Homemade ads about milk reveal and surprise community

By Sherry Bunting, published in Farmshine, Friday, January 4, 2019

“Everything helps… Anything helps,” said Nelson Troutman. The Pennsylvania dairy farmer gave consumers in his area an early Christmas gift, and this gift of knowledge keeps giving in the New Year.

Frustrated by the forced emphasis on low- and non-fat milk promotion and seeing the need to draw attention to the simple healthy truth about milk, while planting the seed that consumers can ask for local milk, Troutman came up with his own promotion idea.

On December 11, he painted a wrapped round bale with the words “Drink LOCAL Whole MILK 97% FAT FREE!”

Then he placed the round bale in his pasture, where it is visible at the intersection of Wintersville and Stouchsburg Road near Richland, in the Lebanon/Berks area of Pennsylvania.

After all, whole milk is standardized to 3.25% fat content, making it virtually 97% fat-free — a point on the minds of consumers that milk labels and checkoff promotion have not been able to tap into.

“It was the cheapest and easiest thing to do, and I’ve gotten a lot of very nice and interesting comments,” said Troutman in an interview with Farmshine. “Today, I saw two ladies walking down the street. They had just passed the bale. I had no idea who they were. They saw me coming out the farm lane and waved. I am sure they were talking about the bale.”

Nearly three weeks after his round bale billboard was placed for the community and those passing through to see, Troutman said the gift keeps giving with new and continuing conversations.

“I am amazed at talking to people about this educational bale,” Troutman said Monday (Dec. 31). “People say to me that they did not know any milk is 97% fat-free, much less that the whole milk is 97% fat-free!”

Troutman uses their surprise at this revelation as a teachable moment.

“I explain that fat-free milk is 100% fat-free, 1% milk is 99% fat-free, 2% milk is 98% fat-free and whole milk — at 3.25% fat — is basically 97% fat-free. They are astounded,” he affirms. “So, I ask them what they thought any milk is, and they tell me that they never thought about it. When I ask them what they think the fat percentage of whole milk is, most answers were 10% to 20% fat. I actually had one man say he thinks whole milk is 50% fat! His wife made him drink 2% milk for that reason.”

So what is being gained with this message? Troutman gives an example. He said the man who confessed that he thought whole milk was 50% fat — upon hearing the truth — said he will never again drink 2% milk and has switched to whole milk while also being made aware of the local ties and how to find local brands.

What does all the milk confusion tell us about the success — or failure — of mandatory checkoff promotions? People are confused about so many things where milk is concerned. But the fat content should not continue to be one of their confusions. It is standardized and easy to demystify with a simple message, a simple sign, that opens the door to conversations that matter.

Troutman said he knows that the dairy farmers’ mandatory checkoff promotion organizations of American Dairy Association Northeast (ADANE) and Dairy Management Inc (DMI) — and even Allied Milk Producers — cannot advertise milk as 97% fat-free. He says there are government rules about putting this on the label or in a checkoff-funded campaign.

But, he believes it is high time for a grassroots promotion.

“We farmers can do this! It’s real education, and it sure beats the price of the milk mustache. Advertising is expensive, but we farmers have an edge. We live along roads and highways where we can put up signs, use our bales, silage bags, silos, barns, and wagons,” says Troutman.

“We also have friends that have agribusinesses in town that could use a sign. And there is Facebook, which is very powerful to the consume. We need the consumers in Pennsylvania to ask for whole Pennsylvania-produced milk at our restaurants, schools and stores,” he adds.

Troutman is definitely on to something, as people across the state and in other regions as well have complained all year on social media and at meetings and with photos of supermarket dairy shelves that whole milk is often not stocked to the density of the fat-free, low-fat and reduced fat milks.

In fact, as one producer in northern Pennsylvania noted recently, she has to order whole milk on ahead at her local store if she wants more than three gallons for an event. When asking the store manager why whole milk is not made more available in the dairy case, the store owner told her the reason is because it isn’t as healthy and contains too much fat!

Nelson Troutman’s simple idea is borne of frustration but with education and truth at its core, and it is easy to implement.

He says that dairy farmers are fed up with decades of their product being thrown under the bus by dietary guidelines and promotion restrictions leading people to believe — over time — that whole milk is full of fat. The labels do not even say 3.25% fat! And this has led to people having all kinds of inflated ideas about how much fat is in whole milk to begin with.

It is no wonder that even well-educated pediatricians mindlessly follow blindly the lies of omission — telling mothers to put their children on lower fat milks at age two because they falsely believe whole milk is more than 10% fat!

Troutman made his round bale sign and placed it in his pasture by a busy intersection to educate his community and to encourage other farmers and agribusinesses to use his idea to educate their communities.

“Maybe they want to do something on a bale or a wagon or a silage bag,” he said. “Everything helps… anything helps.”

-30-

 

Global dairy thoughts Part 5: First half 2018 butter, milk, cream imports climbed!

Timelines show how domestic dietary guidelines, Obama/Vilsack school milk rules and ramped up low-fat and fat-free dairy promotion through GENYOUth and FUTP60 all laid the groundwork for declining Class I fluid milk sales to pave the way for flat pricing and increased exports (now coincidentally under the industry leadership of former Sec Vilsack). Then consumers learned the truth and began coming back to whole milk and butter and full-fat cheeses even while the government turns a deaf ear in regards to the rules about feeding our schoolchildren. So what did U.S. companies and cooperatives do to keep that milk price flat enough for the export market this year? They imported more butter, milk and cream in first half 2018!

By Sherry Bunting, originally published in Farmshine, September 7, 2018

BROWNSTOWN, Pa. — Let’s take a look at the overall global dairy trade balance of the U.S.

In gross numbers, the balance is positive, showing the U.S. is winning new market share on the side of exports over imports. But this tells only part of the story, ignoring the potential milk market impacts of substantial increases in imports of milkfat at this critical time during the first six months of 2018.

In June 2018, Global Dairy Thoughts Part 3 and Part 4 covered some of the Federal Order pricing impacts of rapidly expanding exports alongside a diminishing Class I utilization. While per-capita milk consumption has steadily declined since 1980, the total packaged milk sales held their own due to population growth.

globalthoughtspartfive-chart1That is, until we hit 2009-10, when the third and fourth layers (see Chart 1 above) were added to the lowfat-push — that consequently pulled total fluid milk sales into the bucket at the same time that exports began their rapid ascent.

Expanding export utilization hits Class I utilization with a double-whammy: Smaller piece in a bigger pie, even if consumption losses are stabilized. We’ll revisit that in a future part of this series on dairy policy and logistics.

In looking at imports and doing trend comparisons for farm milk prices, fluid milk sales, total exports, total imports and the large increase so far this year in imports of butter and butteroil as well as steady increases in imports of milk and cream (condensed, non-condensed, liquid, powder, sweetened, unsweetened), there are some correlations. (Chart 2 below)

globalthoughtspartfive-chart-2

From 2005 forward, the national average all-milk price moved in patterns concave to the corresponding imports of butter/butteroil and milk/cream on the timeline. While the totals are not huge, we all know what “a little more” can mean on the supply side when it comes to milk prices.

In the first-half of 2018, for example,  the U.S. imported 12% more butter and butteroil and 11% more condensed milk and cream, according to the European Commission’s Milk Market Observatory published August 14, 2018. (Charts 3 and 4 below)

globalthoughtspartfive-chart3

globalthoughtspartfive-chart4

While the U.S. Dairy Export Council (USDEC) reports that first half 2018 dairy exports of milk powders, cheese, butterfat, whey and lactose topped 1.14 mil. tons to set a new record-high – up 20% from year ago, some interesting things were also happening on the import side.

Even though the USDEC data dashboard continues to show total imports accounting for a flat line at 4% or less of the milk supply on a solids basis, while exports accounted for 16.8% in the first six months of 2018, there are some interesting aspects of the import picture related to ‘what’ and ‘when’.

