National Dairy Shrine 2021 Pioneer Dieter Krieg, ‘a trailblazer with energy, enthusiasm, dedication’

By Sherry Bunting, Farmshine, October 8, 2021

MADISON, Wis. – “It is impossible to overstate the impact Dieter Krieg and Farmshine have had on the dairy industry in 42 years visiting dairy farms and dairy events across the United States. His interviews with top dairymen and dairy leaders have implanted ideas of change to almost all his readers at one time or another over the years,” writes Carl Brown of F.M. Brown Sons, who nominated Dieter for the National Dairy Shrine Hall of Fame Pioneer Leader award.

On Sept. 30 at the National Dairy Shrine (NDS) dinner, Dieter was one of four 2021 Pioneers to be recognized.

Dieter Krieg

“Dieter has been a trailblazer in dairy journalism and occupies a special place in supporting and educating dairy producers and youth. I personally realized the impact that Farmshine was having during one of our Dairy Science Club spring trips,” writes Dale Oliver, Penn State Dairy and Animal Science assistant teaching professor in a letter of recommendation.

“Our group traveled to Arizona to visit some of the leading dairies in that state. One producer wanted to know (the students’) opinions about a recent article published in Farmshine. It was at that point that our students gained a perspective that this publication was not just reaching dairy producers in Pennsylvania but had begun to develop a much broader following,” Oliver said.

Yes, Dieter is known for thought-provoking editorials. A free press is not something he takes for granted, having left Communist East Germany with his family at the age of 10 for freedom in the United States.

Oliver notes that, “Dieter is a humble, caring man who does not seek attention, although he readily provides publicity to others.”

Surprise! There are more pictures and publicity on these two pages than Dieter may be comfortable with, but each one illustrates a connection that can be multiplied many times over — stretching far beyond the few examples here from the NDS awards dinner.
In fact, if you ask him what he has enjoyed most as a publisher, Dieter will tell you it’s the people.

Ever since the June NDS announcement of the 2021 Pioneer recognition, we have been hearing from some of those people — readers, producers, advertisers, colleagues, and former interns who credit Dieter as a mentor, “taking a chance” on them, “giving them a start” that blossomed into careers today that continue that network, touching the lives of others in the dairy industry.

The response has been so overwhelming, we can only capture the essence of so many responses.

Whether the first Farmshine off the press in September 1979 (right) or one of the most recent ‘favorite covers’ 42 years later in September 2021 (left), Dieter Krieg has been publishing the dairy news to Farmshine subscribers across Pennsylvania, across the United States and even in other countries 51 weeks a year. That’s 2,142 weeks, and it doesn’t get old. In that time, he has touched the lives of many as they have touched his. From the chronicles of Rudolph, his famed Oldsmobile driven over 730,000 miles to the most memorable April Fools’, and from the big stories and thought-provoking editorials to the weekly DHIA’s and announcements, Dieter has established a relationship with thousands of readers who look forward to Farmshine every week. The staff and contributors to Farmshine each week are grateful, and we echo what Dieter said in his award acceptance speech that the readers are to be thanked for helping make Farmshine what it is. After all, it’s about cows and farming, but it’s really about the people.

From the paper paste-up and wax-board days to the digital era, Dieter continues Farmshine’s mission of rising each week to cover farming and agribusiness as the first and likely only weekly dairy-focused newspaper with over 13,000 subscribers nationwide.

In his letter of recommendation, former Pennsylvania Holstein Association executive director Ken Raney explains that, “Dieter has ‘done it all’ for Farmshine, he is the editor, feature writer, advertising manager, layout, etc., as the paper has grown. His personal approach to stories has created friendships all over the world. Farmshine not only has current dairy information but features successful dairymen of all types, so readers can garner new ideas.”

Ken also describes Dieter as we know him, “an unassuming enthusiast who welcomes ideas, looks for innovative ways to share the dairy industry story and has been a leader in print media, before many publications of this type were available.”

Writes Stephanie Meyers of Merck, “I was Dieter’s first Farmshine intern in 1989. I stopped by the NDS reception to congratulate him and thank him for giving me my start in dairy journalism, communications and marketing. I’m so thankful he hired me and for teaching me the ropes of dairy journalism and encouraging me to pursue my dreams of a career in dairy communications and marketing. It’s a joy to see him recognized for his many contributions to the dairy industry and for his commitment to telling the stories of dairy farmers.”

Josh Hushon of Cargill writes of what it meant to also be an intern with the paper. “This award is so well deserved. Dieter took a chance on me as a summer intern before anyone else was willing. I was 19 at the time, didn’t really know what I was going to do in life, and had a minuscule portfolio of writing. Despite what I didn’t have, Dieter saw what I did have, which was a passion for the dairy industry and work ethic developed on our farm. He opened the first door for me and I am eternally grateful for that.”

Giving back what he learned, Josh seeks to mentor others and wrote a blog a couple years ago after looking back on his own career path and pointing out moments when the right mentor came along with the right opportunity at the right time.

“One of those mentors is Dieter Krieg, who I recently reconnected with through the Holstein Foundation. He was a huge mentor early in my career as I was learning how to be a storyteller and communicator,” writes Josh.

Andrea Haines echoes these sentiments. Today she operates her own business, ALH Word and Image, and she also looks back on her pivotal internship with Dieter at Farmshine.

“I am forever thankful for Dieter and the opportunity he and his family provided me early on in my career. Finding an ‘internship’ within Farmshine for two summers really taught me how to write, edit, piece together a newspaper (wax-adhered layouts), and most importantly, how to network with people of the dairy industry. I will never forget the many rides in Rudolph (the famed 730,000-plus mile Oldsmobile) and long nights putting together the newspaper,” Andrea recalls.

Karen Wheatley, another intern with a career in the dairy industry notes “Dieter was my mentor too, and the man who got me interested in ‘really’ writing!”

Former Lancaster Farming editor Andy Andrews notes that, “Dieter has been the voice of dairy agribusiness for four decades! He is the publisher and editor the industry has come to rely on; great reporting and fearless with his observations. Dairy farmers have been blessed with his hard work and ‘udder’ devotion.”

Dairy producers also express their appreciation, and friends recount stories. Dave Bitler of Berks County, Pa., notes that he has always been very proud to call Dieter a friend. Recalling the summer of 1973, Dave writes: “We milked together at Dr. Carl Troop’s south of Quarryville. I always enjoyed Dieter’s company and his sharing about his family’s history in Germany and their coming to the United States. Looking back on my life back then as a new high school graduate, I was probably annoying, but Dieter was always kind.”

John and Linda Kisner of northern Pennsylvania write their thoughts as Farmshine readers. Linda recalls Dieter driving through a local town and stopping for gas, seeing the paper that had pictures of their triplet calves on the cover. “He looked us up, came out and took pictures (in Rudolph). Dad loved it.”

“Sometimes it just takes someone in a position to shine a light on certain issues,” adds John. “I think being independent with his own publication has allowed him the opportunity to do that a few times over the years. Where would we be without that sort of initiative?”

Another Pennsylvania farmer, Jeremy Meck, recalls being in 4-H with Dieter as one of the CowsRus 4-H leaders. “I remember learning that he had a small barn and milked a few cows. Even though he was the editor of a great farming newspaper, he still woke up every morning to milk cows before work,” writes Jeremy. “He is a role model for the industry.”

So many more thoughts have been written, but this one brings us back full circle. You see, Dieter wanted to be a dairy farmer, to follow in his father’s footsteps. As his father and brother moved the dairy from Pennsylvania to Florida and grew it to over 500 cows in the 1970s, Dieter wanted to find a farmer to work for in Pennsylvania and maybe find a transition situation where he could work toward having a smaller farm of his own. He confesses that was the reason he took that first newspaper job as editor of the farm page in the Pennsylvania Mirror.

What better way to meet farmers and build connections?

In his last semester at Penn State in Dairy and Animal Science, Dieter had taken a creative writing course because he did enjoy writing letters to family still in Germany, and he enjoyed writing about life on the farm (which later became a popular Farmshine column).

Right off the bat, he innovated that farm page in the Pennsylvania Mirror using a photo of a barn and placing various ag news stories on the side of that barn.

“I was told it wasn’t normal newspaper style, but my goal was that people would not overlook the farm page,” Dieter recalls. To this day, Dieter loves creating page layouts and using big pictures.

It was a hit, and he was a natural, and he found that he loved the job. So the job that was taken originally to meet and connect with more farmers to potentially work into a farm management position turned out to be the calling he was born to follow, which led him to blaze a trail for a weekly all-dairy newspaper in 1979 — no small feat.

After 42 years, what has he loved most? You guessed it: the people. While there is satisfaction in writing the stories and putting the finished product together, for Dieter, it’s really all about the people.

Like agriculture, the newspaper business has its ups and downs, and getting started meant many years of long hours putting the paper together and much travel gathering news and stories. When he looks back, even those early 100-hour weeks, though trying, were enjoyable. Sitting at a banquet, for instance, isn’t really work when you enjoy it, he says.

The mission of Farmshine, he says, always was and still is to get the word out, to tell the story, to cover the issues.

When he looks back at how it all came together, Dieter told the NDS awards dinner crowd, it is obvious God’s hand was working through it because all the pieces came together even before he realized Farmshine would be born. He expressed sincere gratitude for all who had a hand in it, including those who saw something in him to encourage along the way.

In her letter, Mary Shenk Creek of Palmyra Farms notes that, “Dieter and his staff address all aspects of the dairy industry from commercially producing milk to the purebred sector and including alternative niche market opportunities. They do a wonderful job of highlighting individuals and unique accomplishments to shine a light on the personal side of our industry. Dieter is not afraid to tackle controversial issues and takes great effort to show an unbiased report while allowing editorials that stimulate thought.”

She sums up what so many feel, including me, having worked with Dieter on staff and in the later years as a freelance Farmshine contributor…

Mary says it so well: “The things I admire most about Dieter are his energy, enthusiasm and dedication. He is relentless in his commitment to serving agriculture and the dairy industry.”

Thank you Dieter for being a dairy journalism trailblazer, for starting Farmshine, the unique weekly all dairy newspaper 42 years ago, for shining a light, telling the stories, building connections, and touching the lives of others through the news, and so much more.

-30-

Conard family will host NY Holstein picnic at Ridgedale

The Conard family of Ridgedale Farm, pictured from left, Isaac at the halter of his Ridgedale Raquel EX91, Cyrus and his wife Morgan, daughter Keaton and son Liam and parents Wayne and Jen.
 

By Sherry Bunting, Farmshine, August 20, 2021

SHARON SPRINGS, N.Y. — Like many things missed last year, Holstein enthusiasts will be glad to know the New York State Holstein Picnic is back on track for 2021 and will be held at Ridgedale Farm, Sharon Springs, Saturday, September 11 at Noon. 

The Conard family will host the event, just like in 1984, when the state picnic made its original comeback. It was Wayne Conard’s mother on the breed promotion committee back then, who was instrumental in getting the state picnic going again almost 40 years ago.

“They had picnics in the early 1900s, but then it went by the wayside until 1984,” Wayne explains about that first modern-era New York Holstein picnic bringing 600 people to Ridgedale Farm that year.

The state association has had a summer picnic every year since, except for 2020, the year the pandemic cancelled everything.

Three generations of Conards look forward to welcoming members, friends, and peers from across the state, and Holstein enthusiasts are welcome from Pennsylvania and other states too.

Wayne and Jen Conard and their sons Cyrus and Isaac, Cy’s wife Morgan and their young children Liam and Keaton are the welcoming committee planning a fun day of fellowship for an estimated 300 attendees, including a catered meal, cattle judging, yard games and other surprise touches.

“We have local chef and caterer Mark Tuller coming from New Berlin. Wayne wanted beef brisket, so we’ll have that, as well as pulled pork and barbecue chicken, plus salt potatoes, baked beans, salads, fruit and a brownie sundae bar,” Jen explains the menu.

