DairyCast Industry

Regulation Impacts on Producers and Animal Health Professionals Modern animal ag has become a math problem: reduced land use, more people, more food consumption, less water, and transit costs changing. Add in the need to be global and the need to understand animal welfare and the idea of raising livestock become more complex. Dr. Anthony A. Frank, President, Colorado State University, suggests farmers and ranchers need to avoid the trap question "Do you want safe food or affordable food?" and that the real answer is to provide both and turn back to the dialog within the middle ground [audio].

Sesame Street Milk Song highlights some of the ways milk was produced in the early 1970's. What has changed in 40 years?

Markets Make The World Go Around Markets exist to help smooth the flow of information and make the future more predictable. But sometimes it takes a Ph.D. to figure out what is going on when corn goes above $8 and you are sitting on several thousand bushels.

To help figure out markets in general, look in to the video Backwardation Bullish or Bearish (less than 5 minutes, from The Khan Academy). This is a very simple video but it helps set the tone about markets and what they might do. For a more advanced look at futures markets, check out this Yale University Forwards and Futures class lecture (~1 hour 10 minutes).

The dairy industry is different. The reality is that set milk and feed prices are a thing of the past and many dairy operations need to approach revenue with a new look. Fulper dairy farms, in upstate New Jersey, is tackling what were perceived negatives and turning them into positives with revenue generation potential.

One of their negatives turned positive? Land. The land prices in their region is expensive because it is so close to New York City (about 90 miles). But that negative turns out to be a revenue generating positive. New Yorkers want farm fresh food and being close means dairy products like cheese have more value in the city.

Dr. Frank Mitloehner provides some practical reference stories from Europe on the viability of standard small operations that would struggle to produce the quantity of food for the growing population. His example story is from the first ‘Bioenergiedorf’ (bioenergy village) Jühnde, in the heart of Germany, where the inhabitants are implementing 21st century energy production systems on top of dairy operations utilizing 1960's production technology.

Most of the dairy barns have not been modernized since the 1960s-’70s, and the scale of production has always been extremely small, especially to someone like me, who is used to California dairies and other concentrated feeding operations. A 100-head dairy is considered a large operation in this idyllic village and other places throughout central Europe.

Dr. Mitloehner highlights that the small dairy farm approach traditional in Europe actually creates a larger carbon footprint than larger operations with 1000's of cows. Dr. Mitloehner advocates for a global green revolution in animal agriculture, "coupled with technology transfers, to supply a growing demand for animal protein, while providing environmental stewardship by using sustainable and modern production practices."

Presenting an update on the recently launched social media marketing campaign for veal, George Quackenbush, Director of Promotions for the Michigan Beef Industry Commission, shares the vision and scope of the fast moving initiative.

Paul DeBriyn, President and CEO of AgStar Financial, says strong balance sheets and a good business plan open lender doors.

According to the DairyCo (UK) Milkbench+ report, the relationship between cost of production and profit is much stronger than many dairies realize. The report states that cost of production is the most significant factor in determining profit.

Milkbench+ analyst Karolina Klaskova says: “Through robust data and statistical analysis we see that the relationship between cost of production and margin is strong.” Ms Klaskova acknowledges that the findings are challenging. “The report raises many issues, including just how difficult it can be to make a profit from milk production,” she says.

How can you utilize social media in agriculture? What steps should you take when general media portrays farming operations in a negative light? This webinar offers some guidance, tools, and resources to help. Webinar from Dairy Management Inc. and myDairyToolkit.com, December 14, 2011.

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