According to the August 14 EC statistical report ranking top-10 importers and exporters of various dairy commodities, the U.S. ranked third in butter and butteroil imports, up 12% from year ago and not far behind China (1) and Russia (2) during the first half of 2018.

The U.S. also ranked fourth in imports of condensed milk and cream – up 11% compared with a year ago.

When butter substitutes, containing over 45% butterfat, are included in the butter and butteroil import total, as documented at the U.S. International Trade Commission (USITC) import monitoring website, the U.S. butter/butteroil total rises by more than 200% during the past three quarters (Sept. 2017 through June 2018) compared with the same nine months a year ago.

While half of the butter and butteroil imports came to the U.S. from EU countries, a majority of the other half came from Mexico, according to the USITC website listings under various Harmonized Tariff Schedule (HTS) codes.

In the condensed milk and cream category, 8% of U.S. imports came from the EU, according to the EC report.

Sifting through the tedious lists and multiple codes and combinations at the USITC website, it appears the U.S. imported quite a bit of condensed milk and cream from Mexico, a little from Canada (though less from Canada than a year ago), and the remainder from sources scattered around the globe — even China.

For the past nine months, Sept. 2017 through June 2018, the condensed milk and cream, unsweetened, category of imports was up 44% in powder or granular form compared with the same period a year ago, while milk and cream imports, unconcentrated, unsweetened, and still in liquid form, were up 22%.

Imports of sweetened condensed milk and cream were up 7% and mainly from Mexico.

Of course, the U.S. remains the top importer of casein and caseinates, even though those imports were down 15% from a year ago during the first half of 2018, according the EC report.

Doing the math on milk protein concentrate (MPC) imports for the nine months from September 2017 through June 2018 listed at the USITC site, MPC imports in both the 0404 and 3500 HTS codes, combined, were down 1.3% compared with the same period a year earlier.

On the other hand, imports of milk protein isolates (MPI) were up 31% from Sept. 2017 through June 2018 compared with the same three quarters a year ago.

Looking further into other categories, imports of “textured protein substance, including dairy” were up 40% for the past nine months compared with a year ago.

In the significant dairy-containing “food prep” categories — including infant formula and having various percentages of milk solids and butterfat — imports were up 7% during the past nine months compared with a year ago. In this particular category, including confectionary products containing significant milk solids, Canada was a primary source, along with EU countries as well as some of these imports coming from Chile and other South American countries.

Process cheese product imports were up 46% during the past nine months compared with a year earlier.

While U.S. imports of ice cream were down relative to year ago, the total when combined with import categories in other HTS codes for “edible ice containing dairy” tallied an import total that was up collectively by more than 200% over year ago during the past nine months.

To read Parts 1 through 4, click these links: Part 1, Part 2, Part 3, Part 4

And stay tuned for this series to continue as 2019 trends develop abroad and on the homefront.

-30-

Global thoughts Part 4: As exports grow, who benefits from ‘new math’?

GlobalThoughtsPart4_Chart#2 (1).jpgBy Sherry Bunting, originally published in Farmshine, June 7, 2018 and examines the utilization of domestic Class I fluid milk vs. exported commodities during the worst three months of pricing at the beginning of 2018, but the trends show how FMMO pricing no longer provides the value to farmers for their milk as exports increase. Read Global Thoughts Part One, Part Two, and Part Three.

BROWNSTOWN, Pa. — U.S. dairy exports posted record-high 2018 first-quarter volumes (see Chart 1), representing 17.3% of U.S. milk utilization on a milk equivalent basis, according to the U.S. Dairy Export Council (USDEC). (Note, the average Jan. through Oct. was 16.3%, still a record high.)

This, against the backdrop of Class I milk utilization falling to 29% of Federal Order pooled milk but just 18.9% of total milk production in the first quarter of 2018 (Chart 2).

In fact, Federal Order pool reports for first quarter 2018 showed Northeast marketings 1.8% below year ago as pool receipts fell due to reduced production. At the same time, other FMMO pools recorded declines in pool receipts, which USDA confirmed by email were largely due to shifts in pooling or strategic despoiling to prop up Class I utilization percentages. (For example the pooled first quarter receipts in the Appalachian Order were up 6% while down 5.5% in the adjacent Mideast Order.)

globalthoughtspart4_chart#1The total “official” U.S. Class I utilization for 2017 was 26.1%, down nearly 10% from 35.9% in 2009, according to USDA figures.

However, the Northeast Market Administrator’s most recent bulletin (April) observed that the real percentage of total U.S. milk production used for Class I fluid sales in 2017 was just 22.3%!

Bob Younkers, chief economist for the International Dairy Foods Association (IDFA), analyzed fluid milk trends, reporting in February that the 2017 fluid milk losses, alone, represented 20 million fewer pounds (2.3 million fewer gallons) of milk sold daily – nationwide – in 2017 vs. 2016. In addition to the blow dealt to producer milk checks, Younkers points to how the fixed costs of bottling increase when spread across fewer gallons of milk sold.

Coming into 2018, not only have first quarter Class I sales declined 1.5% compared with first quarter 2017, the Class I utilization percentage fell by even more — down 2.5% below year ago — in part because exports grew to this new first quarter record of 17.3%.

Left unchecked, the current math trend shows that as U.S. exports reach the goal of 20% set by the U.S. Dairy Export Council (USDEC), the percentage of milk utilized in export sales will very soon equal and surpass Class I utilization as a percent of total milk production.

Who benefits from this new math?

If the current classified pricing system — and its Class I regulation — must continue, perhaps the growing export utilization should have its own class formula tied directly to export pricing and representing growth milk in the U.S. system so that the other 80% of milk pricing can be more stable and reflective of serving that large anchor-base of domestic consumption?

Survey the experts on this idea and they’ll tell you an export class for U.S. milk pricing is a non-starter because of trade agreements and WTO. But trade agreements are being renegotiated and others in the global markets have mechanisms in play.

Perhaps instead of going after Canada’s export class implemented because of expanded production due to higher consumer demand for fat, the U.S. could learn from what’s being done north of the border with this pricing mechanism to match exports prices and products to growth milk that goes into products strictly for export?

This is not an idea that goes against free trade, but one that recognizes the U.S. as a free-trader in need of fair trade leverage for producer pricing.

The U.S. must be competitive enough to have its products arrive at other ports, so that it can remain competitive enough to keep other products from arriving at its ports — where a large market for dairy already exists. In Part Three, we looked at some of the product differences.

 But there’s another catch to this romance with export markets. They can be unstable and unpredictable, and while we make more of the globally significant products today than in 2008, our product mix and flexibilities are different than other successful exporting nations.

Would an export class allow pricing of growth milk — a percentage of the nation’s production or a percentage of production in high growth areas — to be aligned to the fluctuating global markets for globally-significant products with a margin to attract necessary investments in manufacturing flexibility and innovation? Such alignment could, at the same time, allow a more stable and profitable base price for milk going into dairy products for domestic consumption?

After all, we are increasing exports to levels that are approaching the falling Class I utilization percentages and yet NONE of the globally-significant products and/or prices are even used in the arbitrary U.S. Federal Order pricing formulas, to which location differentials are added to ensure the Class I price is always higher (more on this when we tackle logistics in a future part of this series).

As dairy exports become the new epicenter of U.S. marketing, a different light is cast on these regulatory pricing structures.

Let’s look at the differences between global and domestic pricing and trading platforms.

 For starters, price announcements to dairy producers in New Zealand are based on the actual value of global sales with producers buying shares of processing capacity for the quantity of milk they expect to produce. As milk falls short or exceeds those pegs, payout announcements are adjusted based on the relationship of the production to the sales.

In Europe, producers also see milk prices that reflect the value of what is sold not a formula like in the U.S. that leaves key products, prices and markets out of the math equation.

While Europe’s quota system has ended, the EU commission intervenes with purchases. Processors more nimbly shift between products to adapt to market changes. And if they miss in their projections — as they did in the shift to making more powder when the Russians stopped buying cheese and butter due to the economic sanctions — the EU commission intervened to buy and stockpile that powder to a degree that still is blamed for suppressing the global market for powder and holding back the U.S. milk price recovery.