“We like good food and want to serve a nice meal,” Wayne affirms.

Tickets are $18 for adults and $10 for children under 10. The extended deadline for meal reservations is Sept. 1 by 7:00 p.m. Call or text the Conards at 518-369-8358 about reservations.

“Everything will be cooked on site, so if you want to eat, please get your ticket ahead of time, so we can plan the food,” Jen reminds.

The picnic will also feature a silent-auction manned by the Otsego, Herkimer, Montgomery (OHM) Holsten Club selling semen from homebred bulls at Ridgedale, so “bring your tanks,” says Wayne.

Ridgedale Felix is one of the young bulls on collection at Ridgedale — a Diamondback by an EX-94 Fever by an EX-92 Shottle by EX-96 Folly. Also collected is Ridgedale Incredibull-Red with genomics and pedigree. He is an Unstoppabull by an EX-91 Luck-E Awesome 3-year-old by EX-94 Currvale Goldwyn Delicious. The OHM Holstein Club will man a silent-auction fundraiser of semen from both bulls during the state Holstein picnic in September.

Picnic-goers will get to see the bulls and their mothers hailing from the Roxys and Follys and an Apple grandson.

They’ll see daughters of 19th generation EX Golden Rose ABS Ginger, including a red daughter by Jordy. Ginger was the EX-94 grand champion of the 2016 New York State Fair.

“They’ll see milking daughters of Thunderstorm and Tattoo, and much more,” Wayne assures.

For decades, the Conards have raised their bull calves for the herd sire market. Deep pedigrees for type, components and long-lived cows – with special Red & Whites in the mix — have attracted buyers, even as the industry around them changes.

“Every calf here gets raised, and a little over a year ago we started collecting a few of the special ones,” Wayne explains. “Harry Zimmerman comes up from Pennsylvania to collect them for us. We keep units priced affordably, and it has really taken off.”

The Red ones are pretty special, he notes, explaining that their herd had Canadian breeding bringing the Reds in early-on. Wayne also notes that his father was big on butterfat, so that’s bred into the herd here.

Of the bulls being collected at Ridgedale, Wayne explains: “One is from the Apple we had, an EX Defiant out of a Goldwin from Apple herself. Another bull we’re collecting is an Unstoppabull out of a Diamondback from a 94-point Fever from a 92-point Shottle out of the 96-point Folly cow.”

Folly was a legacy cow for Ridgedale, cared for by four generations of the Conard family. The EX-96 5E Ridgedale Folly passed away in 2018, just a day shy of 16 years of age.

The Ridgedale prefix goes back to Wayne’s paternal grandmother’s side of the family. One of his father’s uncles ran the dairy farm in New Jersey before he was tragically killed by a bull. Then, during World War II, the U.S. Army took the farm because a railroad station was needed.

“Dad got started again on a rented farm and spent some time in New Hampshire too before coming to New York when I was 11,” Wayne recalls. His father purchased the original 212 acre-farm in Sharon Springs, and later built a 1980-style tie stall barn.

The Conards do some cover crops and no-till, but their most productive acreage is minimum-till. They entered a soybean contest for the first time last year and won with 83 bu/A. They grow mostly grass hay in the heavy soils and tough winters, placing a few times in the Forage Superbowl at World Dairy Expo.

Today, the Conards milk 102 cows. They farm 750 owned acres and rent additional ground, raising feed for their cows, and cash cropping corn, soybeans, grass hay and some small grains, with their own dryer on site.

Not only do dry cows graze rolling pastures here, the milk cows get out every morning on pasture.

Ridgedale milk goes to Midland Farms, a family-owned wholesaler of fluid milk and dairy products supplied by 20 dairy producers in the area.

In addition to the rebuilt heifer and bull facility up the hill, picnic-goers will see the elite cows of Ridgedale in their work clothes, all in one location.

The herd used to be split between Cy’s place and Wayne’s place less than a mile apart on the same road until a fire in early 2018 destroyed the barn where Wayne milked 30 head. The family expanded out the back of their main tie-stall barn to consolidate the milking at one location the next year, turning the other site into a pole barn for machinery.

The farm has evolved in its over 50 years.

“To cash flow today, as a family farm, we need to be diversified,” says Wayne. “We’ve bought five farms in my lifetime — all last generation dairies. We haven’t enlarged our herd, but we’ve definitely had to diversify the business.”

While the number of dairy farms has declined over the years, the region has maintained its dairy heritage as Amish families have also come in buying farms and milking cows. 

Ridgedale actually started selling bulls decades ago when Wayne’s late brother ran potloads to California every month.

“We’d put 6 to 8 bulls from this farm on a load,” Wayne recalls, noting they also sold bulls to Cow Town in Vermont in those days. “Then the Amish families came in locally, and we also sell bulls over to Lowville. We haven’t needed to advertise.”

The bulls offer deep pedigrees based on type and one set price gives the buyer choice of available bulls. They test for genomics, especially the ones they are collecting on the farm for semen sales.

“Genomics is a good tool, but we don’t play the genomics game,” says Wayne. “The bulls we use have got to be out of good cow families or it will come back to haunt you.”

Dick Witter has done the semen tanks at Ridgedale since he started Taurus in 1973. “He treats me like a brother and Cyrus like a son,” says Wayne.

Wayne reflects on 50 years of this friendship, and 50 years of breeding, which included early 1990 partnerships with Hanover Hill. Ridgedale has had some bulls with Taurus, and today they have a Goldchip out of Ridgedale Folly at Triple Hill Sires. His full sister went EX this spring as a three-year-old.

Wayne has lost count of the number of cows classifying Excellent over the years, estimating more than 300 homebred cows have gone EX. Of those, 20 have gone EX-95. 

In fact, Ridgedale is typically in the top 10 for BAA score among herds their size. They have a lot of two-year-olds milking right now, but even so, there are more than 60 EX cows milking, with the others VG. The entire herd is out of EX cows.

Ridgedale Raquel EX-91 pictured as a senior 2-year-old last year

A young cow Wayne is excited about is his younger son Isaac’s show cow — Ridgedale Raquel EX-91. She was All New York and nominated All American as a senior two-year-old last year with pregnancies this year by King Doc. Raquel is backed by nine generations EX. She is a Diamondback x EX-92 Windbrook x EX-94 Dundee x six more generations back to the Roxys.

She has been Isaac’s cow since she was a calf and was first-place senior 2-year-old at Louisville last year. Fresh with her second calf, Raquel was grand champion of the junior show at the OHM Holstein Club a few weeks ago and is headed to World Dairy Expo in Madison this fall.

A milestone for the family among the Reds was Ridgedale-T Raichu-Red EX-96. In 2016, Raichu and her full sister Ridgedale Runway Red-ET were the first homebred Red & White maternal sisters to be approved EX-95 and the first Holstein sisters to do this from the same herd on the same day. Then in 2017, Raichu went EX-96. Both were 7th generation EX back to Roxy with daughters in the herd today.

The Conards lost Raichu in 2020 at 16 years of age.  She had been nominated All-American six times in milking form, with sons in A.I. and a string of show wins with Cy at the halter.

In fact, Raichu inspired Cy’s passion for showing, fitting and genetics as they grew together into showing — earning grand champion three times in the Premier National Junior Show at the All-American in Harrisburg and twice reserve grand champion of the junior Red & White Show at World Dairy Expo in Madison.

2016 photo of Cy with Raichu and Morgan with Runway

It was through showing at Madison that Cy and Morgan (Behnke) met and married. Morgan’s grandfather and uncles have Burwall Holsteins near Madison. She and her sister grew up with their own small herd of show heifers, and she met Cy while serving as Holstein Princess handing out awards for the Expo’s International Red & White Show. Cy enrolled that fall in the University of Wisconsin dairy farm and industry short course.

Today, Cy and Morgan have two young children, with Liam, 5, successfully leading his own heifer calf for the first time at the recent OHM show.

Three generations (l-r) Wayne, Cy and Liam walk through the bull and heifer barn at Ridgedale. A feed mixing room was included for flexibility in feed ingredients, and this facility is a drive-through. Feed is mixed here and delivered by feed cart to the milk cows in the tie-stall barn down the hill.

As a family farm run by family members who enjoy the cows and the crops, the Conards are quick to appreciate Daren Moore and Cole Williams helping with chores and the aggressive 3x milking schedule – and helping them get ready for the state Holstein picnic Sept. 11 and the Sunday on the Farm community event the following weekend.

While Jen works off the farm in ag lending, and Morgan does graphic design for the area’s tourism industry, all-in-all, the Conards really enjoy everything about farming together.

“We just like working with good cows,” says Cy matter-of-factly no matter how many ways the question is asked, because it’s just that simple.

“We like the crops and tractors too,” Wayne adds. “We just like farming.”

In their spare time, they like to restore John Deere tractors and make them useful again. They also do custom combining and big square bales for other farms in the area.

In fact, calling them in from working on the rain-delayed second-cutting on the first dry day in a long while was no small feat for this interview.

However, as I waited with 5-year-old Liam, walking up and down the road and talking, it was easy to forget there’s a world beyond the hills and valleys of crops and hay, cows and pasture and a white fence he was proud to tell me he helped paint. Blue skies and puffy white clouds were framed by green fields of growing corn and soybeans. The sweet smell of fresh cut hay permeated the air from the hills above, and the lowing of cattle drifted out the barn, where the familiar rhythm and hum of milking was winding down.

Enjoy the New York Summer Holstein Picnic at Ridgedale!

Dairy identity crisis

Some blending innovations beg dilution questions… Marketed as “the best of all milks,” and highlighted as offering “enhanced nutrition,” Live Real Farms 50/50 blends entered the second phase of rollout, arriving earlier this year in Northeast and Midatlantic markets. Giant Stores are among the supermarkets carrying the drink, pictured here at a Giant in Lancaster, Pennsylvania, where the Dairy + Almond and Dairy + Oat are shelved beside fairlife and sandwiched between plant-based on the right and below and 100% real milk half gallons and gallons on the left. The low-fat ultrafiltered milk as an ingredient in the Live Real Farms 50/50 blend is not Class I in terms of dairy farm-level pricing. Photo by Sherry Bunting

DMI gets more aggressive in launch of ‘blending’ vision

By Sherry Bunting, Farmshine, August 27, 2021

CHICAGO, Ill. – The future of dairy is “blending”, according to recent messaging and product innovation launches supported with dairy checkoff dollars.

In 2019, the Live Real Farms, “purely perfect blends” – Dairy Plus Almond and Dairy Plus Oat beverages – were launched in test markets in Minnesota. Earlier this year, the roll-out arrived in Northeast markets, including Pennsylvania. For example, in Lancaster County, Pa., certain Giant stores are handling the drink.

According to USDA FMMO definitions for Class I fluid milk, the either/or protein or total solids percentage of this “blend” does not meet the Class I standard, and an official from the Pa. Milk Marketing Board also confirmed in a phone interview that the 50/50 blended products are not regulated as Class I under the PMMB.

This is another aspect of the move toward blending in fluid milk products. Some of these new checkoff-funded fluid milk “revitalization” products classify the milk used in them at manufacturing class prices.

But that’s another story. This article focuses on how DMI is positioning future dairy messaging and supply-chain innovation through blending.

First, many farmers will recall the words of Paul Ziemnisky, executive vice president of DMI’s Global Innovation Partnerships when he spoke in a Center for Dairy Excellence call last fall and again in a webinar during the February 2021 Pennsylvania Dairy Summit.

In those settings, Ziemnisky gave a look at the future of dairy beverages, going so far as to say new processing facilities will “need to be built as beverage plants able to handle all kinds of ingredients for the blended products of the future.”

In essence, he said, the future of fluid milk is “dual purpose” processing plants.

