Electronic trading brings anonymity. Understand how CME dairy spot markets function

By Sherry Bunting, Reprinted from Farmshine, February 9, 2018

CHICAGO, Ill. — The CME dairy spot markets have been evolving since arriving in Chicago after a tumultuous past on the Green Bay Cheese Exchange, writes Ronald K. O’Brien, II, a dairy market risk specialist and geostrategist. He is director of global derivatives for Interfood, multidimensional global dairy risk managers using physical and financial global dairy markets to offset internal sales and inventory risk.

CME(RonOBrien).jpgRecently, Farmshine interviewed O’Brien to better understand from a trader’s perspective how the dairy spot markets function since the transition from live floor trading to electronic trading in the second half of 2017. We also gained insights on some differences between the global and domestic trading platforms.

This conversation matters because the daily price at which those 15 minutes of CME trading close — whether bid, offer or trade — helps set pricing for the weekly USDA National Dairy Product Sales Report for cheese, whey, butter and nonfat dry milk (NFDM), which in turn sets the monthly commodity prices that are plugged into the Federal Order formulas that form the basis for how dairy farmers get paid for their milk.

O’Brien points out that markets are based on the “who” and the “what.” That’s as much true about CME dairy spot markets as it is about cattle auctions. People want to know, in the moment, where the auction is going in price, but also who is buying and who is selling, to infer a sense of market demand and resistance at those positions.

“Fundamentally, we have the same participants on the dairy spot markets, and it is still like coming to an auction,” says O’Brien of how bids, offers and trades occur on the electronic platform today, just like when it was live on the floor of the Chicago Mercantile Exchange (CME). “The difference, now, is the anonymity. This requires you to participate if you want to know what is going on. This brings a little more interest to those 15 minutes of spot trading.”

The anonymity also creates a situation where the largest market leaders know more because they know the buyer or seller once a trade is completed; whereas before, others outside of that transaction could observe and speculate based on which brokers were trading.

O’Brien observes that when the CME dairy spot markets traded live on the floor, analysts would not precisely know who was buying and selling; however, they knew the brokers and who they typically bid or cleared for.

CME(lastOpenOutcryDAIRY)For example, in past years, the largest physical producers and end users in the United States would regularly use the same clearing broker for their spot transactions, resulting in the majority of market participants acting on this inferred knowledge in real time. A single bid or offer from certain brokers would set distinct levels of support and resistance, and this was coveted as the most prolific dairy information of the day.

The electronic platform “made this all disappear,” says O’Brien. “Spot traders know who is trading when a transaction is complete, at the end of the auction, if they are involved in that transaction, but they have no clue about who else was involved during the session.”

Thus, he says, “it is now more difficult to sense how strong the support is or how heavy the resistance because (with electronic trading) you don’t know if the buyer in a session was the largest end user, or your grandmother taking a position.”

In fact, anyone with eligible product in a warehouse, a CME auction account and a funded futures account can sell on the CME dairy spot market.

This is different from the Global Dairy Trade (GDT), which is run by Fonterra of New Zealand. In the GDT biweekly internet auction, not just anyone can bring product to that exchange. “They have to be vetted and approved to offer product on the GDT, and selling is limited to processors,” O’Brien notes.

For this reason, the CME is more of a “natural and price transparent marketplace,” he explains.

He calculated the trade volume for the 12 months leading up to the change from floor trading to electronic trading, noting that 38,000 tons of 40-lb blocks and barrels were traded on the CME during the second half of 2016 and first half of 2017.

Trade volume on 40-lb Cheddar blocks has increased 16% and on barrels 38%. O’Brien points out that the amount is still relatively small considering that the U.S. produces 5.5 million tons of cheese annually, which is essentially priced off the CME session trades, bids or offers.

“We were trading 7/10ths of one percent of total cheese production on the CME spot market,” says O’Brien. Since the change to electronic trading, this has increased slightly to just shy of 1%.

The volume of CME spot butter trades, on the other hand, has increased 138%, while NFDM has been flat.

With more trades, one can argue that the CME spot markets have become a better price discovery mechanism via electronic trading, particularly for butter. For the 12 months prior to going electronic, the CME traded 1.44% of the total U.S. butter production, compared with trading 3.7% of total production in the past six months since going electronic.

“That is a dramatic jump in the price discovery for butter,” says O’Brien.

The CME spot market for cheese has some product specification differences from butter and powder. “It is a fresh cheese market,” O’Brien points out. “Sellers cannot bring product older than 30 days to the CME, so we can have 400 million pounds of cheddar in inventory, but if there are no sellers of fresh cheese, and if buyers have a need for fresh cheese, we get these massive short-squeezes.”

He notes that the CME could price fresh cheese at $1.60/lb on the spot market, but cheese that is 31 days old or older could be trading through normal distribution channels at discounts as great as 20 cents per pound.

In that sense, the CME gives dairy farmers hope — when they see Cheddar up 10 to 20 cents on the CME spot market — but then the rally erodes in real time as the “short-squeeze” on fresh product passes, and the CME spot market falls.

This volatility is often seen from week to week, and cheesemakers can get caught when their input cost for milk does not align with their output sales of cheese that is older than 30 days.

On NFDM, the product age window is 6 months, and for butter it is one year, making those spot markets more reflective of supply and demand in terms of stored product realities.

“We could have a better marketplace (for cheese), but at the moment, these are the boundaries that participants are forced to operate within, regardless of the increased volatility that results from them…volatility greases the track and gets things moving,” observes O’Brien.

