, UHT, aseptic processing and automation. RWS works primarily in the food, dairy and beverage industries and is proudly celebrating its 20th anniversary this year!

“The company started in Machesney Park, Illinois, in the basement of a home converted to office space and, from those humble beginnings, RWS now employs almost 100 people,” said Dave Scherr, national sales manager for RWS Design & Controls. “From the receiving bays of a dairy plant to the fillers, we design, furnish, install and automate all that goes into this space. We also take complete responsibility for turnkey projects that sometimes include civil work and filling equipment.”

And, if that’s not enough, RWS can provide the spare parts and a host of maintenance and repair services for their customers, courtesy of a staff of some of the most seasoned, professional, knowl edgeable and experienced personnel in the dairy process industry.

“There is tremendous flexibility and professional expertise in our portfolio, including a unique ability to do our own process control and automation,” added Scherr.

That portfolio is comprehensive, indeed. RWS Design and Controls sells

NED Magazine | Fourth Quarter 2022 • 31

stand-alone equipment from industry leading OEMs, plus engineered and auto mated process systems. It also offers a large selection of modular skidded systems and UL listed control panels, fabricated within its 60,000-square-foot headquarters and manufacturing facil ity in Roscoe, Illinois (It underwent an impressive expansion last summer, adding additional office, conference and training space).

“We provide and install sanitary process equipment, plus offer the engi neering, design, automation, spare parts and maintenance support,” said Scherr.

The company offers nationwide coverage, utilizing three project teams. Each team is led by an owner of the company and is staffed with process, project, automation, commissioning engi neers, installation crews, administrative, management and direct sales support.

“We work very closely with custom ers who may have one or multiple plants within a region or nationally. We find this team approach to be very effective for providing exceptional, world-class service to our customers across the

country,” said Scherr. “Many of our best customers, have relied on RWS exper tise and services since its inception. This is because we take great pride in these long-standing relationships and always take on their challenges as our own.”

As a result, new customers rarely remain new for long.

“The thing that differentiates us is our commitment to offering our customer a great deal of flexibility in how they rely on RWS in helping their cause,” said Scherr. “We utilize our extensive expertise in dairy process to offer our customers a broad range of equipment, systems and services, while consistently focusing our mission on great quality work and genuine customer delight. I think that’s our claim to fame. Once we are introduced into a new company, we rarely don’t get invited back, and at the same time, we are laser focused on providing our new and loyal custom ers with the absolute best service our company can offer.”

That deep concern for customer satis faction is also reflected in the company’s culture.

“We consistently focus on recruiting the best our industry has available and are always on the lookout for adding to our staff in many different disciplines,” said Scherr. “The culture that I am priv ileged to work amongst is extremely focused, dedicated and technically bril liant in dairy processing; surely some of the best the industry has to offer, who are outstanding at what they do. An impressive number of staff within our organization have been with RWS for the long term. The culture is evolv ing a bit as the company grows, adding both entry level and professional staff throughout the organization continuously to provide our customers with a level of service they can always rely on with confidence.”

As RWS celebrates its 20th anniver sary this year and looks to the future, it remains committed to providing the dairy industry with reliable expertise in the design, supply, fabrication installa tion, automation and support of sanitary process equipment and systems.

RWS is a member of the Northeast Dairy Suppliers Association, Inc.

32 • Northeast Dairy Foods Association, Inc.

Other members celebrating milestone years in 2022

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Atlas Minerals & Chemicals:
years)/NDSA DSM Food Specialties:
years)/NSDA OCS Process Systems:
years)/NDSA Nielsen-Massey Vanillas:
years)/NDSA Dart Container Corporation:
years)/NDSA Feldmeier Equipment:
years)/NDSA Huff Ice Cream: 1952
years)/NDFA Alnye Trucking: 1957
Elopak:
Rowlands Sales Co.:
Berkley Agribusiness:
Berry Global:
Plastipak:
Comairco Equipment:
years)/NDSA Tri Tank Corp: 1977
Marktec Products: 1982
years)/NDSA Sharon Manufacturing Co.: 1982
years)/NDSA Statco-DSI: 1982
years)/NDSA RFG Dairy, Noga Dairy: 1992
years)/NDSA National Solar Technologies: 1997
years)/NDSA Paylocity: 1997
years)/NDSA Euphrates: 2002
years)/NDFA
1892 (130
1902 (120
1902 (120
1907 (115
1937 (85
1952 (70
(70
(65 years)/NDSA
1957 (65 years)/NDSA
1957 (65 years)/NDSA
1967 (55 years)/NDSA
1967 (55 years)/NDSA
1967 (55 years)/NDSA
1972 (50
(45 years)/NDSA
(40
(40
(40
(30
(25
(25
(20

Sustainability

Will the Dairy and Seaweed Industries in the Northeast Work Together to Reach Net-Zero?

Studies show feeding seaweed to cattle reduces their methane emissions, but can it be implemented? A group of researchers in the Northeast aims to find out.

“W

ho wants to try their hand at sorting the rockweed?” yelled a worker over the sound of machinery.

Several graduate students gleefully volunteered, sifting their hands through the seaweed, searching for bycatch. “I found a crab!” “I found a snail!” Mostly, the search was in vain as very little bycatch, which is the unwanted fish and other marine crea tures caught during commercial fishing, was present. They watched as the rockweed continued along a conveyor belt to be dried, powdered and packaged into a nutritional supple ment for animals.

In July, a team of over 40 researchers made up of scien tists, consultants, professors and students, gathered in person in coastal Maine for a meeting of the minds, hosted by Bigelow Laboratory for Ocean Sciences. This capped off a multi-day, action-packed meeting with a trip to SOURCE Micronutrients Inc., which harvests rockweed and other seaweeds and processes them into nutritional supplements for both human and animal consumption.

The researchers are all teammates on a project called “Coast-Cow-Consumer,” an endeavor funded by the USDA Sustainable Agriculture Systems program to investigate if feeding algae to dairy cows to reduce methane emis sions is feasible in the Northeast and beyond. The program director of Coast-Cow-Consumer is Nichole Price, a senior research scientist and the director of the Center for Seafood

Solutions at Bigelow Laboratory for Ocean Sciences. She leads a large team of research scientists at Bigelow who are studying aspects of algae production, such as iodine levels and nutritional composition in various species.

Methane, a greenhouse gas, has been linked to climate change and is known to have up to 30 times the warming effect of carbon dioxide. In the United States, an esti mated 26.7% of total methane emissions are attributed to enteric fermentation, corresponding to about 2.7% of human-related greenhouse gas emissions. The good news is that recent studies show that algal supplements in dairy cattle diets can reduce enteric methane emissions by 99% in lab studies and 80% in live animal trials – a staggering reduction.

“I think that reducing enteric methane through alter ing or adding feed supplements is one part of the dairy industry’s commitment to reducing the impact ruminants have on climate change,” explained Professor Emeritus Rick Kersbergen of the University of Maine Extension. Kersbergen is a dairy consultant on the project, facilitating interactions with researchers and dairy farmers.

“Working to find feed supplements that reduce meth ane emissions from dairy cows is critical given the recent developments in other countries regarding a possible tax on methane emissions. I think finding solutions that are cost effective, improve feeding efficiency and fit into both conventional and organic dairy systems is key to this research,” said Kersbergen.

34 • Northeast Dairy Foods Association, Inc.

However, most previ ous studies fed cattle a red seaweed called asparagopsis taxiformis, which is found in tropi cal waters in the south ern hemisphere – quite a distance from American dairy farms – and is difficult to cultivate at scale to meet demand. Asparagopsis has high levels of bromoform, the methane-reducing bioac tive compound identified in algae. Now, research ers from Coast-CowConsumer are wondering if similar results can be replicated with local seaweed species or microalgae and if the algae can be supplied to dairy farmers affordably, without impacting milk yield or quality.

