House passes Whole Milk for Healthy Kids 330-99!

Education Chair Virginia Foxx: ‘Let’s end the war on milk. Pass the bill!’

Ag Chair G.T. Thompson praised as champion who doesn’t give up

Bill mooves on to U.S. Senate

By Sherry Bunting, Farmshine, December 15, 2023

WASHINGTON — Wednesday, December 13th was a big day for dairy farmers and schoolchildren! After clearing the House Rules Committee Mon., Dec. 11, the Whole Milk for Healthy Kids Act, H.R. 1147, passed overwhelmingly in the U.S. House of Representatives.

The strong bipartisan 330 to 99 vote moves the choice of whole milk closer to school cafeterias across the nation with momentum for the next stop: the U.S. Senate, where S. 1957 has 12 bipartisan sponsors from 10 states – and more are needed.

“Students across the nation deserve school lunches that are both enjoyable and nutritious, and this legislation achieves these goals,” said Whole Milk for Healthy Kids Act champion Glenn ‘G.T.’ Thompson (R-PA-15), Chairman of the House Agriculture Committee and senior member of the Education and Workforce Committee as he testified before the Rules Committee Monday.

“Milk is an essential building block for a well-rounded and balanced diet, offering 13 essential nutrients and numerous health benefits. However, outdated and out-of-touch federal regulations have imposed restrictions … Students are not able to access any of the milk’s essential nutrients if they won’t drink the milk being served to them. As we have seen over the last decade, there has been a steady decline in school milk consumption. This bill does not mandate anything. It gives schools, parents, and students the option of whole milk,” said Thompson.

Education Committee Chairwoman Virginia Foxx (R-NC-5) was blunt on the House floor: “Whole milk isn’t just a beverage; it’s a vital source of nutrients essential for children’s growth. Denying access to its calcium, vitamin D, and protein threatens to inhibit their development. To the anti-milk advocates, I have one thing to ask of you: What do you have against milk? Let’s end this war on milk. Pass the bill!”

And they did. Resoundingly, the People’s House sent a strong message to the opposition that hung their hats on the flawed Dietary Guidelines for Americans (DGAs) as the end-all, be-all.

Education Committee Ranking Member Bobby Scott (D-VA-3rd) re-litigated his argument that was previously defeated in bipartisan Committee passage of H.R. 1147 in June. He kept referring to the DGAs. He insisted skim milk is the same as whole milk, nutritionally, but disregarded the roles of milkfat in key vitamin absorption and flavor to keep those nutrients from going down the drain.

Congress tied school meals closer to the DGAs in 2010, and the Obama-era USDA developed beverage rules in 2012 that banned whole milk — leading to the loss of a generation of milk drinkers and unprecedented increases in childhood obesity and diabetes — to the point where an April 2019 U.S. Senate hearing noted concern from U.S. military generals on fitness of recruits.

The Rules Committee asked why whole milk is being handled as a separate bill instead of within a Childhood Nutrition Reauthorization package. Thompson explained that the reauthorization has not occurred since the 2010 Healthy Hunger Free Kids Act created the issue.

“There is widespread bipartisan support in the Education and Workforce Committee, on the beverage part of this, milk in particular, because studies have shown the BMIs have gone up from what was a baseline prior to removing whole milk. Part of the urgency here is the significant impact that has had on the health of our youths,” he said.

Thompson cited the case study analysis of annual body mass index (BMI) data aggregated by Christine Ebersole RN, BSN, CSN, a school nurse from Martinsburg, Pennsylvania. She shared her data on 7th to 12th graders in a 97 Milk / Grassroots Pennsylvania Dairy Advisory Committee education session in Washington in June 2023 and in a State Senate hearing in Harrisburg in 2021

Her data showed the percentage of students in the overweight and obese categories, combined, grew from 39% in 2008 to 52% in 2021. This mirrors national trends demonstrating the anti-milkfat approach has not helped and may have harmed. The trends in fact have worsened ever since DGAs were created to infiltrate institutional feeding programs.

According to the latest National Survey of Children’s Health at the CDC website, the percentage of 10- to 17-year-olds with BMI in the obese category, alone, increased nationally from 15.4% in 2006 to 19.7% in 2018. In 1970 to 1980, it was 5%. This doubled eight years after the DGAs were born to 10% in 1988, then rose to 15.4% by 2006 after six years of USDA school lunch saturated fat caps were implemented, then stabilized at just over 15% from 2008 to 2012, then grew to 19.7% by 2018 — six years into the USDA ban on whole milk in schools.

The big milestone for whole milk in schools comes on the 5-year anniversary of Berks County, Pennsylvania dairyman Nelson Troutman placing his first painted roundbale “Drink Whole Milk (virtually) 97% Fat Free” in a pasture by a crossroads, which led to questions, publicity, and the creation of 97 Milk.

The 97 Milk educational organization has worked alongside the Grassroots Pennsylvania Dairy Advisory Committee on the legislative side. As a team, they continue to lead the charge for children to have the choice of whole milk once again at school. They are pleased to have worked with the Nutrition Coalition, founded by Nina Teicholz, author of Big Fat Surprise, and to see other national dairy and farm organizations join in support in recent years — from the American Dairy Coalition and Farm Bureau to National Milk Producers Federation and International Dairy Foods Association.

“We are grateful for this bill’s champion, the honorable G.T. Thompson. We thank him for not giving up,” said 97 Milk Baleboard originator Nelson Troutman in a Farmshine phone interview about the bill. “So many legislators get pounded from the top down, and they give up… and really, G.T. didn’t have a lot to gain out of this except helping the people. He did this for the kids, for the people, for the farmers. This is not a mandate. This is a choice, and I cannot emphasize the word choice enough.”

“The reason we got here is G.T.’s dedication to children having nutritious and delicious milk choices, and he brought it to the finish line in the House,” said Bernie Morrissey, chairman of the Grassroots PA Dairy Advisory Committee. “We have to keep working on the Senate, and 97 Milk has been a major part of educating people about this choice kids will have when the Whole Milk for Healthy Kids Act becomes law. The people on our grassroots committee and 97 Milk – we are a team. Our teams help each other. When you have a great team and teamwork, that’s how things get done.”

“This is a strong step in the right direction, and we have to keep going to our total destination,” said G.N. Hursh, Lancaster County, Pa. dairy farmer and chairman of 97 Milk. “We at 97 Milk totally support this bill. Whole milk choice in schools is clearly a national improvement for our future leaders. This is a win for good taste and excellent nutrition!”

Dale Hoffman and his daughter Tricia Adams, also members of the Grassroots Pennsylvania Dairy Advisory Committee expressed their gratitude. Three generations operate Hoffman Farms in Potter County, Pa.

“G.T. has really fought for this and put a lot of work into this. We appreciate what he has done in helping out the kids and the farmers,” said Dale in a phone interview. “When you look at the health situation, the trends have gone the other way without whole milk in the schools. Kids are dumping the milk, and you can’t blame them. They need those nutrients physically and mentally. Milk is one of nature’s most perfect foods. We produce it and grew up with it. Children should be able to choose it.”

Grassroots committee member Krista Byler, of Spartansburg, Pa. is a Union City school foodservice director and head chef. She said the Whole Milk for Healthy Kids Act “is huge for me because I have seen this from the startup, and I finally seeing movement in the school nutrition organizations. I see the whole picture coming together. I am amazed to see it reach this point that now students are much closer to having a milk choice that meets their nutritional needs,” she said.

Byler notes that the milk carton shortage affecting school districts this year has been a catalyst for support among her peers for the expansion of choices in milkfat levels.

“It’s sad to say, but as we struggle on the milk carton shortage, it forces people in my position to think outside the box and look at alternative service methods,” said Byler. “We are seeing students asking for other milkfat options, such as whole milk.”

She says she sees more of her peers today are excited about this bill and how it is worded in a way that makes it possible for them, as school foodservice directors, to implement — to actually offer whole milk as an option for students and not be financially penalized by the federal government for exceeding arbitrary and outdated fat percentages on the meal.

“I’m excited to be closer to having this choice to meet students’ needs in a way that is nutritious and that they find delicious. My students will be so excited,” said Byler. “When it becomes law, it will be a huge win for kids everywhere, and our waste will certainly go down.”

Look for more in Farmshine about this milestone, what’s next, and the three amendments that were offered and approved along with the bill. They are: 1) allowing school milk to be either organic or non-organic, 2) preventing school milk from Chinese state-owned enterprises, and 3) prohibiting USDA from doing its proposed elementary school ban on flavored milk.

Clover Patch Cornucopia V goes all-digital, 300 Jerseys sell online Nov. 29

By Sherry Bunting, Farmshine, November 17, 2023

MILLERSBURG, Ohio – Consumers today are doing more buying online. Dairy farmers are no different. Every dairy cattle sale today has online bidding available, and the beef industry has been doing exclusively loadlot video sales online for decades.

Today, with more volume buyers on the market for dairy replacements, particularly with U.S. heifer inventories at their lowest levels since 2004, the online medium has become more popular – especially since 2020.

Into these dynamics, Alan and Sharon Kozak of Clover Patch Dairy, Millersburg, Ohio, will have their fifth Jersey cattle production sale of the past 15 years.