In addition to differences in pricing, there are big differences between global and U.S. price discovery and trading platforms.

While the CME daily spot market in Chicago went electronic last year, the Global Dairy Trade (GDT) biweekly internet auction has always been an electronic platform.

The GDT engages more buyers and sellers, offers contract sales that are near-term and forward-looking to create what is essentially a 2-month ‘spot’ price, according to Bialkowski and Koeman’s November 2017 study at the University of Canterbury New Zealand of spot market design in relation to the success of futures markets.

They explain the GDT biweekly auction is a vehicle for Fonterra to market 30% of its production and to provide a global exchange for other sellers like Dairy Foods of the U.S. and Arla of Sweden.

The GDT auction includes many products and ingredients — from bulk cheese and butter to whole milk powder, skim milk powder, anhydrous milkfat powder, buttermilk powder, lactose powder, milk protein concentrate, rennet casein and occasionally sweet whey powder. Whey protein concentrate is another globally-significant product, which the U.S. makes and exports a lot of – but that price is never considered in the FMMO classified pricing scheme either.

By contrast, the CME futures markets provide a hedging opportunity for Class III and IV milk and futures markets for the four Federal Order pricing commodities: Cheddar, butter, nonfat dry milk and dry whey. The CME also operates a daily cash “spot” market primarily for three of the four Federal Order commodities – butter, Cheddar and nonfat dry milk.

The CME trades only those specific Federal Order commodities. It is thinly traded with few buyers and sellers, although volume has increased 1 to 3% in the past year since the change to an electronic trading platform.

As a spot market for hedging, Bialkowski’s analysis described the CME cash market as one that is less well-designed because daily ‘spot’ prices are market-clearing and used retroactively in government pricing formulas, with a pricing delay built in, while GDT auction contracts offer pricing points for delivery one to four months forward.

The biweekly GDT prices are always based on actual sales because all product offered is sold. And those sales are weighted to calculate a weighted average for each product as well as an overall weighted performance index for the dairy trade.

The CME spot market, on the other hand, pegs its daily spot prices on the activity occurring in the final moments of its 15-minute daily trading session.

As we saw on a few occasions earlier this year, a CME trading session had multiple loads change hands at specific prices, but the daily spot price was determined by a lower last-minute offer.

Access to the market is also different. CME traders must simply have product to sell and meet payment and delivery terms to buy. The GDT, on the other hand, has a more controlled process where buyers and sellers are vetted and approved by Fonterra of New Zealand because they run the platform.

How will the U.S. dairy industry adapt to competitively manage export growth and volatility? Are changes needed in the mix of commodity pricing and milk utilization formulas that govern the regulatory pricing structures?

If industry leaders want to focus on export market growth and bring home the message that dairy farmers must accept lower prices “because we are in a global market,” then why is the government involved in regulating prices on the shrinking piece of the expanding pie (Class I) and calculating component value from just four commodities while ignoring the globally significant products and their mostly higher prices?

This is new math and it is not adding up.

A national hearing with report to Congress would help examine new thinking and take a closer look at current regulatory pricing schemes. How is price regulation affecting milk movement and location? Do these schemes return enough component value to the farms? Are the arbitrary make allowances creating winners and losers? Would truly free market forces do a better job? Or if classified pricing is here to stay, should we be aligning milk growth in the U.S. with export market growth and price it accordingly?

In Part Five, we’ll look at U.S. dairy imports and why volume is not the only important factor.

-30-

Eastern dairy industry has value-add soul-searching to do

Forum4152.jpg

Talking candidly about dairy markets and trade were market experts (l-r) Tom Wegner, Land O’Lakes economist; Tom Roosevelt, founder and owner of West Chester-based Roosevelt Dairy Trade, Inc; and Matt Gould, owner of Philadelphia-based Dairy & Foods Market Analyst, LLC. Photos by Sherry Bunting

By Sherry Bunting, published previously in Farmshine, November 30, 2018

BAINBRIDGE, Pa. – “There is a long list of demands coming from consumers with unprecedented opportunities for milk,” said Matt Gould, owner of Dairy & Food Market Analyst LLC, based in Philadelphia. “Consumer demands are the key, and they are willing to pay for them.”

That was the good news. Gould said that Pennsylvania has an image to capitalize on, and part of that image is family farms working close to the land and animals — the iconic Lancaster County Amish-made image — for example.

But by the end of the forum, it was clear that how the state of Pennsylvania — and the eastern states in general — can tap into value-added dairy opportunities will require both individual and collective soul-searching.

The not-so-good news was the main substance of three hours with three dairy market experts at the annual Professional Dairy Managers of Pennsylvania (PDMP) Fall Issues Forum on November 14 at the Bainbridge Fire Hall in Lancaster County.

Each expert, in their own way, painted a changing and sobering portrait of the dairy market landscape. Producers in Pennsylvania, and the eastern U.S. in general, are not located where commodity processing growth is occurring to serve rapid growth for export and foodservice markets, but instead, exist in a market where declining fluid milk consumption is dictating the terms and leaving mainly the option of slow growth consumer niche markets that take time to develop and must be “continually fed.”

The experts noted that even though the Northeast is down to 30% Class I utilization, 87% of fluid milk sales is water that is expensive to ship, so, in a sense, the albatross around the neck of eastern dairy farmers is the fluid milk market needing farms nearby consumers, but at the same time declines in fluid milk sales are pressuring those farms.

In fact, the experts characterized the East as mainly a fluid and specialty market for dairy. Not the news many wanted to hear since a recent Pennsylvania Dairy Study suggested the Keystone State is a good location for a new cheese plant, and the Port of Philadelphia was tagged in the study as a vehicle to potentially capitalize on export growth markets.

Tom Roosevelt, founder of Roosevelt Dairy Trade, Inc., West Chester, said that commodity processing expansion is mainly associated with export growth and that is all being centered on the West and Midwest.

“A new cheese plant is not my first thought for Pennsylvania,” he said bluntly.

In fact, all three panelists agreed that the Keystone State’s hope is in building niche markets, and they offered these strategies: 1) branding the state’s image, 2) improving milk components, 3) marketing to consumers who have an emotional connection to where their food comes from and how it is produced, and 4) altering production practices — such as Organic, non-GMO and animal welfare labeling — to meet those niche demands.

They also preached the need for greater efficiency and market discipline, that producers here will increasingly see base/excess programs and will need to be using risk management tools and futures markets to get a ‘flat’ price because a ‘flat’ price is where the industry is headed in the midst of volatile global trade factors.

All three experts indicated that the deepening national and global dairy crisis won’t get better any time soon, and that Pennsylvania has some additional long-term challenges if it wants to retain and grow dairy.

Billed as a session to take dairy markets and trade ‘beyond the spin,’ the forum discussion was brutally honest. While disheartening, the information about what is happening here in the context of what is happening elsewhere is important for constructive ongoing discussions in Pennsylvania and other eastern states about the future of their dairy farms that are key to agriculture infrastructure and state and local economies.

When asked about the potential to change how milk is priced, Roosevelt said that there is no question the CME is thinly traded, but that electronic trading has brought in more activity. He said the USDA National Dairy Product Sales Report that provides the product prices for milk pricing formulas, is outdated.

He and Gould agreed that substantial changes to Federal Order milk pricing are not likely to happen because the investments of large companies (think Walmart, Leprino, etc.) rely on a “stable regulatory environment to protect their investments.”

Adding value

Gould challenged Pennsylvania’s dairy industry to instead focus on “value-added” processing and marketing instead of focusing on making more milk.

Tom Wegner, economist with Land O’Lakes said that, “Three years of tough markets would seem to be due for a price peak, but I don’t want to give any notion that it will get better soon. That is the impact of long milk. We are long on milk, and that will probably continue for a while.

Forum4136 (1).jpg

Tom Wegner, economist with Land O’Lakes, shows global milk production patterns during the PDMP forum on dairy markets.

