Buy back and give? Sell cheap and dump? You decide.

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Cheese was loaded recently for Hunger Task Force, based in Wisconsin and part of the Feeding America network. Changes in USDA feeding programs are making Food Banks a more vital food access point for the poor. Farmers rise to the occasion when it comes to feeding the hungry. Dairy Pricing Association seeks to work continually with farmer funds to see that paying forward helps give back as times are very tough today on dairy farms across America. Facebook Photo: Dairy Pricing Association

Commentary, by Sherry Bunting, Farmshine, December 19, 2017

BROWNSTOWN, Pa. — Buy back and give? Or sell cheap and dump?That is the question.

“Just imagine what we could accomplish if there was a groundswell of farmers coming on board to fund this process to clear excess milk and dairy products and help others in need at the same time,” notes Amos Zimmerman of Dairy Pricing Association, Inc.

Zimmerman lives in Lancaster County, Pennsylvania and works with farmers here and in the Midwest on behalf of Dairy Pricing Association. He and others involved are excited about the organization’s track record and the new projects that are starting up that are funded by voluntary assessments. Dairy farmers sign up because they believe in the power of helping to clear the overloaded milk system of excess while helping people in need as the ultimate form of promotion.

Founded initially in Taylor, Wisconsin, the farmer-funded organization operates nationwide to help balance dairy plants across the country.

Dairy Pricing Association (DPA) does not disrupt the flow of milk. Instead, DPA uses the funds contributed by dairy producers to buy dairy products for donation to feeding programs in a way that has begun making a difference and has the potential to do even more.

Disappearance positively affects price, according to DPA literature. However, this is not milk ‘dumping,’ this is dairy giving. DPA’s activity in the marketplace is one that values the hard work of the dairy farmers while recognizing the pain and suffering caused by hunger in the world. DPA purchases dairy commodities and donates them for humanitarian purposes, for a two-fold benefit.

These and other donations show the heart of this dairy industry we are all proud to be a part of. Though it has been around for more than a decade, DPA is a lesser-known entity that is out there buying and donating milk and dairy products, not just at the holidays, but consistently throughout the year.

Buying excess dairy for donation is something Dairy Pricing Association has been expanding upon since its inception gathered steam in 2009 when a call to action by founder Robin Berg of Wisconsin led to a more systematic method. Farmers designate voluntary milk check assessments by signing up. Now others can also donate through a joint effort between Dairy Pricing Association and Hunger Task Force.

Tom Olson, DPA vice chair, tells of this history: “After the second meeting we could see that no one in the industry was going to help get this started. We were going to have to start this at someone’s kitchen table.”

With private donations for startup costs, Dairy Pricing Association, Inc. was born.

Today, their work is supported by dairy farmers who sign up to pay a voluntary assessment for the expressed purpose of buying excess milk and dairy products and channeling it to feeding programs that are the only option for poor consumers. The base of operations has expanded from the Upper Midwest into California and the Northeast as more farmers in Pennsylvania, New York, Ohio and Indiana have come on board to provide the necessary funding.

Dairy Pricing employee Amos Zimmerman of Lancaster County, Pennsylvania, is excited about the organization’s track record and the new projects that are starting up. In a phone interview with Zimmerman, Farmshine learned that dairy farmers can tailor the amount and purpose of their voluntary assessment to participate in this double-goal: To help clear the overloaded milk system of excess and help those in need as the ultimate form of promotion.

Every three months for the past two years, Dairy Pricing has been buying block cheese for donation to feeding programs. “We have gotten into a routine and the industry is starting to predict our purchases,” said Zimmerman. “We are changing things up and working on new projects for next year to start in January.”

One new project Dairy Pricing is working on is to satisfy the desire of the Central Pennsylvania Food Bank to have cheese donations coming every month of the year, not just at certain intervals, with the Food Bank paying half and DPA paying half.

“Central Penn Food Bank came to us to talk about a monthly arrangement,” Zimmerman said. With this in mind, Dairy Pricing is looking at a plan with Pennsylvania milk, processed in Maryland, but then cut to consumer package size by a Pennsylvania firm. DPA would purchase the cheese and Central Penn Food Bank would pay wholesale price for half of it, delivered in retail-size, pantry-ready.

Back on the bulk cheese purchases in the Midwest, recent loads of block Cheddar include one in October at 41,592 pounds, purchased by Dairy Pricing for donation to the Houston Food Bank for their needs after Hurricane Harvey.