Clover Patch Cornucopia V will have one key difference. The 300 head of registered Jersey cattle of all ages will sell 100% online Wednesday, November 29 from 12 to 1 p.m. EST through Kreeger and Associates at www.kreegerdairy.com

All cattle in the sale are from the Clover Patch herd, which has been a closed herd for 20-plus years and is among the top American Jersey Cattle Association (AJCA) gJPI herds in the U.S., currently 11th in the nation.

High component pounds and udder conformation are important in the Clover Patch breeding program, which Alan describes as being focused on using the best bulls in the breed, over and over.

As a grazing dairy, feeding supplemental TMR, the milking herd of 470 registered Jerseys, housed in both freestall and bedded pack facilities, produces a rolling average 20,480M 5.1 1050F 3.7 760P with SCC consistently below 140,000.

All sale animals will be genomic and A2 tested, with 98% of the herd confirmed A2A2.

Alan Kozak has worked with the Jersey breed for most of his life. He and Sharon have strived over three decades to breed them right and raise them right, to milk a herd that is healthy and productive. Alan makes the breeding decisions that produce each calf, and he is quick to credit Sharon and the farm staff for top-notch care of the youngstock.

Why are the Kozaks going totally digital this time? They are looking for volume buyers and have been considering this format since their last sale in 2020 was both on site and online.

Their past Cornucopia sales have attracted volume buyers on site as well. Two such buyers reported on how well the cattle have done for them in a recent NextGen podcast interview.

Alan got to thinking. Why not do it all online?

“On site sales are disruptive to the business. Many of the volume buyers are buying online, and it is much less work and hassle for the staff and the cattle,” Alan explains.

The Clover Patch Cornucopia V online Jersey cattle sale will feature 50 fresh and milking cows, 50 to 100 bred heifers and the balance open heifers and calves.

Cattle in a Kreeger online sale are sold mostly in groups.

“Buyers today want to buy a group of similar individuals,” Chad Kreeger observes.

“In 2020, we made the switch from live auctions to 100% online auctions, and we haven’t looked back.”  

What are the keys, according to Kreeger?

“Provide accurate descriptions, good video, sell them in groups, and arrange all the delivery and proper paperwork for the buyer,” says Chad. “The seller benefits from global exposure on their sale and less stress on the dairy getting ready for the sale.”

Some things that are important for a totally online dairy cattle sale are the quality of the cattle, the ability to put together similar groups, and the commitment to deliver this quality so buyers can bid with confidence.

“If something is not 100% as was described, we pull her from the load,” Chad explains.

“My first virtual sale was 20 years ago,” Chad Kreeger reflects. “It was simply a slide show at that time. Three years later, I switched it to video. We then conducted video sales periodically as needed over the last 15 years before switching exclusively to timed online auctions in 2020.”

The focus for Kreeger and Associates, based in Cass City, Michigan, is on commercial dairy replacement marketing and dispersal sales. In fact, one week after the Clover Patch Cornucopia V, they will be doing the complete herd dispersal of 300 Holsteins and dairy equipment at Hastings Dairy near Burton, Ohio, totally online, Dec. 6.

In 2022, alone, Chad says they conducted more than 80 online cattle auctions, and through private sales combined, handled over 30,000 head for dairy producers and are on track to do this again in 2023.

With the slogan of ‘bid, buy, sell anywhere on the planet and we will handle the details’ summing up the total online experience, Chad reports that cattle have sold on their online auctions throughout the U.S., Canada, Puerto Rico, and Hawaii.

While most dairy cattle sales are hybrid on site and online, and 100% online might not be for everyone, there are many scenarios in today’s market that fit. One of the keys is to be lined up with the commercial dairy replacement market to offer groups of similar cattle, which abbreviates the length of the auction online.

“The busy life on the dairy today doesn’t always allow people to get away and sit through a long auction. Our program simplifies the process,” he says, noting that the cattle also benefit, going straight from the seller’s farm to the buyer’s farm while the price discovery of the auction remains vibrant.

To make it all work, there is a lot more upfront time spent by the team. According to Chad, the process is: take videos and pictures, prepare marketing materials and a sale catalog, load this onto the system, advertise and promote, and load out.

As for the buyers, says Chad: “It has never been easier to purchase cattle and have them delivered to your door just like a pair of boots.”

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With Ja-Bob herd dispersal Nov. 10, one journey ends and another begins

The Ja-Bob Holsteins dispersal Nov. 10 represents a unique journey in Holstein genetics and the first step as Mark and Joy Yeazel embark on a mission to build a dairy at Eternal Families Tanzania

“Every child deserves two parents. Every child deserves love, and they add into that they are raising them as Christians to be future leaders for their community and their country,” say Mark and Joy Yeazel as they talk about the next chapter in early 2024 that begins with the Nov. 10 complete dispersal sale of their Ja-Bob Holstein herd at their dairy farm near Eaton, Ohio. Mark and Joy had visited Eternal Family Tanzania, an orphanage of 130 children, organized as 10 homes with two parents and 13 children each, and they are seeking to be sustainable from a food standpoint. They wanted to milk cows, and if anyone is prepared to help them do that, it’s Mark. “I felt God calling me to do this,” he said. But to do it, he knew he’d have to sell the herd he has been devoted to for 50 years, to end one journey and begin another.
Be inspired by the video about the mission here
The sale catalog, including benefit lots and donations can be found here 

By Sherry Bunting, Farmshine, October 27, 2023

EATON, Ohio – A new chapter begins for Mark and Joy Yeazel of Ja-Bob Holsteins in early 2024. It has been in the making since they first visited Eternal Family Tanzania orphanage in East Africa in March of 2019. In fact, their Junk for Jesus ministry they started 18 years ago had already been financially supporting this ministry — a village of 10 sets of house parents each raising a dozen orphans and growing the farming enterprise to feed them.

Fast-forward to spring 2023 when they went back to see how God was working there. On April 2, Mark, who turns 63 this week, had planned to milk five more years. Seven days later, on April 9, he was planning to sell the herd. Mark says they are doing this for the children, “for the least of these,” called by God to build a dairy at the Eternal Family Tanzania farm.

Nearly 200 lots will be offered at the November 10 complete dispersal of the unique Ja-Bob Holstein herd. All of the dairy equipment, including robots, will sell in the auction managed by Fraley at the farm in Eaton, Ohio, and on Cowbuyer. There will also be donation lots with proceeds going 100% to the mission.

The sale catalog is creating some buzz among breeders for its foundation and the unique traits Mark has brought in. Selling are 105 of the 125 milking cows, 80 calves and heifers, as well as embryos and semen. There will be many unique combinations of red, polled, homozygous polled, A-2 and ‘slick’, from a foundation built on cow families like matriarch Sky-Hi Mars Helen-ET RC 4E92 GMD DOM, and 35 years of aAa breeding. Mark has prioritized width, strength and function.

Some of the lots, as well as donations of semen (including Ja-Bob Jordan-Red) from Triple Hil and embryos from ABC Genetics will directly support the mission. Donated lots continue to come in. This includes a recently added 20 units of early-release Ja-Bob Heritage PP-RED-ET (homozygous polled) from Triple Hil and an anonymous dairyman donated 10 units of sexed Radix P. NoBull Sires recently donated 10 units sexed and 20 units conventional semen (buyer chooses bull in their program).

Mark notes in a Farmshine phone interview that on their spring 2023 visit to Eternal Families Tanzania, they were “so impressed with the village, the design, the school they built, the way they are farming and really embracing the whole vision of caring for the children and doubling the size of the village. One of their stated goals is to be food independent. They built a fishpond and catch water off the roofs. They wanted to start raising chickens, and they wanted to start milking cows and to graze the fields in the off season.”

His wheels started turning. “I think we are supposed to build that dairy,” he said to Joy on the plane-ride home. They hesitated another day. He knew the only way he could do it was to sell the herd.

“I just felt that was what God wants me to do. This is all I’ve ever done for 50 years on this farm, milking these cows, building this herd, but I always said: ‘Do what God wants us to do.’ The question is: Are we going to say ‘yes’ whether it’s a small thing or a big thing?” he says.

Everything he has done may have prepared him and pointed him in this direction.

The Ja-Bob herd dispersal Nov. 10 ends one chapter as Mark Yeazel (right) prepares for the next chapter designing and building a dairy at Eternal Family Tanzania. On a recent visit he talks by the Mahindra tractor his church purchased for the orphanage with founder Mircea Toca (left) of Romania, and George Nywavi who is the farm manager and a house parent. Photo provided

“We are still relatively young and healthy. Our children aren’t interested in continuing what I do here. We’ve accomplished a lot and have been so blessed. To have a cow family like the Helens has been amazing, and the other goals and foundations we’ve been able to build that can be embraced by other breeders who can add their expertise to do good in the world,” he explains.

Talking humbly of the blessing of the chapter that is closing and enthusiastically about the chapter opening ahead, Mark cites Ephesians 3:20: “Now to Him who is able to do immeasurably more than all we ask or imagine, according to His power that is at work within us.”