“We will see the beverage space set up differently and our manufacturing plants will need to be set up as dual plants to make milk-based beverages because that is where the consumer is going, and it is our job to keep them where dairy is front and center,” Ziemnisky explained, noting that these blends “are shelved with milk. We’re adding plants to dairy, making lactose-free dairy to address gut health. Our partners have led, and we have driven growth by over 1 billion pounds.”

But where is the sales data on the blends? The dairy industry identity shift has been in the making for the past 12 to 13 years, and ramping up in the past five, with the opening, expanding and planned construction of huge dairy ingredient facilities, processing cheese and “nutritionals”.

Ultrafiltration and low-fat or fat-free milk figure prominently in these blends.

‘Best of all milks?’

So, how is DFA / DMI marketing the checkoff-partnered fluid milk innovation that is Live Real Farms “purely perfect blends”? The evolving liverealfarms.com website, as well as social media platforms, tell the story.

These “blends” of milk plus plant-based beverages, these 50/50 blends, are touted as “the best of all milks,” and “the milk for modern tastes.”

Captured screenshot at 
https://liverealfarms.com/about-us/

Interestingly, the Live Real Farms “about us” page demonstrates that its marketers may be even more confused about whose farm products they are promoting because the photo is clearly that of a farmer standing in a field with BEEF cows – Hereford and Charolais. There’s not a dairy breed in the bunch on the full screen photo at DFA’s Live Real Farms “about us” page.

Across the beef cow and farmer photo are the words “Keeping it real.” (We have to wonder how the photo of beef cows and a blended product keep it real, but that’s a question for another day.)

Moving down through the verbiage, beneath the photo are the words: “Live Real Farms is owned by a co-op of real farmers (DFA) with one really tasty goal: to create deliciously modern dairy products bursting with goodness. Nothing fancy. Nothing artificial. Nothing we wouldn’t put on our own tables.”

Underneath this verbiage, we finally do see a Holstein, and below that picture are these words: “Love Milk Like Never Before: Something so delicious happens when you blend real milk with real almond or oat drink. We love the luscious texture. We love the subtle sweetness and nutty flavors. We love the health benefits too. And so will you.”

Various consumer spots are included touting this blended drink as healthier because you can “sneak more plants into your diet,” or because the blending with oat drink make it better in coffee, and on and on.

The instagram account even urged putting 50/50 Dairy + Almond blend out for Santa last Christmas Eve. (Sorry, but Santa prefers 100% real milk). 

A milk identity crisis?

The chocolate dairy plus almond product was recently reviewed by Afoolzerrand.com – the saga of a man traveling the world tasting and reviewing brands of chocolate milk – over 1500 of them to-date.

Even he was confused about the ‘blend’, stating in his video review that he was “curious about who this (blended) product is for…

“Is there crossover between people who buy almond milk and people who buy regular milk? Maybe? Is it some sort of a compromise? I don’t know. I’m sure they did research to back up putting out the product, but I find it strange who the target market is,” he said.

“It is amusing that at the website for Live Real Farms, about us, it talks about ‘keeping it simple’ and ‘we believe in eating food the way nature intended. It’s funny for me to think about nature intending on a 50/50 almond milk / cow milk blend, let alone a chocolate flavored one. To consider that to be the way nature intended has some comedy value for me,” the chocolate milk connoisseur said in his video review of the product.

He noted that, “It sort of tastes like you would expect sun block to taste,” observing a “dusty” flavor that’s “more sweet than chocolatey”.

He talked about the other 50/50 blends in the line-up, saying “I’m baffled a bit. I’ve certainly tried worse things, it’s less creamy, which you would expect with half low-fat milk, half almond milk… texture-wise it doesn’t do any favors.”

Rating it a 3 out of 10 (Poor), Afoolzerrand went on to note that it offers a lactose-free claim, but he was quick to point out (and show pictures of) the many other lactose free chocolate milks on the market that are made with 100% real milk, that he said are really good.

Whose healthy halo?

So, what does DMI – the purveyor of the blending vision for dairy farmer checkoff dollars – say?

A recently posted “Undeniably Dairy” video at the USdairy.com website sought to explain the blending direction of dairy “to answer questions raised by recent headlines.”

Undeniably, dairy is moving toward blending-in. That’s the word in a recent DMI blog post and video explaining dairy checkoff’s aggressive “overarching framework” of where “milk-based” beverage innovations are headed — to blending-in. Captured screenshot at 
https://www.usdairy.com/for-farmers/blog/value-of-dairy-blending-in

In the video moderated by Scott Wallin, DMI’s communications director, Kristiana Alexander, director of DMI’s Knowledge and Insights, discusses how “consumer desires are influencing the beverage category and how dairy innovation can encourage more fluid milk use. One of the newest innovations are blended products, which combine the goodness of dairy with other ingredients,” she said.

Alexander is asked to give a definition for ‘blended dairy’ in the DMI video entitled ‘Why Fluid Milk Innovation is Important.’

“We are talking about products that are combining dairy with other ingredients or foods that is then made into a single product,” she said.

Wallin notes that Alexander’s team is “constantly monitoring consumer trends” and asks what they are finding when it comes to blended dairy. “What is it that they are looking for?” he asked.

“Today, people are focused on living a ‘holistic lifestyle,” said Alexander explaining what she called DMI’s “overarching framework.”

The holistic lifestyle is “a lifestyle that emphasizes the connection of the mind, body and planet. It encompasses the well-being of the individual, the family, and everything around them. People want to know, is this good for my body? Will I enjoy it? Will I feel good about buying it?,” Alexander says.

She talked about how blended products are showing up in the marketplace, saying: “It’s all about nutrition and flavor experience. It’s about bringing the foods and ingredients that people want more of … and bringing them into dairy. This can include fruits and vegetables for vitamins and antioxidants, functional foods that boost immunity, healthy grains – think like oats and quinoa, nuts, and ‘super powders’ like matcha and turmeric that have a perceived ‘health halo’ around them. And beyond nutrition, it’s flavor experience. Consumers are looking to step out of their comfort zones,” said Alexander.

(Author’s note: Who is promoting milk’s natural healthy halo? The vitamins, minerals, high quality protein, hydrating water, electrolytes, healthy matrix of fats, important fatty acids, essential nutrients of concern in today’s diets, and more? Does dairy suddenly need other ingredients to improve its health halo, according to DMI consumer research? Because consumers do not know much about the health and nutrition of real milk and dairy, blending is the answer?)

Everyone’s doing it?

Alexander went on to say this “blending” trend is not just happening in dairy.

“We see it in meat and poultry,” she said, flashing brands of blended products always using the word “plus” on the screen (like the Live Real Farms does with dairy) and touting chicken-plus-grains blends and beef blended with pea-protein as “great new products” that meet consumer desires.

“We are tapping into consumers’ desires for enhanced nutrition and flavor exploration,” Alexander explained.

“The big question for farmers is, ‘what does it mean for the dairy industry?’” asked Wallin.

Alexander responded to say: “Bringing it home, what it means for dairy and looking at blended dairy… first, we know people are always looking to consume more vegetables, and we are seeing this take place in meat and poultry, and now in dairy.

“It’s not about eliminating foods,” said DMI’s Alexander. “It’s having different options available, and these hybrid foods that provide dairy and vegetables, they do that. There’s ice cream, cheese crackers, dairy beverages that all let consumers get more vegetables in their diets. And then there’s dairy blends that incorporate grains and nuts, meeting different consumer needs.”

She noted that Live Real Farms milk plus almond and oat, in particular, “provide that blended enhanced nutrition.”

(Author’s note: Enhanced nutrition? Over real dairy milk? Really?)

She also noted the “indulgent” blends, such as Shamrock’s milk swirled with almond drink and chocolate as being a new “comfort food” for people looking to indulge and “be comforted” after a stressful year.

Alexander also noted the blended cheeses with lentils and chickpeas providing new textures and … you guessed it… “enhanced nutrition.”

This ‘blending’ discussion has not even publicly touched upon the bioengineered yeast-excrement makers already talking with the largest global makers of ice cream, yogurt and cheese to blend their dairy protein analogs at a starter rate of 5%.

As Alexander noted in the DMI video, it’s happening in meat and poultry also.

Bottom line, dairy farmer checkoff dollars are using the World Wildlife Fund (WWF) supply chain leverage model to move consumers and producers in a direction that certainly appears to be one that transforms food by diluting animal-sourced foods like real milk and dairy.

The World Wildlife Fund in its 2012 Report “Better Production for a Living Planet” identifies the strategy it uses to accomplish its priorities for 15 identified commodities, including dairy and beef, related to biodiversity, water and climate. Instead of trying to change the habits of 7 billion consumers or working directly with 1.5 billion producers, worldwide, WWF stated that their research identified a “practical solution” to leverage about 300 to 500 companies that control 70% of food choices. By partnering with DMI’s Innovation Center for U.S. Dairy with a Memorandum of Understanding for 10 years — 2009 through 2019 — this “supply-chain” leverage strategy is now embedded. Effectively, WWF has used producer checkoff funds to implement their message and priorities to consumers through supply chain decisions and to producers through checkoff-funded programs validating farm practices. 2012 WWF Report image

Business will do what business will do, but should dairy farmers be paying to promote, launch, create, and foster the blending and dilution of their milk and dairy products, including the reclassification of the milk in these beverages at manufacturing class prices? Are they funding their own demise? Should they be funding the education and promotion of dairy’s own superior healthy halo so that consumers know what 100% real dairy provides and can make informed decisions as the lines get blurred?

Who is really benefitting?

 -30-

Milk fuels these Olympic athletes, one is a dairy farmer

Katie Ledecky (Right) on Tuesday, July 27 when she won gold in the first ever women’s 1500-meter distance freestyle race. She drinks 12 ounces of chocolate milk after every race and workout.
Photo courtesy Team USA.
Elle Purrier St. Pierre (left) is a Vermont dairy farmer pictured here in June celebrating cows and cheese. Today, she’s in Tokyo getting ready to compete in Olympic track events next week.
Photo courtesy @ellie_runs_4_her_life

By Sherry Bunting, Farmshine, July 30, 2021

TOKYO — Commentators have likened Olympic gold medal swimmer Katie Ledecky to a Lamborghini, a powerful machine, gliding through the water in freestyle sprints and distance races. She won four gold medals for Team USA in Rio de Janeiro in 2016 and one in London in 2012.

Then, in Tokyo Tuesday, July 27, in the same 24-hour period — after winning silver in the 400-meter and missing medals altogether in the 200-meter — Ledecky came back with determination and poise to win Olympic gold by a healthy margin in the 1500-meter freestyle. Teammate Erica Sullivan secured the silver.

Ledecky was a machine Tuesday night in Tokyo. Her methodical straight line stretch of 30 laps in the 50-meter pool ended when she touched the wall at 15 minutes 37 seconds. That’s freestyle swimming of roughly one mile in just over 15 minutes – ranging 1.5 to 1.7 meters per second! She makes history as this is the first women’s 1500-meter freestyle Olympic event.

As she headed into the final four laps, NBC Sports commentators broadcast to a worldwide audience her training and nutrition regimen, how she fuels her body in the morning with oatmeal – made with milk, peanut butter and fruit — and always downs a 12-ounce bottle of chocolate milk after every race or workout.

Described as inspirational in her work ethic and a beast in her daily workout, Ledecky is one of Team USA’s Olympians who is proud to be powered by milk. Dairy farmers will be happy to know Ledecky teamed up a few years ago in the Built with Chocolate milk campaign, sponsored by the Milk Processors Education Program (MilkPEP). The campaign features athletes and the science behind low-fat chocolate milk as a recovery and refuel beverage. Low-fat chocolate milk is Ledecky’s choice, and milk and dairy are part of her dietary regimen in other ways too.

The swimmer told Fitness in 2018 that the bottle of chocolate milk 30 minutes after a workout or race has been part of her routine for more than a decade.