His experience with dairy market risk over the past two decades gives him insights into many sectors of the dairy industry. He suggests that dairy farmers need to be aware of their options and be realistic about their cost of production.

“Everyone is in same boat (in terms of market risk), but for dairymen, it is different because they are mostly price takers, while physical trading houses and other market participants that have risk management departments can be price makers,” he says. “Physical traders incur risk when they can manage it, and if they cannot, they immediately offset it or avoid it altogether, whereas dairy producers make milk and work hard and do some things about risk on their inputs but neglect fixing the price of milk outputs.”

O’Brien notes that with the farm milk price based almost completely off the CME spot markets, this is also affected by delays. The CME spot market can be going up while the USDA weekly National Dairy Product Sales Report can be going down in the same window of time. Meanwhile, the CME spot dairy markets, especially on cheese, remain a “market of last resort” with limited participants on the processing side.

While there is increased activity of end-users coming to the spot market directly to buy — especially for butter — the spot market is mainly selling more product with the same participants. There are still a limited number of butter sellers — traders fulfilling contracts and a handful of processors that make butter.

The large processors and cooperatives focus on allocating the bulk of their sales for the year and make inventory based on those allocations. Global dairy traders, on the other hand, have ever-changing risk profiles, which forces them to buy, sell and arbitrage to survive.

“We don’t operate under the luxury of make allowances,” says O’Brien of the role of market participants such as themselves.

Meanwhile, market dynamics are changing in the cheese industry where cheese plants are being built as much for the cheese as for the whey stream valorization. This creates a supply of Cheddar barrels that can build up and are seldom exported.

U.S. processors continue to produce yellow Cheddar blocks and barrels, but few globally have the equipment to break down the barrels, so they are not exported. The industry makes what it wants — what milk is priced from — but is that reflective of the market?

There are certainly inefficiencies in the current commodity market pricing systems that underpin the Federal Order milk pricing. Can a case be built to improve this?

Could inclusion of more indexes built off more pricing points (products) bring better market transparency?

Meanwhile, the four basic commodities from CME to Federal Order set the allocation pricing barometer for dairy processing as well as both the spot milk and milk futures markets.

Looking overseas, O’Brien suggests that the countries of the EU “would love what we have in the ability to lock in a milk price for up to two years (via a mechanism like the CME futures markets). For the most part, farmers in Europe are paid on what milk-derived sales their co-op or processor can attain. Their pay price does not float with the market. But farmers in Europe have the intervention program — similar to the former dairy product price support program the U.S. eliminated in the 2014 farm bill,” O’Brien relates.

Volatility in the marketplace provides opportunities to manage risk, but it is easier said than done. For example, there must be access to funds to hold positions (through the margin calls when the market goes against their positions).

On the processing side, says O’Brien, “Deferred positions of just 5 months can move against you as much as 70% for products such as NFDM or Cheese and as much as 100% for butter.”

As for dairy farmers, he observes that there were opportunities during late 2008 to lock in $20 Class 3 milk prices during 2009.

“But most dairy farmers didn’t do this. A super majority operate without safeguards, eternally optimistic. Dairy production is not a pastime, and survivability is not certain,” he suggests. “The future is managing risk. The multinational companies do it, and traders do it. Successful farmers will have to do it also.”

Ron O’Brien can be followed @rko2milk on twitter and at milkfutures.com

Check out the final open outcry live CME dairy spot market auction from June 2017 here



check it out at https://www.youtube.com/watch?v=si2vVdOQemo&t=35s


Dairy market fluidity

041213FarmshinePage4.inddDairy market fluidity

By Sherry Bunting, Milk Market Moos, Farmshine, February 2, 2018

Picking up from the previous dairy export ‘Jeckyll and Hyde’ discussion… Let’s look at what has happened to the fluid milk market in the U.S.

There is a difference between Class I utilization declining and actual packaged milk sales declines. For example, the 2017 year figures are not yet in, but for the last reported month of November, USDA reports that packaged conventional fluid milk sales for January through November 2017 are down 2.1% from year ago and organic fluid milk sales are off by 0.2%.

While consumers are drinking less dairy milk on a per capita basis, Class I — as a percentage of all milk sold — is declining faster because the processing of milk into other growing dairy product sectors is increasing.

Some of the increase in these product sales reflects domestic growth, but the kicker is that as exports increase as a percentage of total milk production, Class I utilization as a percentage of total raw milk sales is pushed lower — even if consumers drink more milk.

Let’s identify how the markets are changing and how to value them back to the raw milk producer rather than laying blame for over production that leaves the farmers in the position of “deserving the price they get.”

Supply management is not the answer, nor is it at this point really possible. It is a distraction. We need to be looking at the dairy trade in a way that both prepares farmers for the future and prepares the industry for dealing fairly with producers.

Case in point. How concerned has the National Dairy Council and the dairy industry  been about the fraudulent use of the word ‘milk’ on plant juice labels? NMPF’s efforts to right this wrong came only within the past two years — and 15 years after these sales of fake milk started eating into the fluid dairy milk sales.

How serious have they been about the milk that our children drink in school? It is interesting that GENYOUth was “founded in 2010 as a partnership between the National Football League and National Dairy Council, convening leaders in a movement to empower America’s youth to create a healthier future.”

One example given at the GENYOUth website recognizes U.S. Dairy Export Council CEO Tom Vilsack for his accomplishments for dairy farmers while serving as Secretary of Agriculture under President Obama. In his current role, Vilsack’s salary is paid by DAIRY FARMERS via the mandatory promotion checkoff.