“The first thing I need to do is to be there and to understand what an East African dairy looks like, not what a Mark Yeazel robotic dairy looks like,” he says, noting he has timelines in his mind, but “I’m not sure what God has in mind. It’s really one step at a time. This is what God has called me to do for the next year. What the following year holds, I don’t know, and that’s alright.”

Mark’s journey in the chapter that is closing really began when he came home from college thinking he needed to add some income to the farm. His interest in genetics led him to look for cows with red factor out of top families. Out of two major cow purchases he made in 1983, it was Helen that turned out to be the brood cow, with some in the Helen family today now 10th generation EX, with up to 12 generations potential in the youngstock.

He added polled over 25 years ago and has had success selling polled bulls into AI. While he did not intend to chase the A-2 genetics, he used enough of those bulls that over 40 head are identified A-2 with over 40 homozygous polled, over 120 polled and 120 red, as well as 9 Linebacks in these categories. Seen here are 31 heifers arriving for the sale from the heifer raiser in Wooster, 80% of the Ja-Bob youngstock are red.

The ‘slick’ gene was added six years ago, working with Girolando embryos. Girolando are Holstein-like in appearance, but with heat-tolerance and adaptability. He wanted ‘slick’ calves out of red A-2. He has sold six slick bulls to the minor AI studs already, and about 20 slick animals are in the sale.

“I felt like we were ignoring some of the needs of the international community, that this is a void, and the heat-tolerant genetics would really help those breeders,”Mark relates.  “I was not seeing anyone else doing it, so I thought: ‘Why not make some lines for the common breeder in tropical countries?’”

Not long after he got into it, ST Genetics and Select Sires started doing this also. So, while the large studs did a quick acceleration with genomics, Mark followed the red and the cow families. There were three bulls with the slick gene available, and he used all three, plus some semen from a bull in New Zealand. He also bought some embryos out of the University of Florida for outcross.

“I made my own bulls for the second generation breeding because I came into this early, so I needed several of them,” he explains.

While he didn’t set out a goal to breed for Tanzania, slick embryos could benefit the dairy project there in the future.

“Our first goal in Tanzania is to produce milk for children, so the type of cow is not nearly as important as just getting started in production, to start milking and see where God takes that,” Mark explains, adding that there are no organized dairies in that location, so cattle will be brought in from further away.

Mark’s journey really began when he purchased first-lactation 2-year-old ‘Helen’ at Sky-Hi Holsteins in Lacrosse, Wisconsin. She would become the matriarch of the Ja-Bob Holstein herd. Photo provided

The first major mile-marker in the Ja-Bob journey was exactly 40 years ago in October 1983 when Mark purchased Helen as a first lactation 2-year-old from Sky-Hi Holsteins in Lacrosse, Wisconsin. He knew her full brother was a red ET bull at 21st Century Genetics, but back then there was no DNA testing. So, he looked for an ET sister.

He went to Lacrosse to view the herd, and when he saw Helen standing in the stall beside her 14-year-old dam, it was her deep pedigree for longevity that sealed the deal.

He spent $10,000 on Helen – more than double what his father had ever paid for a cow. He was hoping she would carry the red factor like her brother. “But I knew her pedigree was so good that even if the RC was not there, she was worth it,” he says.

Sky-Hi Mars Helen-ET RC 4E92 GMD DOM

Having just completed an internship at Select Embryos, Mark was excited about the prospects to bring the red gene out faster. Helen was flushed to a couple red bulls, including Needle-Lane Jon-Red-ET.

“Three of the first six calves were born red, and we knew we had the red factor. We also flushed her to black bulls, including Walkway Chief Mark,” he recalls.

It was the natural breeding of Helen to Chief Mark that produced Ja-Bob Mark Heavenly Joy, a cow that would go on to be rather famous in her own right. She was born 20 days after he started dating the woman (Joy) whom he would marry four months later.

While Mark says he has never been hung up on milking averages, the Ja-Bob RHA is 27,641M 4.1 1128F 3.25 898P with a 140,000 SCC. He has a couple cows over 200,000-pounds lifetime and several over 150,000, with some individual lactations over 40,000, and recently the first with 2000 of fat.

His original goals were to sell a bull to AI, make an Excellent cow, and produce a 1000F record. All of that was achieved in the first three years. Did he imagine then that he would sell well over 100 bulls into AI, that he would have 10th generation EX in his herd, and a cow with 2000 pounds of fat?

No, but he knew good things would come from staying true to what was important. To accomplish what he did, he used aAa analyzing to shore up that foundation while pursuing the unique traits with young sires.

“I am not anti-genomics, by any means, but I feel the philosophy of genomics has narrowed the breeding base of the business, and breeds a like-kind cow. Sometimes, you don’t get a lot of balance with that type of cow,” Mark observes.

Strong front ends. Good feet and legs. That’s important, he says.

He talks about showing contacts in Kenya pictures of national champions in the 1970s, 80s and 90s, these wide, strong animals. He believes the industry needs to be “more intentional to sell internationally what fits the environment.” Toward that end, the red and slick bulls, he describes as built to be more rugged.

“I think we can do better,” he says. Even in the U.S., he encourages breeders to go back and look and know the cow’s environment. “If that is delivering feed to cows on concrete, and an average 2.5 to 3 lactations, then you’re making a terminal cow. But if those cows are grazing or in tie stalls, you want a little different type of cow, and the genomics may not reflect that.”

Facebook photo of the Ja-Bob milking herd three nights before the sale, robots visible at rear of the barn.

At Ja-Bob, cows are milked with robots that were installed in June 2013. In that system, teat placement is important, and it’s something Mark says must be considered when using genomic bulls. But when using Triple Hill or smaller studs, he says “I knew that wouldn’t be a problem. It’s the higher genomic bulls that have put emphasis on tight, high udders and short teats. Those are the ones you have to watch out for with robots.”

He notes that the common combinations of aAa matings can be found in higher genomic bulls, so, if that’s what he needs, it will more than likely be a genomic mating. But if he needs a less common combination, a 5-4-6 or a 5-1-3 or 2-1-6, for example, that won’t be genomic.

“If I am looking at red and the occasional RC, and combinations like 5-1-3 or 2-1-6, then I look at Triple Hill and K.I. Samen, and I am watching for those numbers to pop up,” he says, continuing to talk about the way aAa has worked for him from the beginning, something that keeps the foundation on track because it gets complicated when bringing in unique traits that can eliminate whole populations of choices.

What has been most satisfying about this journey as he looks ahead to the next?

Mark tells the story of visiting a farm in Holland many years ago. The breeder wanted to show him daughters of Ja-Bob Horizon-Red, one of Helen’s first sons. “I felt I did my job that a breeder somewhere in the world had a nice daughter from a bull I had bred, and he is happy with her.”

A little fun with the mission fundraising will be had with lots 179 and 180 (aka ‘Jane’ the cow and her daughter ‘cut from the same mold’)! Proceeds from this lot go 100% to the purchase of a cow for the Eternal Families Tanzania.

Of course, breeding a bull like Jordan multiplied this feeling quite a bit as Jordan went into 47 programs worldwide.

Reflecting on two Helen sons Jordan and Helium, he confesses he never set out to breed a top TPI bull, but Jordan was 66th in the top-100 and number one red bull for a while. Helium was the number one udder composite bull for a while in Germany.

“To think that a little breeding program in Preble County, Ohio could impact people all over the world is hard to believe sometimes,” he admits.

“I’ve tracked the Helen family all over the world, so I have traced animals in 16 different countries, and identified 350 EX and over 1000 VG female maternal line descendants in 11 countries — not counting daughters of Jordan.”

In fact, he shares that Roxy may be the only cow to have more EX descendants worldwide. “Bob Miller and I have talked about this,” says Mark. “He traced over 450 EX back to Roxy.”

Helen also produced 13 red sons in AI. Perhaps Apple had that many, but Helen did it decades ago, when ET was in its infancy and long before IVF.

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Some of families of Eternal Family Tanzania pictured during one of Mark and Joy Yeazel’s trips. They are selling their Ja-Bob Holstein herd in Eaton, Ohio on Nov. 10 to spend the next year building a dairy there. Screenshot from the video about their mission that can be viewed on vimeo at https://vimeo.com/869267516/6a384f7d82?

Dairy imports and exports are the tail that is wagging the dog

USDA production and cow number revisions reveal how very small changes in domestic production now have very large and disproportionate impact on milk prices

By Sherry Bunting, Farmshine, November 3, 2023

EAST EARL, Pa. – The editorial opinion/analysis on the cover of the Oct. 27 Farmshine tells only part of the story after reviewing the USDA NASS downward revisions of five months of previous milk production data on Oct. 19 and looking at the monthly USDA Economic Research Service Supply and Utilization Report, released Oct. 16.

From a supply and demand perspective, there have been more positive fundamentals this year than the spring and summer milk prices would have led us to believe.

The graph shows it all. 

We went back to 2018 to calculate January through August year-to-date (YTD) total solids on a milk equivalent (m.e.) basis for the supply side: milk production, imports, beginning stocks on January 1st and ending stocks on August 31 in each of the six years 2018 through 2023. We also took this approach with the demand side: exports and domestic disappearance.

