Southeast Dairy Farms

Borden to Close Milk Plants in Dothan, AL and Hattiesburg, MS

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Brings total to 6 Borden plants closed, and 3 sold or leased in 5 months

On Wednesday, August 3rd, Borden Dairy, Inc announced that its Dothan, AL and Hattiesburg, MS milk processing plants would cease operations by September 30, 2022.  

This makes a total of 6 processing facilities shuttered by Borden since May of 2022, when Borden closed its Charleston, SC, and Miami, FL plants.

In July of 2022, Borden sold or leased its 3 Texas processing plants to Hiland Dairy.

Additionally, Borden closed a milk processing facility in Chemung, Illinois  (owned jointly by New Dairy Opco, LLC and Select Milk Producers, Inc., as a joint venture called NDSM Holdings), and a milk plant in DePere, WI in early July, 2022.  Sour cream production reportedly continues in DePere.

The sum of this activity is that 9 plants of 14 listed on the Borden website in a ‘fact sheet‘ will have been closed or leased in 5 months! There is no official word on the plans for the remaining 5 plants as of 10 August, 2022, nor of any licensing deals for the iconic Elsie brand.

As further background, New Dairy Opco, LLC, is the entity formed between KKR and Capitol Peak Partners, two private equity firms, to purchase Borden out of the company’s 2020 bankruptcy process.

While there is no specific information yet available, according to industry sources, somewhere between 25-30 dairy farm producers in Georgia will be affected, several in Tennessee, and an unknown number of farms in Alabama and Mississippi.  

Borden products have a distribution area which covers a wide swath of the lower southeast, including the Gulf’s coastal tourist areas. The Dutch Chocolate is a favorite of milk connoisseurs, and their recent introductions of flavored milks have received great reviews.

It will take some time to sort out all of the farm related ripple effects – beginning with independent producers as well as co-op members shipping to those plants, and extended to the milk haulers delivering to those plants.  Eventually, in this regional ag economy, agribusiness and suppliers will be affected as well. To what degree is unknown, until producers find new cost-feasible markets for their milk. Transportation costs in particular will be a factor in market change decisions for producers.

Beginning with the Charleston closure, and continuing through the Illinois and Wisconsin closures, there has been quite an effect on school milk contracts which had to be reorganized.

What will be the fate of Elsie, Borden’s iconic cow? That’s really hard to know at the moment, but six plants closed in 5 months time is a huge point of concern.  

The southeast is quickly becoming a ‘milk desert,’  which is defined as a region of significant population with limited access to nearby farms which produce nutrient dense foods, and in this case, that’s milk. 

With all of the supply chain disruptions and milk transport issues we’ve seen over the past three years, how are southeast consumers going to be served in the future with the goodness of milk’s essential nutrients?  This is a big picture question which needs to be considered in the name of food security for an area with 25% of the nation’s population.

Borden plant closures are increasing the evolution of ‘milk deserts’ in the Southeast

Dean Foods Sells Majority of Assets to Dairy Farmers of America (DFA) & Prairie Farms

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DALLAS  – May 1, 2020  – Dean Foods Company (“Dean Foods” or the “Company”) today announced that is has completed the previously announced sales of substantially all of its assets, including the sale of the assets, rights, interests, and properties relating to 44 of the Company’s fluid and frozen facilities to subsidiaries of Dairy Farmers of America (“DFA”).

Dean Foods also announced that it has completed the sale of the assets, rights, interests and properties relating to eight facilities, two distribution branches and certain other assets to Prairie Farms Dairy. The Company also completed the sale of its facility in Reno, Nevada and its “Berkeley Farms” trademark and related intellectual property to Producers Dairy Foods.

These transactions follow a Chapter 11  process which began with a filing under the official name of Southern Foods Group, LLC, on November 12, 2019 in the US Federal Bankruptcy Court, Southern District of Texas, Houston. As early as the day the Chapter 11 was announced, DFA was named as the leading contender to purchase the company.  The Honorable Judge David Jones has served as  the presiding judge.

At the current time, three additional hearing dates are posted on the Epiq website which has been housing the dockets and filings of the proceeding.