Specifically a December GENYOUth gala recognized Vilsack for having “legislated to improve the health of America’s kids. Under Sec. Vilsack, USDA partnered with First Lady Michelle Obama’s Let’s Move! initiative alongside GENYOUth to improve the health of America’s children. Sec. Vilsack helped pass and implement the Healthy, Hunger-Free Kids Act to help combat child hunger and obesity by making the most significant improvements to U.S. school meals in 30 years.”

school lunchThat is certainly a mouthful, considering that something else occurred in 2010-11. This was the very same year that schools were forced to offer only 1% or fat-free white milk and flavored milk could only be offered as fat-free!

Unfortunately, this did not improve school lunch meal nutrition, and it has cost dairy farmers plenty in lost milk sales.

In fact, Bob Gray for the Northeast Association of Farm Cooperatives stated recently — during a panel of dairy producers and policy folks at a Congressional viewing of the New England documentary Forgotten Farms I attended in Washington D.C. earlier this month — stated the impact of the school milk issue on milk sales, surpluses and pricing.

ForgottenFarms2web.jpg“For the last six years, we have not been able to sell even 1% (fat) milk in the schools,” said Gray about being forced to sell fat-free. “We have lost 288 million pounds of milk in half-pints that were not consumed by schoolchildren because of this move, alone.”

But maybe this is the point.

If fluid milk consumption erodes as a percentage of milk production, the cost of milk to processors becomes less for the many other products that need to be more competitive globally.

Technology is driving some of these trends. New opportunities and new knowledge are improving efficiencies throughout the supply chain. But marketing direction often leaves more questions than answers when it comes to spending money dairy farmers are forced to pay for it.

Meanwhile, as Dr. David Kohl, Virginia Tech professor emeritus, pointed out as a speaker last week in Lancaster County, Pa., the advances in technology are driving production from an efficiency standpoint. What these advances do for agriculture is to help less productive farms improve yields. “Technology improves the bottom end and that creates surplus, said Kohl. “And that is why we need export markets.”

To my thinking, exports are to be keenly pursued, but pursued with a strategy that does not ignore the market profile of dairy sales here at home, especially when the highest valued product classification under federal price regulation for dairy — fluid milk — is being treated like the Cinderella sister with odds against her, while her sisters get ready for the Prince’s ball.

There are plenty of great innovations in dairy products and distribution — including export markets — that deserve our attention. However, while Cinderella is ignored in plain clothes in the increasingly cluttered dairy case full of fake substitutes, she deserves an invitation to the ball. And a glass slipper or two sure wouldn’t hurt.

Whole milk up, fat-free way down

USDA’s January estimated fluid milk sales report indicates that whole milk sales for the first 11 months of 2017 were up by 2.5% over year ago and November, alone was up 3.5%. Meanwhile lowfat and fat-free losses drove the entire category lower as nearly 12% less fat-free milk was sold compared with year ago, 6.7% less 1% and 2.8% less 2% milk. Similar patterns were revealed among organic milk drinkers with fat-free down almost 20% Jan. through Nov. while whole milk was up 6.2%.

Author’s Note: Re-inventing this Ag Moos blog for the times….  Milk Market Moos is a column I’ve been writing in Farmshine since 2003. Find some of it here, at Ag Moos, along with other dairy and beef market related stories, agriculture news, and, in between, the stories and images of the inspirational people of agriculture… but you can get it first, and you can get it all, in Farmshine Newspaper, just $15/year. Farmshine is a weekly newspaper published in Brownstown, Pennsylvania — now in its 39th year of publishing all-dairy, all-the-time.

Dairy Exports: Jekyll and Hyde

MilkMarketMoosHeader070914web.jpgDairy Exports: Jekyll and Hyde

By Sherry Bunting, Milk Market Moos, Farmshine, February 2, 2018

Talk to dairy farmers and industry observers about dairy exports and the response runs the gamut from enthusiastic full-court-press to cautious optimistic pursuit to a pessimistic skepticism about the profitability they bring to the table.

awGDC18-Day1-56.jpgNo matter where you are on the scale of good, bad or indifferent, exports are essential for agriculture and for dairy.

The hands of time do not turn backward on technology and progress, and so we are in a global market. If we want to be competitive in our domestic market, we need to also be competitive globally.

The food industry is increasingly served by global players and multinational companies that can source and supply from all corners of the globe. People would be surprised to learn how relatively small the transportation cost is in exporting ag commodities, especially further processed dairy products, overseas compared with cross country, on a per-unit basis.

If our ships are not arriving at other ports because we can’t compete, then other ships will arrive at our ports because we can’t compete.

That said, forward progress in supplying markets overseas needs to be pursued, not with reckless abandon finding ‘homes’ for excess milk, but with strategic thinking that includes the marketing and a consideration for the well being of our dairy farm sector.

As Secretary of Agriculture Sonny Perdue pointed out in his visit to Pennsylvania last week, America’s food security is America’s national security. Our farmers are the thin green line that, along with our military, keep our nation safe. After 9/11, the U.S. set out to be energy independent within 25 years and accomplished this in 10, according to a talk, given by Dr. David Kohl, Virginia Tech professor emeritus, in Lancaster County, Pennsylvania last Friday.

Just as our growing economy became at one point dependent on other nations for a portion of its energy needs, to its peril, we should take care that we do not become dependent in the future on other nations for our food.

A laughable thought, perhaps, but the rapidly consolidating agriculture industry needs its wide and varied base of family farms, small independent businesses, that support a varied and competitive rural infrastructure and provide the safety net of food security for American consumers through their independent pursuit of partnering with industry and academia to producer more, with less.