Here’s what we found:

First and foremost, beginning stocks of dairy products came into January 2023 up 0.5% above year ago. Milk production also came into the first quarter on an upswing of just slightly more than 1%. After the USDA revisions of previously reported April through August data, cumulative milk production Jan-Aug 2023 is 152.8 billion pounds, up 0.3% from Jan-Aug 2022 but unchanged from Jan-Aug 2021.

Meanwhile, exports started the year on a higher note before slipping through the middle months to be down 7.4% as a cumulative total for the Jan.-Aug. period compared with the year-to-date totals for Jan.-Aug. 2022. The cumulative export volume total for those months was also 3.96% lower than Jan-Aug 2021, but nearly 6.5% above 2020 and 2018 and nearly 24% above 2019.

Simultaneously, dairy imports ended the period 3.7% higher than a year ago, and back in the January through April period —precipitating the steep drop in farm level milk prices — we saw cumulative total solids imports up a whopping 15.3% above year ago.

By April 30th, ending stocks had crept 3.3% higher than the previous year, but domestic disappearance was still beating the previous year by 1 to 4%, except January’s domestic disappearance was off 1.5%. For the Jan-Aug 2023 period, domestic disappearance is up 2.5% vs. the same period in 2022.

By August, ending stocks dropped to levels 1.3% below year ago and the lowest August ending stocks on m.e. solids basis since 2019.

Given these numbers, we see precious little space to maneuver in these markets when changes in exports and imports become the tail wagging the entire dog. Combined, they can make such a big difference to the farm-level milk price – even in the face of domestic demand beating year ago every month and what has turned out to be flattish cumulative milk production.

Since April 2023, not only have milk production and cow numbers now declined after several months of disastrous prices, the USDA has now also re-evaluated and revised lower its previously reported numbers. (We said from the beginning the cattle inventory just wasn’t there to support the earlier-reported milk cow numbers, so either USDA under-estimated the biannual inventory or over-estimated the monthly milk cow numbers).

The accelerated imports were a wild card this year from January through April before slowing down in May through August. The cumulative year-to-date total for January through August is 3.7% higher than a year ago after being double-digits higher at the end of April. 

Still, when we factor in the 8% gain in imports in 2022 vs. 2021, the total of 4.5 billion pounds (milk equivalent) for the first eight months of 2023 beats the same period in 2021 by 12%. That’s significant.

Ending stocks were higher each month this year until July and August; however, exports were also holding steady to strong through May. 

It is the continued year over year increases in domestic disappearance that support the uptrend in milk prices since mid-July.

Bottom line, U.S. dairy producers have just weathered a storm where even though cow numbers were not a whole lot different from a year ago, and even though milk production and beginning stocks were not so out of whack, and even though exports were generally stable until July, we saw prices this spring and summer fall 37% below the previous year, and the DMC margin fell to a record low $3.52 in July, fully 63% below the milk margin of $9.92 the previous year.

This illustrates how tiny the margins are in these supply and demand equations that can make big dents in the farm level milk price. 

Increasing the national herd by a mere 5,000 cows deals a much bigger blow when it is coupled with modest gains in milk production per cow. And, even though exports are about four to six times greater in volume than imports, a sudden increase in those imports – even while exports are steady or higher – can bump the market disproportionately lower.

The good news in these graphs is that ending stocks have trended lower through the year, dipping under year ago since July, while domestic use has trended higher than a year ago every month but January. Yes, export volumes have now slowed, but so have import volumes and milk production.

The trouble I see for the future is this: As dairy farmers become more efficient, producing more milk per cow, and against this backdrop of more imports and volatile exports… the risk of extreme volatility becomes even greater whenever a new 5,000 head dairy expansion starts up or a new 10,000 to 20,000 cow dairy is built. Current replacement cattle prices at their highest level since 2015 and record high culling values for beef further push consolidation. Renewable Natural Gas credits push the type of expansions at a minimum 2500 to 7000 cow clip, replacing the diversity of farm sizes in the dairy industry at a more rapid pace.

Against this backdrop of the disproportionate impact of imports and exports on dairy markets today, the entire industry is now disproportionately more vulnerable to small changes in cow numbers. All it takes today is one large-scale business decision to flip the switch and wreck the train and bump more small- and mid-sized family dairies off the track.

It’s to the point where milk production forecasts need a microscope for the minutia, not a telescope to see the planetary alignments.

Most of the information for this report was derived from the USDA Economic Research Service data that are reported around the 16th of every month. The report includes both the dry milk powder and whey stocks as well as cold storage butter and cheese. The monthly ERS Supply and Utilization of Dairy Products by Category reports the imports, exports, and ending stocks on a milk equivalent basis separately for fat and skim solids. Using the 40/60 ratio, we figured the milk equivalence (m.e.) on a total solids basis to generate the graphs. We also updated the milk production totals to reflect the NASS revisions two weeks ago, which were not yet updated in the available ERS reports.

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Editorial: What was really behind ‘rockier road’ this summer? USDA revisions show fewer cows, less milk June-August

By Sherry Bunting, Farmshine, October 27, 2023

EAST EARL, Pa. — In the June 30 and July 7 editions of Farmshine, we covered the milk market conditions behind the drama that sent farm-level milk prices spiraling lower. The two-part “rockier road for milk prices” series explored factors and asked questions about a situation that was not making sense.

Farmshine readers will recall that we questioned dubious math on the huge milk price losses in farm milk checks – far beyond the predictions for modest declines – in the April through August period. 

We questioned the accuracy of government milk production reports and the USDA’s World Ag Supply and Demand Estimates that kept telling us there would be more milk cows on farms and that milk production would continue higher for the year because of… more cows.

We doubted this was possible given the semiannual cattle inventory reports over the past year showing static to shrinking milk cow numbers and major shrinkage in the number of dairy heifer replacements (down 2% in Jan. 1 inventory, down 3% in mid-year inventory, a drop of over 100,000 head!). We have reported the escalating dairy replacement cattle prices setting multi-year record highs that are bearing these inventory numbers out.

We asked: Where are all these cattle coming from?

The June and July two-part series also indicated the 51% increase in the volume of Whole Milk Powder (WMP) imports coming into the U.S. compared with a year earlier in the January through May period — the highest volume for that 5-month period since 2016. (WMP is basically dehydrated milk for use in making any product or reconstitution.)

We also consulted Calvin Covington for his read of the situation. He reported to us that his calculations showed a 15% cumulative increase in total milk solids imported January through April, and that this extra volume was equal to 63% of the year over year increase in ending stocks on a total solids basis.

Well, what do you know! On Thursday, October 19, USDA issued its monthly milk production report for September. The report also went back and revised downward the previously reported totals for milk production and cow numbers for April through August.

Lo, and behold, in June and July while markets crashed, U.S. farms milked 13,000 and 34,000, respectively, fewer cows than a year ago. The September Milk Production report has now gone back to shave around 0.1% off of several months of previously reported milk production, and it has revised milk cow numbers lower than previously reported as follows: The May revision added 1000 head vs. prior report, the June revision shaved 4000 head off the prior report, July’s revision shaved 11,000 head, and August 14,000 head.

How convenient that while the Milwaukee Sentinel and area news stations were reporting five weeks of milk dumping in the sewers during June and July, and USDA Dairy Market News was reporting six to eight weeks of spot milk loads selling at $10 to $11 under the abysmal Class III price as it hit multi-year lows, the USDA reports had been telling us we were milking more cows than a year earlier, and those cows were making more milk.

Prices had plunged by more than 37%, and no one was talking about the scale-back of mozzarella cheese production and the ramp up of whole milk powder imports.

Sure, they were talking about the softening of dairy exports, and maybe that’s the point. The industry had to get the U.S. price levels below global levels in a hurry to honor the global goals set by the national dairy checkoff under previous USDEC president Tom Vilsack to keep growing exports on a Net-Zero pathway to get to 20% of milk production on a solids basis.

We wrote with concern in June and July about how even those prior numbers did not make sense at those previously incorrect levels, how a tiny change such as milking 7000 more cows in May vs. year ago and a little more milk per cow through the period could result in prices falling this hard in June and July. We have even more questions as even those small supply-margin factors have now been edited by USDA to be lower than previously reported for the April through August period.

Cow numbers have always been a driver for milk prices. Now we know there was an average of 21,000 fewer cows milked in the June-July period. And, by July, there were actually 34,000 fewer cows on U.S. farms vs. year ago.

For the Q-3 July through September period, the revisions show an average of 33,000 fewer cows nationwide compared with the third-quarter of 2022. Maybe this will also be revised lower in the future — as it includes the number of milk cows on U.S. farms in September that is now said to be 9.37 million as a preliminary figure.

In the space of six months, U.S. total milk production has gone from running 1% above year ago in Q-1 to nearly 1% (0.7%) below year ago in Q-3. But within that difference lies a revision that begs big questions about what was really going on while prices were plunging.

According to the tables in the September milk production report, the reality of the situation in June and July — while milk prices hit rock bottom and milk was being dumped and sold for $10 to $11 under class — we were already milking 13,000 fewer cows in June compared with a year ago and a whopping 34,000 fewer cows in July vs. year ago, according to these revised numbers. Now, in September, we’re milking 36,000 fewer cows in the U.S. vs. year ago.