“Your production of components here is more important to enhance milk checks than anything else,” Wegner said.

Roosevelt was particularly candid: “It’s tough to look at this part of the country and think you’ll have dairy exports. The real benefit you have here is in value-added.”

He gave the example of conventional nonfat dry milk selling for 85 cents a pound when organic powder is over $4.00/lb. (The flip-side of this proposition is the very high feed costs and other costs for organic production in which consolidation is also happening, so those producers also are having tough times.)

“It is hard for you to compete on a commodity level,” said Roosevelt from his experience trading dairy commodities at a ratio of 60% domestic use, including animal and pet feed makers, and 40% exports, noting the export trade really began in the past eight years.

“We do a lot of business with Land O’Lakes and Maryland-Virginia,” he said, “but we don’t move hardly anything into export markets out of the Northeast. The fluid market dictates things here in the East compared with the West and Midwest, where cheese is king.”

Roosevelt said the Midwest, Southwest and West are where dairy plants are doing line extensions, and new plants are being planned and breaking ground.

Global volatility

“These companies and cooperatives are going after the commodity big-volume markets to China and Mexico,” said Roosevelt. “If tariffs take those markets out, then it will affect you here because that milk moves down the line. When those markets move product out of the U.S., that means less competition for you here.”

The export markets are deemed the growth markets, said the experts, because domestic demand is declining in some sectors and offers only slow-growth opportunities in other sectors.

With the growth-focused U.S. dairy industry fueled mainly by exports, the volatility of the global market has forced more of the industry to use the CME futures markets to get the ‘flat price’ they want in their quarterly contracts, according to Roosevelt.

“As traders, we trade off the market price and use the futures to convert that to a flat price,” he said. “I would urge you to look at the futures to get a flat price. It’s a tool that will be increasingly important to all of you because, whether we like it or not, we are in a global market and futures are a way to reduce that volatility.”

Roosevelt’s bottom line was for producers to be as efficient as they can and look for the market that “gives you the value, whether it’s artisan or organic.”

Wegner echoed the advice on being efficient. He said the largest farms have the advantage of stretching their economies of scale and taking a longer view in this long period of long milk.

He gave a history of Land O’Lakes with its butter production dating back to 1921 and the eventual merger with Midatlantic here in the East.

“We aggregate demand also,” he said, a nod to Land O’Lakes’ Purina. “We want more of our members to buy more of our products, not just sell us milk.”

Explaining Land O’Lakes’ market-back philosophy, Wegner said the cooperative has put tools together that include traceability and are trying to put production discipline tools into that mix.

“We come to our customers with a farm-to-fork approach and send that back through milk production for an end-to-end view,” said Wegner. “Being farmer-owned is a great part of our background as we continue to grow markets.”

While Pennsylvania’s average herd size is 90 cows, most of the producers attending the forum represented farms with 300 to 1200 cows. Some of the questions lingering in their minds were: How many niches does a dairy market have? And what will it take to develop those in-roads to cover more milk and spread those opportunities beyond the small farm-store label at the end of the drive?

While niche-marketing connects producers and their location and practices with consumers who develop that emotional tie, Roosevelt said the dairy commodity supply-chain has been developing its own sets of practices and programs.

Supply-chain realities

“Traceability is a huge part of our business, and it is as important on the feed side as the food side working with customers like Cargill and ADM,” he explained, noting the huge increase in paperwork following every product delivery. Not only are there certified analyses, date processed, how processed and lot numbers, but in the case of whey, the buyer wants to know what type of cheese process produced the whey because each one has its own profile. He gave the example of whey from Swiss cheese being whiter and higher in protein.

He noted they are getting questions about organic and non-GMO whey, which will produce even more paperwork, and that the traceability aspect is moving back the supply chain to the farm level.

Wegner also talked about traceability. While he didn’t mention it specifically, both Land O’Lakes and DFA are trialing block-chain technology to follow product digitally through the supply chain. Walmart is driving full traceability and moving toward block-chain technology.

“Walmart is one of our biggest customers for butter,” said Wegner. “Just think of the traceability challenges of mixed loads with hundreds of producers.”

The National Milk Producers Federation FARM program was described as a way of consolidating groups of producers into blocks that are being evaluated to use approved practices.

“Members want to know ‘what’s in it for me?’’ said Wegner, “but the reality is that the FARM program contains a lot of the things we have to do to be part of the market.”

Not only are domestic commodity dairy sales being driven by large fast food chains that want to be sure a farm-level animal welfare issue, for example, doesn’t damage their name, the export markets have this concern as well where brands are involved.

Wegner noted that Pizza Hut is launching a new restaurant every 18 hours, globally, and the Yum brand, which includes Pizza Hut and Taco Bell, are opening new restaurants every 8 hours across the globe. He said that 80% of the menu items at these restaurants include dairy. They secure cheese from the U.S. and are concerned about capacity and traceability over the next three years.

For example, Leprino has 80% of the market share for U.S.-produced mozzarella, said Wegner, and their growth is more concentrated in states like Michigan, Colorado, New Mexico and California.

Trickle-down effect

With the commodity production for export and large chain foodservice sectors growing — and served mainly by the Midwest and West — Roosevelt maintained that this export growth is still very important to the East because “the benefit trickles down from the West.”

He said that, “The value of growing exports, for you, is that you will have less competition coming from the Midwest and West.”

What can alter that picture — overnight — is the impact of trade tariffs and trade wars with the top three countries for off-shore dairy trade, in order: Mexico, Canada and China.

He said the tariffs have had an incredible effect on lactose trade. Those customers can go to Europe. “There’s plenty of lactose in Europe and they are quick to fill the gap with a lower price,” said Roosevelt.

Another big trade item is permeate, which is 70 to 80% lactose with some protein left in. There are fewer global competitors in this market, but when the tariffs hit, product was “in the water” and fourth quarter contracts were being negotiated, resulting in buyers and sellers splitting the extra costs and new contract offers coming in on lower bids.

The bottom line on these two commodities, according to Roosevelt, is less market for U.S. lactose and a lower price on U.S. permeate.

As for nonfat dry milk powder, it goes all over, but primarily to Mexico, Canada and China, in that order. The “new NAFTA” and the trade war with China, combined, can have an impact on all three export destinations for nonfat dry milk.

Mainly, Roosevelt’s point was that trade uncertainty can create changes “overnight” that affect dairy, and that tariffs are bad for agriculture, in general, because they “create inefficiencies that stop the normal market dynamics from taking effect.”

Like every other economist at every other meeting, Wegner talked about how Europe “really put on milk” when the quotas were removed. He admitted that he was among those who didn’t believe it would happen. But it did. And this extra milk, said Wegner, resulted in stockpiled powder that drove prices down globally.

With some intervention and drought conditions affecting Europe, the EU’s growth this year was only 1.4% instead of 2.5%. But a 1.4% growth in Europe represents far more milk than the same percentage of increase in the U.S.

Growth challenges

Wegner explained that the U.S. is growing milk production at roughly 1% per year now, but that equates to 2 billion additional pounds of milk annually. At the same time 600 million fewer pounds are going into bottles for Class I sales.

“That is what is challenging our system,” he said. “We are seeing the cows come out of the system, but better cows are going back in. For things to get better, a lot more cows need to come out.”

With Land O’Lakes having a national footprint, Wegner observed the challenges of more milk coming on in some of the largest herds in the nation. While California is not growing year-on-year, Texas and the Southwest states are growing rapidly.

He noted that even though Michigan’s growth slowed this year, “Michigan is the poster-child for the hazard of growing ahead of the market,” said Wegner. “They doubled their production from 5 billion pounds in 2000 to over 10 billion pounds by 2018, and this drove their price $2 below everyone else because their milk has to move around.”

Wegner touched on the recent Pennsylvania Dairy Study and its finding that a new cheese plant or other new processing capacity could reduce hauling costs for producers and add value to farm level milk pricing.