Kohl talked about how important trade is to American farmers, including the dairy industry, which currently exports 1 out of every 7 days’ worth of milk.

He made some observations about China’s agriculture. That Chinese interests purchase of Smithfield was largely to purchase the food safety protocols to ensure their food security. Here’s a statistic Kohl shared that got me thinking. He said that while there are 2 million farmers in the U.S., there are 314 million farmers in China.

“They are not taking on technology there as rapidly because there are 800 million people living in rural China and they need something to do,” said Kohl.

Just think about that for a minute. Technology is as essential to the future in agriculture as are our trade negotiations and exports; however, this statistic made me think about our rural youth both on and off the farm.

Dairy farming, like the hog business in the 1990s, is at a crossroads. Farmers, through their cooperative memberships, partnerships and other arrangements, own some of the largest and most aggressive processing assets that are strategically consolidating markets and distribution.

They hold in their hands their futures as individual small businesses — parts of the whole, contributors to a market, dairy farmers who not only are improving their own business acumen but continually improving how they manage their herds and possess a passion for what they are doing, a passion that is being called upon to directly market their farming lifestyle to consumers to counteract the negative attacks of anti-animal activists casting doubt wherever they turn.

U.S. Dairy Export CEO Tom Vilsack has set a lofty goal of getting U.S. dairy exports to 20% of production vs. the current 14. That would be nearly one and a half days’ worth of milk production out of every seven.

That sounds exciting, but when have we heard percentage of increase goals set for the fluid milk category? Could that incremental effort not also be exciting?
There are reasons why we are not seeing this, and in some respects, those reasons bring us back full circle to the export discussion.

Beverage milk is not exported on the scale that dairy commodities and dairy products are. Yes, DFA is among those exporting shelf stable milk to China for supermarkets, but this is not a globally traded product as are cheese, butter, and particularly dairy indgredients and protein powders.

While dairy processors eye up the opportunities and build inventories around allocated sales, and manage their risk with offsets, dairy farmers are in the price-taking position with the promise that if exports grow, they and their families can grow their businesses, without a serious discussion about the profitability in that proposition.

All of this to say, that the main market for U.S. farm milk is here at home as not only a beverage but also a growing number of dairy products finding good demand.
We are not New Zealand, which exports most all of what they produce.

The U.S. has, already, a strong robust customer base for cheese, yogurt, butter and a host of dairy products, as well as a sector of our industry (beverage milk) that needs our committed attention through dynamic labeling, comparative promotion vs. the imposters, consumer education about MILK, not how many situps and pushups to do each day. It needs people in charge who truly believe it is important, not an offhand remark by a checkoff-paid employee for U.S. DEC speaking at a conference, saying that fluid market is a dead horse as he proceeded to dig into the exciting team of horses (exports) waiting in the wings to save the day.

Having said all of this, it is imperative that U.S. dairy farmers be competitive to be involved in the global marketplace because it is here, with all of its pluses and minuses, but that does not mean we turn way from the prize in which the Federal Orders place high value and for which other products are taking over because we have, in effect, laid down and allowed the incremental loss of beverage milk sales.

But let’s examine the fluid milk dilemma further in the next edition.

Author’s Note: Re-inventing this Ag Moos blog for the times….  Milk Market Moos is a column I have been writing in Farmshine since 2003. It became a weekly feature in 2007. Find some of this content here, at Ag Moos, along with other dairy and beef market related stories, agriculture news, and, in between, the stories and images of the inspirational people of agriculture… but you can get it first, and you can get it all, in Farmshine Newspaper, just $15/year. Farmshine is a weekly newspaper published in Brownstown, Pennsylvania — now in its 39th year of publishing all-dairy, all-the-time.

Out with the old. In with the new: Relentless cold.

SnowyFarms7280.jpgBy Sherry Bunting, Reprinted from Farmshine, January 5, 2018

BROWNSTOWN, Pa. — Out with the old. In with the new. Record-smashing snowfalls and a relentless deep-freeze, that is what’s new as 2017 gave way to 2018 this week under a very bitter ‘wolf-moon’. The onslaught of extreme temps, high winds and heavy precipitation are taking their toll on dairy farms from New England to Georgia and from Pennsylvania to South Dakota.

In addition to bitter cold temperatures — persisting for four to five days with a one- to two-day ‘break’ at midweek — the next round of snowfall is already traveling up the coast and across the lakes ahead of another steep temperature plunge in the forecast.

Meanwhile, northwest Pennsylvania is still digging out of its record-breaking snowfall at Christmas, just ahead of the extreme drop in temps.

The Christmas Day lake-effect snowstorm lasted 48 hours and dumped a record-breaking 53 inches of snow in Erie, Pennsylvania, with additional snowfall two days later for a 4-day total of 63 inches. This eclipsed every snowfall record for the state of Pennsylvania, according to the National Weather Service.

The biggest problems being seen on dairy farms are from the bitter temperatures — ranging on the mechanical side from gummed up diesel fuel to the inability to move manure and problems keeping milking system vacuum pumps and compressors running.

On the animal side, cattle and youngstock losses are being reported as well as frostbite concerns. These types of concerns are mostly reported in the areas along the great lakes from upstate New York to Minnesota, where temperatures hit -15 to -30 – not including the wind chills.

Milk is still moving from farms to plants, but delays are indicated this midweek where transportation has been slowed by problems with diesel fuel.

In its fluid milk summary this week, USDA reported that frigid temperatures throughout the East have created hauling delays, and frozen pipes have created issues at dairy manufacturing plants. This has added to the supply-demand imbalance that lingers from the holiday period.