  • May 11, 2020: Governmental Bar Date
  • May 20, 2020: An Omnibus Hearing
  • June 24, 2020: An Omnibus Hearing

The process has taken place during a time of monumental chaos in agriculture and dairy created by shifts in consumer behavior exacerbated by the Covid-10 Pandemic.  As consumers followed “Shelter At Home” guidance issued across the country, fluid milk sales rose astronomically for 2 months.  Although they have leveled off a bit, fluid sales are still at much higher levels than in recent years.

The stage seems to be set for  the new owners to capitalize on consumer sentiment to reinvigorate fluid sales of the Dean brands, which have risen considerably during the past two months.  It is not known if  the new owners will maintain,  consolidate, or alter brands as they assume the reins.

“We are pleased to complete these transactions which maximize value for our stakeholders and will enable substantially all of our businesses to continue operating and serving customers across the country,” said Eric Beringause, President and Chief Executive Officer of Dean Foods.

“Our team has put in considerable work over the last several months to find the right partners for our assets that would enable them to continue to succeed while preserving the most jobs possible and to ensure a smooth transition for our customers and partners.

The completion of these sales is a testament to our employees’ efforts. I also want to thank our entire team for their commitment and dedication to Dean Foods not only over the last several months, but over the past several years.  Their hard work has helped Dean Foods build and grow brands and products that customers love, and I feel fortunate to have had the chance to work side-by-side with this extraordinary group.”

The Company also announced that as part of the US Department of Justice’s (“DOJ”) approval of Dean Foods’ transaction with DFA,  DFA has entered into a Consent Decree with the DOJ under which DFA has committed to hold separate and ultimately divest the dairy processing plants located in DePere,WI, Franklin, MA, and Harvard, IL together with certain assets related to the operations at each plant.

Upon closing of these sales, Mr. Beringause has stepped down from his role as President and CEO.

As previously announced on April 4, 2020, the U.S. Bankruptcy Court for the Southern District of Texas (the “Court”) also approved the sale of Dean Foods facility in Miami, Florida to Mana Saves McArthur, LLC, for $16.5 million. The company anticipates completing the transaction early next week.

As previously announced on April 30, 2020, Dean Foods completed the sales of the Company’s Uncle Matt’s business to Harmoni, Inc., and of its Hilo facility and related distribution branches on the Big Island, Kauai and Maui, as well as a license to the Meadow Gold Hawaii brand name and related intellectual property, to MGD Acquisition, LLC.

Additional information is available on the restructuring page of the Company’s website, DeanFoodsRestructuring.com.

In addition, Court filings and other information related to the proceedings are available on a separate website administered by the Company’s claims agent, Epiq Bankruptcy Solutions LLC, at https://dm.epiq11.com/case/southernfoods/dockets, or by calling Epiq representatives toll-free at 1-833-935-1362 or 1-503-597-7660 for calls originating outside of the U.S.

Davis Polk & Wardwell LLP and Norton Rose Fulbright are serving as legal advisors to the Company, Evercore is serving as its investment banker and Alvarez & Marsal is serving as its financial advisor.For Court filings and documents:

To read more about the Department of Justice report – a posted news release:

1 May 2020:   Justice Department Requires Divestitures as Dean Foods Sells Fluid Milk Processing Plants to DFA out of Bankruptcy  – Department Also Closes Investigation into Acquisition of Other Dean Plants by Prairie Farms.

The DOJ news release closes with these words:

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Eric Welsh, Acting Chief, Healthcare and Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 4100, Washington, DC 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the Northern District of Illinois may enter the final judgment upon finding it is in the public interest.

Sources: Business Wire, News Releases, and Industry Reports

Recipes-In-Love: Crafting Happy Hearts & Magic Memories (Thanks, KG!)

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“Food is symbolic of love when words are inadequate.” – Alan D. Wolfelt

 

What a world we’ve lived in the past six weeks!  When COVID-19 began sending the United States into a terrific tailspin of re-aligning our daily lives, whoever would have thought that our world would almost have totally changed in a period of six weeks.

 

Our life’s priorities have been realigned, and some of that is not all bad.  Spending more time at home has caused us to get reacquainted with our cookbooks and cookware, and revisit things in the kitchen.  In an effort to find some semblance of comfort, we’ve gone digging into recipe boxes for those beloved family-favorite recipes  which remind us of better times and bring back warm and happy memories.