In fact, these revised reports show that milk cow numbers have fallen by 74,000 head from the March 2023 high-tide – an unrevised and supposed 9.444 million head — to the August revised number of 9.376 million head and the September preliminary 9.37 million.

Think about this for a moment. We had unprecedented sets of proposals for milk pricing formula changes flowing into USDA in April and May with USDA announcing in June that a hearing of 21 proposals in five categories of formula changes would begin August 23rd.

While this was staging, we saw milk pricing drama unfold.

How useful this drama was for processors during the first eight weeks of the USDA Federal Milk Marketing Order hearing that has now been postponed due to “scheduling conflicts” to pick up where it left off on Nov. 27. 

How convenient it was for processor representatives to be able to point to dumped milk, below-class spot milk prices and negative premiums as justification for their proposals to increase make allowances while attempting to block farm-friendly formula changes — all in the name of investments needed in capacity to handle “so much more milk!”

(A year earlier, Leprino CEO Mike Durkin warned Congress in a June 2022 Farm Bill hearing that, “The costs in the formula dramatically understate today’s cost of manufacturing and have resulted in distortions to the dairy manufacturing sector, which have constrained capacity to process producer milk,” he said, calling the situation “extremely urgent” and warning that immediate steps needed to be taken to “ensure adequate processing capacity remains.”)

Fast forward to the first eight weeks of the USDA FMMO hearing in Carmel, Indiana in August, September and October. We listened as large global processing representatives (especially Leprino) pontificated about how the make allowances are set too low, saying USDA is setting the milk prices too high. They pointed to all of the drama this summer as proof that farmers are suffering because processors can’t afford to invest or retain capacity to handle “all this extra milk.”

Now here we are, September milk production nationwide is down 0.2% from a year ago, product inventories are tight to adequate, prices have improved… but along the way the industry managed to shake out hundreds of dairy farms — large and small — that have liquidated during the steep downhill slide this summer that so few were prepared for, as no one had a clue it would be this bad given the tight number of milk cows and replacements steadily reported in inventory.

What was really behind the dairy cliff we just experienced, where even USDA Dairy Market News recently reported a significant number of herds milking 200 cows or less have recently liquidated in the Upper Midwest?

With record WMP imports, a pull-back in fresh Italian cheese production, and other elements behind the scenes… was the fall-out of a so-called milk surplus manufactured to prove a point? (Remember, Leprino’s Durkin warned that if make allowances aren’t raised, sufficient processing capacity may not remain. And take note that other Leprino representatives warned during the USDA FMMO hearing last month that they may not invest in U.S. processing capacity in the future, if make allowances are not raised and FMMO minimum prices lowered.)

Or was the fall-out this summer manufactured to fulfill the dairy checkoff’s goals for exports? You see, we are told there was excess product in Europe and New Zealand, and our overseas sales were softening, but still well above 2020 and about even with 2021. The industry is driven to get the deals to secure more global market each and every year, even if the means to those ends are detrimental to how we serve our domestic market in the future.

Given the pullback in mozzarella production during this “rockier road for milk prices”, we have to wonder about the testimony of Leprino representatives in the FMMO hearings. They have been doing the loudest complaining.

Leprino is also a major strategic partner with DMI and the organizations under that umbrella: USDEC, Innovation Center for U.S. Dairy, Net Zero Initiative, and on and on.

They want FMMO milk prices lowered, they said, so they can pay premiums again (?), and they believe you, the farmers, should help pay for their sustainability pledges within the make allowance formulas as a cost of doing business.

They likely want to free up capital out of the FMMO pricing levels to pay for Scope 3 emissions insets from RNG-project dairies to compete with other industries that can buy those renewable clean fuel credits as offsets.

They likely want to use your milk money to pay for concentrated manure-driven expansion in the Net Zero wheel-of-fortune pathway that has been constructed with your checkoff money.

They want FMMO make allowances high enough to cash flow plant capacity investments based on byproduct whey, while they make mozzarella cheese that is not surveyed, is not price-reported, and is not included in the end product pricing formulas for dairy farm milk checks.

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Brutal Oct. 7 Hamas attacks also hit kibbutz dairy farms in southern Israel

Updated from Milk Market Moos, by Sherry Bunting, Farmshine, Oct. 20, 2023

On the day after the global dairy industry had just gathered at World Dairy Expo — a place where people come from all over the world of different backgrounds and cultures to see great cows, learn about new technologies, meet up with old friends and make new ones, we learned of the orchestrated terrorist attack in southern Israel.

Listening to the news of the atrocities committed Oct. 7 in communities along the Gaza border, the farthest thing from my mind was dairy.

But over the following days, we’ve learned that dairies were hit hard in these attacks. Dozens of dairy farmers, managers, workers, and interns were murdered and taken hostage, including those who came from other countries to work and to learn. One college student from Cambodia had just arrived two weeks earlier to begin his internship, gone now at the hands of unspeakable evil, his family talking of his love of animals and how he had looked forward to what he would learn there.

Cows were killed, equipment and barns have been burned. Reports indicate that 16 dairy farms have been impacted representing more than 5% of Israel’s milk production. Five of these farms were completely closed off to access in a “no-go” zone for at least a week, with soldiers reportedly putting hay out for the now isolated cows.

The terrorist attacks have impacted Israeli agriculture as each kibbutz that came under attack is a community centered around a farm, including a dairy, in the rural areas. According to the Israeli Institute for Dairy Farming, the 537 farms operate under two systems: 167 are kibbutz farms, the balance are private “moshav” farms.

International journalist Chris McCullough of Belfast, Ireland writes in Agri-view, a Madison, Wisconsin-based newspaper about the tragedy that unfolded as farms were finishing up the milking that morning.

In the aftermath, he interviewed Ofier Langer, who has run the Israeli Dairy School for the past 13 years. The school attracts people from 30 countries to these farms each year, educating them on the practicalities of dairy farming, Israeli style. He personally knows many of his colleagues that were murdered.

McCullough writes: “Holding back the tears, Ofier said: ‘It’s hard to take this all in. Hamas entered a number of farms and shot people indiscriminately. The area that came under attack is not just any area as it’s home to 16 dairy farms… home to anything from 350 to 700 cows per farm with average milk yields of 12,500 litres per cow per year. A few of them are even among the top 10 in the country for production per cow. All of these farms were attacked. The loss we have suffered is immense. We’ve lost friends and colleagues. Two dairy farm managers and dozens of workers were murdered. This is a heartbreaking moment for our tight-knit community. We share the pain deeply.’

He tells of a glimmer of hope, that the Israeli Institute for Dairy Farming is collecting volunteers to help on the farms that can be reached to take care of the cows.

In a later report from McCullough for The Fence Post (see photos and report here), we are learning that efforts are underway by volunteers in bullet-proof vests trying to prevent more cows dying from starvation.

“Normal operations on those farms are slowly recovering but many have suffered serious damage as well as a loss of workers and cattle,” writes McCullough. “Following a period of five days of not being milked or fed, the cows on the farms in the military no go zone are now receiving food as trucks carrying forage are allowed in under armed military guard.”

One thing we are learning is that the attacks in kibbutzim of southern Israel targeted civilians — men, women and children, people of service, doctors, nurses, teachers, and farmers — people going about their day in their communities taking care of each other, and their animals.

Prayers for Israel. Prayers for peace.

Walmart to build $350M milk plant in south Georgia, where milk supply is growing, and producers eye FMMO future

Walmart photo provided

By Sherry Bunting, updated from Farmshine, October 13, 2023

VALDOSTA, Ga. – Walmart announced it will break ground later this year on a $350 million milk processing plant in rural south Georgia, according to a company statement released Oct. 11 by vice president of manufacturing Bruce Heckman and senior vice president of beverage merchandising Tyler Lehr.

The new facility will serve more than 750 Walmart stores and Sam’s Clubs in the Southeast.

The joint statement highlighted innovation, stating that the new plant “will bolster our capacity to meet the demand for high-quality milk, while making our supply chain more resilient, and building even more transparency around sourcing.” 

The move is seen by the company as a milestone to control more of the factors around delivering a grocery staple – milk – that is high quality at low prices.

Using ingredients it says will be sourced from local farmers, the new Walmart facility will process and bottle a variety of milk options including gallon, half gallon, whole, 2%, 1%, skim and 1% chocolate milk for Walmart’s Great Value and Sam’s Club’s Member’s Mark brands.

The new facility is expected to create nearly 400 Walmart jobs in the Valdosta, Georgia community. Walmart seeks more vertical integration in staple commodities, having added beef facilities in Georgia and Kansas and initiated long-term agreements on beef and vertical farming.

Walmart opened its first milk processing facility in Fort Wayne, Indiana in 2018, triggering a ripple effect in farm contract terminations by then Dean-owned milk bottling plants serving the affected areas from Indiana and Ohio to Pennsylvania, New York, Kentucky, Tennessee and the Carolinas. Today, most of the former Dean Foods bottling plants are either owned and operated by the DFA milk cooperative or the Prairie Farms milk cooperative or have been closed.