Everyone from plant operators to farmers to haulers are yearning for a return to normal schedules that may not normalize until after the second round of arctic blast comes and goes next week.

Impacts on milk production in the Northeast and Midwest are also beginning to show up in load counts, but the lack of normalcy in milk movement means production is still steady to ample for usage.

On farms, producers are dealing with frozen pipes, slippery floors, frozen accumulated manure creating uneven walking surfaces, and the fact that everything — including moving cows to and from the parlor — takes more time.


Producers need a break in the weather to thaw out, clean out, and get ready for the next round of arctic air to hit.

In closed group discussions throughout social media, farmers are exchanging ideas and seeking support from each other — to know they are not dealing with these hardships alone.

The extreme cold has also increased the risk of fires as producers pull out the stops to keep animals warm and power infrastructures are tested to the max. A dairy outside Little Falls, New York experienced a tragic fire last weekend, in which all 50 cows were lost.

At midweek, temperatures climbed briefly, but snow has begun falling in earnest along the southeast coast where snow is seldom seen, while the Northeast coast braces for blizzard conditions with more snow and high winds, followed by a plunge back into low temperatures.

It is not an understatement to say that dairy producers everywhere are dealing with weather extremes that are testing their collective resolve. Whether it is 17 degrees in Texas or -30 in western Minnesota, -15 in upstate New York and New England, -3 in Kentucky or -1 in Lancaster County, Pennsylvania, the extremes are beyond what each area is typically prepared for. Producers are taking advantage of any temporary warmth to prepare for the next plunge.

Frozen waterers, vacuum pumps, manure removal equipment and difficulty starting feeding equipment are most commonly reported concerns shared by producers across the country in facebook posts.

Some asked for prayers this week, hoping for a break in the weather; others rejoiced with humor when 30 degrees below zero became 15 degrees above at midweek, saying ‘break out the shorts.’

But this respite is short-lived before the next mercury dive Friday through Monday.

Winter is tough, and farmers are prepared for it, but this is extreme, and there is only so much that can be prevented. What does not get prevented, must be dealt with as it happens, and this is causing frustration and low morale as producers strive to get the work done while also fighting the feeling of failing the cows.

You are not failing. You are heroes. Please be careful out there.

Bottom line for the cattle, say veterinarians, is plenty of feed and water and to be out of the wind with a dry place to lie down. These basics enable cows to survive a lot.

Dairies truly are in survival mode, focused diligently on animal care and getting done what must be done and no more.

Keeping waterers from freezing and breaking ice out of waterers that are frozen is a never-ending job in these temperatures.

For calves, experts suggest increasing milk feeding and frequency since they do not have a rumen to heat them up. This will help calves stay warm and cope with the stress. But it’s difficult to do more when temps make everything take longer. Please be careful.

For cows, the mantra is energy and more energy. Rations can be adjusted to dense up that energy, without losing fiber. Cows normally eat more when it is cold, getting more energy into the cows helps.

From farmers to truckers to veterinarians to dairy system technicians and to all who are taking care of animals, equipment and transportation — we at Farmshine see and know how hard you work to keep things going. You have our ultimate respect and our prayers for safety during the bitter cold and we wish for a warming break in the weather to take hold soon.



From East to West and North to South, relentless frigid temperatures are making things difficult on dairy farms. Photos by Sherry Bunting

Gift of life, keeps giving



Justin, Claire, Reese, 10, Brinkley, 8, and Tripp, the dog, by the Christmas tree on a December afternoon just 3 weeks after the kidney transplant that gives Reese a new lease on life. Tucked in under the tree is Reese’s beloved cat Jack. Reese is quite enthusiastic about her four-legged friends, be they Holstein dairy cattle or house pets. Photo by Sherry Bunting 


‘Reese shows us you can have tragedy in your life and still move on and be full of life and hope for the future.’

 By Sherry Bunting, reprinted from Farmshine, Friday, December 15, 2017

MERCERSBURG, Pa. — Cheese ball is back on the menu this Christmas at the Burdette house on Corner Road outside of Mercersburg, Pennsylvania. It’s among the favorite foods that Reese Burdette has had to forgo for nearly four years to be easy on her damaged kidneys as she recovered from the May 2014 house fire.

That, along with hash brown casserole and all the yummy goodness of dairy foods, potatoes, orange juice and bananas — essentially nutritious foods high in vitamins such as potassium. In fact, so happy is Reese about bananas, Claire believes she’s eaten a tree full already.

Not only is Reese happy to be eating these foods again, “I hope to start growing again too!” the smiling 10-year-old said during my visit to Windy-Knoll View farm last Thursday.

While she has forged ahead on this journey on every front, it was the kidney transplant everyone knew Reese would eventually need that was hanging out there on the horizon. Justin and Claire Burdette learned in September that their daughter was in renal failure. She had been doing so well, so the timing was a bit of a shock.

Many people had already been tested as live donors — from friends and family members to colleagues in the dairy industry. But who would think that the “angel” sent into Reese’s life would be a friend of a cousin by marriage who had met Reese one time, a young, single woman with a heart of gold and willing to go through the surgery to donate a kidney to give Reese the vitality of life this ‘tuff girl’ has been fighting for.