“This is my go-to post-workout recovery beverage since I was 13 years old,” said Ledecky in the Fitness interview. “I remember being a young swimmer when someone explained that drinking chocolate milk for recovery gives my body the nutrients it needs to refuel. Since then, I make sure to keep one in my lunchbox daily and drink it after a tough workout. Of course, it tastes great too.”

A year ago, Katie Ledecky helped MilkPEP bring back the ‘Got Milk campaign with this ‘Got Milk Challenge’ — swimming 50 meters freestyle in 35 seconds with a glass of chocolate milk balanced on her head, then managing to flip it at the end and drink it — never spilling a drop. The TikTok video went viral. Photo courtesy @katieledecky 

When the 2020 Olympics were postponed, Ledecky did the fun video of herself swimming 50 meters with a glass of chocolate milk on her head — without spilling a drop. That’s how steady, balanced and methodical her stroke is. Of course, at the end, she drank the milk — all smiles. The video went viral and inspired other swimmers to film themselves attempting the feat, and drinking the milk. Just a fun, feel-good moment for an accomplished Olympian who relies on and loves her chocolate milk.

As for Ledecky’s Tokyo Olympics this week, she has a few more events to go and we are rooting for her. Of her 1500-meter gold, Ledecky said in an NBC Sports interview just after the race that it “means a lot.”

With a nod to falling short of her goals in the 200- and 400-meter races just before the 1500, she said: “People may be feeling bad that I’m not winning everything, but I want people to be more concerned about other things in the world. People are truly suffering. I’m just proud to bring home a gold medal to Team USA.”

We are also rooting for the first-ever farm girl fueled to compete in the Olympics. Runner Elle Purrier St. Pierre arrived in Tokyo this week and will compete in the Olympic track events next week.

According to NBC Sports, Elle took first in the final 1500-meter race during Olympic trials, breaking a previous record and setting other track records as well, including breaking a 37-year-old record for the U.S. women’s indoor mile last year and breaking the two-mile record earlier this year.

Elle is a dairy farmer! She grew up on a 40-cow dairy farm near Montgomery, Vermont. Today she lives with her husband Jamie on his family’s Berkshire, Vermont dairy farm. 

During the Covid-19 pandemic, Elle trained from the farm with her own equipment and has reported in various mainstream media interviews how working on the dairy farm has helped her own fitness.

Whether at home on the farm in Vermont, or after a race or workout half the world away, Olympian Elle Purrier St. Pierre says the first thing she does after running is to chug a glass of milk. Facebook courtesy photo

She also explains every chance she gets how crucial dairy is to her diet. Elle’s husband studied dairy management at Cornell, and Elle studied nutrition at the University of New Hampshire. She says she could not have reached the heights of her running career without milk.

“The first thing I do when I get done running is, I chug a glass of milk, and I just know everything in there is going to help me do better,” says Elle in an interview with USA Today. “It’s got the perfect ratio of carbs and protein, when you add the chocolate, and just so many vitamins and minerals. It’s crazy what a great resource it is.”

There are also other Olympians proud to make milk and dairy part of their regimens, and to talk about it. We are rooting for Team USA and especially for Team Milk!

-30-

‘Carbon-negative milk?’ Northeast, Southeast milksheds can already claim it

EDITORIAL – OPINION

By Sherry Bunting, Farmshine, July 16, 2021

Farmshine readers will recall coverage of the U.S. Senate Ag Committee’s climate hearing in 2019, when Tom Vilsack, then president and CEO of U.S. Dairy Export Council, lobbied the Senate for climate-pilot-farm-funding. Remember, he announced DMI’s Net Zero Initiative at that hearing – five months ahead of its formal unveiling.

In that same June 2019 hearing, animal scientist and greenhouse gas emissions expert Dr. Frank Mitloehner of University of California-Davis explained the methane / CO2 ‘biogenic’ cycle of cows. 

He said that no new methane is produced when cow numbers are “constant” in an area because methane is short-lived and converts to CO2 in 10 years time, which is then used by plants, cows eat the plants, and the cycle repeats. 

Dr. Mitloehner also said that this cycle changes when cattle concentrations move from one area to another.

Nationally, dairy cow numbers are rising after decades of declining. However, in the Northeast and Southeast milksheds, cow numbers are declining — and by a wide margin. 

This should indicate net methane reductions in the biogenic cycle or negative carbon milk for the fluid milk regions of the Northeast and Southeast.

As USDA and the industry coalesce around DMI’s unified approach through the Net Zero Initiative and the work of DMI’s Dairy Scale for Good with partner WWF — stating large integrators can be net zero in five years to spread their climate ‘achievements’ across the footprint of all milk in the dairy supply chain — I have to wonder what this means for the areas of the country beyond the ‘chosen’ growth areas.*(see footnote at the end)* 

Looking at the work of DMI’s Innovation Center and it’s fluid milk revitalization committee, sponsoring the launches of various diluted dairy-‘based’ beverages, something occurred to me from a marketing standpoint.

Here is a thought that could be helpful in the future for whole fluid milk bottled regionally to compete with emerging climate claims of dairy-‘based’ beverages that are made with ultrafiltered solids shipped by centralized cheese and ingredient facilities (without the water) to be reconstituted as mixtures with plant-based alternative beverages for population centers on the coasts.

The milk produced and bottled in the Northeast and Southeast milksheds is not just carbon neutral, it’s already carbon negative, producing not just no new methane, but less than prior-decades’ methane.

Bear in mind, these new dairy-‘based’ — blended — beverages are NOT Class I products. I have been informed that the 50/50 blends, for example, do not meet the standard of identity for milk, nor do they meet the milk solids profile that requires Class I pricing. This means that even though milk is part of a fluid dairy-‘based’ beverage, it is not priced as Class I.

The milk used in these emerging products that combine ultrafiltered solids with water, additives and maybe an almond or two, fall into Class IV, some are Class III if whey protein is used. Examples include products like DFA’s Live Real Farms ‘Purely Perfect Blend‘ that arrived recently in Pennsylvania and the greater Northeast after its first test-market in Minnesota. 

Think about it. Unity is great on many levels, and is to be encouraged in an industry such as dairy, but when it comes to marketing, who is calling the shots for future viability within the DMI integration strategy, otherwise known as unity?

Pre-competitive alliances and ‘proprietary partnerships’ working on food safety are wonderful because all companies should work together on food safety. But animal care? Environment? Climate? Why not just offer quality assurance resources and pay farmers certain premiums for investing as companies would like to see and pay them for providing the consumer trust commodity — instead of implementing one-size-fits-all branches in programs like F.A.R.M.? 

These so-called voluntary programs have the power to negate contracts between milk producers and their milk buyers even though consumer trust is a marketable commodity that producers already own and are in fact giving to milk buyers, and their brands, without being compensated. 

Instead, producers are controlled by arbitrary definitions of the consumer trust commodity that the producers themselves originate. This goes for Animal Care, Worker Care, Environment, and Climate.

The pre-competitive model used in food safety is applied to all four of the above areas today. This is exactly the supply-chain model World Wildlife Fund (WWF) — DMI’s ‘sustainability partner’ — set in 2010 to “move the choices of consumers and producers” where they want them to go.

*footnote

In the 2019 Senate hearing referenced at the beginning of the above op-ed, Dr. Mitloehner stated that the mere fact there are 9 million dairy cattle today compared with 24 million in 1960 and producing three times more milk shows that dairy producers are collectively not only emitting zero new methane, they are reducing total methane as old methane and carbon are eradicated by the carbon cycle and less new replacement methane is emitted.

The problem may be this: Year-over-year cow numbers for the U.S. are creeping higher. While still much lower than four to five decades ago, the issue emerging for DMI’s Innovation Center for U.S. Dairy is how to accommodate growth of the new and consolidating dairy structures to attain the checkoff’s expanded global export goal and to accommodate massive new dual-purpose plants if dairy farms in other areas remain virtually constant in size, grow modestly, or decline at a rate slower than the ‘designated’ growth areas are growing.

DMI is at the core of this, you see, to reach it’s new collective net-zero goal, cow numbers would have to decline in one area in order to be added in another area, or they will all have to have their methane buttons turned off or the methane captured because now the emissions are being tracked in order to meet one collective “U.S. Dairy” unit goal under the DMI Innovation Center and F.A.R.M.

At that 2019 Senate hearing, Dr. Frank Mitloehner testified that dairies already create zero new methane but this can be tricky when cattle move from one area to another (as we see in the industry’s consolidation). Then we have DMI’s Dairy Scale 4 Good claiming the dairies over 3000 cows can be net-zero in 5 years and ‘spread their achievement’ over the entire milk footprint. Do we see where this is going?

Will all dairy farms have to meet criteria — set by organizations under the very umbrella of the checkoff program they must fund — to get to a ‘collective’ net-zero using the GHG calculator developed by the checkoff-funded Innovation Center in conjunction with its partner WWF (12 year MOU)? This GHG calculator has been added to the FARM program. These are the big questions.

Dairy situation analysis: What’s up with milk production?

Record high milk growth vs. record high losses, dissected

By Sherry Bunting, both parts of a two-part series in Farmshine, July 2021

The dairy industry continues to wait for USDA to provide details on three areas of dairy assistance already approved by Congress or mentioned as “on the way” by Ag Secretary Tom Vilsack.

The fly in the ointment, however, is the record-high 2021 milk production (Table 1) and accelerated growth in cow numbers (Table 2) at a pace the recent USDA World Agriculture Supply and Demand Estimates (WASDE) expect to continue into 2022.

USDA is reportedly looking at production reports — up vs. year ago by 1.9% in March, 3.5% in April, 4.6% in May — to determine how to assist without adding fuel to expansion that could threaten late 2021 milk prices in the face of rising feed costs and a worsening western drought. (The latter two challenges could temper those forecasts in future WASDEs.)

May milk production a stunner

U.S. milk production totaled 19.9 billion pounds in May. This is a whopping 4.6% increase above 2020 and 2018 and a 4.1% increase over May 2019.

Let’s look at year-to-date. For the first five months of 2021, milk totaled 96 billion pounds, up 2.3% vs. the 93.8 billion pounds for Jan-May of 2020, and it is 4.4% greater than the 91.9 billion pounds of Jan-May milk produced in pre-pandemic 2018 and 2019. Of the four years, only 2020 had the extra production day as a Leap Year.

Milk per cow was up 3% over year ago in May. Compared with 2019, output per cow is up 2.2%, according to USDA.

Cow numbers vs. 2018 tell the story

Milk cows on U.S. dairies in May 2021 totaled 9.5 million head, up 145,000 from May 2020’s 9.36 million, up 172,000 from 2019’s 9.33 million, and up 83,000 head from 2018’s 9.42 million.

Counter to the national trend, Pennsylvania had 48,000 fewer milk cows than May 2018 — dropping 30,000 into 2019; 10,000 into 2020, and 8,000 into 2021.

Elsewhere in the Northeast and Southeast milksheds, among the 24 major monthly-reported states, New York had 4000 more milk cows in May 2021 than 2018, Vermont 8000 fewer. Georgia dropped 1000, Florida 12,000, and Virginia 11,000. In the Central states, Illinois was down 10,000 head.

The total decline in cow numbers for the 24 lesser quarterly-reported states, the collective loss in cow numbers is 59,000 head from May 2018 to May 2021

Accelerated growth is coming from three key areas where major new processing assets have been built or expanded.

In the Mideast, where the new Glanbia-DFA-Select plant became fully operational in Michigan this spring, there is a net gain of 32,000 cows for 2021 vs. 2018, Ohio’s cow numbers that had been declining 2018-19, began recovering in 2020-21. Indiana had 18 months of substantial growth, and Michigan returned to its growth pattern in 2020. Taken together, the Indiana-Ohio-Michigan region had a loss of 8,000 cows heading into 2020, but gained a whopping 40,000 cows over the past year.

In the Central Plains, where new plant capacity is starting up this spring and summer — Minnesota, South Dakota and Iowa, combined, added 40,000 cows May 2018 to May 2021.