Currently, there is a dearth of milk processing in Georgia relative to the rate at which milk production is growing, making up for the production in Florida that is slowing. Dean Foods closed the Braselton plant in 2018. Other plants have also closed over the past five years. Publix has two plants in Georgia, one expanded in 2017.

At the 2022 Georgia Dairy Conference in Savannah, former Southeast Milk Inc. CEO Calvin Covington noted in his dairy outlook that the 10 southeastern states have lost 8 fluid milk plants in the past 2 years.

“That’s done some damage,” he said. “The major challenge for milk markets in the Southeast is we need more of them. A lot of the fluid milk products that are sold in the Southeast are not processed here. If we are going to have a viable dairy industry in the Southeast, we need growing and stable markets for milk produced in the Southeast.”

In December 2022, USDA listed 39 pool distributing plants for the three southeastern Federal Milk Marketing Orders — down from 44 a year earlier. Most of the loss in fluid milk plants has occurred in Order 7. This includes Georgia, which currently has the fewest number of fluid milk plants — down to just two.

As the new leader in southeastern milk production, Georgia’s growth — combined with having just two milk plants at present — leaves producers with a per-capita fluid milk surplus of 53 pounds in 2022, according to Covington.

Together, the 10 southeastern states remain milk deficit, he said, but the relationship between milk supply and fluid milk demand is steadier across the region. Producers made 101 pounds of milk per person across the 10 southeastern states in 2022 compared with fluid milk consumption at 133 pounds per person, leaving the Southeast region at a 32-pound per person deficit, he reported. 

On the same day (Oct. 11) that Walmart announced the new $350 million milk plant in south Georgia, Covington happened to be testifying in USDA’s Federal Milk Market Order hearing in Indiana. He responded to questions about the Class I differentials and alignments to move milk into the Florida peninsula and questions on why milk production is growing in south Georgia.

He said Georgia’s nearly 90 dairy farms include some young and passionate producers who “know how to make milk and know how to make money. They know how to manage a dairy farm, and they are passionate about dairy.”

They are expanding to multiple sites in an area of the state where there is not much else that can be done with the land. They have a good water source for irrigation, are triple-cropping and producing good forage. They excel in cow comfort and milk quality and have far fewer environmental or permitting obstacles than in neighboring Florida, he observed.

Covington noted land cost is much less in rural south Georgia as compared with Florida. Much of the growing milk supply produced in southern Georgia currently goes to Florida, he added.

“There’s growth potential there… These producers are young with an entrepreneurial spirit, and if we can’t keep them competitive to serve the fluid markets in Florida, I think longer term they could look for other alternatives,” said Covington, adding that Southeast producers are looking closely at the results of the national FMMO hearing and the previous regional hearing in making their future economic and business decisions.

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Dairy farmers speak out about fair pricing, fear of retribution as FMMO hearing continues

By Sherry Bunting, Farmshine, October 13, 2023

CARMEL, Ind. — “Fear of retribution” has been mentioned by some of the dairy farmers who have testified at the federal milk pricing hearings over the past seven weeks in Carmel, Indiana.

“I cannot believe predatory milk pricing is happening in America,” said Brenda Cochran, a Tioga County, Pennsylvania dairy farmer.

Cochran was among the producers testifying Friday, Sept. 29. She, like others, stated they are speaking for thousands of other farmers who are “unrepresented and voiceless” because “they fear losing their milk market for speaking out.”

She said she dedicated her time to speak for them and to speak for “the memory of those farmers who have already lost their farms, their families, and, some of them, their lives because of this decades-long catastrophe of low milk prices.”

Cochran noted the “blindingly abstruse complexities” of federal milk pricing and the hearing process that “seem to presume the impacted farmers possess economics credentials at the PhD level.”

The room full of administrators, accountants, economists, and lawyers listened as she spoke virtually from home, saying that as an average dairy farmer, she finds it “impossible to comprehend the ‘dairy industry’ language.” She noted that “the ‘dairy industry’ is all anyone focuses on.

“There are some dairy farmers who believe milk pricing is deliberately made complicated to keep dairy farmers in the dark about how their milk is priced,” said Cochran. “Others believe the low milk prices are part of an effort to displace farmers from their land.”

She asked USDA to truly look at what this hearing can do “to fix broken milk-pricing formulas for the farmers.

“When was the last time U.S. dairy farmers were given a ‘cost of living’ adjustment?” she asked. “How are dairy farmers supposed to dig out from debt and cover basic farm and family living expenses if ‘make allowance increases’ for processors take more money away from the paltry milk checks that are also being drained by higher transportation charges and the incessant monetary hemorrhage of capricious ‘market adjustment fees’ that are never included in Dairy Margin Coverage (DMC) payments?”

Like others who have testified, Cochran pointed out: What is done to dairy farmers also decimates the rural communities that have been “laid waste by over 40 years of degrading milk prices.”

Last Friday, Oct. 6, John Painter, also of Tioga County, Pennsylvania, testified for Farm Bureau’s positions. He cited the loss of dairy farms and cow numbers in Pennsylvania. 

“While there are multiple factors leading dairy farmers to sell their herds, one of the main reasons is pricing. In Pennsylvania, our milk pricing is twice as complicated… but the outdated FMMOs certainly do not help,” said Painter.

“I can attest that farmers are leaving the dairy industry, especially Class I producers, simply because the money and labor just is not there. We have a chance to change that narrative by amending the FMMO system to meet the economic needs of our farmers,” he explained.

Painter noted that both the Pennsylvania Farm Bureau and the AFBF support NMPF’s proposal (13) to return to the ‘higher of’ calculation for the Class I ‘mover’ and to raise the Class I differentials as outlined by NMPF in proposal 19.

AFBF also does not want to see any increase in make allowances to processors without a mandatory and audited cost survey. The NMPF proposal would raise all four product make allowances to net a roughly 50 cents per hundredweight loss to farmers; whereas IDFA’s proposal would raise make allowances to net a roughly $1.25/cwt. loss to farmers. 

NMPF and IDFA reportedly support AFBF’s request that Congress in the farm bill authorize USDA to do mandatory audited FMMO cost surveys.

NMPF also includes yield composition factors and other pieces of their package of proposals to both ‘give’ and ‘take’ to get pricing alignments to better perform the FMMO pooling functions without negatively impacting farmers.

NMPF’s economist Peter Vitaliano admitted earlier in the hearing — with regard to the Class I change made legislatively to the averaging formula — they had previously supported it, but, he said: “The market taught us a very severe lesson.”

Painter noted the Class I mover change is top of mind for producers. Furthermore, he noted the Class I differentials under NMPF’s proposal 19, would add more positivity in all locations.

This stands in direct conflict with the Milk Innovation Group’s proposal to subtract $1.60 per hundredweight from the base Class I differential, to negatively affect every dairy farmer in every area. 

The Milk Innovation Group is made up of fluid processors that market value-added milk or milk-based beverages, including ultrafiltered, organic, aseptic and ESL.

This is the group that put several company CEOs on the stand to support keeping the “average of” method for calculating the Class I mover, but use a rolling adjuster or “adder” that is floored. 

The CEO of fairlife said the models show the MIG proposal on the Class I mover would benefit farmers longterm by $1.43/cwt. What wasn’t mentioned was the MIG proposal to subtract $1.60 from differentials at the same time.

Also not mentioned is the fact that when wide swings occur, they produce severe losses that lead to dairy farm exits, depooling of milk from FMMOs due to misaligned pricing, and disorderly marketing that disproportionately affects pooled producer that serve the Class I market, creating both individual and geographic impacts.

Another farmer testifying Friday, Oct. 6 was Mark McAfee, of Fresno County, California. As vice president of both the California Dairy Campaign and California Farmers Union, he has heard from organizations that few if any dairy farmers want to volunteer to testify due to “fear of retaliation by processors.

“Dairy farmers are scared and live in fear of processors and loss of contracts,” said McAfee.

Supporting the prior testimony of CDC’s Lynn McBride and Joaquin Contente on the addition of mozzarella cheese to the FMMO Class III pricing survey, McAfee explained why this is vital and why producers are so afraid to speak out on it.

Mozzarella (4.49 billion pounds produced and sold) is now much larger than cheddar cheese (3.96 billion pounds) in the U.S., but it is not used in the Class III formula, he explained.

“The moisture levels are much higher. If added to the pricing formula, farmers would be paid a much higher price. This is being ignored and overlooked,” said McAfee.

He said that adding mozzarella to the pricing survey could be a key to “structural price change (that) will return a substantial amount of value to farmers that are currently being paid $15/cwt., when breakeven is at least $23 to $27/cwt.”

Processors are dead-set against this, as was apparent in the testimony and cross examination of representatives for Leprino a few weeks ago. They bemoaned USDA whey make allowances as “too low.” They blamed USDA for upsetting the supply and demand scenario by setting farm milk class minimum prices “too high.”

They said they might not build any more plants (after the Lubbock plant that is currently under construction) nor invest in capacity in the U.S. in the future if this is not remedied.

USDA AMS’s Erin Taylor had questioned Leprino reps, asking if they build cheese plants to make whey or to make mozzarella cheese? She also asked if there are other factors that might lead to increased milk production — other than the processors’ contention that USDA has minimum prices set “too high.”