The Northeastern United States is espe cially suited for this cutting-edge research. Not only is it home to a strong dairy industry and a developing seaweed industry, its proximity to cool coastal waters means the supply chain is shorter than in most regions. The Gulf of Maine alone is home to over 250 species of seaweed and as fisheries in the region have struggled, many have turned to seaweed aquaculture to stabilize and supplement income stream. For rural coastal communities in the region, seaweed aquaculture provides an avenue for job creation and, thus, a sustained quality of life.

Additionally, the Coast-Cow-Consumer research team at Bigelow is looking into microalgae as a possible feed additive – of which there are over 3,000 strains housed in Bigelow’s National Center for Marine Algae and Microbiota – and if growing microalgae on dairy farms would ease the complexities of harvesting, processing and transporting seaweed to farms not located in coastal regions.

It all starts with what the team calls the “bottle herd,” which is a group of glass bottles containing rumen fluids to which Bigelow researchers “feed” various algae and forage. They then measure the methane produced inside the glass bottles. Seaweed

species that perform well in the bottle herd move on to animal trials at three partner institutions: the University of New Hampshire, Wolfe’s Neck Center for Agriculture and the Environment in Maine, and the W.H. Miner Institute in New York.

Sarah Morrison, Ph.D., from the W.H. Miner Institute is lead ing two animal trials of algae-based feed supple ments. She explained how they measure the methane emissions of cows using technology called the GreenFeed system.

“We are measur ing methane through a system that attracts the cows to it with a small amount of pelleted grain and measures the amount of methane she is eructating while at the machine through the sensors that it has. It gives us a snapshot of each cow’s emis sions throughout the day and compares the different diets we are feeding during a study,” Morrison explained.

Even if the animal trials find local seaweed species and microalgae that reduce enteric methane emissions with mini mal change to milk quality, there are many other pieces of the puzzle to solve.

“Without the dairy farmer and professional dairy nutrition ists’ support, this technology cannot be implemented. Learning from and listening to farmers and other dairy professionals is key,” explained Rick Welsh, professor of food studies at Syracuse University.

Welsh and his team at Syracuse University conducted focus group interviews with organic and conventional dairy farmers in Maine, Vermont, New Hampshire and New York. Their focus groups found that organic dairy farmers often feed rockweed (marketed to them as dried kelp meal) for preventative health care reasons, but that they are concerned about the increasing cost of this input. Conventional dairy farmers interviewed had

NED Magazine | Fourth Quarter 2022 • 35
Sustainability

Sustainability

heard that seaweed can reduce methane emissions but noted that unless they could afford it and implement it easily into existing feeding regimens, it could not be widely adopted. Both organic and conventional farmers expressed that incentives might be needed to feed seaweed for methane reduction, as they are operating on razor thin margins.

David Connor is an economist on the Cost-Cow-Consumer project and is a professor of economics at the University of Vermont, focusing on the dairy supply chain. “We are starting with those who sell to farmers, like feed suppliers, and moving our way ‘upstream’ to the ocean,” he said.

Connor and his team aim to answer how seaweed supple ments move through the supply chain in ways that create value for all supply chain actors, how they can move efficiently and affordably and how this product can create opportunity for community economic development.

Harvesting, processing, and transporting seaweed from the Coast of New England to inland dairies is a complex part of the Coast-Cow-Consumer puzzle. After all, would the energy used in these post-harvest activities nullify the climate benefit

of feeding seaweed? Professor Sue Powers and her team at Clarkson University are using a Life Cycle Assessment to find out.

“A lifecycle assessment helps to pull together the sometimes dispa rate understanding of the chain from coast-to-consumer into one overall study of the environmental impacts of the system,” she said. “By identifying the most substan tial sources and sinks of greenhouse gas emissions, we can focus our efforts on the most critical aspects. For example, does transportation or kelp processing matter more in the bigger picture? The work of the Coast-Cow-Consumer research team is only just beginning, but the opportunities for dairy farmersand the climate – are bright.”

Coast-Cow-Consumer includes team members from Bigelow Laboratory for Ocean Sciences, Clarkson University, Colby College, Northeast Dairy Foods Association member Cornell Cooperative Extension, Kansas State University, Syracuse University, University of New Hampshire, University of Vermont, William H. Miner Agricultural Research Institute and Wolfe’s Neck Center for Agriculture and the Environment. This work is supported by Sustainable Agriculture Systems grant no. 2021-69012-35919 and Organic Agriculture Research & Extension Initiative grant no. 2021-51300-35226 from the USDA National Institute of Food and Agriculture.

Michelle Tynan is in her second year of graduate school at Syracuse University, getting her master’s degree in food studies. She is a graduate research assistant for Professor Rick Welsh on the Coast-Cow-Consumer project. Prior to this endeavor, she worked as an organic livestock certifi cation specialist at the Washington State Department of Agriculture for four years and as a cheesemaker/cow milker on a small dairy farm in Massachusetts for three years. She has a soft spot for Jersey cows and likes to spend her free time on long walks with her border collie, Tam.

36 • Northeast
Dairy Foods Association, Inc.

The Legacy of Louis Pasteur

Few individuals in history can get close to equaling the achievements and contributions to mankind than those of Louis Pasteur. Most people asso ciate Pasteur with the term that bears his name: “pasteurization,” but there is so much more that he achieved throughout his life that benefitted the world and advanced science. In January 2022, the United Nations World Food Program honored Pasteur as the “father of microbiology,” responsible for several amazing and world-changing discover ies. Not only was he a pioneer for food safety but also a great experimenter and innovative theorist whose breakthroughs have saved countless lives.

Pasteur was born in 1822 in the town of Dole, France, about 248 miles southeast of Paris. His family had operated

a tannery for generations, and it was assumed young Louis would carry on in the tanning business. However, he showed great aptitude for learning and his thirst for higher education was recognized by his early teachers. At age 15, he traveled to Paris to complete his secondary education. Later, Pasteur completed his Bachelor of Science at the Royal College of Besancon in 1842. To further his education in chemistry, he attended the Ecole Normale in Paris, receiving his Master of Science in 1845.

Pasteur then pursued his doctoral degree at Ecole Normale where he investigated the structure of tartrate and paratartrate crystals, whose structure had baffled the greatest chemists of the time. By the time he received his doctorate in 1847, Pasteur was developing a reputation among research scientists. In 1848, he

NED Magazine | Fourth Quarter 2022 • 37
Something to Consider

Something to Consider

became a professor of chemistry at the University of Strasburg and spent five years teaching and conducting research there. In 1854, Pasteur was appointed professor of chemistry and dean of the science faculty at the University of Lille. He was asked to establish a science faculty and do research there for the benefit of industry and business. At Lille, Pasteur’s research in applied science led him to explore the process of fermentation, which turns sugar into alcohol and sours milk. A new branch of science called microbiology was born. Pasteur had proved that fermentation took place from tiny living organisms called microbes. In 1857, he returned to Ecole Normale as Director of Scientific Studies where he continued his work on microbes.

At the time, most scientists believed in the concept of spon taneous generation of microscopic organisms. Spontaneous generation embraced the thought that life can spring up from non-living matter such as worms, mice and maggots. This idea was later disproved when meat wrapped in gauze prevented flies from laying eggs on the surface. Maggots are the larvae from fly eggs that hatch.

Pasteur created custom glassware in his lab where he could boil broth to kill any microbes present. His special glassware would allow air to circulate around the broth but not allow airborne microbes to enter. As he expected, no microbes appeared later in the broth. Pasteur had proven that microbes were not generated spontaneously in the broth itself but only appeared if allowed to enter with the air. Microbes, like other living beings, came only from life itself and were not sponta neously generated.

Armed with a decent theoretical understanding of microbes, Pasteur applied his findings to the important French wine indus try. In 1865, the French economy was highly dependent on wine exports, and many citizens relied on the industry for its livelihood. Wine souring and spoilage was a persistent problem

that Pasteur tackled by slightly modifying his glass broth jars. Boiling the wine altered its flavor, so Pasteur heated it just enough to destroy most of the microbes without altering taste. He found that by quickly chilling, and then preventing air from entering, the wine had little additional microbial growth. Pasteur was ecstatic in finding that this same process could be applied to milk. His discovery made milk, wine, beer and many other products safe for consumption and wider distribution.