 

And so, I’ve called upon Kathy Dougherty to help share some comfort with the rest of us through her recipes.  Kathy and her husband Blan are long-time, 3rd generation members of AgCentral Farmers Co-op, a farm-supply cooperative based in Southeast Tn.  Kathy is known to be one of the best farm cooks in all of the Southeast, and is infamous for her contributions to her community through agricultural boards, school boards, and education organizations.  (I’m also blessed to call her a dear friend!)

 

She loves creating memories with her family through cooking and her recipes, so she was a natural to call on for this first ‘recipe’ post – we surely hope there are more to come.  First, let’s meet her family –

 

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On the left, you find Kathy and Blan with granddaughter, Willow.  And on the right, daughter Betsy with husband Russell, and their sons Ryland and Cameron.  Kathy enjoys crafting recipes and creating memories for and with them all!

Kathy is also famously known for referring to Russell as her “Son-In-Love.”  That term of endearment is the inspiration for this post, and what is hoped to be the first of others like it  – “Recipes-In-Love.” 

So therefore, Russell and Kathy’s relationship is the catalyst for the first recipe we share – “Son-In-Love Brownies.”  According to Kathy, these are his favorite brownies, and once you taste them, they might become your favorite too!  They’re pretty easy to make, but the flavor is as gourmet as any you will find at an upscale bakery!

 

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Son-In-Love Brownies

1 box of regular brownie mix*

2 “Giant” size Symphony candy bars with toffee and almonds
Mix brownies as directed on the box. Pour half the mixture into a 9″ x 13″ pan.
Break the Symphony bars into pieces along perforations.
Place in the pan on top of the brownie mixture.
Cover with the remaining mixture. Gently smooth over candy pieces.
Bake according to the directions on the box, adding 5-10 minutes to baking time.
*We prefer just a plain chocolate brownie mix. (from Kathy)

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Of course, Brownies are always better with milk, and Mayfield is a favorite milk in the Dougherty household!  And why not drink it out of a fancy spring glass to lift your mood?

Million Dollar Cheese Dip     (A local-centric version)

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Million Dollar Cheese Dip
Green onions to taste, chopped, to add color and flavor
8 ounce Shredded Sharp Cheddar
1 1/2 cup mayonnaise
1/2 cup real bacon bits
1/2 chopped, toasted pecans
Mix all ingredients together and chill at least two hours before serving. Serve with your favorite crackers. (We like the Pretzel Flips and Ritz.) Easily doubled.

Willow’s Crispies

Scroll on down for a favorite treat of Kathy’s grandaughter, Willow!
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Willow’s Crispies
1 box cake mix*
1 1/2 cups Rice Krispies
1/2 cup melted butter
1 egg
Combine all the ingredients. Roll into 1″ balls
Place 2″ apart on a cookie sheet.
Bake 10-15 minutes at 375 degrees.
Keep tightly closed to keep them crisp.
*We like lemon cake mix, devil’s food cake mix and strawberry cake mix.
Coconut cake mix is good too then substitute 1/2 cup of coconut for 1/2 cup of Rice Krispies.
Look for a future photo of Willow’s Crispies!

Additional Recipes:  (but no photos at this time!)

Biscuits and Gravy Casserole

1 pound sausage, cooked and drained
1 package Pioneer Gravy mix
1 cup shredded Cheddar cheese
6 eggs, beaten
1/2 cup milk
1 can Pillsbury Grands biscuits
Preheat oven to 350 degrees.
Make the gravy according to directions on package
Cut biscuits into 1″ pieces and line the bottom of the pan. Spread cooked sausage over the biscuits. Sprinkle cheese on top.
Beat the eggs with the milk and pour over biscuits and sausage.
Pour gravy over all. Bake 30-35 minutes.
Can be refrigerated and baked the next morning.

Tammie Fruit Salad  (Yes, that’s the correct name!)

1 can pineapple tidbits, drained
1 large can Mandarin oranges, drained
Cherries, (if you like them) drained
1 can peach pie filling
2 bananas, sliced
Any other fresh fruit you like such as strawberries and blueberries.
You can also add 1/2 cup coconut. I add about 1 cup toasted, chopped pecans.
Best made the day before.