“New processing is easy to do, but what do you do with the additional product?” he suggested. “We take a market-back approach at Land O’Lakes because if we don’t sell it or eat it, the product gets stored.”

Wegner called cold storage cheese stocks “very high” and he said that butter stocks were “a little higher than they need to be.” (Note that the USDA cold storage report the following week showed a record-high draw-down in butter stocks that may have improved the butter storage situation.)

Wegner also said that Mexico’s retaliatory tariffs, if they remain in place until a new trade agreement is signed, are already stagnating U.S. cheese production into storage – cheese that had been going to Mexico. (Cheese exports were down 9% compared with a year ago in September.)

The bright spots, he said, are the dairy ingredient markets. “But the Class III market, right now, is a dog.”

The Class IV market is improving as Europe works through its mountain of powder, bit by bit. That powder is getting close to two years old, and Wegner observed that the U.S. is selling fresh powder at a price advantage to buyers who want fresh.

Looking at some of the specific market impacts of the trade tariffs, Wegner stressed the “woefully underestimated” tariff-mitigation payments by USDA to dairy farmers, and all three experts agreed that these tariffs, and more that will potentially kick-in January 1st, are having very negative impacts on the U.S. dairy supply chain.

When asked how these impacts could be blamed for the lack of a price recovery when U.S. dairy exports have been record-high for January through September (most recent figures), the response was that producers should not expect higher export levels to improve farm-level prices because these export markets are largely “market-clearing” commodity markets.

Forum4148

PDMP executive director Alan Novak opens the discussion to questions from the 60 dairy producers and industry representatives gathering at the Bainbridge Fire Hall on November 14 for the Professional Dairy Managers of Pennsylvania’s (PDMP) Fall Issues Forum focused on dairy markets and trade.

Also driving milk production and processing west are the incentives western states provide for new plants, new dairy operations, and growth of existing businesses. For example, the I-29 corridor of the Dakotas is an area that has lots of capacity, is building more, and has dairies, like Riverview, adding cows in a big way.

Indiana and Michigan are other examples of states becoming big dairy suppliers via Select Milk Producers and Fair Oaks. Colorado’s growth is fueled by Leprino, and Texas has multiple growth influencers, including line extensions by Hilmar.

Taken together, the U.S. has grown milk production by 17 to 18 billion pounds of annual production over the past five years, according to Wegner. That’s like adding another Pennsylvania and Minnesota to the nation’s milk load. Wegner said that boils down to 50 million more pounds of milk per day moving in the U.S. compared with five years ago.

Wegner also talked briefly about Land O’Lakes’ base/excess plans. “This is our way of putting some discipline into the discussion, which goes to our market-back approach,” he said. “We moved a lot of milk from our milkshed this year, and that long milk has a cost. At the same time, he noted that Land O’Lakes has been stripping and dumping milk here, that its producers are assessed to pay for that.

“We worked with DFA (Dairy Farmers of America) and DMS (Dairy Marketing Services) on this step to do cream salvage,” he added.

Land O’Lakes’ view of investing in processing is that the products have to be able to move along the value chain in order to produce more of them.

-30-

‘There’s no magic in animal handling.’ Calm behavior taught, learned.

Dr. Hoglund’s low-energy cattle-handling workshops school cattle and handlers

CattleHandling3858.jpg

Dr. Hoglund talks about raising hands from below eye level to above the eye level of the cattle to add a little energy to create movement, while emphasizing the importance of using only the amount of energy needed.

 By Sherry Bunting, first published in Farmshine, Nov. 7, 2018

MARION, Pa. — When Josh and Brandi Martin attended their first low-energy cattle handling and stockmanship clinic with Dr. Don Hoglund, Josh wondered what he could learn. After all, he works cattle every day at the family’s farm where they milk 1000 cows and raise dairy replacements as well as beef cattle in Franklin County, Pennsylvania.

CattleHandling3813(Martins).jpg

Josh and Brandi Martin attended a previous clinic and learned so much they organized one as a refresher at their farm for themselves and their neighbors.

“I learned a lot, and it surprised me,” he told a dozen fellow dairy producers, employees and industry representatives at a two-day workshop organized at Martin Farms Oct. 15-16.

“There’s no magic in animal handling,” said Dr. Hoglund, who stated there’s also no definition for “emotion” because emotion is cognitive and requires language.

Fear, therefore, can’t be quantified.

He focused on the observable behavior of animals and how humans and animals learn from their interactions.

The learning for clinic attendees began in a classroom setting before heading out to the heifers and cows with the realization that just like no one in the room could know what anyone else was thinking or feeling, we also don’t know what animals are thinking or feeling.

CattleHandling3799(Hoglund).jpg

Dr. Don Hoglund

“But we can observe and measure their behavior and responses,” said Dr. Hoglund, whose educational, vocational and life experiences span decades as a veterinarian, animal behaviorist, animal trainer (including for Walt Disney Company), researcher, educator, evaluator and text book author on the subject.

A scientist with decades of experience, Hoglund stressed the importance of observing behavior, not emotion and of using specific words in conversations with consumers to convey behavior that can be observed instead of emotion, which is a guess.

As we soon found out, Hoglund’s clinics are not your run-of-the-mill stockmanship workshops. He teaches science-based and practical approaches to human and animal interaction – challenging the conventional wisdom.

“I’m not here to tell you how to handle your cattle, but rather to show you how animals learn, and how you learn affects how your animals learn,” he said.

Part of the two-day cattle course at the Martin farm involved having producers do techniques in training and handling to the point where they can teach someone else and accomplish important aspects of various farm owner and employee certifications.

Additionally, Hoglund’s techniques equipped attendees with a few ideas for “teaching” dairy animals calm parlor behavior via low-energy training as heifers.

The fascinating aspect of the clinic was evident in how both the people and the cattle demonstrated observable behaviors that showed they were both learning.

“We are seeing a revolution in the neurosciences,” said Dr. Hoglund, explaining that we really don’t know why animals run.

CattleHandling3801

A dozen dairy producers, employees and industry people attended Dr. Don Hoglund’s low-energy cattle handling clinic at Martin Farms near Marion, Franklin County, Pennsylvania recently. Photos by Sherry Bunting

“They run because they can,” he said. “There’s more than one reason why animals run, so instead of why, we should be looking at ‘when’ they run. Look at when a behavior occurs, not guessing why. You know what the cattle are doing and when they are doing it.”

He demonstrated a primary example on dairy farms.

“A dairy cow faces you all of her life. That’s how we feed and interact with her growing up. But for milking, she faces away from you and has to turn her head to see you,” Hoglund explains. “We can teach animals to calmly face away so they are ready for the parlor.”

He explained his techniques as “low-energy handling” — using just the amount of energy it takes. Preferring to speak in terms of “energy” versus “stress,” Hoglund said a key is for cattle handlers to learn to manage their own energy levels relative to the cattle.

CattleHandling3818

Dr. Hoglund instructs pairs of participants in the heifer pens at Martin Farms as the teach heifers to calmly “face away.”

“When we start doing things in the blind zone, early, we are training the cattle to handle this calmly,” he said. “Everyone is told to stay out of the cow’s blind zone, but that’s where all the milking work is done.

“How about we train her to accept that?”

In the heifer pens, attendees, working in pairs, put the principles into practice according to Hoglund’s instructions getting the heifers to learn “facing away” behavior and “see human go to food.”

It was interesting to see how quickly they settled-in to be orderly as they learned “facing away,” and how their handlers learned to step away once they got the animals where they wanted them to go.

“Your energy drops and the animal learns. That’s what we’re after, the learning,” said Hoglund. “Cattle are in the business of learning to stay alive. They will go the efficient way and that helps you get more of the milk you are investing in.

“When we work with cattle in low-energy, then we have them in the parlor in low-energy,” he explained, adding that calm behavior is observable where the term “relaxed” is a feeling term, and therefore unknown.

“We want to talk and think about these things as behavior and not emotion. Behavior is anything you can observe,” he explained. “We are teaching others to teach animals to go calmly and to face away from us.”