Following his fermentation discoveries, Pasteur turned his attention to germ theory. He and a few other researchers believed diseases were caused by microorganisms or “germ theory.” His opponents at the time believed major diseases were the result of an individual’s weak and imbalanced state. In 1868, Pasteur turned his attention to another major French industry — silk. Silkworms were being destroyed due to diseased eggs. Pasteur trained silkworm farmers in the use of the microscope to detect diseased eggs, which could then be destroyed. France and its silkworm nurseries were saved! Pasteur was a national hero and by this time was developing quite a bit of fame. The French government honored him with the Legion of Honor, its highest award.

In 1880, Pasteur carried on his work against disease. This time focusing on fowl cholera. His research led to the discovery of microbe attenuation or weakening to create vaccines. He found that injecting weakened attenuated microbes into the chickens protected the poultry from the onslaught of disease and almost certain death from fowl cholera.

Pasteur began to realize that his discovery of injecting with attenuated microbes could be applied to other diseases. This time, he turned his attention to anthrax and soon realized that weakened bacilli would protect sheep and other farm animals.

In a famous public display at Poultry-le-Fort in 1881 before a large crowd, Pasteur vaccinated a group of sheep, goats and

38 • Northeast Dairy Foods Association, Inc.
Throughout his life, Pasteur took little money for his discoveries. While he did patent many of his works, he sought no compensation, believing his breakthroughs should be gifts to mankind.

Something to Consider

cows with his new vaccine. A control group of similar animals were not vaccinated. All animals were then injected with a virulent anthrax bacillus. A few days later, the crowd reas sembled, and Pasteur was met with resounding applause. All the inoculated animals were alive, while the control group of other animals were dead or almost so. The effectiveness of his vaccine was undeniable.

Not resting, or taking any time off, Pasteur turned his atten tion and active mind to his next theoretical breakthrough – the concept that many animal diseases were the result of harmful microbes or germs. He believed the microbes entered the body and multiplied. In 1882, Pasteur advanced to the next, and likely the greatest, step in his career – diseases in humans. Pasteur explored diseases that afflicted both animals and humans. This way he could conduct research using animals first. He turned his attention to rabies.

Throughout history, rabies was a feared and deadly disease contracted by being bitten by a dog, wolf or other animal. Treating humans was performed by cauterization of the wound with a hot iron. This method rarely worked, and most patients later died.

Pasteur started his rabies research with animals in 1882. He was frustrated by the long incubation period between the time the animal was bitten and the time it took for the germs to enter the brain. Research was time-consuming but led to another remarkable discovery. Previous research revealed that vaccines must be given prior to exposure. The delay in time that it took for the rabies germ to reach the brain meant that a vaccine could be administered after exposure from a bite. So only those who had been bitten by a rabid animal need be treated.

Pasteur discovered that like other infectious diseases, rabies could be attenuated or weakened before injecting into

another animal. Attenuated rabies was injected into rabbits, monkeys and later dogs with success against later death. In 1885, a 9-year-old boy was bitten by a rabid animal. With some reluctance, Pasteur agreed to treat his first human, who was otherwise faced with certain death. He was not sure if the vaccine he created would be effective with humans. Following several weeks of treatment, it became clear the vaccine used on the boy was successful. Pasteur had achieved world renown.

In 1888, the Pasteur Institute in Paris was formed as one of the most premiere facilities of biomedical research work against disease in the world. By this time Louis was nearing 66 years old. With failing health, he served the institute in an advisory capacity with scientists he had trained. His students assumed future responsibilities and carried on his research.

Throughout his life, Pasteur took little money for his discov eries. While he did patent many of his works, he sought no compensation, believing his breakthroughs should be gifts to mankind. Pasteur died on Sept. 28, 1895, after a remark able life. His numerous contributions to science and medicine are impressive. He often said that his strong Christian faith supported him through many challenges and trials. Pasteur was a strong believer in creation and was staunchly opposed to Darwin’s theory of evolution.

Today, the pharmaceutical company Sanofi Pasteur contin ues his legacy of discovering and manufacturing vaccines.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic anal ysis, statistics and information to the dairy processing industry.

NED Magazine | Fourth Quarter 2022 • 39

Annual Dairy Convention Attendees Treated to A Variety of Informative Speakers

This year’s convention, held at the Landing Hotel at Rivers Casino in Schenectady New York, in August, was a big success with several wonder ful speakers. The seven presentations were very informative, covering a broad array of current topics that were valuable to this year’s attendees. Here is a recap of the information these speakers shared.

Hardbarger is the current secre tary of the Pennsylvania Milk Marketing Board and writes regularly in several weekly dairy publications. Many of these are included in our online Dairy Newsroom newslet ter. Hardbarger holds a doctorate in agricultural and extension education. She was on the faculty of Cornell’s Education Department with over 40 refenced publications, research reports and public speaking appearances. Hardbarger’s presentation left little doubt about her love for agriculture and the Pennsylvania dairy industry. Highlights from her speech included:

• “Milk output per cow in Pennsylvania is 12% below the national average. Milkfat production is 13% below the national average. We have lots of Amish dairy farmers that don’t take advantage of mechanical and feed efficiencies. Many are 30 cow operations. This is a wonderful way of life, and we value that in Pennsylvania.”

• “The state over order premium (OOP) was first designed at a time when 70% of milk produced in Pennsylvania stayed in Pennsylvania. We are currently at 20-30%.”

• “Dealers are required to pay all of the required OOP, not so for coops.”

• “Agricultural illiteracy exists among policy makers. There are philosophical differences at the top of the food chain. It is a four-legged stool: producers, processors, retailers, and consumers.”

• “We must have meaningful support at the state level. Organizations like yours could have quick response teams to address issues.”

• “We must recognize our cultural heritage and the culture of our small farms. Unless we protect our small farms and their heritage, organizations like this will be meaningless.”

KIMBERLY BUKOWSKI AND ANIKA GIANFORTE

Kimberly Bukowski is with the Cornell Dairy Food Science Extension team and is deeply involved with their Dairy Foods Certificate Program. She has an extensive background in dairy education and plant operations. Bukowski has managed Borden’s ice cream plant, Kimberly’s Ice Cream, and Cornell’s dairy plant.

Anika Gianforte is a dairy processing specialist with Cornell University’s Dairy Foods Extension Program. Gianforte work focuses on dairy foods processing and workforce development activities for the dairy processing sector. She is an instructor for Dairy Foods Certificate Program courses, including HACCP, PCQI, and product-specific courses. She regularly works with dairy plants and partner organizations to develop programs to help alleviate the pressing issue of recruiting qualified indi viduals to careers in dairy processing.

At the convention, Bukowski and Gianforte gave a very stimulating presentation on their recent efforts introducing high school students to career options available in dairy processing and manufacturing. Highlights from their presen tation included:

40 • Northeast Dairy Foods Association, Inc. Association News

“The Cornell processing boot camp program came suddenly and was in response to a shortage of labor in the Western NY area. Originally, we wanted 40 kids, but in the end we had only 12 due to plant tour size constraints.”

• “We were surprised that the kids involved were very engaged. Western NY dairy companies got involved and very engaged by sending representatives from their Human Resources Departments to speak to the students.”

• “If we want to convince these kids of a future career in the dairy industry, we had to get the people from these companies to come and describe their own careers in dairy.”

“The program was only three days. We wish that we had a week.”

• “How do we get this program into more areas of the state? How can our team support the workload? Resources and funding for the program per region will need to be determined at some point.”

HOPE KNIGHT

Knight is the president, CEO and commissioner of Empire State Development, New York state’s key economic development agency. She was nominated by New York’s Gov. Kathy Hochul and was confirmed by the State Senate in May 2022. As commissioner, Knight is committed to programs that support sustainable economic growth in New York. Knight helped create the Office of Strategic Workforce Development to focus on aligning the needs and priorities of the states’ employers. She has also been instrumental in support for small business and minority-owned business assuring they have access to resources necessary to succeed. Some of her highlights included:

• “Empire State Development is all about expanding opportunity.”