Willow’s Baked Corn Casserole

1 15 ounce can whole kernel corn. Do NOT drain.
1 14 ounce cream corn
1/2 cup sour cream
1/4 cup melted butter
2 eggs, beaten
1 box Jiffy cornbread mix
Combine all and pour into a 9×13 dish.
Bake 350 degrees for 35-45 minutes.
These recipes are some of Kathy’s favorites!  We hope you enjoy them as much as Kathy’s family has!  And – we look forward to sharing some of your favorites in the future!
Recipes-In-Love.  Creating Warm Memories and Happy Hearts! One Serving at a Time!
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New ‘LOCAL’ Brand in the Mountain South – Thanks, Food City & Milkco!

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Went to a Food City store and what did I see?

A New Brand of LOCAL Milk looking back at me!

 

In a month of challenging news centered on COVID-19 and how it is affecting farms across the country, a once-every-10 days trip to a grocery store offered a bright spot in an otherwise difficult time frame.

 

‘Southern Dairies’ is a new brand of milk making its way onto Food City shelves!  This carton was a sight for sore eyes, particularly when I saw the words  “We support LOCAL dairy farmers!”  And then, I saw the milk plant #37-82,  a milk plant I and many others in the South are familiar with – the Milkco plant at Asheville, NC.   The cost on this day (Friday, April 10, 2020)  was $2.99 / gallon.

 

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Because I’m fairly familiar with farms whose milk is delivered to certain milk plants in the southeast, this made me extremely happy!  That milk plant receives the majority of its milk from farms in northeast TN (from Knox County to Johnson County), southwest VA, North Carolina (central to western NC), SC, and north GA.

 

I have many, many friends whose milk is bought by Milkco, and this is another opportunity for their milk to be available to regional/local consumers!  Truly, this is a case of a milk plant located in the mountain south, purchasing from farms in the south, and delivered to food retailers in the South!  That’s a whole lotta local $$ circulating in the area economy!

 

Food City has collaborated with the Milkco plant before, as they have sourced their Food Club (private label) branded eggnog from them in past holiday seasons.

 

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There were  other brands of gallon milks on the Food City Dairy Case shelf at the time of this visit:  Mayfield is another brand of milk processing milk from southeast dairy farms, with a plant in Athens, TN.    The ‘food club’ brand is bottled at the Superior Milk plant in Canton Ohio, sourcing milk from farms in that regions of the country.

 

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Food City is a grocery store chain of approximately 130 stores located from Southwest Virginia to Eastern KY, through East TN and into North GA.  This is a chain I know well, since I am frequently in their stores, and I know vegetable growers who sell produce at Food City.    This chain, like many,  has been challenged with all of the panic buying experienced by many groceries across the country, with shortages at times.  The ‘new normal’ has still not settled in, but things are better than at the beginning of the pandemic hoarding.

Read some related articles about the effect Coronavirus buying had on Food City:

 

Read More about Food City in general:

 

None of us in farming, food, or the supply chain have any idea what the ‘new normal’ will be when the Coronavirus is more under control and life gets back into more of a predictable routine.  While it is hoped sales of Southern Dairies branded milk take off like a rocket, that too is unknown at this point, and we’ll have to wait and see what other varieties or flavors of milk make it into retail channels.  But shelf space and access to consumers, ever how much it is, is a great beginning!

 

Food City and Milkco have teamed up to give dairy farmers who operate farms in the southeast something to be proud of when they walk into a Food City – that’s their milk on that shelf!   And this won’t only help local dairy farmers, this will help other farms in the area who grow grains which help feed those dairy herds, it will help local agribusinesses who serve those dairies, and it will give a sense of pride to local southeast communities.

And for that, many farms and agribusinesses in the southeast are grateful for this ‘carton of hope’ at Easter Weekend, 2020. 

Southern Dairies, you have our prayers and our support for a successful brand launch and future!

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Did anyone ever ask the Shelf Stocker? (About handling fluid milk, that is)

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Did anyone ever ask the Shelf Stocker?  When it comes to milk cartons, that is.

It’s been a busy past few months for dairy farmers and dairy industry associates all over the United States.  Whether it’s called conference or summit or convention,  dairy folks across the United States have been in session after session in the months from November to March, sometimes (often!) referred to as “Meetin’ Season.”

I can’t remember a session for the past few years where the term ‘innovation’ hasn’t been used.  Sometimes, the term refers to new dairy products, but it is used equally as much in reference in packaging and handling for milk and other dairy products.