The biggest thing for clinic attendees was to come away doing enough to be able to teach others at their own farms. After working in a heifer pen, participants had the opportunity to ‘train’ another clinic participant.

Throughout the handling, Hoglund said that trotting is okay, but that if the animals begin to lope, that’s not what you want.

The exercises in teaching cattle to accept “facing away” are something producers or employees can do 15 minutes a day for three days in a row and get results and then periodically refresh, according to Hoglund.

“It’s not really animal handling or stockmanship, it’s animal learning,” he observed. “The animals are learning to accept compression, and the people learn to slow down, be safe, and manage themselves to use only the energy required to accomplish the task. As we lower the energy, we reinforce the learning.”

He acknowledged that it’s tough for handlers to learn when to step back. “That’s one of the hardest things to learn, but also the most important.”

Low-energy handling starts with hands at sides. For safety reasons, he advised participants not to put them down in their pockets but to thumb their pockets and keep the hands out in case they need them.

“We add energy to move them by moving our hands from below the eye level of the cattle to above the eye level to raise the energy,” Hoglund explained.

CattleHandling3839

Bred heifers calmly eat at the bunks watching some of their pen-mates ‘learn’ calm parlor entry through a makeshift chute.

When it comes to training animals and human handlers for low-energy handling, Hoglund said avoid training animals where they sleep: “You don’t what to chase animals out of their beds to train them.”

While working in the heifer pens at the Martin farm, Hoglund explained that, “Heifers learn through all five senses. To know where an animal is looking, look at her ear, not her eye. She can see two things at once, so the ear tells you more.”

This is important information for producers and employees to avoid raising the energy level in a pen.

Hoglund made the case that these techniques are also important from an economic standpoint. Citing work he has been involved with in Minnesota, he said it takes 20 minutes for a cow to get rid of that adrenaline rush from a high-energy handling.

“That 20 minutes can hold back two and a half to three pounds of milk in the next milking,” he said, adding that cattle remember “where” things happen and don’t regain the milk lost.

“These techniques will help you get the milk you’ve already invested in,” said Hoglund, explaining that  “animals repeat what they learn, and for the people working with the animals, seeing gives information but doing is learning.”

This was just one aspect of the two-day clinic and the tip of the iceberg in terms of Dr. Hoglund’s work and the services and education he provides to universities, organizations, companies and especially hands-on to groups of producers and employees on farms.

Look for more tips from this clinic in the future, and to learn more about Dr. Hoglund and his work, visit https://www.dairystockmanship.com/

-30-

CattleHandling3837

How will fake milk, fake meat be labeled and regulated?

Say, what? New twist on standards of identity: How will fake milk and fake meat be labeled and regulated?

cows.jpg

In a time when many people have lost their connection to the values and sustainability of the circle of life, cattle have been getting an undeserved bad rap on everything from diet to environment to compassion. On all three counts, the anti-animal agenda lies behind the false narrative that is leading us down a dishonest path to more fake concoctions of ill-fated science fueling profits at the expense of our physical and emotional health and the health of the planet. Fake meat and fake milk are funded by billionaires, genetically engineered by USDA, initiated as the brain children of Silicon Valley techies, with partnership from the biggest names in corporate agriculture. Noble goals of ending hunger are the defense, but it’s difficult to believe that when we have surplus dairy and meat protein produced naturally with the real problem of hunger coming down to distribution and waste. This so-called solution has the potential to quietly dictate food choices, markets and livelihoods.

By Sherry Bunting, updated since first published in Farmshine, November 21, 2018

WASHINGTON, D.C. –  “Dairy reinvented: Sustainable. Kind. Delicious,” is the tagline of Perfect Day’s website.

“Better meat, better world” are the words that jump from the Memphis Meats website.

To be more specific, Perfect Day’s mission is to “create a better way to make dairy protein, the same nutritious protein found in cow’s milk…without the help of a single cow.”

Meanwhile, at Memphis Meats, their mission is “To bring delicious and healthy meat to your table by harvesting it from cells instead of animals… feel good about how it’s made because we strive to make it better for you… and the world.”

On the fake meat side, Memphis Meats received Series A funding from four sources in August 2017: venture capitalist DFJ, billionaire investors Bill Gates and Richard Branson, and Cargill. In January of 2018, Tyson came on board as an investor.

On the fake dairy side, Perfect Day received its Series A funding from Singapore and Hong Kong venture capital and investment companies that have relationships with some of the largest food and beverage companies and brands in the world, according to a company news release. In addition, Continental Grain was part of the early investment, and in November 2018, Perfect Day announced a partnership with Archer Daniels Midland (ADM).

The big question, at present, is how will these proteins be regulated and labeled?

The discussion is converging with FDA’s nutrition innovation strategy and modernization of standards of identity (especially dairy standards of identity), along with parallel hearings and comment periods on how to regulate and label the ‘meat’ version of lab-created cellular proteins.

Make no mistake about it folks: Both of these processes involve genetic engineering start-to-finish.

Perfect Day (fake milk protein), for example, sources yeast from USDA research labs that has been “genetically-altered” to include bovine protein stimulators and synthesizers.

Memphis Meats (fake meat) uses animal cells, mainly bovine and poultry, from cell banks that have been edited to grow only desired muscle cells — separate from their whole-animal source.

The fake dairy protein would be the end-product of the fermentation of the genetically-altered yeast, while the fake meat protein would be the protein blobs that grow from the genetically-edited cells, using neonatal bovine serum — or a plant chemical substitute that is under development — as a growth “on” button.

Both systems would require energy feed sources, using a sugar and/or starch substrate to feed the growth.

Both processes would produce waste streams.

The dairy version are grown in fermentation vats. The meat version in bioreactor towers.

While opinions vary on how quickly these technologies can scale, it is clear that the technologies are well-funded, and that agriculture’s top-tier food supply-chain processors and distributors are partnering.

We must continue to let FDA and USDA know what farmers and consumers — the two ends of the supply chain that need to be talking to each other — feel about the potential of these technologies to create captive-supply market control using interchangeable proteins in common manufactured dairy products or as protein enhancements for plant-based beverages, as well as to stretch boneless beef and poultry products with fake counterparts, namely as ground beef, hamburger, meatballs and chicken tenders and nuggets.

In a press release Friday, November 16, the U.S. Food and Drug Administration (FDA) and U.S. Department of Agriculture (USDA) announced that they will “jointly oversee the production of cell-cultured food products derived from livestock and poultry.”

There has been no similar FDA PMO-regultory process established for the fake milk proteins.

USDA and FDA had a public meeting in July and October to discuss the use of bovine and poultry “cell lines” to develop these cell-cultured, lab-created foods.

In fact, meat industry stakeholders shared their perspectives on the regulation that is needed to “foster these innovative food products and maintain the highest standards of public health,” said FDA commissioner Scott Gottlieb in an official FDA statement in November.

USDA and FDA announced their “agreement on a joint regulatory framework wherein FDA oversees cell collection, cell banks and cell growth and differentiation. A transition from FDA to USDA oversight will occur during the cell harvest stage. USDA will then oversee the production and labeling of food products derived from the cells of livestock and poultry.”

As FDA and USDA are “actively refining the technical details of the framework,” some of the aspects of the framework are said to include robust collaboration and information-sharing between the two agencies to allow each to carry out our respective roles.

The well-funded startups and their lobbying organization Good Food Institute (a misnomer in this author’s opinion) had pushed for FDA to control labeling and inspection knowing that if USDA were in charge, their efforts to scale production would be slowed.

In view of this joint approach between FDA and USDA, the original public comment period about cell-cultured ‘meat’ had been extended to December 26, 2018. Comments can be seen at the FDA docket at https://www.regulations.gov/document?D=FSIS-2018-0036-0001  and there are thoughts that this comment period could be extended again as has the dairy standards of identity comment period.