• “The ag and food industry is important to New York State. New York produces one-quarter of the nations’ cottage cheese as well as significant amounts of sour cream, yogurt, and other dairy products.”

• “Dairy production and manufacturing are vital to the New York economy.”

• “Grant funds and performance-based tax credits have been awarded to several New York State dairy manufacturers to help grow their facilities and workforce.”

• “Ultimately, our goal is to help businesses grow and thrive in New York State.”

RICHARD A. BALL

As New York’s commissioner of agriculture, Ball oversees all aspects in the relationship between the state and its broad agribusiness commu nity. He was nominated to the post in January 2014. Ball has an extensive background in agriculture that began as a youngster on his parents’ dairy farm. Later in life, his career took a path that led to vegetable farming. Ball’s farm, near the Capital District, remains a family run business that is successful and beautiful. Throughout his career, he has held numerous positions in the agricultural community at the local, state, and national level. Ball is the current president of the National Association of State Departments of Agriculture, as well as president of Food Exports Northeast. Here is a summary of some of his comments to the convention audience:

• “It’s kind of fun for me to be here. I grew up on a dairy farm that was sold when I was 10. I looked up to my parents and wanted to be like them.”

“The family farm transitioned form dairy to vegetables and that’s how I learned to be a farmer. My vegetable farm now has three generations of our family working on it. I can connect the dots now. Connecting people that grow food with people that need food.”

“Dairy plants today still smell the same, but their work is very different. The plants themselves are different. They are awesome and we need to deal with the future employees of these plants.”

“The average age of the farm worker is now 57 in New York, and 23 percent do not have a next generation on the farm. How do we connect the dots?”

“The northeast corridor has the largest, most diverse, marketplace in the world. We don’t ever want to be in jeopardy with our food supply. We learned a lot during the pandemic.”

“At the end of the day, we have much to worry about. Looking around the room, I like our chances in New York. Thank you so much for what you do for us in New York.”

NED Magazine | Fourth Quarter 2022 • 41 Association News
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JOHN CHRISMAN

Chrisman serves as the current CEO of the American Dairy Association North East, the regional promotion group representing 9,000 northeast dairy farmers. In his role as CEO, Chrisman is the primary liaison between his farmers and government leaders to encourage dairy sales. The American Dairy Association North East was instrumental in linking critical dairy products with distributors and consumers during the pandemic. Prior to assuming his role as CEO in 2022, Chrisman held other senior leadership positions in retail marketing, producer relations, school sales, processor affairs and foodbank/hunger relief. Here are some of the points highlighted in his speech:

“Our goal is to keep kids as lifetime customers.”

“Milk is the #1 most requested item by food banks.”

“The Dairy Research and Promotion Program, also known as the Dairy Checkoff Program, was started by farmers in 1983 and is funded by a 15 cent per hundredweight assessment on their milk. This funds everything we do in our marketing.”

“We have established national partnerships with companies where we actually have our own food scientists working with their organizations.”

• “Eighty percent of milk, 70% of yogurt, and 33% of cheese is old at retail locations. We must be in these stores to help upgrade them. We call it Dairy Aisle Reinvention.”

• “We do a lot of cross-merchandising to lift sales in 2,800 stores across a six-state region. Cross merchandising and marketing have proven to give a 7% boost in sales.”

• “We focus on temperature, hygiene, stock conditions, and rotation. We work with school districts to make sure milk is served cold at 35 degrees.”

• “We work with credible dairy advocates like our NFL player-partners and dietitians. We also work with our 9,000 dairy farmers with promotions. No one tells the story about dairy better than our farmers. A big success has been the adopt a cow program.”

• “Sixty percent of kids drink milk in schools. Our refuel with chocolate milk program has been a success. Our chocolate milk is now the official beverage of the state championships where we have a designated area called the refuel zone.”

ROBERTO CAMACHO

Camacho is a mechanical engineer who has worked for the Volvo Group for 18 years. At Volvo, Camacho has led various innovation projects that include the hybrid bus and full electric bus. He also served as Volvo’s distribution development account manager. Currently, Camacho is the e-mobility regional sales manager for the North East Region. His convention presentation was very educational and generated many questions from the attending audience. Some of his comments included:

• “Our goal at Volvo is to reduce CO2 emissions by 50% by 2030, 100% by 2040.”

• “This is all very difficult, but we think that it is achievable.”

• “Developing the truck is the easy part, but we must work very hard to develop the infrastructure. We have the trucks and batteries, but the infrastructure is the biggest challenge.”

• “If you don’t start doing it, it will never happen.”

• “Our batteries are made in Germany and are good for 10,000 cycles or approximately 8-9 years. We can recycle these batteries. So, they will get more than one life.”

• “We are not ready for a 24-hour operation. The industry must change, or we must come up with a battery that can keep up. Right now, we are geared more for 16-hour operation.”

• “A faster charger will reduce charge time but place more stress on the battery. These batteries weigh more than 8,000 lbs. and are not easily swapped out like a forklift battery.”

• “One of our constraining elements is the charger. A partial charge will not shorten battery life. What will shorten battery life is a fast charge. Again, we estimate an 8-9 year battery life.”

• “The cost of the electric truck is 2.5 times more than your diesel, but the cost to operate the electric is less. We estimate the cost offset to be 3.5-4 years. A typical $600 trip with a diesel, will cost $80 for the electric. There are federal grants money to help offset the cost of conversions.”

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Foods Association, Inc. Association News

MAUREEN LEDDY

Leddy is the director of the New York State DEC Office of Climate Change. She leads the development of programs and policies to help mitigate greenhouse gas emissions to assist New York adapt to climate change. Leddy leads DEC implementation of the Climate Leadership and Community Protection Act in partnership with the New York State Energy Research and Development Authority (NYSERDA). She has experience working in carbon finance, quantifying the greenhouse gas reduction potential for energy efficiency and renewable energy projects. Leddy touched upon several areas where her agency can be of benefit to the agricultural community. Here is a summary of her comments:

• “The goal of the Climate Leadership and Community Protection Act (CLCPA) is to achieve 100% zero emis sions by year 2040. This is very ambitious. It is a chal lenging law, but we are making progress.”

• “Driven by the climate act, the draft scoping plan is multi-sectional, holistic and grounded in scenario modeling.”

• “It’s tough for farmers to adjust to these target emissions. Agriculture was 6% of total emissions in 2018. Livestock is 82% of this and forestry is 9%.”

• “We are managing manure using anaerobic digesters. This gas could charge a fuel cell for the tractor.”

• “Electrifying farm equipment is challenging. How do you make it attractive and affordable for farmers to do it? How do you manage livestock and reduce emissions? Cornell is now involved to help answer these questions.”

• “New York helps fund many projects through the New York State Energy Research and Development Authority (NYSERDA) and the Department of Ag and Markets. There’s a lot of financial support for farmers to get involved and reduce emissions.”

NED Magazine | Fourth Quarter 2022 • 43 Association News

2022 Northeast Dairy Convention

44 • Northeast Dairy Foods Association, Inc. Association News
The Landing Hotel at Rivers Casino | Schenectady, New York
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Winners Announced for the 2022-23 Bruce W. Krupke Memorial Scholarship

The Northeast Dairy Suppliers Association, Inc., recently announced it awarded a total of $18,000 to a dozen students who were the winners of the Bruce W. Krupke Memorial Scholarship for the 2022-23 academic year. Scholarships in the amount of $2,000 (gold) and $1000 (silver) were awarded to students based on merit. To qualify, students must attend a two-or four-year college or university or a trade school and must have a connection to the Northeast Dairy Suppliers Association or the Northeast Dairy Foods Association to apply.

Three years ago, the Northeast Dairy Suppliers Association board of directors dedicated the scholarship in memory of Bruce W. Krupke, who served as executive vice president of the Northeast Dairy Foods Association and Northeast Dairy Suppliers Association for 27 years.