Balancing the costs associated with bringing milk and milk products to market along with visual elements which attract consumer purchases is like walking a high-wire across the Grand Canyon.  With dependable fluid milk sales losing market share to the ‘newest and shiny’ dairy toy, every level of the supply chain is in perpetual review.

On the way back to the ‘home office’ after one of those winter dairy meetings,  I stopped by a grocery store to grab some milk. (Whole milk, if you must know, and a brand in a yellow jug which I know comes from many farms in my area).

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As I often do, I just stood there evaluating the dairy case – fluid milk.  There were private label commodity milks from far away (over the ‘within 400 miles “Local” definition’ in the 2008 Farm Bill), a branded local milk, high-margin blended milks, and fake milks which are trying to convince consumers they are better than real, whole, milk.  Additionally, all of the ‘fakes’ (aka plant-based beverages) do nothing for farms and the farm economy in our southeast area of the US;  the crops or products used in them cannot be traced to a farm in the southeast.

While I was looking at the case, a very pleasant young man, the stocker clerk for the evening, brought out several cases of the yellow jug to place in the shelves.  Those yellow jugs are delivered in the plastic, open top milk crates which are as popular for home decor as for milk deliveries.

He then brought out some of the far-away jugs shipped in brown cardboard cases. In many dairy discussions with farmers, industry folks indicate that the brown cardboard is preferable to the traditional crates. Notice I said ‘industry folks.’

So, I just asked the clerk, a young man on the front line of consumer connections and milk sales,  if he would answer a question for me, and he politely said “Sure, if I can, ma’am.”

My question to the stocker:  From your perspective, do you prefer the cardboard carton, or the plastic milk crate?

The stocker clerk’s response was this: “I prefer the plastic crates.  For one thing, they are sturdier than the cardboard.  And also, their open top saves me time – I don’t have to cut open and fold cardboard boxes for bundling. I just reach in and get cartons and put them on the shelf.”

He went on to tell me of several times the cardboard cartons had weak spots in them, and extra care was required in handling.  He even had a cardboard carton break open one time, and jugs of milk fell out, crashed open, and milk went everywhere – including all over him.  (Anyone who’s had milk spill on them can identify with the dilemma, why you want to get it cleaned up quickly, and the extra time it takes to make sure you get all of it!)

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His response made sense to me – lots of sense, actually.  And anyone who has ever figured ‘time as money’ is likely to think it makes sense, too.  Those plastic milk crates actually still have some positives, and we need to remember that. They are appreciated by some folks, and their reasons make common sense. (Not to mention the physical benefits, since you get a bit of a workout while moving those cartons!)

In a society where we far too often see those on the frontlines of any type of ‘work’  never asked what they think about a situation, it is all too believable, too.

Has anyone ever considered the perspective of stocker clerks everywhere who do the actual work of getting milk on shelves, or has anyone ever done a ‘study’ or survey about what they would recommend?  Should their thoughts count on what is best for fluid milk and helping it re-gain traction?

The concept of moving more fluid milk is on smart dairy people’s minds, because it is generally the product which can be brought to market most quickly and at the least cost. For years, it has been the predominant product and ‘cash cow’ of the dairy processing industry – and it is being left behind in promotion and other aspects of cost of bringing milk to market.

Some have predicted that there may be a recession in 2020 at some point, and if that does happen, are we prepared to see dairy product prices decline by 20-40%? 

If comsumer pocketbooks are stretched by a recession, which category of milk sales will decline the fastest?  Will it be those higher priced milks, or even the fake milks / alternative beverages?  Or would such an event drive consumers back to basic milks, which are nutritional powerhouses in their own right?

There are many thoughts and opinions on how to best move more or recapture fluid milk, and there are many thoughts on which of the many attributes of whole milk are the best and should be promoted the most.  (That is another discussion for another post, or yet another convention to attend!)

But for now the question is: How often do we really consider the opinion of those who are actually doing the ‘physical work’ on getting milk to consumers?  If the “Learn by Doing” motto of 4-H is true, then there is much wisdom in all of the clerks who have ever placed milk on a shelf!  And I’m betting they’ve spoken with many consumers along the way, too.

I, like many have more questions than answers, and there are others who will say that other means of milk movement have their own merits.

I’m not suggesting companies which use the cardboard cartons change their way of doing things – that obviously works for them, and any company which sells fluid milk is a benefit to dairy farmers everywhere!  One of those in particular, another which serves a lot of southeast dairy farms, is about an hour from my location.