In the Southern Plains, where joint-venture processing capacity continues to grow, Texas has continued full-steam-ahead, gaining 87,000 cows from 2018 to 2021, along with 29,000 added in Colorado and 17,000 in Kansas. New Mexico regained earlier losses to be 2000-head shy of 2018.

The growth patterns in these regions somewhat mirrored dairy exits from other areas — until Jan. 2020 (Table 2). The past 17 consecutive months of year-over-year increases in cow numbers leave the U.S. herd at its largest number in 26 years (1995).

However, the assumption that ‘dairy producers are okay because the industry is expanding’ ignores several essential factors. The playing field has become more complicated and inequitable. There are four main factors at play. We’ll look at them one at a time.

Ben Butler of South Florida posted this photo that went viral on Twitter April 2, 2020 of milk being dumped in Florida because there was no home for it. A few days later, he tweeted photos of milk gallons also being donated to Palm Beach County families in need. Challenges abound in the dairy supply chain. The unofficial tally of milk dumped in the Northeast and Mid-Atlantic region the first week of April 2020 was north of 200 loads, with additional reports of 130 loads dumped in the Southeast. Meanwhile, stores were not well stocked, most were limiting purchases and foodbanks were getting more requests as over 10 million people were newly out of work.

Factor #1 — Milk dumping and base programs 

A year ago in April and May 2020 — at the height of the Coronavirus pandemic disruptions — the dairy industry saw dumping of milk, stricter base programs and bigger milk check deductions. Producers culled cows, dried cows off early, changed their feeding programs, even fed milk in dairy rations.

But milk production still grew, according to the USDA data.

Some cooperatives and milk buyers, like Land O’Lakes, had base programs already in place and triggered them. Others made changes to prior programs or implemented new ones.

Dairy Farmers of America — the nation’s largest milk cooperative, largest North American dairy processor and third-ranked globally by Rabobank — quickly implemented a new base program in May 2020, seeking 10 to 15% in production cuts from members, varying by region, with overage priced on ‘market conditions.’

It is difficult to assess the ‘equity’ in these base programs and the cross-layers among producers between and within regions, or to know how these ‘bases’ are being handled presently. When questioned, spokespersons say base decisions are set by regional boards.

Meanwhile, product inventory and pricing schemes affect all regions, and milk rides between FMMOs in tankers and packages — with ease.

According to USDA, the 11 FMMOs dumped and diverted 541 million pounds of milk pooled as ‘other use’, priced at Class IV, during the first five months of 2020, of which 350 million pounds were in April alone. This is more than three times the ‘other use’ milk reported by FMMOs during the first five months of pre-pandemic 2019 (171.4 million pounds). By June, the amounts were double previous years.

Of this, the largest amount, by far, was the 181 million pounds of ‘other use’ milk in the Northeast FMMO 1 during Jan-May 2020, comprising one-third of all the dumped and diverted milk pooled across all 11 FMMOs in that 5-month period.

In the Southeast milkshed, the Appalachian, Florida and Southeast FMMOs 5, 6 and 7, together pooled 88 million pounds of ‘other use’ milk in the first five months of 2020. The Southwest FMMO 126 had 106.2 million pounds of ‘other use’ milk; Upper Midwest FMMO 30 had 46.1 million pounds; Central FMMO 32 had 36.7 million pounds; Mideast FMMO 33 had 30.7 million pounds; California FMMO 51 had 28.9 million pounds; Arizona FMMO 131 had 21.7 million pounds; and Pacific Northwest FMMO 124 had 1.3 million pounds.

The dumping had begun the last week of March 2020 and was heaviest in the month of April. Producers also saw deductions as high as $2/cwt. for balancing costs, lost quality premiums, and increased milk hauling costs. Unaccounted for, were the pounds of milk that had reportedly been dumped on farms without being pooled on FMMOs.

All of this against a backdrop of pandemic bottlenecks and record-high March-through-August imports of butter, butteroil, milkfat powder, and blends — adding to record-high U.S. butter inventories and contributing to the plunging Class IV, II and I prices vs. Class III (PPD).

Meanwhile, not only did production growth in key areas move ahead, so did strategic global partnerships. Just one puzzling example in October 2020, after eight months of deflated producer milk checks, depressed butterfat value, burdensome butter inventory, record butterfat imports, and a plunging Class IV milk price that contributed to negative producer price differential (PPD) losses, Land O’Lakes inked a deal to market and distribute cooking creams and cream cheeses — Class II and IV products that use butterfat — from New Zealand’s Fonterra into United States foodservice accounts.

The New Zealand press reports were gleeful, citing this as a big breakthrough that could be followed by other of their cheeses entering the “huge” U.S. foodservice market through the Land O’Lakes distribution.

Factor #2 — Class price wars and de-pooling

As reported in Farmshine last summer, dairy farmers found themselves in uncharted waters. As Class IV prices tumbled from the get-go with all of the ‘other use’ dumping and diverting, butter inventory building as butter/powder plants tried to keep up with diverted loads at a disruptive time, the USDA Food Box program started drawing products in the second half of May, and really got going by July 2020. 

Cheese, a Class III product, was a big Food Box winner. The cheese-driven Class III milk price rallied $7 to $10 above Class IV, and massive volumes of milk were de-pooled by Class III handlers, which has continued through May 2021.

Reviewing the class utilization reports, an estimated 80 billion pounds of Class III milk normally associated with FMMOs has been de-pooled over the past 26 months.

At the start of this ‘inequitable’ situation, academic webinars sought to explain it.

“We’re seeing milk class wars,” said economist Dan Basse of AgResource Company, a domestic and international ag research firm in Chicago, during a PDPW Dairy Signal webinar a year ago. 

He noted that under the current four-class pricing system, and the new way of calculating the Class I Mover, dairy farmers found themselves “living on the edge, not knowing what the PPD (Producer Price Differential) will be” (and wondering where that market revenue goes).

“A $7.00 per hundredweight discount is a lot of capital, a lot of income and a lot of margin to lose with no way to hedge for it, no way to protect it, when the losses are not being made up at home as reflected in the PPD,” Basse said in that summer 2020 webinar.

What does this have to do with year-over-year milk production comparisons?

Two words: Winners. Losers. 

Some handlers, and producers won, others lost — between and within regions.

Here’s why all of this matters from a production comparison standpoint: Dairy economists — Dr. Mark Stephenson, University of Wisconsin, and Dr. Marin Bozic, University of Minnesota — are both on record acknowledging that USDA NASS uses FMMO settlement data, along with producer surveys, to benchmark monthly milk production.

So, on the one hand: How accurate are these data for comparison over the past 26 months, given the inconsistent FMMO data from dumping, diverting and de-pooling? 

On the other hand: Did the negative PPDs and de-pooling, resulting in part from the 2018 Farm Bill change in the Class I Mover, allow Class III handlers to capture all of that additional market value and use it to fuel the 2020-21 accelerated milk growth for regions and entities connected to the new Class III processing assets?

Factor #3 — New dual-processing concentrates growth

Accelerated growth in cow numbers is fueling record production in 2021. It is patterned around ‘waves’ of major new processing investments in some areas, while other areas — largely fluid milk regions — are withering on the vine or growing by smaller margins with fewer cows. 

In the 24 major milk states, production growth was even greater than the All-U.S. total — up 4.9% vs. year ago. In part one, the breakdown was shown vs. 2018.

Here’s the breakdown for just the 12 months from May 2020 to May 2021 — a time in which the industry dealt divergences that created steep losses for some and big gains for others, while FMMOs became dysfunctional. 

In just one year, over 40,000 cows were added in Indiana, Ohio, and Michigan, combined, and milk production was up in May 2021 by 12.6, 3.2 and 5.1%, respectively. The draw is the massive new Glanbia-DFA-Select joint-venture cheese and ingredient plant that began operations late last year in St. Johns, Michigan. Sources indicate it reached full capacity this spring. Add to this the 2018 Walmart fluid milk plant in Fort Wayne, Indiana and other expansions in Ohio and Michigan.

Ditto for the Central Plains, where new cheese and ingredient line capacity became operational this spring and summer. Supplying these investments, Minnesota grew production 6%, South Dakota 14.6%, and Iowa 6.2% over year ago. 

Number two Wisconsin grew by 5.6% in May 2021 vs. year ago.

Milk production was up 5% in number one California, even though cow numbers were down by 1000 head, and dairy farmers in a referendum voted recently by a slim margin to keep their quota system. They are also dealing with a devastating drought that news reports indicate is now impacting both the dairies and the almond growers.

Then there’s Texas, where growth continues to be a double-digit steamroller, up 10.8% in May 2021 vs. 2020 — pushing New York (up 4.2%) to fifth rank. 

The Southern Plains has had several strategic investments, starting in Texas and New Mexico (up 6% vs. year ago).

In Colorado, where production was up 5.3% in May, DFA’s joint ventures and strategic partnerships with Leprino, Kroger and others have fueled growth.

Kansas grew milk production 7.3% vs. year ago. In 2018, a state-of-the-art whole milk powder and ingredient plant became fully operational in Garden City, Kansas. The plant was to be a joint-venture between DFA and the Chinese company Yili but ended up as a joint-venture between DFA and 12 of its member farms that are among the 21 Kansas dairies shipping milk to it.

DFA’s Ed Gallagher gave some insights on this during a May 2021 Hoards webinar. He said, “We went through a period of investing in powder plants in the U.S. It seems like there is a follow-the-leader approach when deciding on investments, and it goes in waves. The industry just completed a wave of a lot of investment in Class IV manufacturing plants, and now… it’s flipping to Class III.”

Looking back on the Class IV ‘wave’ 2013 through 2018, there were several times in those years that Class IV beat Class III, leading to FMMO de-pooling, but not to the extreme extent seen in the past 12 months as Class III now beats all other classes, including Class I, leading to negative producer price differentials (PPDs).

Gallagher sees Class III and IV prices “coming together” in the “next period of years” because the ‘wave’ of capacity investment has flipped from Class IV to III. He predicted more Class III capacity will be added.

Are these past 26 months of PPD net losses for producers the industry’s answer to, in effect, increasing processor ‘make allowances’ without a hearing?

The average PPD value loss (see chart) across the seven multiple component pricing FMMOs was $2.57 per hundredweight for 26 months, which began with implementation of the new Class I pricing method May 2019 through the most recent uniform price announcements for June 2021 milk. 

Applying a conservative 5-year average PPD (prior to Class I change) for each FMMO, only the few gray blocks on the chart represent ‘normal.’

This means even positive-PPDs show margin loss for farm milk pooled on FMMOs. In fact, the CME futures markets as of July 14 show August through December divergence between Class III and IV above the $1.48 mark, indicating Class I value loss and negative PPDs or smaller positive PPDs could return after barely a two-month reprieve.

Many handlers that don’t pool on FMMOs also use the uniform prices as a benchmark.

This $2.57 net loss for seven MCP FMMOs across 26 months represents almost a doubling of the current make allowance levels.

Current USDA make allowances and yield factors add up to a processor credit of $3.17 per hundredweight on Class III and $2.17 on Class IV. This already represents 11 to 25% of farm milk value, according to 2018 analysis by John Newton, when he was Farm Bureau’s chief economist.

Why is this important? Because we are already seeing additional margin transfer from Class I to Class IV as the industry moves to blended beverages that mostly use ultrafiltered (UF) milk solids. Blends using whey would fall under Class III.

Looking ahead, DFA now owns most of the former Dean Foods’ Class I fluid milk plants since May 2020. New manufacturing synergies are undeniable, considering the direction of dairy checkoff’s fluid milk revitalization plan emphasizing these dairy-based-and-blended beverages and ‘dual-purpose’ processing facilities. 