The first load of blocks were purchased in 2016, when 30,588 pounds were bought at $1.65/lb for the Hunger Task Force in Milwaukee. That was followed by a $1.90/lb purchase of 41,604 pounds in December 2016 for Hunger Task Force and 41,860 pounds at $1.65 in April 2017 for Hunger Task Force. In July 2017, 39,662 pounds were purchased at $1.61 for Ruby’s Pantry in North Branch, Minnesota, followed by the October purchase of 41,592 pounds at $1.84/lb for the Houston Food Bank of Houston, Texas.

Dairy Pricing will be trying to do both the bulk purchases in the Midwest and the new programs in the Northeast and Midatlantic region, with the money available through dairy farmers’ voluntary assessments, according to Zimmerman.

Similar milk balancing through cheesemakers for feeding programs has also been happening in the Midwest, including recent milk to cheese through Lynn Dairies to The Community Table in Eau Claire, Wisconsin.

Another new startup project is coming about through inquiries by dairy farmers wanting to be involved in dairy donations through Christian Aid Ministries, based in Ephrata, Pa.

“They only handle powder because it goes overseas,” said Zimmerman. People who want to be involved in that project can sign up for a voluntary 15-cent/cwt assessment.

The powder project will be 100% whole milk powder to a host of oversees destinations where hunger is prevalent.

“Whatever we buy or donate, it has to be the whole milk product, not just the skim,” says Zimmerman, who spends his days on the road talking to farmers and attending meetings. He does a conference call with farmers every Monday night, attracting 100 to 150 people, and he serves as the boots-on-the-ground contact person for Dairy Pricing here — covering the whole East Coast and spending time in Ohio, Indiana, Kentucky, Virginia and Wisconsin.

He also works with farmers and farm groups on the side to help them with local processing start ups and other marketing solutions. He has been involved in the dairy industry his whole life, working as a herdsman for dairy farms since he was 18 and known for his curiosity in always looking for information about how the dairy industry works with a keen interest in the processing side.

“I’ve always had an interest in it, and since the marketing system is going the way that it is, people are having to find different routes to their consumers,” said Zimmerman, adding that “local consumers come to us all the time wondering how to support local farmers.”

This has become a difficult direct line within an increasingly national and global marketplace. Processing investments are the tough part of this task.

.“I can’t stress enough how important it is for dairy farmers to be informed to make better decisions,” Zimmerman says.

Since Dairy Pricing Association expanded to the east with its producer voluntary assessments, the very first milk donation was to New York for hurricane victims in 2012. When surplus milk is available over holidays, Dairy Pricing pulls gallons for donation, including donations last year to feeding programs in Washington D.C.

“None of what we do is to get the credit for doing it,” said Zimmerman. “We are doing this because it needs to be done.”

In fact, a bit more credit for doing this work could help get more of it done. As farmers learn more about what DPA is doing, more voluntary milk check assessments could accomplish an even greater impact.

Zimmerman noted that since Dairy Pricing balances the bottling of White Gold Milk and Chocolate Gold here in the East at California standards, this is the brand they typically pull from the wholesale supply for donations of fluid beverage milk. This utilizes both fresh fluid milk and powder to arrive at the higher solids content of the milk, including a 3.5% fat profile for whole milk instead of the minimum standard of 3.25%.

“What we can accomplish hinges on signups,” said Zimmerman. “The more we get the word out, the more interest we see. In 2014, we could hardly talk to farmers, prices were good. But that’s when we should be jumping on board to fix things before they get bad again.”

A ubiquitous figure in local dairy circles, Zimmerman gets calls every day from farmers in trouble thinking of selling their cows. “This problem is deeper than the milk prices,” he says. “It is the whole structure that is at risk that could destroy the infrastructure, even in Lancaster County.”

The typical voluntary assessment signup is 10 cents/cwt. But can be as little as 5 cents/cwt or as high as 30 cents. To specifically participate in the whole milk powder donations through Christian Aid overseas, a 15 cent/cwt level is required. (See form at the end of this story).

“It is all a donation, and farmers can cancel at any time,” Zimmerman explains, stressing that this assessment cannot be used to replace the 15-cent promotion checkoff nor the 4-cent CWT deductions taken off milk checks by member cooperatives.

In addition, others can also donate through a joint effort with Hunger Task Force. (See form at the end of this story).