But I will say that a simple question asked of a pleasant young man sure gave me a new perspective.  I learned a lesson, and the conversation  made me think about things a bit differently.  I hope it’s made you think, too.

And ‘thinking differently’ – on all levels of people along the supply chain – is the first step to a brighter milk tomorrow.  The dairy industry is desperately searching for that brighter tomorrow.

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AFBF FMMO Reform Working Group Announces Report & Recommendations

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American Farm Bureau released the report of its FMMO Working Group on Wednesday, Oct. 2nd.
The group was formed following a recommendation by voting delegates to the 100th AFBF Convention in January that “the organization convene a Farm Bureau- and producer-led coalition to review methods to restructure and modernize the current Federal Milk Marketing Order system.”
The group began meeting in June with both on-site meetings and conference calls. They heard from a variety of speakers, from the Federal Market Administrator’s office to several industry representatives from differing sectors.
The southeast area was represented by  dairy farmers Steve Harrison (TN), Everett Williams (GA) and Joe Paul Mattingly (KY), along with Brandon Cobble (TN), who served as one of a few Farm Bureau staff representatives to the working group.
 

“What next?” is the obvious question following the release of the AFBF Working Group report.

According to  AFBF’s Chief Economist, John Newton,  “Farm Bureau members will need to review the information, modify or add ideas, and submit resolutions.”  He notes that the report “will not automatically be considered, nor will it automatically go into Farm Bureau policy.“

In other words, and in keeping with Farm Bureau procedure, members must take action.

Look for additional information offered in future posts.

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Georgia hosts 2019 Dairy Challenge – 18th in the Series!

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Source: Renee Smith, Dairy Challenge Publicity

Tifton, GA, March 30, 2019:     Collegiate dairy students – 240 in total – from 29 different states and Canadian provinces traveled to Georgia for the 18th annual Dairy Challenge.® This trip to the Southern Region of the dairy industry was a great chance for students to put to use all they have learned about analyzing dairy farms and learn new things about this unique region for dairy.

Tifton, Georgia, was home base for the 2019 North American Intercollegiate Dairy Challenge® (NAIDC) held March 28th to the 30th, with eight area dairies participating in the educational event. Dairy students from 44 colleges worked to improve their dairy management and communication skills, networked with other students, and explored industry careers.

“Dairy Challenge represents all that is great about the dairy industry, as we see dairy producers, universities and industry professionals all come together to provide these students – the next generation – be prepared to enter the workforce and make great contributions to dairy’s future,” explained Dr. Maurice Eastridge, Professor and Extensions Dairy Specialist at The Ohio State University and NAIDC Board Chairperson.

Dairy Challenge is a unique, real-world experience where dairy students work as a team and apply their college coursework to evaluate and provide solutions for an operating dairy farm. In Tifton, two programs ran concurrently – the 18th annual Dairy Challenge contest and the seventh annual Dairy Challenge Academy. The events were coordinated by the NAIDC Board of Directors and the Southern Regional planning committee.

This year’s contest participants included 36 universities, whose four-person teams competed for awards based on the quality of the teams’ farm analysis and appropriate solutions. Their farm presentations were evaluated by a panel of five judges, including dairy producers, veterinarians, finance specialists and seasoned agribusiness personnel.

The Academy added another 7 schools to the event, providing interactive training for 96 students from four-year universities or two-year dairy programs. Academy participants were divided into smaller groups including students from various schools, and dairy industry volunteers worked as advisors to coach these less-experienced Academy participants as they assessed the dairy and developed recommendations.

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Dairy Challenge Applies Learning to a Real-world Dairy

Over its 18-year history, Dairy Challenge has helped more than 6,900 students prepare for careers in the dairy industry, dairy production and veterinary medicine.

The three-day event began with learning stations at Pecan Grove Dairy and Grassy Flats Dairy, where students learned from industry experts on cow comfort, milking protocols, feed center management and other key areas. Back at the University of Georgia – Tifton Convention Center, students enjoyed pecan pie and peach cobbler, as they poured over the in-depth dairy records for their assigned dairy.

Day two began with the on-farm analysis, with all students having just two hours to visit their assigned dairy and witness the dairy’s operations. After a question & answer session with the farm owners and advisors, the student teams developed specific recommendations on the areas they thought the dairy should focus on to make the greatest impact on improving their business.  These suggestions are accompanied by an economic assessment of their recommendations.