Dairy + Almond is a Live Real Farms beverage made by DFA and was launched through DMI’s Innovation Center with checkoff funds paid by all dairy farmers. The milk in this beverage is not priced as Class I, though it competes in the dairy case and is being promoted as a “Purely Perfect Blend.”

As low-fat UF milk solids are blended with other ingredients in a manufacturing process to make new combined beverages, the result is a competing beverage, and the milk in the beverage drops from Class I to Class IV.

Meanwhile, these beverages cost more at the grocery store, and the ingredients are not part of the USDA end-product pricing ‘circle’. Therefore, no new make allowances should be requested because processors are already getting a reduced class value, and a higher margin.

DMI’ vice president of global innovation partnerships, Paul Ziemnisky, gave some insights into this “future of dairy beverages” — and how it ties into new processing plants investments during the virtual Pennsylvania Dairy Summit in February.

Ziemnisky went so far as to say new processing facilities will “need to be built as beverage plants able to handle all kinds of ingredients” for the blended products of the future. In essence, he said, the future of fluid milk is “dual purpose” processing plants.

DMI’s usdairy.com website touts the checkoff launches of ‘blended’ dairy-‘based’ beverages — key to DMI’s fluid milk revitalization plan. Not flavorings, these blends dilute milk out of Class I, the highest farm-level pricing, and mainly into Class IV, the lowest. The resulting beverages compete in the dairy cooler with Class I fluid milk. Screen view

While 11 of the top 24 states had milk production increases of 5% or more in May, the 13 states with increases below 5%, or negative, are mainly located within traditional Class I fluid milk marketing areas: Florida, up 0.5%, Georgia up 2%, Virginia down 2.3%, Illinois up 1.9%, Arizona, down 0.5%, Washington, down 0.9%, Pennsylvania and Vermont both up 1.8%, and New York up 4.2%. 

Idaho and Utah, up 2% and unchanged, are outliers and largely unregulated by FMMOs. Some beverage assets are coming to that region in the form of ultra-filtration and aseptic packaging, including a plant renovation to make Darigold’s FIT beverage. Additionally, a new Fairlife filtration membrane plant was opened near Phoenix, Arizona in March, and Kroger is doing filtration and aseptic packaging in Colorado.

Meanwhile, Pennsylvania is often described as a ‘fluid milk state’ with a Milk Marketing Board setting minimum prices for fluid milk, and a string of independent milk bottlers that figure prominently in their communities.

Ranked fourth in milk production in 2006, Pennsylvania was passed by Idaho in 2007. By 2016, Michigan had pushed Pennsylvania to sixth. The very next year, in 2017, Texas leapfrogged both Pennsylvania and Michigan. Now, Minnesota has pushed the Keystone State to eighth.

How does the future of dairy affect traditionally ‘fluid milk’ states like Pennsylvania, or the Southeast for that matter?

New dairy-‘based’ beverage innovations can be made anywhere and delivered anywhere, often as shelf-stable products. Most are not Class I products unless they meet the strict FMMO definition which was last spelled out in the USDA AMS 2010 final rule. 

For now, this also includes the Pa. Milk Marketing Board. Executive secretary Carol Hardbarger confirms that the 50/50 drinks are not regulated under PMMB, which generally uses federal classification, but that a legal interpretation of the Milk Marketing Law with regard to blends may be in order.

The 50/50 blends are already in some Pennsylvania stores and elsewhere in the Northeast, which is the second phase of the ‘undeniably, purely perfect’ marketing plan for fluid milk revitalization.

Factor #4 — USDA, industry coalesce around climate

Ag Secretary Tom Vilsack has been outspoken from the outset about using and aiming every available USDA program dollar in a way that also addresses the Biden administration’s strategies for equity, supply chain resiliency, and climate action.

Speculating a bit as to why USDA is taking so long to announce details about already funded dairy assistance, it could be that Sec. Vilsack is looking at the fit for ‘climate impact.’

Paid around a million a year in dairy checkoff funds to serve 4 four years as CEO of the U.S. Dairy Export Council — between prior and current Ag Secretary posts — Vilsack understands the future plans of the dairy industry’s checkoff-funded proprietary precompetitive alliances on a global scale. 

Vilsack has been privy to the DMI Innovation Center’s discussions of fluid milk revitalization through ‘dual purpose’ plants and blended beverages. He is no doubt looking at the accelerating growth in milk production that is occurring right now for ways to tie dairy assistance to measured climate impacts in the net-zero file.

Producers on the coasts and fringes of identified growth areas have a target — fresh fluid milk and other dairy products produced in regional food systems for consumers who have a renewed zeal for ‘local.’ Fresh fluid milk will have to find a path outside of the consolidating system and cut through the global climate-marketing to directly communicate fresh, local, sustainable messages about a region’s farms, animals, environments, businesses, economies, jobs and community fabric.

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Feeling good about milk

By Sherry Bunting, Farmshine, June 11, 2021

“The beverage industry is savage.”

So says Rohan Oza, an American businessman, investor, and marketing expert behind several large brands. He was with Coca Cola until 2002 and in the past 19 years has the distinction of being a brand mastermind behind Vitaminwater, Smartwater and Bai beverages, among others, and he has been a recurring guest on Shark Tank, a television show where entrepreneurs pitch their fledgling businesses to several investor “sharks” in hopes of getting an investment deal for a percentage of equity in their businesses.

In an archived episode of Shark Tank from 2018 when a husband and wife pitched their apple cider drink, known today as Poppi, Oza had other pearls of wisdom to share about the beverage industry.

He said the largest companies aren’t creating the drinks, they’ve perfected the manufacturing and distribution. Instead, they rely on entrepreneurs to have the vision to bring a new beverage to market.

Packaging and marketing matter. Information is power. Flavor is king.

Oza said consumers want beverages they can feel good about.

That’s what has been missing over four decades in the milk industry, especially the past decade since 2010 when fluid milk sales took the sharpest nosedive. This has stabilized a bit in the past two years as whole milk sales rose 1% and 2.6% in 2019 and 2020, respectively, providing a bit of a safety net to overall fluid milk losses.

There is an innovative and entrepreneurial trend in bringing to market new dairy-based beverages that contain dairy protein, or ultrafiltered low-fat milk as an ingredient. However, MILK, itself, as a beverage, lost its power to make people feel good because people were not empowered with good information, and children were robbed of opportunities to choose the good milk — whole milk — at schools and daycares.

What milk itself lost as a beverage was the power to make people feel good about drinking it — because people lost touch with what they were getting from milk, what whole milk actually does for them. One big reason? GenZ-ers (and to some degree millennials) have grown up drinking (or tossing) the low-fat or fat-free milk as their only choices in school, and then found themselves searching for something else to drink in the a la carte line.

That’s changing. Research, studies and scientific papers keep coming forward, identifying the benefits of whole milk. When people try it, a common reaction is, “this is the good milk.”

Yes, whole milk is winning customers. Efforts by dairy producers — at large and through organizations like 97 Milk — have been focusing lately on giving the public the information they need about whole milk to make informed choices. It’s about giving people the opportunity to know what whole milk can do for them, and we hope that bills in the United States Congress as well as conversations with the Pennsylvania State Senate bear fruit in the ongoing effort to legalize the choice of whole milk in schools… so future generations can feel good about milk too.

We notice that if USDA can give the coveted Child Nutrition label to the Impossible Burger — a fake meat product with more saturated fat (8 grams) in a 4 ounce patty than whole milk (5 grams) in an 8 ounce glass and more sodium (370 mg for Impossible vs. 120 for whole milk) and more calories, then surely USDA can loosen its grip on the fat content of the milk choices for children in schools. Incidentally, the USDA approval of Impossible for school lunch is really a head scratcher next to 85/15 real beef because the real thing has less saturated fat, less sodium, and fewer calories.

Yes, USDA qualified Impossible Burger for reimbursement with taxpayer funds in the National School Lunch Program, but still outright forbids the choice of whole milk in schools.

USDA and Congress are moving toward universal free lunch and breakfast (even supper and snack) for all kids. FDA is in the procedural phase of developing a “healthy” symbol for foods that “earn” it — according to whom? Dietary Guidelines! The trend in government is toward giving consumers less information on a label, not more.

This is why milk education and freedom of choice are more important than ever. Even the Hartman Group young consumer insights cited at PepsiCo’s K-12 foodservice website state that GenZ-ers show a preference for ‘fast food’ and ‘familiar tastes.’ Millennials and GenZ-ers both show high preference for foods they grew up with.

Kids need to grow up able to choose the good milk — whole milk — not have that choice forbidden. That’s why the milk kids get to choose at school where they get 1, 2, even 3 meals a day is so important.

Give them the choice of the good milk that is good for them, and the power of information, and they’ll remember feeling good about milk.

Happy June Dairy Month! A big thanks to dairy farmers for all they do.

NY dairy farmer fights eminent domain as county moves to take best fields for cheese plant relocation, expansion

“If the state — under the auspices of the Industrial Development Agency — can decide how these properties can be used, I think as farmers, we need to realize we can lose our land through eminent domain takings,” says Charlie Bares. He is fighting to save fertile farmland that is key to feeding cows and managing manure nutrients at Mallards Dairy. Photo provided

By Sherry Bunting, Farmshine, May 21, 2021

ANGELICA, N.Y. — It feels like a no-win situation for Charlie Bares ever since Great Lakes Cheese set its sights on fertile Genesee River Valley land that is integral to growing forage and hauling manure for the 3000-cow Mallards Dairy.

The Allegany County (New York) Industrial Development Agency (ACIDA) has moved forward with eminent domain proceedings to condemn 321 acres of Bares’ land, identified in county documents as Marshland LLC, so the county can use the land to build a 480,000 square foot cheese manufacturing facility for Great Lakes Cheese.

The county has a deal with the Hiram, Ohio-based cheese company to give $220 million in tax savings and incentives to build the $500 million plant on Bares’ land. 

The new plant would double the company’s current production at its Empire Cheese plant in nearby Cuba, New York.

According to documents in the public record, Great Lakes Cheese intends to close the Cuba plant after production would begin at the plant it seeks to build on Bares’ land. 

ACIDA and the cheese company began working on this project in October 2019 and have set a timetable for groundbreaking later this year and operations to begin in January 2025.

The public record also indicates that 200 jobs at the Cuba plant, and additional jobs with the expansion, as well as milk markets, are “in jeopardy” if Great Lakes can’t build on this particular land.

Cows have been milked in this operation since 1860, according to Bares, who joined Joe Strzelec as a partner in the 1990s. As the ownership and business changed over the years — with Bares becoming the principle partner and expanding the operation — the Genesee River Valley land the county wants to take has become a key to the dairy business 20 miles away.

“IDA has begun the eminent domain process, and we are fighting it,” said Bares in a Farmshine phone interview. “We are arguing that this is not an overwhelming public benefit, but that it is an overwhelming private benefit.”

A few weeks ago, attorneys representing Bares and Marshacres LLC filed a petition challenging the county’s actions. The legal case is currently in the New York State Appellate Court.

Bares was approached a year ago about selling more than half of the 400 acres for the cheese plant.

“We didn’t want to sell, and we gave a price that reflected that. This land is the biggest and best field for us, and it is an integral part of our business. Selling it would weaken our dairy business,” he explained.

In addition, Bares is concerned about the environmental impact of losing land like this to concrete. While his operations are just outside of the Chesapeake Bay watershed, he is a supporter of the clean water blueprint for the Bay, and has invested over the years in technologies and best management practices profiled in 2015 in a Chesapeake Bay Foundation blog. Tree plantings and riparian buffers for water quality in the Genesee River Basin were also highlighted, among other things, in 2018. 

The ‘market value’ of this land is irrelevant under these conditions. What is relevant is the value of the land to Mallards Dairy and its owners.

In fact, in a letter reported by the Olean Times-Herald, Bares’ attorney John Cappellini observes:  “You are taking property from one company and giving it to another? You have decided that one commercial use, the farm, is somehow less important than a cheese factory.”