“We are committing to supporting those associated with our membership in the pursuit of education,” said Melissa Fryer, president, board of directors, Northeast Dairy Suppliers Association, Inc. “Whether they pursue a dairy-related field or not, we know that these recipients are tomorrow’s leaders. And, we are so impressed with the caliber of our applicants and the determination they have for their futures. We wish them every success as they work toward their goals, and we hope these students will encourage others without our organizations to apply for these scholarships funds next year.”

To be considered for a scholarship, applicants must be an employee of an NDFA/NDSA member, an immediate family member of a member or a student member of NDSA them selves, and must be enrolled for the 2022-2023 academic year as a full-time student with a minimum of 12 credits and a GPA of 2.5 or greater. Scholarship information is available each year after Feb. 1 with applications due by June 1 through the association’s website. Scholarships are funded through the association’s events, like the annual golf tournament and clambake, as well as member dues and sponsorship of annual industry events.

Here is an overview of this year’s winners accomplishments and a quote each supplied on his or her application regarding plans for the future.

ALAINA BROUGHTON

Alaina Broughton of Cleves, Ohio, is the daughter of Amy Broughton, who works for Ace Sanitary/Ace Manufacturing, a member of the Northeast Dairy Suppliers Association, Inc.

NED Magazine | Fourth Quarter 2022 • 47 Association News

She is attending Cedarville University with a psychology, family and child studies track major and minors in graphic design, women’s ministry and the Bible. Broughton is in the honors program.

“I chose psychology because I want to help people. My goals in studying psychology are learning more about people and how to better help those who are struggling. I want to work with a ministry that serves children or women in crisis, such as those who have been removed from emergency situations or are in crisis with mental or behavioral health.”

MACY CARR

Macy Carr is from Waterloo, New York, and is the daughter of Robert and Cheryl Carr, who work for Wadhams Enterprises and Separators, Inc., respectively, both members of the Northeast Dairy Suppliers Association, Inc. She is attending SUNY Albany to study business.

JENNIFER CARL

Jennifer Carl is from Cicero, New York, and is the daugh ter of Donna Carl, who works for Dairy Farmers of America, a member of the Northeast Dairy Suppliers Association, Inc. She is attending St. John Fisher College, where she is majoring in biology and minoring in chemistry. She has worked as an intern in the elephant barn at the Rosamond Gifford Zoo in Syracuse, New York, where she assisted with animal nutri tion, animal care and habitat upkeep, and she also worked as an ER vet assistant, where she helped veterinarians and vet techs with various procedures. Carl also worked as a clinic assistant, assisting with animal nail trims, microchipping and collecting blood samples.

“I chose biology as my major because I am intrigued to have a better understanding of the world around me in regard to science. To name a few specific areas –how microorganisms play a crucial part in both health and disease, how different body systems function, genetic factors and more. Learning about this is not only fascinating to me, but it also serves as a base for learning more animal specific anatomy and biology. I want to become a veterinarian, so a biology degree is a great base before going to vet school. After vet school, I hope to specialize in animal surgery.”

“I chose business because both of my parents are in sales, and I’ve learned a lot about different industries from listening to them. I also chose business because it is a very broad degree that can leave my options open for a career path. My long-term goals are undecided as of right now, however, I know that I plan to open my own business someday. I would like to use my knowledge and efforts in an industry that makes a difference in people’s lives and hopefully will help others in the same way.”

ALEXANDRA ELSESSER

Alexandra Elsesser lives in Schnecksville, Pennsylvania, and is the daughter of Edward Elsesser, who works for AFCO, a member of the Northeast Dairy Suppliers Association, Inc. She attends Wilkes University as a pre-pharmacy major. Among other activities, Elsesser teaches basic Spanish concepts to give elementary-age students a foundation to understanding a foreign language.

“Choosing to major in pharmacy checks all the boxes in what I picture my future to hold. It will give me a variety of paths and opportunities to find a career that will bring me pleasure. Professionally, I would like to become an expert in my field, so I can use my knowledge in my work, as well as be able to mentor future generations with my level of expertise. Furthermore, In the course of gaining in mastery in the pharmacy field, I would like to obtain a strong skill in Spanish to use in my professional career.”

Northeast Dairy Foods Association, Inc.

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BROOKE FOSTER

Brooke Foster is from West Winfield, New York, and is the stepdaughter of David LeClair who works for Chobani, a member of the Northeast Dairy Foods Association, Inc. She is studying at SUNY Canton where her major is applied psychol ogy. In addition, Foster recently passed the exam to be a certified pharmacy technician.

“I chose to study psychology because I believe that it has value in all aspects of life. It has really opened my eyes and given me a new perspective. I have developed a better under standing of people, as well. I have several different career ideas at the moment, and, although I am not 100% sure what I will choose for a career, I know that having knowledge in psychology will be beneficial in almost any aspect of my life. My goal is to find a career I enjoy, help others and continue traveling.”

have their own goals to achieve. I feel very passionate about helping people, and I think it is really special that I get to use my love for music to do so. Music has helped me through times when I needed it most, and I want to pay it forward and aid others in using it as a tool, as well.”

ERICA FROST

Erica Frost is from Bainbridge, New York, and is the daugh ter of Matthew Frost, who works for Chobani, a member of the Northeast Dairy Foods Association, Inc. She is attending the Frost School of Music at the University of Miami with a double major in music therapy and psychology.

“Ever since I was young, I have wanted to work with chil dren and adults with developmental disabilities. I was inspired growing up with my older brother, Chad, who is diagnosed with a genetic disorder caused by a missing chromosome, known as Angelman Syndrome. In middle school, I fell in love with music and wanted to continue down that path. That is when I found music therapy, which had the potential to combine my two passions of music and working within the disabled community. I cannot see myself doing anything else. As college began, I become more and more passionate about psychology and decided to add it as a second major. My goal is to use music as a creative, enjoyable, therapeutic tool to help those who

TAYLOR FRYER

Taylor Fryer is from N. Syracuse, New York, and is the son of Melissa Fryer, who works for Alfa Laval, a member of the Northeast Dairy Suppliers Association, Inc. He attends Syracuse University and is majoring in sound recording tech nology. He is also the trumpet leader in the Syracuse University marching band.

“My goals are to become a successful sound engineer and continue to playing trumpet. I have played trumpet since fourth grade, and music has always been a major part of my life. The more engaged I became in music, the more I learned about the industry and different music careers. When I began looking at what I wanted to pursue in college, I found some information about a degree in sound recording technology, As I looked into this field, the more interesting it became to me. I knew I wanted to continue with music but was unsure of what area. The more research I did, the more I found that sound recording was something I was interested in pursuing. Although I’m not sure exactly which area of sound recording will be my focus, a degree in sound recording technology can lead to many different fields, such as live radio, studio recording, live concerts, album recording, business and others. All different types o music –orchestral, pop, movies, video games and so much more need sound engineers. I want to be able to share my love of music with the world and help more people enjoy what I love.” CONTINUED ON NEXT PAGE ►

NED Magazine | Fourth Quarter 2022 • 49 Association News

KAYLEE HEDDING

Kaylee Hedding lives in E. Montpelier, Vermont, and is the daughter of Suzanne Hedding, who works for Agri-Mark/Cabot Creamery, a member of the Northeast Dairy Foods Association, Inc. She is attending the University of Tampa as a double major in marine science and marine biology. She worked for Cabot Creamery as a Cabot ambassador, recruiting employees and marketing Cabot cheddar products at local events.

“As a young child, I had the opportunity to participate in a hands-on learning and interaction with a dolphin while on a family vacation. And, from that moment on, I knew that I wanted to work with marine animals. Throughout high school, I sought opportunities that would allow me to further explore my passion and allow me to pursue a higher education and career in that field of study. I have excelled in three college level marine biology and coastal marine science college courses, taking them during high school in addition to a regular course load, and receiving an A+ in each of these courses. My junior year of high school, I was a student leader for the college level marine biology course I was enrolled in and focused my time on an independent research project on marine mammals in need of prosthetics and rehabilitation. My greatest passion and aspiration in life is to work with and help injured marine life to receive treatment in order to regain health and successfully integrate and adapt back into their environment. I also aspire to build prosthetic limbs for marine life and pursue marine medicine.