Ahead of the kidney transplant surgery, Reese’s aunt Laura Jackson updated on social media describing Alyssa as selfless, inspirational, courageous and beautiful with a giving spirit that is truly admirable. “Her love of children and animals led her right to us because right now, Reese does need some extra help,” wrote Laura. What many may not realize is that this gift of a new kidney comes from a woman “who loves her family and just wants to make a difference in this crazy world we live in… What this beautiful soul has offered up is a very different kind of life for Reese… the chance to be a normal 10-year-old with a chance to grow.”  Photo credit Bre Bogert Photography

Through the selfless generosity of Alyssa Hussey, 32, of Winchester, Virginia, a special education teacher with the Loudoun County Public Schools, the successful kidney transplant took place at Johns Hopkins on November 20. Not only are they both home and doing well, Reese was released just five days after the surgery, getting her home just after Thanksgiving and far sooner than imagined.

The two were expecting to have a visit at the farm this week, and Reese said she is anxious to show her hero around to see her growing little herd of 12 Holsteins, not to mention the five calves her sister Brinkley has accumulated among the Windy-Knoll View herd of top registered Holsteins.

Ahead of the transplant surgery, Reese’s aunt Laura Jackson updated on social media to say:

“What many may not realize is what this beautiful soul has offered up is a very different kind of life for Reese, a chance at a life with more quality and abundance, of water parks, river swimming, better health and the chance to be a normal 10-year-old with a chance to grow.”

Alyssa has given Reese the ultimate gift — the gift of life.

“We are relieved to have faced this. We knew it was coming. We just didn’t think it would be now. But what a blessing,” Justin reflects. “This kidney transplant would not be possible without someone like Alyssa. It’s proof that living donors are out there and we found one that we had ties to and never knew.”

Claire says that, “It’s hard to fathom someone willing to give our child their kidney and we barely knew her. But she didn’t think twice. We are beyond grateful.”

Burdettes_Dec2017-14 (1)It was a regular day on the farm when I arrived just as Reese was finishing school via the virtual robot — a necessity as she avoids large indoor crowds for the next 100 days since the transplant. Her younger sister Brinkley was just getting off the school bus. We had an hour to talk before Justin headed out to milk, driving down Brinkley and Reese Way, the dirt roads across the field between their house and the farm. The late afternoon sun, as the farm’s name suggests, broke through cold windswept clouds in the gap of the south mountains.



Three weeks after her kidney transplant, Reese looked forward to the annual sleigh ride in Greencastle last Friday evening with grandparents Jim and Nina Burdette. While she must avoid indoor crowds for 100 days, the outdoor Christmas festivity was high on her list of things to look forward to. Facebook photo.

At the kitchen table, the topic of conversation centered on the many things Reese was already reintroducing into her life since the transplant, the goals she and her mother Claire have set, and the activities she is looking forward to – not the least of which was a trip to Greencastle Friday evening for the annual horse-drawn sleigh ride with her Momo and Papap (Jim and Nina Burdette).

What is it about Reese’s story that has inspired such a far-reaching interest and impact? People write and call and follow her progress from near and far. It’s a story of faith, hope and the determination to live life to the fullest, to overcome challenges and setbacks, to never give up, never let go of the rope and to keep moving forward in a matter-of-fact way with fierce strength, raw honesty, family love and accountability filtered by the wisdom of a 10-year-old’s keen sense of humor.

Justin notes that they had a visit not long ago from a Canadian couple who keep in touch often to see how Reese is doing. They traveled to Pennsylvania just to visit her, amazed by her journey after nearly two years at Johns Hopkins recovering from the fire. This dairy farming couple had been through a barn fire and had dealt with animal losses that were depressing. Knowing Reese, seeing her, has made a difference in their world.

They are but one example of hearts Reese has helped to heal through her own example.

They are among the many who have written the Burdettes about what Reese’s story means to them, and what her journey has done for them in their own circumstances. Claire explains that, at first, these responses were hard to realize and digest because so many have done so much for Reese and their family that they felt they were leaning on others only to learn that others were finding support also in them.

Reese-Brinkley-Sleigh(FacebookPhotoProvided)“I think what Reese shows us is that you can have tragedy in your life and still move on and be full of life and hope for the future. I think that is what Reese has done for people,” Claire explains.

Healing and support going both ways – a lifeline — gifts that keep giving.

In like manner, the kidney donated by Alyssa Hussey is new hope transplanted, a gift that keeps giving in a young girl with a second chance.

Justin and Claire also had high praise for their summer intern who came back to help at the farm so they could be with Reese, worry-free, in the hospital for the transplant. Mikey Barton is the grandson of Ken Main of Elite Dairy and Cutting-Edge Genetics in Copake, New York. He had served as an intern last summer at Windy-Knoll View, and when he heard about the upcoming kidney transplant for Reese, he came down to help take care of things.

“We are so blessed,” the Burdettes said, describing the bond Mikey has made with their family. “Blessed that he comes back to see us and that he would take his time off to come down here so we could focus on Reese.”


Justin was quick to point out that he got back to the farm Wednesday to be sure to have Mikey home with his family for Thanksgiving, and that Mikey made time to drive the two hours south to see Reese in the hospital before heading north back to New York.

“We felt we have learned as much from Mikey as he has learned from us through this internship experience,” said Claire. “It has been a neat connection. He knows our routine and we didn’t have to worry about things at home for those few days.”

The Burdettes also credit the support of their local community and the dairy community from the beginning. Flannery’s Tavern on the Square in Mercersburg hosted a Team Reese fundraiser a week before the kidney transplant to help with medical and related expenses with the restaurant donating 15% of the days sales and providing a room for 75 silent-auction items donated and bid on by the greater community.

For the Burdettes, it has been the physical outpouring that accompanies the financial support of others that has lifted them up. To see a Team Reese fundraiser pack the local restaurant from open to close shows how much Reese has lived up to her nickname as “Mercersburg’s daughter.” When she and Brinkley walk into Flannerys, as they do once a week, people cheer. No price can be put on that physical show of support.