Meanwhile, on the lab-created ‘dairy’ protein front, Perfect Day, a Silicon-Valley startup, announced in a press release in November that it has formed a partnership with ADM, an agricultural processor and food ingredient provider with a mission of plant-to-plate collaboration throughout the food industry.

In fact, ADM will provide facilities for scaling this technology as part of the deal.

This partnership is billed as “teaming up” to begin supplying “the world’s first animal-free dairy proteins to the food industry in 2019,” according to Perfect Day.

“Animal-free dairy proteins will not only offer consumers the option to have a lactose-free, animal-free alternative to conventional animal-based dairy, but also provide a portfolio of nutritious and functional, high-purity proteins with similar taste and nutrition profile of dairy proteins for a wide range of food and beverage applications,” Perfect Day said in their press release.

Meanwhile, the FDA has extended — yet again — its invitation for information specifically on “the use of names of dairy foods in the labeling of plant-based products.” So far, 10,043 comments (as of December 28, 2018) have been received on this docket. To comment by the new deadline of January 28, 2019, go to the docket online at https://www.regulations.gov/docket?D=FDA-2018-N-3522.

Dairy checkoff-funded DMI completed a survey of consumers recently showing that 73% are confused about the differences in nutrition between real dairy milk and plant-based alternatives calling themselves ‘milk.’

Other surveys show that more than half of U.S. consumers want healthy foods with ‘clean’ labels having few ingredients and limited or no processing.

It would seem that these findings, among others, would indicate clearly to FDA and USDA that consumers want no more monkey-business when it comes to their food, that they want to see clarity in the enforcement of milk and dairy standards of identity, and that they want to be informed about look-alike ingredients made in laboratories instead of in the time-honored land-and-animal care-taking profession of dairy and livestock farmers and ranchers.

One thing to keep in mind when commenting is to highlight the fact that over half of U.S. consumers want food that does not have a long list of additives and that is minimally processed.

That, on top of nutritional differences and new unproven processes, are enough reason to aggressively label any food containing either the fake dairy or fake meat protein because standards of identity are in place not just for health and safety but also to prevent fraudulent misleading of consumers.

Consumers should know what they are buying and be able to choose food based on their beliefs about what is a better world, not someone else defining what is kind and good and sustainable for them and not using the government’s currently flawed dietary guidelines to decide for consumers what is deemed “healthy.”

Let FDA and USDA know that we as consumers and farmers want clear labeling if these technologies are going to scale into our food system. We want the fake versions to have all of the inspection rigor that real dairy and meat proteins are subjected to.

Above all, we do not want the government quietly removing — via its one-size-fits-all nutrition innovation strategy — our ability to choose foods and production methods with which we want to nourish our bodies and on which we wish to spend our hard-earned money.

This may come down to a battle between fake animal protein ingredients funded by billionaires aligned with Silicon Valley startups and partnered by the biggest names in corporate agriculture vs. a collaboration between individual farmers and ranchers who are the backbone of our nation, the stewards of land and livestock, along with the public at-large, the consumers who are confused by the lines that are blurring.

Now, more than ever, both ends of the supply chain — farmers / ranchers and consumers — need to engage with each other directly — and not through the industry-scripted mouthpieces.

Stay tuned.

-30-

How do we unwind a trend that demonizes and suppresses a food group?

NESAWG(Philly)3890.jpg

A dairy panel with Mike Eby, Nina Teicholz (center), Lorraine Lewandrowski and John King (not pictured) was eye-opening to food-interested people at the 25th NESAWG conference in Philadelphia. Minds were opened as food policy influencers report weeks later some are reading Teicholz’s book The Big Fat Surprise, and it is changing their thinkingAllied Milk Producers helped sponsor this panel. Stay tuned. 

JUNK NUTRITION SCIENCE STILL RULES DIETARY GUIDELINES

25th NESAWG brings dairy to table in Philadelphia 

By Sherry Bunting, Farmshine, December 14, 2018

PHILADELPHIA, Pa. — Justice, power, influence… Balance. How do people unwind a trend that demonizes and suppresses a food group?

How do Americans have faith in an increasingly globalized food system that gives them choices, but behind the scenes, makes choices for them?

How do urban and rural people connect?

These questions and more were addressed as hundreds of food-interested people from all backgrounds and walks of life gathered for two days in center-city Philadelphia recently for the 25th Northeast Sustainable Agriculture Working Group (NESAWG) conference.

webNESAWG9725

Lorraine Lewandrowski (left), a central New York dairy farmer and attorney, talks with Niaz Dorry of NFFC. Dorry spoke on the opening panel about her 67,000-mile tour of rural America, urging others to “meet the farmers where they are.” Lewandrowski spoke about the ecology of rainfed grasslands in the Northeast and the struggle of family dairy farms throughout this landscape.

For Niaz Dorry of the National Family Farm Coalition (NFFC), the answer is simple: “Get out into the countryside and meet the farmers — where they are,” she said, during the opening panel of the conference as she talked of her recently completed America the Bountiful tour, driving over 67,000 miles of countryside — coast to coast.

Dorry also touched on the dairy crisis. “Go and experience their grief with them. Be with them at milking on Tuesday and see them sell a portion of their cows on Wednesday — just to make payroll.”

Pennsylvania Secretary of Agriculture, Russell Redding echoed this theme during the lunch address as he said agriculture is “zipcode-neutral,” that we need to forge “a more perfect union in our food system” but that the future lies in “differentiating” agriculture here.

NESAWG(Philly)9757-Redding

“We see our future — and our long-term investments in Pennsylvania — driven by differentiation…” said Pennsylvania Ag Secretary Russ Redding.

“It’s nice to be with folks who understand the power of food to change lives,” said Redding as he mentioned rooftop gardens, urban brownfields and Pennsylvania’s rank as number two in the nation for organic sales.

“We see our future — and our long-term investments in Pennsylvania — driven by differentiation, by being able to grow and produce and market organic agriculture,” said Sec. Redding.

With the NESAWG goal to “cultivate a transformative food system,” panels and breakouts covered topics from building networks and insuring equity among sectors to understanding urban food trends and ways to position Northeast agriculture within the power grid that ordains the direction of mainstream food production, processing and distribution today.

A breakout session on building “farm-to-school” hubs, for example, gave attendees insight for getting more fresh, local foods into school meals. Presenters talked about obstacles, and how they are navigated, about martialing available resources, identifying networks, working in collaboration with others, piloting ideas and growing them. Farm-to-School began in 2007, and it is growing.

Another breakout brought a panel of dairy producers to share with urban neighbors the crisis on Northeast dairy farms. The panel featured the work of dairy producers Jonathan and Claudia Haar of West Edmeston, New York, who spoke about consolidation that has been underway for decades in dairy.

But it was an afternoon panel — Milk Economies, Ecology and Diet — that put dairy and livestock producers squarely in the realm of hope for a re-wind.

Keynoting this panel was Nina Teicholz, author of The Big Fat Surprise and founder of The Nutrition Coalition. She covered the history of current government Dietary Guidelines and how rigorous studies have been ignored for decades because they don’t “fit” the narrative on saturated fats and cholesterol.

She was joined by dairy farmer and attorney Lorraine Lewandrowski of Herkimer County, New York, who spoke on dairy ecology and how the rainfed grasslands and croplands of Northeast dairy farms are a haven to wildlife, especially important species of birds and butterflies and pollinators.

They were joined by Mike Eby and John King of Lancaster County, Pennsylvania, representing National Dairy Producers Organization and Allied Milk Producers. The two men spoke on the dairy economy and what is happening on family dairy farms, struggling to remain viable.

“The land is most important to us,” said Lewandrowski about her deep love of Honey Hill, where her family has farmed for four generations. While, she is an attorney in town with farmers among her clients, she also helps her brother with the farm and her sister with her large animal veterinary practice.

Lewandrowski is known as @NYFarmer to her over 26,000 followers on Twitter — generating over 75,000 interactions from nearly a quarter-million tweets in the past 10 years!