“My goal with the education I gain at the University of Tampa is to educate the community on the importance the ocean and marine life has on our ecosystem and world overall. I aspire to help animals in need and hope to apply my knowledge of marine life to how it can help and benefit us as humans, looking at research such as medicine for disease found within the ocean ecosystem. I aspire to have an impact on the lives of others by educating them on the importance of all that the ocean has to offer us, but, more importantly, to have an impact in the marine research community and on marine life. I am very passionate about the planet and all it has to offer, educating others on sustainability. and climate change.

ADDISON MOORE

Addison Moore lives in Lock, New York, and is the daugh ter of Darren Moore, who works at Ecolab, a member of the Northeast Dairy Suppliers Association, Inc. She is attending SUNY Buffalo and majoring in architecture.

“I plan to become a licensed architect upon graduation from college. My hope for my education is that it will prepare me for my career by not only training me but giving me internship opportunities and opportunities to travel aboard and learn about all different kinds of architecture. I plan to follow a career path in architecture that suits me best, possibly working at a firm that focuses on affordable sustainable housing. I believe that majoring in architecture will help me achieve my goal of doing what I love for work because I love both art and math, which is a great combination for architects. I became fascinated with architecture and the design/build process at a young age, and it stuck with me. When I was 6, my mother, an engineer, designed our current home. With my grandfather’s and uncle’s help — both are carpenters — we built our home with our own hands. We temporarily lived right next to the construction site, so I was able to experience the whole process. I immediately wanted my mother to show me the program she used to design the house, and, even though I was young, I enjoyed experiment ing with it. I also attended a summer pre-college architecture program at Syracuse University in the summer of 2021 and loved it. These experiences have helped guide me toward my future in architecture.”

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Northeast Dairy Foods Association, Inc. Association

OLIVIA STAPLES

Olivia Staples of Williamsville, New York, is the daughter of Lynn Staples, who is employed at Perry’s Ice Cream, a member of the Northeast Dairy Foods Association, Inc. She is attending SUNY Oswego to study wellness management. Staples graduated from high school with a GPA of 4.0.

“I chose to study wellness management because I believe that your health, whether it’s physical or mental, is very import ant. Though I’m studying to be a nurse or doctor, my goals are to make an impact on people through learning more about nutrition and physical therapy. In this way, I hope to help and work with people to recover and become as healthy as they can be.”

HEATHER THOMSON

Heather Thomson is from Lancaster, New York, and the daughter of Amy Thomson, who works for Perry’s Ice Cream, a member of the Northeast Dairy Foods Association, Inc. She attends Daemen University, where she is studying to become a physician assistant. While in high school, she worked at Anderson’s Frozen Custard in her hometown.

KEEGAN STUVER

Keegan Stuver of Frederick, Maryland, is the son of Vincent Stuver of the Maryland & Virginia Milk Producers, a member of the Northeast Dairy Suppliers Association, Inc. He is studying finance at the University of Maryland, College Park, where he is a student in the Honors College.

“I saw many people close to me struggle financially during the COVID-19 pandemic … and this is when I dove into finance trying to learn all that I could about real estate, supply chain management, etc. In an attempt to raise my GPA this past winter, I took a course called Personal and Family. Finance, and everything about it captivated me. This class was the cata lyst that I needed to switch my major from engineering and apply to study finance this fall with the end goal of graduating from University of Maryland to become a financial advisor, so I can help people avoid the hardships that happened to my loved ones.”

“I have a strong compassion, drive and love for helping others, as well as personal experience that has given me a different perspective on life. I come from a loving family with a brother and two working parents that have instilled me with strong morals, compassion, perseverance and devotion. During high school, I volunteered for Hospice. It was rewarding and heart breaking at the same time, but I observed how brushing a woman’s hair or assisting someone getting dressed made all the difference to them and their families. These are the moments that touched me and inspired me to pursue the medical field. Finally, the biggest inspiration in my life is my grandmother, who is a retired registered nurse. She is extremely passionate about caring and aiding others, which I have seen and aspired to be like since a very young age. My experiences, along with a supportive family, have shaped who I am and the type of physician assistant I aspire to be. One of my goals for my future career is to be a compassionate caregiver and to make a lasting impact on my patients. Although I do not know what specialty I would like to go into yet, I will work to expand my knowledge constantly to be the best physician assistant I possibly can be. I strive to be a provider that does not judge others or define patients by their conditions.”

NED Magazine | Fourth Quarter 2022 • 51 Association News

Communication and Engagement Key to Dopkins’ Success as Trusted Advisor

Dopkins & Company, LLP started in 1955, with Leonard Dopkins doing personal tax returns at his kitchen table.

It has since grown into one of the largest independent firms in Western New York.

“It was the pursuit of attracting clients that have complex business issues, value high-quality CPA services and our strat egy to serve those clients with ‘top talent’ that grew the firm into what it is today,” said Andrew Reading, a CPA and a partner with the firm. “We definitely have a client type, and it’s clients that are looking for and value both compliance and advice, so that’s why we’re certified public accountants and consultants.”

These days, food and beverage, specifically dairy, is one of the largest segments of Dopkins & Company’s industry focus. Its clients sell dairy products ranging from fluid and powder to cheese and yogurt (both branded and under a private label), working with more than 6 billion pounds of milk each year.

The firm offers a variety of services for those clients: audit and other assurance matters; tax consulting and compliance, internal controls and fraud risk mitigation, accounting/financial reporting, cybersecurity risk assessments, testing and employee training, client accounting and advisory services, billing and collections, vendor disbursements, inventory costing, report ing and analysis, merger and acquisition assistance, review of co-manufacturing arrangements and governmental dairy report ing. It is also associated with Dopkins Wealth Management, a separate business that focuses on financial planning, wealth management, estate planning, retirement planning and port folio analysis.

“When you start to think about holistically being an advisor to an individual and their business, it’s kind of that compre hensive, full-spectrum relationship,” said Reading.

Another way Dopkins & Company serves its clients is

through active engagement in meeting with clients about their business opportunities and challenges throughout the year. This level of proactive communication and engagement are key ingredients to successfully serving as a trusted advisor. Dopkins is so passionate about communicating and staying engaged with clients, that these interactions are included in our fee arrangements.

“In doing so, we find our clients routinely communicate with us on business matters as there is no concern of being on the meter as typically found with professional service firms,” said Reading.

But, what makes Dopkins & Company truly unique is its one firm approach.

“We’re significantly different than most CPA firms,” said Reading. “A lot of firms are organized where partners work in

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Member Profile

silos and have books of business. Our firm does not follow a book of business models, but instead we follow a client-service model. We are compensated as a firm, rather than as partners individually. By serving as a firm, we really do serve in teams. It breaks down a lot of those barriers, and so, our clients are always getting a specialist in the respective practice area of need.”

There is a significant transformation occurring in the accounting/finance functions of businesses. This transformation has been underway for a few years but has been accelerated as a result of the pandemic induced labor market challenges. Businesses are revaluating the optimal design of their account ing/finance functions in terms of people – how many, how often – and the technical expertise required in addition to the technology stack required to support the business. This transformation has been of significant interest to clients, and Dopkins & Company is routinely advising on these matters in

the accounting/finance functions to optimize labor resources, ensure scalability of processes and controls, provide real-time visibility of financial performance and risk mitigation.

Moving forward, Dopkins & Company intends to continue building on its successful, team-oriented model.

“As a trusted advisor, we can demonstrate and deliver a lot of value to our clients and help them make better manage ment decisions through the work that we do, and, in a lot of cases, drive profitability and growth for their businesses,” said Reading. “I think that over the next five to 10 to 15 years, we’re going to continue to see the role of the CPA deepen as a trusted advisor, especially to our dairy clients, where the marketplace can be tough at times. And we think businesses that have the right systems, processes, and data analysis will be better suited to navigate the dairy industry as the competition and the overall business environment continues to evolve.”