Every effort to this point has come together toward a life that will be much different for Reese now. No lines to tether her. No long trips for dialysis.

Clair confirms the doctors are very happy with her progress and her bloodwork looks good. Her main job in the next 100 days is to stay healthy and drink lots of fluids for that new kidney.

High on Reese’s list of “new” is fewer shots, fewer medicines, and working on giving up the tracheotomy for supplemental oxygen.

She is pretty excited about her Dad’s promise of a trip to Great Wolf Lodge where a waterpark is in her future.

“I can’t wait to bathe in that waterpark and get Brinkley soaked!” she says with a laugh.

But first she needs to reach the point in her journey where the trach is no longer needed. Now that the kidney transplant has occurred, there will be sleep studies and trials to be sure the timing is right to close the trach, and then the watersports and other activities will beckon. Reese already gave up the constant companion of traveling oxygen last Easter when she wanted to be outside with the other kids for a longer period of time, and decided on her own, she didn’t need it.

Reese has set a goal to attend the Pennsylvania Junior Holstein Convention in Lancaster in February. Mom’s goal is to get her through the next three months away from crowds to be strong and healthy into this next chapter of her journey.

Because we all know what comes next. There are calves to work with and cows to care for and in addition to a new calf Cream Cheese from her Carrie cow, named after the child life specialist who has been inspirational on this journey, there are the new gals from her Pantene line, like Potato Chip and Pretzel.

Reese and Brinkley talk excitedly about their cattle as they rattle off names and pedigrees.

But the cow work will have to wait, except for drive-throughs this winter. Instead, Reese is happy to be making and eating some of her favorite dishes. This week she made sticky buns with her Momo and a repeat favorite meal – sloppy joes.

She says, “No more driving to dialysis and getting home late at night!” That all ended on November 21 along with the line in her belly and the constant hemoglobin shots.

The people who have stuck with Reese from the beginning continue to be there in large ways and small. A woman in town still sends Reese a card every week, just as she has since May 2014.

As for the Christmas celebration, her second at home since the fire, Reese has big plans. She shared her small, but typical 10-year-old’s list for Santa and the family traditions she looks forward to. To avoid contact with crowds, she’s shopping by internet, and she’s pretty excited that on Christmas Eve, she will be helping her Momo prepare the dinner.

For Claire and Justin, having their daughter home with her new kidney for Christmas is the greatest gift of all.

“There is so much good in this world,” Justin affirms. “We just have to look for it.”

One place to look is the inspiration of little Reese Burdette.

Correspondence can be sent to Reese Burdette, 8656 Corner Road, Mercersburg, PA 17236. Financial contributions or fundraisers for Reese and her family, can be sent to “We Love Reese” First Community Bank, 12 S. Main St., Mercersburg, PA 17236.


Love and hope, transplanted. Hearts full of thanks for gift of life

Reese and kidney donor Alyssa are recovering from Monday’s transplant

Reese&AlyssaBy Sherry Bunting, Farmshine, November 24, 2017, Photo courtesy Bre Bogert Photography

BALTIMORE, Md. — At this season of Thanksgiving and gift-giving, it is a precious gift for Reese Burdette that has her and her family, friends — and all who have followed her journey back from the fire — especially thankful for the selfless generosity of another.

After nearly two years at Johns Hopkins from the May 2014 fire, Reese returned home to the family’s Windy Knoll View dairy farm, Mercersburg, Pennsylvania, in March of 2016. Since then, she has accomplished goals she set for herself, such as getting back to school with her friends and showing her cattle at the All-American. She had returned to an active life this year, improving every day.

But just before the All-American in September, her journey hit a rough spot. She was admitted to Johns Hopkins, where she and her family learned that Reese was in the final stages of renal failure and would need a kidney transplant.

The news was a shock. It seemed impossible. She was doing so well.

Reese returned home. Put her game face on. Showed her cattle at the All-American in Harrisburg. And everyone prayed for a miracle. Finding a match for Reese would be difficult, the doctors had said.

Enter Alyssa Hussey, 32, of Winchester, Virginia, a special education teacher with the Loudoun County Public Schools.

She is a friend of a cousin by marriage to sisters Claire Burdette, Reese’s mother, and Laura Jackson of Waverly Farm Jerseys. She had been among the friends and family tested to find a match. Alyssa had met Reese a few times before the fire and had followed her recovery after.

“Being around her and seeing that she’s such a sweet little girl just made me want to try and help,” a humble Alyssa told the Chambersburg Public Opinion in a story published over the weekend before the transplant surgery on Monday, November 20.

The seven-hour surgery to remove one of Alyssa’s kidneys and do the transplant Reese desperately needed began at 7 a.m. at Johns Hopkins after a celebratory time between family and friends and medical staff, Sunday evening.

“What a blessed day it has been,” wrote Laura Jackson, Reese’s aunt, in an update Monday afternoon. “It has been a long day, but a good day. Donor Alyssa is now recovering in her room. Bless her for all she has been through. From what we are told, Alyssa’s kidney is large and healthy.

“Reese is in recovery. Her surgeon was very pleased with how the surgery went. As always, Reese rocked her surgery and handled it very well. Now we wait to see if the new kidney kicks in. Pray that this new healthy kidney takes over and learns to love its new home,” Laura said further.

Reese will spend the next 100 days recovering at home and will attend her school class via the video robot she used when she first came home in March of 2016.

For her part, Alyssa told the Public Opinion: “I grew up (and) I didn’t have any issues or problems when I was a kid, so I knew what it was like to do all those normal kid things.