It’s clear from such exchanges that the largest global processors, like Leprino, want to cash flow plants on the make allowance of byproduct whey, leaving their unsurveyed mozzarella cheese as an area of unaccountable profit that another testifying farmer – Joaquine Contente also of California – said is made on the backs of farmers.

In an attempt to respond, Leprino reps said the whey and the cheese come out of the same hundredweight of milk. This seems to make clear the model of cash-flowing a plant on the whey make allowance, while the mozzarella remains unreported gravy, and none of its value translates back to the milk.

On the “too high” FMMO minimum milk prices provoking “too much production,” processor reps acknowledged there are other factors, which they would not name, but they kept pointing out the dumping of milk and the negative premiums, and sales of loads at $10 under Class III minimum this summer as “proof” that USDA sets FMMO minimum prices too high.

In essence, they walked right into the CDC point that milk pricing should match profitable growth with profitable demand.

(In a two-part series in June and July 2023, Farmshine reported that the record whole milk powder imports in the first half of 2023, and the proliferation of new manure-methane-driven dairy expansions together produced what was seen as a regional glut of milk this summer that drove everyone’s prices lower. Now, magically, there’s not enough milk and spot loads sell above minimum as global dairy supplies recede, and in the U.S. imports decline and whole herds have been sold to high beef and dairy replacement prices. An update of that report can be found at https://wp.me/p329u7-2N2)

McAfee launched into some root causes for where we are today. (More on that in the future.) 

He cited how processors are moving to more heavily processed milk beverages, but consumer research shows the public wants milk that is unfooled-around-with.

The availability and orderly marketing of fresh, unfooled-around-with milk is essentially why FMMOs exist. However, as a product, its benefits are not being promoted, nor are they naturally innovated, said McAfee.

The dairy innovation solution is always to do more processing, and this has created a bifurcation in how milk is priced. The more processed the milk, the more longterm the pricing; whereas fresh milk remains a month to month pass-through sale.

The checkoff push to ‘think beyond the jug’ or break the ‘jug habit’ has now created a pricing dilemma for the FMMOs.

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Hearing looks at fluid milk pricing differences for fresh vs. ESL

By Sherry Bunting, Farmshine, October 6, 2023

CARMEL, Ind. – USDA’s federal milk pricing hearing continued into its 7th week on Wednesday, Oct. 4, and USDA announced another virtual farmer testimony session for Friday for Oct. 6, with the signup notice and link posted at the hearing website with just three days notice on Oct. 3.

Farmer testimony was heard virtually also on Friday, Sept. 29, including from two Pennsylvania producers and a third from the Keystone State testified in person on Tues., Oct. 3. More on their testimonies in a future edition.

Here are some observations as I’ve listened on and off over the past several weeks as the testimony and cross-examinations dug into this issue of the Class I mover formula.

As one can imagine, daily testimony from 8 to 5 with exhibits and cross-examination add up to a lot of material for USDA to parse through.

This is particularly daunting with the introduction of significant testimony about the CME futures, hedging, risk management and other such business management by farms and processors and how FMMO changes affect these practices.

Last week, Pittsburgh milk bottler Chuck Turner of Turner Dairy Farms testified in support of the Milk Innovation Group’s concept of modifying the current ‘average of’ method for calculating Class I to create a floor under which the add-on adjuster cannot fall below.

The fairlife CEO also testified about the MIG proposal for the Class I mover last week, explaining that fairlife relies on hedging so the company can offer 9 to 12 month pricing of extended shelf life fluid milk products to foodservice, institutional food buyers and convenience stores that purchase plant-based alternatives and other beverages with annual contracts.

He explained that if the Class I price goes back to the ‘higher of’, companies like fairlife and Nestle (also testified), and others will not be able to hedge that annual price without introducing increasingly volatile price risk to their businesses.

The Nestle rep noted that Nesquick sales increased since late 2019. That’s when they started offering buyers longer-term pricing because the Class I mover was changed to the averaging formula in 2019.

For his part, even Turner said hedging on the CME butter, powder and cheese markets might work to build a protected price for selling fresh fluid milk to schools and other buyers that want longer term pricing.

He was asked several questions about the role of the Pennsylvania Milk Marketing Board in his payment of farmers and competition in the state and region.

Here’s the problem: Grocery stores still largely receive fresh milk a few times a week direct-ship to stores.

On the other hand, the extended shelf life milk, aseptically packaged (shelf stable) milk, and various milk based innovations are shipped to a warehouse. They are not treated the same as fresh fluid milk from a pricing and supply standpoint.

Additionally, the foodservice, institutional, convenience stores, and schools want to know a price for 6 months, 9 months, one year. Bottlers say they can’t offer that if they can’t protect their risk.

So, to minimize risk for processors, the ‘average of’ formula for the Class I mover was put into legislative language in the 2018 Farm Bill with the acknowledgment that it could be changed in two years by a USDA hearing process like the one in Indiana the past six weeks.

That change ended up introducing significant risk to dairy farmers, who found their ability to hedge THEIR risk was jeopardized.

Just as there are two classes of Class I processors — fresh milk and ESL fluid products, there are two classes of dairy farmers. On the one hand, producers whose milk routinely goes to Class I fluid milk plants or pool distributing manufacturing plants cannot be depooled, but milk routinely going to manufactured dairy products can be depooled.

When manufacturing class prices are higher than the Class I mover, a ripple effect occurs that disrupts the class pricing alignments. When higher priced milk is depooled, the processors can keep that money, or pass it on to their own shippers — disrupting one of the functions of the FMMOs to have orderly marketing and uniform pricing.

As one market analyst noted in her testimony last week, it’s like the story of Goldilocks and the Three Bears. These alternate Class I mover proposals are complicated with rolling adjusters to be added to the averaging formula.

For the function of the FMMOs, the ‘just-right’ porridge is the ‘higher of’ for the Class I mover, many have testified.

Trouble is, some regions may see more processors leave the FMMOs if they can’t make it work for them, and the bifurcation in the Class I fluid milk market will leave some processors unable to adapt to long-term pricing for large institutional buyers.

Which way is fluid milk consumption heading? That may be the question to answer first.

In the Eastern U.S., one thing’s for sure, the current flat milk production is being soaked up by strong bottling demand, and the market is paying above class prices right now to get milk for other uses.

The Class I pricing question, along with the other proposals in the lengthy USDA hearing, are being looked at by USDA through the lens of the FMMO’s purpose, especially “orderly marketing.”

However, USDA has no concrete definition for orderly marketing. Will we see that intuitive definition change? What do farmers have to say about it?

For its part American Farm Bureau Federation has been orderly in its presentation of testimony. Economists Roger Cryan and Danny Munch have testified. Farm Bureau members have testified.

This week, Cryan testified on removing the “advance pricing” from the Class I and II formula as this function of using two weeks of product prices to determine four weeks of pricing the following month is another piece of the puzzle bringing more volatility into the equation that can lead to depooling.

However, processors say they want advance pricing, and they want long-term hedging too! They want it all!

According to AFBF data presented at the hearing, advanced pricing has disrupted the orderly marketing of milk and led to unfair marketing conditions for dairy farmers. This disruption is caused when the price of other classes of milk rises above the announced advanced price of Class I and Class II milk. A full explanation of advanced pricing is available via AFBF’s Market Intel.

AFBF supports several proposals by the National Milk Producers Federation, which would increase Class I prices, drop barrel cheese from the Class III price formula, and return to the “higher-of” Class I formula. AFBF also supported in testimony its proposals to add salted butter and 640-lb block cheese to the pricing survey.

The hearing website posts updates at https://www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing

Government is the problem, cows are the solution

By Sherry Bunting, Farmshine, September 29, 2023

WASHINGTON – Several important amendments aimed at limiting USDA and FDA powers in the administration’s climate agenda, nutrition mandates, even an amendment on checkoff transparency, peppered the hotly debated FY2024 Ag Appropriations bill in an overnight marathon at the end of September as House of Representatives worked to avoid a government shut-down Oct. 1.

Some amendments passed and others failed.

Perhaps most notable was the Spartz Amendment (76) related to commodity checkoff transparency. It passed on a voice vote in the near midnight hour Sept. 26, but a recorded vote was requested by the opposition, and it was soundly defeated 326 to 72 in the late afternoon on Wednesday.

Here’s what we’ve learned from C-SPAN coverage and other sources about key agricultural amendments that are included and excluded.

The defeated Spartz Amendment would have prohibited use of taxpayer funds to carry out, administer or oversee the 22 commodity checkoff programs.

Other amendments that succeeded would prohibit USDA’s use of the appropriated funds to carry out the administration’s “climate agenda” via a long list of executive orders. Some amendments that passed prohibit USDA’s use of appropriated funds to enforce certain school meal rules, such as a proposed to ban chocolate milk in elementary schools and the current 14-year ban on whole milk at all grade levels.

A half-dozen amendments targeted specific USDA and FDA bureaucrat’s salaries by using the Holman Rule to cut down to $1 the salaries of, for example, the USDA Food Nutrition Services deputy under secretary for her role in expanding SNAP eligibilities beyond congressional intent and in expanding USDA diet-police tactics in schools by implementing the whole milk ban from a la carte offerings in 2012.