Courtney Kless is a staff writer for Northeast Dairy Media.

NED Magazine | Fourth Quarter 2022 • 53 Member Profile
By serving as a firm, we really do serve in teams. It breaks down a lot of those barriers, and so our clients are always getting a specialist in the respective practice area of need.

Member and Industry News

Byrne Dairy’s Dewitt New York, plan was named as Dairy.com’s 2022 Plant of the Year for its work in aseptic production, sustainability, food safety and other accomplishments. Opened in 2004, the plant started as a 40,000-square-foot facility that has continued to expand to its current footprint of 200,000-square feet. It recently constructed a wastewater treatment facility. The plan employs over 200 people. The Dewitt plant is part of the larger fourth-generation Byrne Dairy company, which was founded in 1933.

Chobani announced two executive leadership appointments in October. Tarkan Gürkan was named chief financial officer, and Kenneth Bishop was appointed to the new role of senior vice president international market development. Both will join the company’s executive leadership team. “I am immensely proud of what we have built at Chobani and am pleased to have Tarkan and Ken as part of the team that will lead us into our next phase of growth,” said Hamdi Ulukaya, founder and CEO of Chobani. Prior to joining Chobani, Gurkan was chief invest ment officer at Shepherd Futures, LLC. Based in Singapore. Bishop brings extensive consumer goods and private equity experience to the company and will help develop a strategy for Chobani’s expansion into international markets.

Ecolab Inc. announced that Darrell R. Brown, former executive vice president and president, Global Industrial, become president and chief operating officer in October. Brown served as executive vice president and president of the Global

Industrial group since 2019. He joined Ecolab in 2002 and has held a variety of leadership positions within the company over the years.

To help the next generation develop the necessary business and financial skills, Farm Credit East is hosting GenerationNext seminars this fall and winter. Anyone who would like to sharpen their management skills is encouraged to attend. Both in-person and virtual sessions are offered. GenerationNext is optimal for those producers who will be the next generation operators of a farm business or for entrepreneurs starting their own business. The sessions will cover a range of topics, including leader ship and management, human resource development, financial management, production economics, marketing, risk manage ment, and farm transfer and estate planning. In late 2022, in-person sessions will be held in central and western New York and eastern Connecticut. Starting in early 2023, in-per son sessions will be held in northern Vermont, central New Jersey and western and northern Maine. The virtual program consists of eight weekly two-hour sessions, starting January 12 and running every Thursday through March 2. For more information, session dates, or to sign up, visit FarmCreditEast. com/GenerationNext. It is not necessary to have an existing relationship with Farm Credit East to attend. Contact Chris Laughton at Chris.Laughton@farmcrediteast.com or call (800) 562-2235 for more information.

Hydrite Chemical held its first-ever Month of Giving in October to celebrate employee volunteerism. During the

54 • Northeast Dairy Foods Association, Inc. Member News

Month of Giving, Hydrite’s facilities held volunteer events for local charities, continuing its proud tradition of supporting the communities in which it operates.

Perry’s Ice Cream is once again decking the halls with its winter flavors: White Christmas and Peppermint Stick. Both are returning favorites and are only available for a limited time this holiday season.

Stewart’s Shops announced the opening of seven new locations in seven weeks! These include four rebuilds and three brand new shops. In true Stewart’s fashion, these loca tions were constructed in only nine to 12 weeks. Rebuilt shops re-opened in October included those in Mechanicville, Amsterdam, Carthage and Watertown, New York, while new builds opened in Potsdam and Schenectady, New York, in October and Colonie, New York, in late November. The new shops and rebuilds are part of Stewart’s $50 million construction investment in 2022. According to Stewart’s, 2023 will be ever busier with nine rebuilds and eight brand new locations planned.

The International Dairy Foods Association recognized several members of Northeast Dairy Foods Association, Inc., and the Northeast Dairy Suppliers Association, Inc., for outstanding worker safety in 2021 with its Dairy Industry Safety Recognition Award. Awards are based on occupational injury and illness performance rates and details provided by the individual companies. The following members were winners: Dairy Farmers of America (cheese; fluid milk; trucking, local); Maryland & Virginia Milk Producers Coop, Inc. (dry, condensed & evaporated milk; trucking, local), H.P. Hood, LLC (fluid milk), Agri-Mark/Cabot Creamery Cooperative (trucking, local). H.P. Hood, LLC, was also given a 2022 Most Improved Award in Workers Safety in the category of fluid milk.

Two NDFA members made their mark at the Great New York State Fair’s Dairy Day, held in August in Syracuse, New York. Announced by Cornell University’s Department of Food Science, which is New York state’s official judging group, at the 2022 Dairy Product Competition, Stewart’s Shops offers the best milk in the state and was honored with gold. Cabot Creamery Cooperative was also awarded first place in the New York Cheese category for its sharp cheddar and New York extra sharp cheddar, which also took an Award of Excellence. Cabot Creamery was honored with the title of Grand Champion for its horseradish cheddar

NEW MEMBERS

The following new member recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available from both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Leanne Ziemba at 315-452MILK (6455) or lz@nedairyfoods.org.

HAUN WELDING SUPPLY/ HAUN SPECIALTY GASES

Joshua Haun Co-President

JHaun@TheHaunEdge.com 5921 Court Street Rd. Syracuse, NY 13206 315-463-5241 www.TheHaunEdge.com

ZEE DAIRY

Rick Rector

Director of CIP & Dairy Rick.rector@vincitgroup.com 412 Georgia Ave. Ste. 300 Chattanooga, TN 37403 Phone: 423-208-5898 Fax; 423-702-8912 www.vincitgroup.com

NED Magazine | Fourth Quarter 2022 • 55 Member News

56

Leanne’s Kitchen

Comfort Food Made with Delicious Dairy

Holiday Fondue

INGREDIENTS:

• 4 teaspoons cornstarch, divided

• 1 cup plus 1 tablespoon dry white wine, divided

• 1 1/2 cups shredded Gruyere cheese

• 1 1/2 cups shredded Swiss cheese

• 1 peeled garlic clove, halved

• 1 1/2 teaspoons lemon juice

• 1/8 teaspoon garlic powder

• 1/8 teaspoon dried oregano

• 1/8 teaspoon Worcestershire sauce

• 3-4 drops of hot sauce

INSTRUCTIONS:

1. Combine 2 teaspoons cornstarch with 1 tablespoon of the wine in a small bowl. Set aside.

2. Combine remaining cornstarch with the cheeses. Set aside.

3. In a large saucepan, rub the sides with the cut side of the garlic. Discard the garlic cloves.

4. Add the remaining wine to the large saucepan and heat over medium heat. You want to cook it until bubbles form around sides of the pan.

5. Stir in lemon juice.

6. Reduce heat to medium-low. Add a handful of the cheese mixture to the saucepan. Stir constantly, using the figure-eight hand motion until the cheese is almost melted completely.

7. Continue adding the rest of the cheese, one handful at a time. You want to allow the cheese to completely melt between additions.

8. Once the cheese mixture has all been added, stir in the garlic powder, oregano, Worcestershire sauce and pepper sauce. Stir in cornstarch mixture gradually to the pan.

9. Stir and cook until mixture is smooth and thickened.

10. Keep warm and serve with dippers.

Many of our members may know Leanne Ziemba as the business operations manager for the Northeast Dairy Foods Association, Inc., and the Northeast Dairy Food Suppliers, Inc., in our N. Syracuse, New York, office. But we’ve discov ered she also is queen of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products.

• Northeast Dairy Foods Association, Inc.

Unique Considerations in Farm Equipment Leases

Every farmer relies heavily on the availability and affordability of appropriate farm equipment. While it may be ideal to own outright any farm equipment that you need, sometimes it is more cost-effective to lease the equipment. When this is the case, the lease arrangement between the owner – or lessor – if the farm equipment and the renter – or lessee – of the farm equipment should be documented in detail in a written farm equipment lease agreement. While farm equipment leases may seem to be a simple concept, in practice, they are far more complex. This article discusses six critical issues that a prop erly drafted farm equipment lease agreement should address.