DPA notes at their website that when milk is in great supply, many loads are sold at up to $3 per cwt below the Class III price. “When this happens, this cheap milk goes into storage as cheese or powder and starts to pile up,” according to DPA. “We need to have a fund to buy at these times to keep the system from being overloaded.”

Through Food for the Poor and Christian Aid, exporting to 17 countries overseas, the need is great for all the whole milk powder that can be supplied and as well for domestic use through Feeding America for soup kitchens and feeding the homeless here in the U.S.

The point is for the dairy product to go to people who could not get it any other way except through donation, not to take a sale away from a store. It is estimated that for every semi-trailer load of whole milk powder exported or used in domestic soup kitchens, eight tanker loads of milk are removed from the overloaded system.

Because the program is voluntary, producers can follow the progress of what DPA is doing, and can continue their contributions or cancel at any time.

Whether it is tens of thousands of gallons of milk or tens of thousands of pounds of cheese, DPA has steadily increased its benevolent presence from coast to coast as more farmers sign up to be involved.

Who are DPA members? They are dairy farmers from coast to coast shipping their milk via nearly every cooperative and direct milk plants. These dairy farms span the milk marketing and handling system across the U.S.

According to the DPA website, farmers funding Dairy Pricing Association with their voluntary assessments include shippers to Agri-Mark Inc. in New England; Associated Milk Producers in Minnesota, Clover Farms Dairy in Reading, Pa., Cloverland Farms Dairy in Baltimore, Md., Cooperative Milk Producers in Blackstone, Va., Dairy Farmers of America, Dean Foods, Farm First Coop in Wisconsin, Galliker’s Dairy in Johnstown, Pa., Grassland Dairy Products in Wisconsin, Guggisberg Cheese in Ohio, Horizon Organic based in Colorado, King’s Kreamery in Lancaster, Pa., LaGranders Hillside Dairy in Wisconsin, Lancaster Organic Farmers Cooperative and LANCO-Pennland, both based in Hagerstown, Md., Land O’Lakes, Lynn Dairy in Wisconsin, Maryland-Virginia in  Reston, Va., Mount Joy Coop, Mt. Joy, Pa., Nasonville Dairy in Wisconsin, National Farmers Organization headquartered in Ames, Iowa, Organic Valley, Prairie Farms based in Illinois, Smith Foods in Ohio, Westby Cooperative in Wisconsin, and former DMS shippers in New York and Pennsylvania.

 

Current dairy prices are not sustainable for the future survival of dairy farms and the rural communities and businesses that rely on them. At the same time, we read about the concerns of food insecure Americans as well as staggering numbers of war refugees and victims of disasters and famine throughout the world.

If our industry builds a storehouse of dairy goods that end up pressuring farm milk prices lower, and if growing numbers of people here and abroad are unable to access dairy nutrition without assistance, what better way to meet the needs of both than to voluntarily, consistently and strategically provide this assistance?

When the storehouse of goods is channeled to the needy through farmer-funded purchases in a way that helps to balance the market, America’s farm prices can improve and the food-security of our nation in the future can be assured.

The government and the industry do not have a plan that adequately addresses either of these concerns. This is why DPA exists as a way for farmers to help themselves by helping each other and helping those less fortunate at the same time.

Dairy Pricing Association is not funded by the government, nor is it funded by processors or marketers. Participation in DPA funding cannot be used to replace the 15-cent federally mandated promotion checkoff or the 4-cent CWT assessment. Nor can it  replace new deductions showing up on milk checks in the current marketing environment.

However, DPA attracts new farmers every day because the mission is funded by dairy farmers who believe that sitting back and doing nothing but complain is not an option. They want to take the future by the horns and move forward.

Through membership donations in the form of 5-cent to 15-cent per hundredweight (some even give 30 cents/cwt), farmers are joining together through DPA to strengthen the organization’s ability to place orders for finished dairy products from processing plants and once the order(s) are filled, donating the product for humanitarian purposes.

The possibilities of this concept are only limited by the funding available, and that means dairy farmers, themselves, can make the difference. Unlike the marketing and balancing fees that are being increased on dairy farm milk checks, the Dairy Pricing Association assessment is completely voluntary, simple, direct, farmer-run and built from the ground up to help dairy farmers help themselves, help each other and help children and families who know real hunger throughout America and the world.

The question is: Do farmers want to gain strength by joining together voluntarily to buy back their own excess for giving to people less fortunate?

Or do they want to continue to allow the system to do the incomplete job it has been doing – bound by its Federal Order rules that allow dumping but not giving, and costing farmers ever-higher deductions from their milk checks to “balance” the excess through below-class sales that create market-depressing inventory or by dumping milk down the drain at a cost to the farmers?