On the failure side, in addition to the Spartz amendment, another amendment offered by Wyoming Congresswoman Harriet Hageman would have undone the USDA mandate for electronic cattle identification. It would have left the funding in place for farmers and ranchers wanting to use the electronic ID (EID) system, but would have removed the mandate language.

Said Hageman: “Ireland required this. Today, a year later, there are untold numbers of reports they must fill out for the government, and Ireland now is considering killing off 1.3 million head of cattle to reach their ‘climate targets.’ Their EID mandate will help them carry out this slaughter.”

She said mandatory EID “will cost ranchers millions in compliance cost, causing smaller farms to sell out and accelerating vertical integration so the farmers and ranchers will be nothing but serfs. This is supported primarily by the four big packers — two of which are owned by Brazil and by China.

In opposition to the EID amendment, Chairman of the House Ag Committee, Glenn G.T. Thompson (R-Pa.), said technology and innovation are needed to protect livestock agriculture from disease outbreaks.

On the Spartz checkoff amendment, Thompson said the place to handle this is in the farm bill, not appropriations.

In defense of her approps amendment, Indiana Congresswoman Victoria Spartz said: “I am a farmer, and my cosponsor is a farmer, and we want to stand with the farmers.

“Farmers used to pay a checkoff voluntarily to promote the commodities. Then Congress made it mandatory, and there is no transparency,” she said. “If you are going to force farmers to pay the money, they should know where their money goes. Do they promote commodities? Or do they promote very wealthy jobs?”

She explained further that her amendment had two parts. One calls for checkoff transparency language in the farm bill. The other sought to be included in the Ag Appropriations, simply stating that no taxpayer funds can be used to carry out or oversee checkoff programs.

“It’s a simple amendment, but the special interests have gone on the attack saying: ‘How can Congress ask us what we’re doing with the money?’” said Spartz. “Now it has become imperative since they are now lobbying with this money against this amendment and against transparency.

“They say they aren’t using taxpayer money… So, just clarify this to Congress — that no taxpayer dollars are going to these boards that who knows where they spend the money,” she explained.

Cosponsoring the amendment, Rep. Tom Massie of Kentucky said: “This program has gone rotten and no longer serves farmers. In fact, we just sent a bipartisan letter to Secretary Vilsack reminding him that the USDA is required to report annually to Congress on the disbursement of these funds and show a third-party audit of their effectiveness.”

Massie noted that these reports to Congress have not been filed since 2018 for dairy, during which time dairy farmers paid over $1 billion, and more than 6000 have gone out of business.

Thompson stressed that the debate on checkoff transparency “should be reserved for the farm bill, not appropriations.” He said taxpayer funds are not being used in checkoff programs nor to oversee them.

Thompson expressed caution that some recent challenges to checkoff programs can be a veiled attack by animal rights groups that see this as an opportunity to weaken livestock agriculture. He said the farm bill is the place, “where conversations are already occurring, to improve these programs, to refine them, and to make them more transparent. I see the farm bill process as the appropriate path forward for achieving this transparency.”

“They should already want to be transparent to show this great thing they do for farmers,” Spartz countered. “But they are serving large monopolies, contributing to more consolidation so the little guy cannot survive.”

Spartz noted that Congress should “not be afraid to challenge these programs… to be the lobby for the people.”

For the three days leading up to the vote on the Spartz amendment, many agricultural groups with close ties and joint programs with commodity checkoff organizations amassed a barrage of lobbying efforts in opposition.

National Milk Producers Federation and National Cattlemen’s Beef Association spearheaded these efforts, including a letter signed by 130 organizations, saying that the Spartz amendment “unfairly targeted ‘producer-led’ checkoff programs that only use funds collected from proceeds of sale of these commodities – not taxpayer funds.

Here’s how I see it… If that premise is true, then what are the lobbyists opposing it so afraid of? No foul, no harm, right?

Perhaps they are afraid of the auditing that may be required to prove to Congress that no taxpayer funds are used to carry out checkoff programs. In fact, at the 11th hour, the Ag Environmental Coalition signed on to the letter opposing the Spartz amendment that was sent broadly to congressional offices urging a ‘no’ vote.

Could it be that taxpayer funds in the USDA coffers are being coughed up to further so-called ‘net-zero’ pathways initiated by the national dairy checkoff via DMI and its various tentacles?

It was USDA Secretary Vilsack, himself, who was first to announce Dairy Net Zero while testifying to the U.S. Senate in 2019 — asking them to fund Net Zero pilot programs. At that time, he was employed by checkoff, pulling down a million dollar salary via checkoff.

Now, Net Zero is the centerpiece of DMI’s “U.S. Dairy transformation” and the USDA ‘climate agenda’.

In fact, during a debate on an amendment offered by Florida Congresswoman, Kat Cammack, she cited a recent report citing Vilsack’s coordination with Arabella Advisors, a Soros-funded group, on “transforming the U.S. food system.”

She said the U.S. “can’t produce and process food for this country and abroad if we can’t rely on fuel and food systems not to be hijacked by the extremest climate agenda” and noted “many of these radical things do more harm than good to our environment. Our farmers and ranchers are the best in the world, and this amendment prevents the Biden administration from pushing its climate initiatives. It safeguards farmers and ranchers from these misguided policies.”

Could there be some blurred lines between taxpayer and checkoff funds piled into the climate-smart wheel-of-fortune?

Is there some leakage of taxpayer funds into certain checkoff industry structures and pre-competitive proprietary partnerships that create winners and losers among farms, among processors, among regions?

Certainly, Secretary Vilsack’s salary has been drawn from two pockets over the past 15 years (taxpayer, then checkoff, then taxpayer). This raises eyebrows as do the shared pathways to the same destination (net-zero) being paved with funds from both pockets. Each may fund a different track, but moving in unison to the same destination: putting the cow in the loser column so that Big Food and Big Tech can collect Big Money with the tools to move her over to the winner column (temporarily, folks, because cows don’t stop belching).

The way I see it, DMI and its many tentacles have charted a path for dairy that deems the cow a loser while developing the pathway to be her savior — to turn her into a winner and then tell her story. They promote the RNG projects, feed additives and sustainability practices that reduce her natural methane emissions, but forget to promote the fact that

With or without these pathways to Net Zero, the cow is already a winner! Cows are not the problem! A cow’s global warming potential (GWP) is not new, it is a constantly recycled baseline in a natural biochemical cycle that is as old as life itself. Math matters here!

Meanwhile, some of the checkoff-promoted tools deemed to make her loser-methane a “winner” will actually consolidate the dairy industry even more rapidly.

Large new production sites hinge on huge Renewable Natural Gas (RNG) projects that hinge on lucrative renewable fuel credits. Each permit recorded over the past two years and forward for the next five equals 2500 to 10,000 cows in expansions and new dairy sites.

These operations are less dependent on the level of the milk price to cash-flow, and they are bound by contracts to milk large numbers of cows to produce quantities of methane to then offset via RNG production to then generate credits for the exchanges.

At the federal milk pricing hearing in Indiana, we have heard processors lament that the FMMO minimum prices are too high. They’ve said the proof is the negative premiums and dumped milk this summer.

Are they really looking at getting the milk price minimums low enough that they can pay for those large new and expanded farm methane credits for their own scope 3 portfolios? Some processor testimony has mentioned sustainability costs in the make allowance part of the FMMO hearing. Do they want to weaken FMMO uniform pricing so they can cut farms that don’t measure up and use creative methane math to buy credits from others via milk premiums built on lower FMMO minimum prices?

We even have a global processor in New York State already doing a ‘pilot’ right now to monitor methane by analyzing their shippers’ Dairy One milk test data to benchmark farm methane emissions and make “recommendations.”

There’s a lot of money to be made by keeping cows in the loser column, and then building the consolidated pathways to move her into the Net Zero winner column.

Unfortunately, the math doesn’t add up, and the real losers will be our beloved cows – foster mothers of the human race — and our children and grandchildren who are already deprived of the very best our cows have to offer during 2 meals a day, 5 days a week, 9 months a year at school.

Farmshine editor and publisher Dieter Krieg hit the nail on the head in his editorial in the September 22 edition. The anti-animal agenda is real, and that fox is has been inside our henhouse with an agenda that began in 1995 when DMI was created to manage both halves of the checkoff structure, and it has become more obvious since 2008, when the Innovation Center for U.S. Dairy was created. This is also the year the whole milk ban train started rolling and DMI began conspiring with USDA to “advance the dietary guidelines” via a memorandum of understanding that initiated GENYOUth.

We’ve reported extensively on the murky methane math, the ten-fold typographical errors, the worsening dietary guidelines that ignore science, and the progressively more restrictive fat rules for school meals that are now morphing to anti-cow climate considerations.

More recently, we’ve reported on how the bubble-up in milk production in the Central U.S. that led to dumping of milk and unforeseen disastrous prices this summer was largely fueled by new RNG projects like are promoted by checkoff to help our very-bad, no-good cows become good for the planet.

The misappropriation of math and science has been staggering. Government is the problem, not the solution. Cows are the solution, not the problem. Newsflash: cows are already good for the planet, and they provide us with optimum natural nutrition we enjoy.