WHAT FARM EQUIPMENT DOES THE LEASE COVER?

When it comes to lease agreements, it is always best to describe the terms in as much detail as possible so that future disputes can be avoided. This is true when it comes to describing the farm equipment that the lease will cover. The lease should describe the type, make, model, size, condition and estimated value of each piece of equipment. If the lease involves a large number of equipment, it may be best to attach an exhibit or addendum that lists the relevant information for each piece of equipment, rather than including the unwieldy information in the body of the agreement.

HOW SHOULD RENT BE CALCULATED?

While most of us familiar with a lease model that charges a renter based on a unit of time (e.g., monthly rent or annual rent), farm equipment lease agreements do not always do this. Because farm equipment depreciates in value with use, it can make more sense for a farm equipment lease to charge the renter on a “per use” model. “Per use” rent means that the renter pays the owner an agreed upon rate based on a unit of measurement of use, such as the hourly use or the per acre use of the equipment. Note that an equipment lease that includes several different types of equipment with various estimated total values may charge different “per use” rates per equipment.

There are a few considerations to keep in mind when deter mining whether a farm equipment lease should employ either a

time-based or a per use model for rent. A per use model requires accurate and honest documentation of the renter’s use of the equipment, whereas a time-based model requires no such docu mentation. Moreover, a time-based model usually guarantees a regular and predictable rent income for the owner of the farm equipment, while a per use model often requires that the rent will be due at the end of a lease term. The owner may not be able to accurately predict rent income under a per use model.

If the parties to a farm equipment lease agree that a timebased rent model best suits their needs, but equipment depreci ation is still a concern, a hybrid approach may be appropriate. In a hybrid rent approach, the renter pays the owner monthly or annual rent, but the lease contains a “maximum use” provi sion wherein the renter will owe the owner addition per use rent at the end of the lease term if the renter exceeds a certain predetermined amount of use of the farm equipment.

ARE THERE ANY RESTRICTIONS ON THE USE OF THE FARM EQUIPMENT?

A farm equipment owner will want to ensure that the renter agrees to use the equipment in a way that avoids equipment damage, excessive depreciation or personal injury. Accordingly, the lease agreement should include terms that restrict unwar ranted use. For example, the lease may specify that the farm equipment may be used for agricultural and related purposes only. It may also limit the use to certain geographic locations and certain permitted users (such as the renter and his or her trained agents and employees). The lease may also require that the renter follow certain specified safe operating procedures, as well as any applicable state and federal laws, manufacturer warranties and insurance restrictions.

WHO IS RESPONSIBLE FOR REPAIRING DAMAGES TO THE EQUIPMENT?

A farm lease agreement should clearly delineate which party is responsible for both routine and non-routine repairs or replacement of the farm equipment. While the parties can agree on any division of labor they like, a common default is that the renter will be responsible for the proper care and ordinary

NED Magazine | Fourth Quarter 2022 • 57 Farm Report

maintenance of the farm machinery. This may include routine damage checks, fluid checks and refills, routine cleaning and safe storage. On the other hand, the owner may be responsible for the costs of all major repairs to the farm equipment, such as the replacement of tires and other major parts, or any other overhauls in excess of normal maintenance. The parties should specify in the lease agreement who is responsible for the costs of transporting the farm equipment to the location where any such repairs are performed. While the renter may be held respon sible for the damages caused by his or her misuse of the farm equipment, the lease agreement should address which party is required to replace any equipment that is non-functional due to circumstances outside of the renter’s control, such as fire, flood, or machinery or electrical failure. If it is the owner’s responsibility to replace the equipment under such circum stances, and he or she does not do so in a timely manner, the lease may include a potential adjustment in rent for the renter.

WHO IS RESPONSIBLE FOR INSURING THE EQUIPMENT?

Farm equipment is expensive machinery that is often insured. The lease agreement should clearly define which party is responsible for insuring it. Often, the owner will fully insure the equipment against casualty, theft or other loss, damage from natural causes or against personal liability. Meanwhile, the renter may be asked to provide proof of a general liability insurance policy adequate to compensate for any loss caused while operating the farm equipment.

WHAT HAPPENS IF THERE IS A DISPUTE?

While the primary goal of a farm equipment lease agreement is to avoid any disputes between the parties, a secondary goal is to roadmap what should happen in the event that a dispute

nevertheless arises. To that end, a lease should include the parties’ wishes regarding the means to resolve any potential disputes. This includes whether there are any predetermined damages available to either party in the event of a breach, whether the parties plan to use alternative dispute resolution (e.g., mediation or arbitration), which court will have jurisdic tion over any legal proceedings, which state’s laws will apply when interpreting the agreement and whether parties will be allowed to recover any reasonable attorneys’ fees incurred in a dispute.

TIPS FOR THE LESSOR AND THE LESSEE

While it is important that a farm equipment lease agree ment be mutually beneficial, there are certain provisions and precautions that each party may wish to pay special attention to. For example, the owner – or lessor – may consider including a clause that preserves his or her right to access the equipment during the lease for any foreseeable need. The owner may also take extra care to ensure that the clauses concerning the renter’s care of the farm equipment are precise and robust. The owner should also be aware of any duty that arises from any timely loss replacement provisions in the lease.

On the other hand, the renter – or lessee – should be sure to thoroughly inspect the equipment at issue prior to entering into the lease agreement. Any preexisting issues with the equipment should be considered and, if deemed nevertheless acceptable, documented in the lease. The renter should also pay particular attention to his or her duties regarding recording use amounts and staying within any maximum use provisions. Finally, the renter should inform himself or herself of the standard oper ating procedures and the relevant warranties for each piece of farm equipment in order to avoid liability from improper use.

Lease agreements are binding contracts with significant consequences. Given the variables and complexities addressed above, it is advisable for either party to hire an attorney to help craft or review a suitable farm equipment lease agreement that is carefully tailored for the unique needs of the parties. Whether an attorney is employer or whether the parties take it upon themselves to draw up the agreement, the parties to such a lease agreement should ensure that they had adequately addressed each of the issues discussed in this article in order to protect against unnecessary loss.

Cari B. Rincker is a nationally recognized attorney specializing in food, farm and family law and principal of Rincker Law, PLLC, with offices in Illinois and New York.

58 • Northeast Dairy
Foods Association, Inc. Farm Report

Watch Your Back! How to Lift Safely

Lifting heavy boxes or objects is often part of the job. But, don’t risk an injury to your back, which can result in a long and painful recovery. Here are some tips for “watching your back.”

1. Sure, you want to get the job done, but assess the situation first. When possible, use a fork lift or hand truck to assist you in safely moving something heavy. Remember to push, not pull. Don’t hesitate to ask another person for help if something seems too heavy or awkward to carry by yourself.

2. If you must lift something on your own, make sure you are on a stable surface. Never stand on a desk or chair to reach something heavy. As a rule, don’t lift an object that is above your shoulders. Stand close to the base of the ob ject, and position your body squarely in front of it. Make sure you have good balance.

3. You’ve heard it said before: “Lift with your legs, not your back.” Bend at the knees to a squat ting position, and get your body as close to the box or object as you can. While squatting, keep your back straight and your head up.

4. While squatting, push into a standing position slowly. Make sure your legs are supporting your weight. Keep your back straight and your head up. Use your abdominal muscles to help with the lift.

5. Slowly lift the object until you feel comfortable carrying it. Keep your body straight; don’t twist while you lift. If you need to turn your body while lifting, shift your feet to keep your posi tion square.

6. When it’s time to put the load down, bend your knees again. Keep your back straight and your head up. As you lower the load to the floor, spread your knees or lower one knee to the floor for support and balance. Try to keep the load as close to your body as you can, using your leg and arm muscles to lower it —not your back!

7. Once you put the load down, the process isn’t quite over. Stand up slowly, and keep your head and back straight. Stretch out your back muscles when you are finished.

NED Magazine | Fourth Quarter 2022 • 59 Safety
60 • Northeast Dairy Foods Association, Inc. Advertisers’ Index
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