Explaining in the letter that the threats from Great Lakes Cheese to close all area facilities and leave the area have motivated officials against his client, Cappellini stated further that, “They are extorting from the taxpayers of Allegany County, and the County Legislature is complicit. They threaten to leave ‘unless you give us what we want.’”

The ACIDA notes that 80 sites were evaluated as Great Lakes Cheese had specific criteria to build a plant that would double its production after the Cuba plant is closed.

Of those 80 sites, the county says this is the only property that meets the company’s criteria.

Reports indicate the land meets three criteria: flat land, proximity to the river and being just off a major highway, I-86. The greenfield approach is the company and county’s least expensive build option with access to cheaper highway transportation.

Bares believes the company has not negotiated in good faith.

Answering questions about milk supply, Bares notes there has been no ‘provincial talk’ guaranteeing this project must use any percentage of its milk from New York State farms. No such stipulations are noted in the public record, except the ACIDA record includes a mention and link to Dairy Farmers of America (DFA).

Over the years, this region of New York has received milk from Michigan, Ohio and northern Indiana as it sits in a part of the state that falls just outside of Federal Milk Marketing Order maps — sitting as a bridge between the Northeast FMMO 1 and the Mideast FMMO 33.

The public record does show conditions that the over 200 employees at the existing Cuba plant would be offered jobs at the new plant.

Meanwhile, Mallards Dairy employs 35 to 40 people and feeds and milks 2500 cows with a total herd of 2900 mature animals. The land the county wants to take is key to that business.

This Allegany County Industrial Development Agency drawing shows the Great Lakes Cheese project, including 480,000 square foot cheese plant, 50,000 square foot wastewater treatment plant, access roads and infrastructure planned for land now belonging to a New York dairy farmer. According to county meeting transcripts, “Building out the Crossroads area that is planned for I-86, Route 19 and CR-20 is the number one immediate priority.” Screenshot under projects at acida.org

At the March ACIDA meeting, officials noted publicly that they hope to break ground in the third quarter of 2021 and be fully operational by Jan. 1, 2025. If the ACIDA is successful in the eminent domain process it has begun, the county would own Bares’ land and lease it to Great Lakes Cheese.

At one point, early on, Bares notes that not only did the selling price he offered reflect the importance of the land to the dairy business, but also the idea of securing a milk market was mentioned to the company. He says Great Lakes Cheese declined, noting simply that they purchase their milk from cooperatives. 

A prime supplier of Great Lakes Cheese is DFA, as the public record reflects. Bares markets his milk through a small independent cooperative.

Having been unable to reach an agreement that would reflect the impact to his dairy business, Bares hired a lawyer.

“This area is very hilly with narrow valleys. There’s not a lot of farmland. This Genesee River Valley land is very good, very fertile, non-erosive land,” said Bares of the land around the main dairy operation outside of Cuba, and the land the county wants to take 20 miles away. “We want to hang on to this land because it’s hard to replace. Every farmer has land that is their best land, that they aren’t going to let go unless they are done farming.”

He says going through this process over the past year has only strengthened his resolve to keep the land and fight the eminent domain process. He notes that his wife Elizabeth has helped him tremendously.

New York’s history of interpretation for ‘public use’ in eminent domain cases is a broader notion than for most states. Bares knows it will be an uphill battle to fight the county’s taking, but he is hoping that his battle will ultimately help others in the future facing a taking of their land.

“Our dairy jobs — and the cows — depend on this collection of land resources we have grown,” says Bares. “This whole thing is wrong for the profitability of our dairy to chip away at the best land. It’s wrong for the environment because this is a beautiful riparian river valley and land like this is disappearing fast. It’s wrong from the social aspect the way the government is using eminent domain to help one private enterprise while harming another.”

He says his attorney is confident and always believes he can win every case until he loses, so Bares is trying to stay positive.

Their petition was filed recently in New York State Appellate Court. The Allegany County IDA has reportedly petitioned the court to expedite proceedings. Bares had expected both sides to be writing briefs through the summer with oral arguments in October, but that could be expedited to August or September.

This land near Angelica, New York is farmed by Charlie Bares to primarily grow alfalfa and receive manure as a key part of nutrient management and forage production for the 3000-cow Mallards Dairy owned by Bares and his partner. The county wants to condemn it through eminent domain for a cheese plant.

“I think everyone should take a dim view of this. Every farmer — everyone — has a property that is head and heels above their other land, their best fields,” Bares suggests. “If the state — under the auspices of the Industrial Development Agency — can decide how these properties can be used, I think as farmers, we need to realize we can lose our land through eminent domain takings. My case is just an example.”

This case is an example because the ‘taking’ is not for a public use. It is for a private business use that the county is using economics to declare as a public use.

Bares has had some support from the community. Some rallies with some turnout, especially in April. There has been support online, and he has received a few phone calls. 

But largely, outside of the southern tier New York and northern tier Pennsylvania region, the story is not known.

A petition by Marshacres and citizens of Allegany County has been started, which has nearly 5500 signatures to-date at https://www.change.org/p/acida-stop-eminent-domain-seizure-of-working-farmland

“No one’s lining up (manure spreaders) at the county courthouse and threatening to open the valves, if that’s what you mean,” he answered.

After a long and quiet pause, he communicates just how difficult this situation has become for everyone.

“The farmers around me, my peers, they want this cheese plant and a stronger market. I believe that’s a big carrot, so it’s not easy. It seems there is little chance that I can come out ahead, either way. Either we chop off part of our business or the cheese plant will not expand here so everyone will view us as economic martyrs,” he explains.

“I feel like I cannot win.”

Even though each of two outcomes at the moment represent a different kind of difficult for Bares, he believes fighting the county’s eminent domain proceedings could help someone else — as untouched land like this that is important to agriculture and the environment is disappearing. 

“Once it’s paved over in concrete, ” he says, “it’s not coming back.”

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Producers seek checkoff vote and transparency as fake food transformation ramps up

Mike Eby introduces Karina Jones who spoke to attendees live and virtually about the beef checkoff referendum petition. Jones was part of a panel of speakers on various topics during the daylong “Empowering Dairy Farmers” barn meeting at Eby’s farm in Lancaster County, PA on April 23. 

By Sherry Bunting, Farmshine, May 14, 2021

GORDONVILLE, Pa. – “Beef it’s what’s for dinner.” Remember that line?

For school kids, it could soon be Impossible Meat for lunch. USDA just approved a nutrition label for K-12 schools to substitute beef with the billionaire-invested Impossible Meat. Never mind that a May 2020 Newsweek article reported Beyond Meat, Impossible Meat and their competitors source most of their concentrated pea- and soy-protein from extrusion factories in China, even if the crops were grown in North America.

School foodservice directors report a barrage of supply-chain influencers touting fake meat meal options to reduce carbon emissions on the heels of the USDA nutrition label approval.

A local restaurant discovered last month that their wholesale food vendor added textured vegetable protein (concentrated soy and other additives) to the wholesale ‘Classic Beef Burger’ without warning. It is apparently part of a ‘cutting edge’ menu remake at the wholesale level – not the restaurant’s choice. (This particular restaurant switched promptly to Certified Angus burgers guaranteed to remain 100% beef).

Children came home from school this week with Junior Scholastics declaring “This meat could help save the planet!” accompanied by a photo of fake-beef in grocery packaging.

Junior Scholastic Weekly Reader came out with this story urging kids to eat less beef, just a week before USDA’s announcement this month (May 2021) of approval for the ‘Impossible Meat’ school lunch nutrition label, ushering in the barrage of global foodservice companies hounding school foodservice directors about reducing climate change with this stuff (cha-ching, cha-ching). Companies like Cargill and Tyson that are among the big 4 in BEEF processing — with strong ties to the lobbying side of the separate NCBA / CBB — are also going big into FAKE beef. The beef and dairy checkoff programs also have strong ties to World Wildlife Fund and collect checkoff money on imported beef and dairy so this clouds their ability to use the funds they mandatorily collect from U.S. farmers to promote U.S.-produced REAL beef and dairy.

These are just a few examples in the past three weeks of how rapidly the wheels set in motion a decade ago are hitting the pavement.

How did we get here? For 12 to 13 years, the World Economic Forum (WEF), World Wildlife Fund (WWF), Big Food, Big Tech and Big Ag have been coalescing around this idea of supply-chain “sustainability” leverage to steer global food transformation with cattle clearly in the crosshairs – especially for developed nations in Europe as well as the United States.

By partnering officially and unofficially with national dairy and beef checkoff boards on “precompetitive sustainability and innovation”, for example, WWF has — in effect — been channeling government-mandated producer checkoff dollars toward implementing WWF’s supply-chain strategy for impacting commodities WWF believes need intervention to improve biodiversity, water and climate. The global corporations behind ‘food transformation’ are laughing all the way to the bank while grassroots producers essentially fund their own demise.

By partnering with dairy and beef checkoff national boards in a ‘pre-competitive’ arrangement, WWF implements its “supply-chain” leverage strategy, WWF has essentially used producer funds to implement their message and priorities both to consumers through supply chain decisions and to producers through checkoff-funded programs validating farm practices. The World Wildlife Fund in its 2012 Report “Better Production for a Living Planet” identifies this strategy to accomplish its priorities for 15 identified commodities, including dairy and beef, related to biodiversity, water and climate. Instead of trying to change the habits of 7 billion consumers or working directly with 1.5 billion producers, worldwide, WWF states that this “practical solution” is to leverage about 300 to 500 companies that control 70% of food choices. Image from 2012 WWF Report

In the 44-page 2012 paper “Better Production for a Living Planet,” the WWF Market Transformation Initiative identified dairy and beef as two of the prime commodities they target through supply-chain companies controlling 70% of food choices.

The checkoff-funded sustainability materials coming out of the National Cattlemen’s Beef Board and Dairy Management Inc (DMI) show firsthand this relationship with WWF, by the use of the WWF logo, and in the case of dairy, the acknowledgment that a decade-long memorandum of understanding existed.

Add to this the government policies emerging that align directly with this global food, agriculture and land transformation, and the use of the vehicle of checkoff-funded “government speech,” becomes a bit clearer. It’s a clever way to leverage the supply chain and promote a message to consumers while pushing producers to align.

The WWF 2012 paper explains that in 2010, “WWF convened some of the biggest players in the beef industry to form the Global Roundtable for Sustainable Beef (GRSB). They included the world’s biggest beef buyer, McDonald’s; the biggest beef retailer, Walmart; and two of the largest beef traders, JBS and Cargill.”

While dairy and beef checkoff programs use government-mandated funds collected from producers for valuable local and state promotion programs linking producers to consumers, it is the direction of national checkoff programs – engaged with WWF and the largest processors and retailers in this way — that has producers like Karina Jones, a fifth generation Nebraska cattlewoman concerned.

Jones heads up the petition drive for a producer referendum on the $1/head beef checkoff. The effort began in South Dakota and is spreading nationwide via R-CALF and other national and state organizations.

During the farmer empowerment barn meeting hosted by Mike Eby of National Dairy Producers Organization (NDPO) and Organization for Competitive Markets (OCM) at his farm in Gordonville, Pennsylvania recently, two of the day’s speakers talked about the need for transparency and accountability in mandatory checkoff programs.

Marty Irby of Organization for Competitive Markets (OCM) talked about bipartisan legislation seeking more transparency and accountability for all mandatory producer checkoff programs during the Empowering Dairy Farmers meeting last month.

Marty Irby of OCM talked about the OFF Act, which is bipartisan legislation seeking to amend the checkoff laws to reaffirm that these programs may not contract with organizations that engage in policy advocacy, conflicts of interest, or anticompetitive activities. It would require publication of all budgets and disbursement of funds for the purpose of public inspection and submit to periodic audits by the USDA Inspector General.

“It’s not about taking those promotion dollars away, but to have a just system of checks and balances,” said Irby about the proposed legislation.