“I can only imagine how it would feel to have those taken away, still being so young and not being able to experience some of those things that (Reese is) not able to do right now. So, it’s a great feeling to know that she’s going to get those things back,” Alyssa said.

As she has from the beginning, Laura posted on Facebook about this rough spot in Reese’s journey. She observed that Reese “just wants to be a normal kid.”

But as all know who love and are inspired by her, Reese is an extraordinary 10-year-old. She is wise beyond her years — a ‘tuff girl’ with a big heart and a strong spirit and a determination and sense of humor that gives strength, focus and hope to those around her.

And they give back to her, and the circle continues. So many from across the country and around the world have reached out since May of 2014 to encircle Reese and the Burdette family with prayers, cards, gifts, and financial assistance.

This season, it is the kind and considered offering by someone willing to give a part of themselves — and all that goes with it — that is the gift invoking pure thanks-giving.

“We had a tremendous evening celebrating Reese, Alyssa and many doctors and staff,” wrote Laura in an update Sunday evening before Monday’s surgery. “Tonight, we celebrated life and all that Alyssa is offering to Reese. Pray big tomorrow. Bless these two and all involved.”

As they recover from Monday’s surgery, Reese is prepared to take a step back and build herself back up. She told the Winchester Star in a story published ahead of the surgery that she is looking forward to doing inside things during her recovery, that she loves cooking and baking for her family… but the cows that have inspired her fight to always get back are still inspiring her. This time, the calf a-callin’ is Cream Cheese (so named because she is mostly white).

We at Farmshine offer our heartfelt prayers and thoughts for Reese and her giver Alyssa as they recover. (Laura reports the recovery is going well!)

Correspondence can be sent to Reese Burdette, 8656 Corner Road, Mercersburg, PA 17236. Financial contributions to Reese and her family, can be sent to First Community Bank, 12 S. Main St., Mercersburg, PA 17236. Checks should be made out to “We Love Reese.”


CAPTION and CREDIT for photo

Photographer Bre Bogert captured this image of giver and receiver ahead of transplant surgery. Alyssa Hussey, 32, is the donor match for the kidney Reese Burdette, 10, needs. Both are recovering at Johns Hopkins where the 7-hour surgeries took place on Monday, November 20. Photo courtesy Bre Bogert Photography


Tribute to the legendary Snickerdoodle (1998-2017)

By Sherry Bunting, Farmshine, Friday, October 13, 2017

She remains my favorite dairy cow of all time, and I was honored to write her tribute in the Farmshine.


SARASOTA, Fla. — Legendary Brown Swiss Old Mill E Snickerdoodle died peacefully just shy of 19 on Monday, October 2 — the eve of the 51st World Dairy Expo, where she is the only cow in history, of any breed, to win her breed championship six times. Snickerdoodle was also once supreme and twice reserve supreme in Madison.

In 2013, she stopped milking at over 14 years of age, with an impressive lifetime production of 261,000M 12,665F 9,895P having milked 3,629 days! That was the year she won the dry cow class with a huge show of respect from colleagues and spectators at the 2013 World Dairy Expo at nearly 15. And she produced her last few embryos in her final flush at over 16 years of age in 2015. Her lifetime total exceeds 400 regular embryos and 60 IVF.


Of all her winnings on the colored shavings of Madison, most memorable for owner Allen Bassler was the 2013 Expo, where she competed as a dry cow to the applause
of the coliseum crowd.

aSnickerdoodle6411(Sherry)“She didn’t have an udder, she was there as a dry cow, and it was obvious that her work was complete,” Allen recalls. “The respect that she received that day was more than I realized, and it represented every year of building she had to get to that moment. Now her legacy lives on in her next generations.”

One of her A.I. sons, Supreme, was 2013 premier sire of the Expo’s Brown Swiss Show, and the sire of the grand champion Brown Swiss bred and owned by Wayne Sliker of Top Acres at this year’s show on Wednesday, Oct. 4.

Last classified EX-94 — the max for Brown Swiss of her time, which has since been increased — Snickerdoodle had a 97 point mammary. Two of the three EX-95 Brown Swiss in the U.S. today are daughters of her son Supreme.


Snickerdoodle’s legacy extends well beyond her bannered trail and notable 8 times unanimous All-American status. She has over 100 offspring in the U.S. and additional offspring in at least 12 countries across the globe, including around 22 Excellent daughters in the U.S. today and 8 in Switzerland, that Allen knows of.

In Switzerland, alone, Snickerdoodle had 15 registered sons and 16 registered daughters as of 2015. They love her there. Allen is moved by the tributes from around the world to Snickerdoodle’s facebook page since her passing, and particularly the comments from people citing her as the reason they started in Swiss.

Uniquely a very strong cow, what Snickerdoodle has been famous for is her predictability.

aSnickerdoodle-SwissChamp2008“Her sons transmit her udder qualities,” Allen notes. “Supreme and Snic Pack are making the udders and strength that is Snickerdoodle. What was special about her is that she would respond to anything you challenged her with. There was always a character of strength about her, never timid or weak.


In 2015, Snickerdoodle retired to Florida when Allen took the job as cheesemaker at Dakin Dairy near Sarasota. She survived Hurricane Irma a month ago, but when Bassler returned from judging shows in Brazil, he saw that his girl was reaching her “time.”

“She was in a pasture with weaned calves and loved that,” he said, noting she was slower to get up in recent weeks.

“Sunday and Monday, Tammy and I just prayed,” he said. “She passed peacefully on her own Monday night and is buried on the farm with a headstone under four oak