Hats off to the givers. May their vision and efforts continue to multiply.

To learn more about Dairy Pricing Association, Inc. and to acquire forms for milk check pledges, call Tom Olson at 715.284.9852 or 715.299.1332 or Amos Zimmerman at 717.872.1464  or email dpainc@ceas.coop. Visit DPA online at visit dairypricing.org and follow on Facebook @dairypricing. Ask about national producer conference calls.

To learn more about Christian Aid Ministries, the vehicle for a new farmer-funded Dairy Pricing Association, Inc. project of whole milk powder donations for hunger assistance worldwide, visit christianaidministries.org and dairypricing.org

Find out more about what they are doing, and then decide if your farm can help make a positive two-fold impact on markets and hunger. See below the forms for farmer milk check deductions and for non-farmer donations.

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Day 6: Purpose-driven bond is Feeding America

12 days of Christmas… with a twist.

Day 6:  Food banks say the most requested and least available item is fresh milk. Dairy producers have set out to change that, just as the North American Meat Institute ‘meating the need’ partnership provides fresh meat and poultry, and produce growers donate 800 million pounds of fresh fruits and vegetables annually — along with canned and boxed donations from many citizen sources — provide 3 billion meals to the 46.5 million Americans (including 12 million children) who face hunger and rely on the Feeding America Food Bank system. Farmers and ranchers have a purpose-driven bond with their land and animals, and thank God they do. Look for links in this blog post to help!

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By Sherry Bunting

Nothing against a plate of cucumbers, but there is something intangibly dynamic about this relationship-of-purpose between man and beast. It is a purpose-driven bond, and on farms and ranches, it is a working relationship.

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Farms have had to expand over the years to survive with multiple generations operating larger farms together. But size doesn’t matter when it comes to the principles of caring for land and animals. Farmers and veterinarians use today’s advances to make the purpose-driven life of animals ever better.

What it comes down to is how we look at animals as a culture — the acceptance of animals as being useful to man, and of our role to protect and foster those animals in their service to man.

Beyond caring for the cows, farmers also care about their consumers and are the first to donate the fruits of their labor to the disadvantaged among us. Simply put: Farmers don’t like to see hunger. They constantly improve their practices to efficiently produce wholesome food that is affordable.

But hunger persists in America. Over 46 million Americans, including 12 million children rely on Feeding America food bank donations each year. Milk is one of the most requested and least donated items.

Leave it to farmers to pool their resources to help change that.

At the upcoming Pennsylvania Farm Show, a milk can for donations will be placed near the famous Pa. Dairyman’s milkshake stand for visitors to join with the companies and producers that are helping to “Fill a glass with hope.” In order to provide fresh milk, the cost of transport, refrigeration and distribution to families who rely on the Food Bank are part of what it takes. Those donations help move more milk to more food insecure families. Each dollar donated provides 8 servings of milk to a neighbor facing hunger. This has been going for one year, and to-date, 850,000 servings of milk have been donated.

Nationally, dairy producers are instrumental in the Great American Milk Drive to get milk to food banks. In its two years (and growing) more than 625,000 gallons (over 10 million servings) of milk have been delivered to families across the country through The Great American Milk Drive food bank donations. Meat and poultry producers also channel surplus to Food Banks as do produce growers, orchards — you name it. Farm folk pitch in because hunger is something they do not like to see.

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Another Food Bank drive in Pennsylvania began during the All-American Dairy Show last September, 12,000 gallons of milk (nearly 100,000 pounds) were harvested from cows during their stay at the show. Through the efforts of the show and the Pennsylvania Dairymens Association this milk was turned into four tons of mild, creamy Farmers Cheese and provided to the Central Pennsylvania Food Bank.

Out of the purpose-driven circle-of-life bond between man and animal comes the ability to feed a family and the families of countless others throughout the economy.

Out of this purpose-driven relationship comes a youngster’s first foray into animal care in the calf barn at home or cleaning up after livestock at the county fair.

Out of this purpose-driven relationship comes respect, responsibility, accomplishment and passion instilled in new generations.

Out of this purpose-driven relationship comes life-sustaining food worthy of our respect — not to be taken for granted.

Wherever you are reading this today, consider joining the farmers in their effort to bring fresh food to Food Banks. Check out The Great American Milk Drive, and check out Feeding America to give the gift of holiday meals.