But others are taking a grassroots vote approach  — concerned about government oversight of what is already determined to be ‘government speech’ funded by producer checkoff.

Jones talked at the barn meeting about the massive effort to gather over 100,000 signatures by July 2021 asking USDA to conduct a nationwide Beef Checkoff Referendum. A vote on the beef checkoff has not been conducted in 35 years. (See checkoffvote.com and the paper insert in the May 14, 2021 edition of Farmshine)

“It’s time to re-check the checkoff,” said Jones about the beef petition. “We want to signal to USDA that as cattle producers we are ready to vote again.”

She explained that in order for the Secretary of Agriculture to consider a referendum request, 10% of producers must sign the petition. This includes anyone who sold a beef animal and paid the $1/head checkoff, in the 12 months from July 2020 through July 2021, including beef cow-calf producers, seedstock producers, backgrounders, cattle feeders, dairy producers, and youth showing and selling livestock.

According to the 2017 Census, 10% of the beef producers would mean 89,000 signatures needed.

“But we don’t know the vetting process the Secretary will use to approve or deny the petition request, so we want to reach over 100,000 signatures by July 2021,” said Jones.

“The cattle landscape today is much different from 35 years ago,” she said. “Our checkoff does not support promotion of American-born-and-raised beef. We want to equalize the power for the grassroots U.S. cattle producer… the power and the dollars are falling into the hands of the few.”

According to Jones, the checkoff referendum petition seeks a return to balance as well as increased transparency and accountability, through the voting process. Proponents of the right to vote believe producers should be able to fund education and promotion that takes a stand for real, USA-produced beef, something the trends and supply chain partnerships emerging today – along with “government speech” rules — make difficult.

She talked about “mavericks” who were elected to the beef board in the past and tried to change the power structure of the lobbying groups and processing industry involvement. Jones said the current structure has gone on so long — uninterrupted — that a referendum petition is the only avenue many beef producers see today as a way to bring accountability back.

“This is a call to action. Many producers are still not aware of this beef checkoff referendum petition,” said Jones as she urged producers to be bold and harness the opportunities to set a direction that changes the balance of power.

To be continued

Vale Wood Farms stays steady, but nimble, delivering ‘moo to you’ since 1933

Carissa Itle Westrick enjoys working every day with her father, Bill Itle. They see whole milk, local connections and home delivery as big trends for dairy — even before the pandemic — that are key parts of their farm and processing for decades. They also share concerns about consumer confusion with the onslaught of imitation beverages in the dairy case.
 

By Sherry Bunting (updated since originally published in Farmshine in 2018)

LORETTO, Pa. — Take a step back to a simpler time. A time when dairy farmers were looked up to, not questioned. A time when the milkman delivered fresh dairy milk to the metal ice box on the doorstep. A time when milk’s good name was upheld. When milk was milk.

A visit to Vale Wood Farms, Loretto, Cambria County, Pennsylvania, is in some ways a step back in time, but it is also a bold look into the future — one that delivers fresh, local, real milk and dairy to consumers. One that develops farm-to-consumer relationships as everything old becomes new again.

It’s not easy to corral a few of the third and fourth generations of the Itle family as they go about their work here. Getting them to drop what they’re doing for a group photo? Forget about it. Everyone’s busy with three separate businesses under one sign. And they’re not keen on drawing attention to themselves, but rather draw attention to milk and dairy.

Converging trends shape their market, and consumer connections are critical. (For example, today, two years since this article was first published, people have rediscovered whole milk and cream and since the Coronavirus pandemic, local foods and home delivery are a trend.)

But in the overall dairy industry, there is a growing number of competing beverages marketing outside the lines of real milk’s FDA standard of identity — introducing a growing surge of competing imitations into the dairy case.

In these challenging times, many dairy farmers consider on-farm processing. Carissa Itle Westrick, director of business development at Vale Wood Farms, acknowledges the risk and insecurity of this business that relies on building consumer and community relationships.

She points out that in some of their sales – wholesale and institutional – they, too, are price takers.

“My great great grandfather (C.A. Itle) was grappling with difficult economic choices in 1933 when he hitched up his horse and wagon and went to town,” Carissa relates.

Today, the Itles have a window into seeing how milk production levels in excess of demand impact profits throughout the supply-chain.

In the dairy sector, we often hear the experts and consultants drive home the point that ‘the next pound of milk is the most profitable milk on the farm.’

Is it?

“Our economics are different,” Carissa points out. “That next pound of milk is not necessarily the most profitable. If we can’t sell that next pound of milk, then making it means we just made less profit on all the milk. For us, that approach doesn’t make sense.”

What does make sense is adding processing efficiencies and capitalizing on consumer trends, while helping to shape them.

“We have to make sure what we do fits today’s families,” Carissa notes. “We are small enough to be fairly nimble, which is so important to our business model.” For example, customers can sign up and manage their home-delivery online.

Technology-driven, home-delivery — Valewood-style — still comes with a personal touch. Of their 50 employees, five are drivers. 

“Our drivers cater to our customers. They might even be asked to let the cat out or pet the dog or put the product right in the fridge,” she says with a smile. “We are hyper-local, and it’s not just a selling point for us. We shake hands with whose buying our milk.”

Meanwhile, connecting consumer dots is very much a family affair as events like the mid-July Pasture Party draw in large numbers from the community and those members of the Itle family not involved daily in the business. They bring their friends and tell their neighbors.

“When people come to an event here and go on the crazy hay wagon ride, it’s us on that wagon. It’s my uncle Dan on that wagon,” she says. “That’s our one-on-one time to tell about our cows and how they are cared for. We focus our education on how much attention we pay to the cows. They are our livelihood, and we depend on them. The effort, time, energy and emotion we put into keeping them healthy and comfortable – that’s what we want people to understand.”

The nearby schools also bring classes to connect with the farm providing their milk. In fact, Carissa’s aunt, Jan Itle, developed the “Moo to You” formal school tour program that began with five teachers and today works with nearly 75 teachers and reaches up to 5000 students annually, in addition to the other community events hosted at the farm.

Jan was recognized as 2017 Pennsylvania Dairy Innovator of the Year. Her good-natured humor is evident when she talks about working with seven brothers. And she is enthusiastic about hosting school tours.

“Give back to the community at all times,” is something Jan says they learned from their parents.

For her generation growing up, the Itle house was the gathering place, Jan recalls. “Our house was like a train station, and we still extend that invitation to the community today — to come and see what we do and share our passion.”

As the public becomes more generations removed from farm life, and the dairy disconnect grows, the Itles are doing all they can to reconnect. That helps their business model and the dairy industry as a whole.

The Itle family has seen it all in their farm-to-consumer business at Vale Wood Farms. The land on which the farm and processing plant sit today has been in the family since 1841, and while they’ve been processing and home-delivering milk and dairy products since 1933, “we are still addicted to our cow habit,” says Carissa.

Carissa is one of six fourth-generation family members working full-time here. Her father Bill is one of eight third-generation siblings involved full-time, plus another involved to some degree with a career as a veterinarian.

As company president, Bill manages the processing side. His brother Pat manages the 500 acres of crops. His sister Jan is the herd manager with her nephew Zach as assistant herd manager.

Being one of the oldest of the 18 members of her generation, ranging from adults to infants, Carissa describes the overlap. It’s easy to see how her role serves as a bridge between generations.

All told, Vale Wood Farms employs 55 people, including family members. In fact, Carissa confirms that some of their employees are also multi-generational. In fact, even the many family members with careers outside of Vale Wood Farms, come back to help with events and such. “We were all raised to jump in and do, when we see something needing done,” says Carissa.

When Bill Itle looks at the future, he notes the confusion about what is real dairy is an issue.

“We feel the pain when farmers feel the pain, because we’re part of that, and it’s not always the processor making the money,” he says. While he has seen an increase in whole milk consumption, the overall drag on total fluid sales, says Bill, is confusion in the dairy case.

“It’s tough to get our name back and away from imitation products. They’ve been doing it a long time. They aren’t hiding in the woodwork,” Bill relates.

Carissa agrees, noting that some consumers don’t really know that almond milk isn’t milk.

“I have friends who ask why we don’t make it,” she says. “They think it’s a milk flavor.”

For all of its challenges and opportunities, this is a family that loves what they do.

“We appreciate how lucky we are to have this tradition here, and we also have a responsibility to keep it alive,” says Carissa, noting that for multiple generations to run three separate businesses together takes flexibility.

She recalls her grandmother often saying, “you can disagree without being disagreeable.”

“Balancing the generation with one foot out the door with the generation gaining life experience can be tricky,” says Carissa, admitting sometimes her role is more “cat herder” and interpreter. 

“In a family business, we learn that there will be differing opinions, but at the end of the day, we make decisions and everyone supports the decisions. In a family business, you learn to have good healthy debate and to strongly support your point of view, but then to compromise and accept a decision once it’s made, and that’s how you thrive.”

As the industry changes around them, the Itle family jumps in to make key consumer connections. As a result, they maintain a steady market for their steady milk supply, growing home-delivery sales in the face of increased competition and consolidation being the new reality in supermarket dairy case sales.

They have an on-site dairy store, but it is off the beaten track and represents just 2% of their sales. As we sit in the pavilion that Carissa’s sister Jen has decorated for the following week’s Pasture Party, Carissa explains the evolution of dairy trends coming full-circle.

She gives four examples: The resurgence of fresh, real and local foods; the ‘new’ idea of home delivery; how ‘old’ products like whole milk, butter, and cottage cheese, are making a comeback; and how those old paper cartons are making a comeback too.

(In fact, take a look at the dairy case the next time you go to the supermarket. Most ‘new’ plant-based non-dairy beverages and ‘new’ dairy case items like iced coffees are packaged in paper cartons.)

“Consumers are gravitating back to the carton,” says Carissa. While Vale Wood bottles a variety of sizes in plastic bottles, paper half-gallon cartons are also available “because our customers see this as a great thing, from an environmental standpoint, and we like it because it protects the milk from light.”

We talk about the growing number of consumers seeking food delivery services and how the meal kit companies have really taken off. In fact, the three biggest food retailers – Walmart, Kroger and Amazon/Whole Foods — have either bought or created meal kit or food box delivery services.

Even as total consumption of dairy milk continues to erode, the large chain supermarkets and big-box stores are getting into the game because their checkout scanners confirm that milk — real dairy milk — is still the most frequently found item in grocery baskets.

So the future will either be a competition for shrinking market share – or an all-out effort to expand the fluid market. Vale Wood pays attention to those trends to steady their market while opening eyes of consumers expand it.

The upheaval in the industry reveals the trend toward the nation’s larger retail chains wanting a bigger piece of the shrinking fluid market. Small processors, like Vale Wood, on the other hand, seek to appeal to consumers and increase product demand.

The direct competition for supermarket shelf space is becoming intense because milk, though consumption is down, is still a store’s gateway to win customer loyalty.

As all processors navigate the competitive pressures, it is the home delivery service that is steadying the ship for Vale Wood. That part of their business brings them back to that key: connecting with consumers. A big part of that connection is the cows at the farm.

“It’s unique that we still milk cows,” says Carissa. “The cows are central to our farm history and heritage and our sense of identity.”

The Itle family milks 200 cows. Their processing covers 400 cows, as they purchase milk from three neighboring dairy farms instead of expanding their own.

In addition to bottling milk and flavored milk and making ice cream, they do soft products like dips and cottage cheese, and are now doing flavored butters. They do “a little bit of everything” to capitalize on trends. This helps them deal with increased competition for fewer milk drinkers.

“We can never underestimate the effort required to get into (or keep) a market,” Carissa says. And those barriers to entry are becoming more challenging as store brand private label market share increases at the same time that non-dairy beverage alternatives compete for space in the dairy case.

Still, 95% of Vale Wood’s milk utilization is Class I, thanks in large part to their consumer connections and education that lead to product awareness and loyalty.