She described a reverence for the land and its wildlife — cohabitating with a rich agricultural heritage and sense of rural community that exists within an afternoon’s drive of New York City.

“We have land that is rich in water,” she said with a nod to a dairy industry consolidating into regions that rely on irrigation.

“Our lands are rainfed: 21 million gallons of water run through our farm with an inch of rainfall,” she said. “Our farms are diverse across this landscape. But our farmers are going out of business in this economy. So many of these farms are then turned into urban sprawl. What will become of the people, the land and its wildlife?”

Lewandrowski talked about identifying bird species on their farm, of the crops and pasture in dairy operations, and the economic hardships she sees firsthand. She shared her vision of Northeast rural lands and what they bring to urban tables and communities.

Introducing Teicholz to an audience primarily of urban people, Lewandrowski shared how dairy farmers feel — working hard to produce healthy food, and then contending with poor prices driven by regulations that suppress its value.

“I didn’t know why our food is not considered good and healthy. Nina’s book gave me hope,” she said. “We are fighting for our land, and yet the vegans are so mean. When our farmers go out of business, they cheer on social media. They cheer when our families lose everything. But the land and wildlife lose also, and the vegans cheer.”

Teicholz traced the history of her 10-year investigation that led to The Big Fat Surprise: Why Butter, Meat, and Cheese Belong in a Healthy Diet. It started with a newspaper assignment on dietary fat.

NESAWG(Philly)9769

Nina Teicholz explains the revelations of a decade of investigation leading to The Big Fat Surprise. In the 5 years since publishing, farmers seek her out to thank her. She says she never realized how it must feel to be a dairy or meat producer — producing a healthy product while being told it is not healthy and seeing your livelihood pushed down by faulty dietary controls.

“Before I knew it, I had taken this huge deep-dive into fats and realized we have gotten it all completely wrong,” said Teicholz, a former vegetarian for 25 years before her research.

“I’m here to speak today because I found Lorraine’s twitter account and fell in love with her photos and stories from the dairy farm,” said Teicholz. In the nearly five years since her book was published, awareness of ignored science has been raised.

A California native, living in New York City, Teicholz described herself as an urban person and how surprised she was to hear the stories from farmers about how her book and her work gives them hope.

“It breaks my heart to now realize that — after all this time — the dairy farmers and meat producers have been led to feel that there is something wrong with the food they are producing, and to see how vegans go after these farmers, and now after me too,” Teicholz related.

“How did we come to believe these things that led to the decline in foods like whole milk, and have pushed down the producer?” Teicholz traced the history of dietary caps to the theory of one researcher — Ancel Keys from the University of Minnesota.

“Concern about heart disease in the 1960s led to many theories. The diet-heart hypothesis of Ancel Keys was just one theory, but he was unshakably confident in his own beliefs, and he was considered arrogant, even by his friends,” said Tiecholz.

“When the American Heart Association nutrition committee first supported Keys’ recommendations — even though the scientific evidence was very weak — that was the little acorn that grew into the giant oak, and it’s why we are where we are today,” she explained.

Methodically, Teicholz took her audience through the science that was used to support Keys’ theory, as well as the many more rigorous studies that were buried for decades.

In fact, some of the very research by the National Institute of Health (NIH) that had set out to prove causation for Keys’ theory was buried in the NIH basement because “the results were so disappointing to that theory.”

The studies that did not validate Keys’ theory — that fat in the diet is the cause of heart disease, obesity and other diseases — were suppressed, along with the studies that outright refuted his theory. A steady drumbeat of science — both new and exposed from those earlier times — shows a reverse association and causation.

48329399_2290819234570553_8398919649542012928_n.pngIn fact, since the Dietary Guidelines capped saturated fat in the 1980s — becoming progressively more restrictive in requiring lowfat / high carb diets — the data show the association, that Americans have become more obese, with higher rates of diabetes and heart disease.

“It feels like the battle is endless,” John King said as he spoke of the real struggle on dairy farms and of selling his dairy herd in 2015. “But it is rewarding and encouraging to see what people are doing to expose the truth now.”

King posed the question: “Do urban communities really care about rural communities? If not, then we are done. Our food will come from somewhere else and the system will be globalized.

“As farmers, we care about what we produce, and we care about our animals,” he said. “What happens to us on our farms trickles down to the urban areas. It’s an uphill battle to try to go against the status quo, and we need urban communities to care if we are going to be successful. It comes down to whether urban and rural care about each other. Do we care about our neighbors?”

Teicholz sees the U.S. being in the midst of a paradigm shift. However, it is taking time for the Dietary Guidelines Advisory Committee to change and open up to the science. She noted that in the 2015-2020 guidelines, the caps were removed for cholesterol, but they were kept in place for saturated fat.

“The cholesterol we consume has nothing to do with blood cholesterol,” said Teicholz. “The body produces cholesterol, and if we eat fat, our body makes less of it. It is the science that remains buried that needs to continue to surface. People need to know that the fat you eat is not the fat you get.”

She cited studies showing the healthfulness of full-fat dairy, that drinking whole milk and consuming the healthy fats in butter, beef, bacon and cheese are the fastest ways to increase the HDL ‘good’ cholesterol in the bloodstream.

It is the saturated fat caps in the current guidelines that are the reason whole milk, real butter, beef, and 100% real cheese are not served in schools today, said Teicholz. She showed attendees how these recommendations drive the food supply.

“The recommendations are allowing children to have whole milk only for the first two years of life, after that, at age one or two, children on skim milk,” she said. “The recommendations drive what we eat whether we realize it or not.”

She showed how the current flawed Dietary Guidelines drive the diets of the military, school children, daycare centers, WIC programs, hospitals, prisons, retirement villages. And these recommendations are downloaded by foodservice and healthcare: physicians, dieticians, nutrition services, foodservice menu guides. They are driving how dairy and meat products are presented in restaurants, fast food chains and other menus of choice. They are driving the current FDA nutrition innovation strategy that is working on a symbol for “healthy” and looking at modernizing standards of identity to accomplish these nutritional goals that focus on lowfat / high carb diets.

“Meanwhile, it is the unsaturated fats, the new products in the food supply, that are negatively affecting us and those are all there… in the USDA feeding programs,” Teicholz pointed out.

Others in the panel discussion pointed to an anti-animal view, that cattle are bad for the planet in terms of climate change. These views perpetuate the current dietary guidelines. In fact, in 2015, the Dietary Guidelines Advisory Committee attempted to introduce “sustainability” guidelines on what they deemed “healthy” for the planet into these guidelines, officially.

This is the ecology side that Lewandrowski addressed, showing urban food influencers how the concept of sustainability is being overtaken and systemized and how Northeast dairy farmers have a great story to tell that is being ignored, drowned-out.

“We have to think about how the shifts are occurring in the food system and manage those shifts. We can work together and make change happen,” said Mike Eby, articulating the message of National Dairy Producers Organization (NDPO), seeking to work with the system to manage farmers’ interests.

Allied Milk Producers helped sponsor this dairy panel, and Eby said that whether it is milk promotion through Allied, membership in NDPO, or supporting the buying and donating of dairy products through Dairy Pricing Association (DPA), it is important for people to participate.

NESAWG(Philly)9741.jpg

Mike Eby and John King brought Allied Milk Producers materials — and plenty of milk — to the NESAWG conference in Philadelphia. Amos Zimmerman also had a booth for Dairy Pricing Association.

He gave examples of how Allied and DPA — funded by farmers — are reaching out to consumers, schools, urban communities with donations of product and a positive message.

“We need more people to get involved to fix these issues, and to create a system that supports its producers and stabilizes prices,” said Eby.

“We need to reach out and work together as urban and rural communities,” added Lewandrowski.

 

NESAWG(Philly)3802.jpg

Hundreds of food-interested people from all backgrounds and walks of life attended the 25th Northeast Sustainable Agriculture Working Group conference in Philadelphia, where networking from urban to rural looked at regional solutions.

NESAWG9779

NESAWG9729

NESAWG9748.jpg

webNESAWG9759