On Day Three, students presented their assessments and conclusions to the judging panel, visited with sponsors at the Career and Innovation Fair, and learned through dairy technology presentations from top Dairy Challenge sponsors. These talks were presented by:

·         Melissa Redd, Regional Lending Manager, AgGeorgia Farm Credit – “More than a Loan, A Relationship”

·         Jorin Ouwinga, Dairy Specialist, Land O’Lakes, Inc. – “Don’t Limit Your Expectations”

·         Josh Hushon, US Dairy Marketing Communications Lead, Cargill – “Farm Decision Making: Unlocking the Power of Data and Analytics”

·         Kristi Fielder, Director of Production, URUS – “Inside the Bull Barn: The Other Side of the A.I. Industry”

·         Jack Hippen, North American and EU Sales Director, ST Genetics – “Preparing for the Real World in Agriculture”

·         Dave Whitlock, Regional Sales Manager Southern Region, Premier Select Sires – “Don’t Strive to Survive Through Change but Rather Thrive with Change.”

 

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Eight College Teams Earn Top Awards

At Saturday evening’s banquet, the following contest teams and students were announced as First Place winners, with each student receiving a $200 scholarship.

·         California Polytechnic State University: Hank DeVries, Alexandra Gambonini, Elisabeth Regusci, Elise Regusci, Coached by David Vagnoni

·         Michigan State University: Monika Dziuba, Lauren Heberling, Ariana Negreiro, Jared Sanderson, Coached by Roger Thompson

·         Texas A&M University: Haley Hill, John Leibham, Marta Pulfer, William Wolf, Coached by Sushil Paudyal

·         Washington State University: Olivia Brockhaus, Colton Bunyard, Morgan Hawley, Taylor Wilson, Coached by John Swain

Teams and students earning Second Place and $100 student scholarships include:

·         University of Wisconsin – Madison:  Rachel Gerbitz, Zachary Lensmire, Riley Miller, Danielle Warmka, Coached by Ted Halbach and Dave Combs

·         University of Guelph: Julie French, Lauren Westerlaken, David Westerveld, Jenna Wight, Coached by Trevor DeVries and Matt Groen

·         Cornell University: Benjamin Dye, Nolan Feldpausch, Simon Johnson, Christopher Sweeney, Coached by Mike Van Amburgh

·         SUNY Morrisville:  Austin Graham, Janet Hanehan, Kayla Heineman, Katherine Schultes, Coached by Steve Mooney

All Dairy Challenge contest participants received a lifetime membership to Dairy Shrine.

Total Industry Effort

Six dairy farms opened their farms for analysis and in exchange received a wealth of ideas from students and judges. Host farms for the 2019 Dairy Challenge were:

·         Leatherbrook Holsteins LLC, Americus, GA

·         Barrington Dairy LLC, Montezuma, GA

·         BrooksCo Dairy LLC, Quitman, GA

·         Schaapman Holsteins, Abbeville, GA

·         Highbrighton Dairy, Montezuma, GA

·         WestBrook Dairy, Dixie, GA

·         Pecan Grove Dairy, Baconton, GA

·         Grassy Flats Dairy LLC, Pavo, GA

“On behalf of all the students and organizers, we sincerely thank the hundreds of individuals and organizations that made this event possible,” said Jillian Bolan, Co-Chair of the event. “We look forward to interacting with these students as they continue onto careers as dairy owners, managers, consultants and the many other support roles that make dairy possible.”

About Dairy Challenge

NAIDC is an innovative event for students in dairy programs at North American post-secondary institutions. Its mission is to develop tomorrow’s dairy leaders and enhance progress of the dairy industry, by providing education, communication and networking among students, producers, and agribusiness and university personnel. Over its 18-year national history, Dairy Challenge has helped prepare more than 6,900 students for careers as farm owners and managers, consultants, researchers, veterinarians or other dairy professionals. The next national event will be hosted in Green Bay, Wisconsin on March 26-28, 2020.  Four regional events will be held in late fall and winter; details are at www.dairychallenge.org.

 

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Maury Cox: Dairy Advocate. Milk Leader. Friend.

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“It’s the people that make the difference, and there’s no better people than dairy farmers and their families.” 
This is how Maury Cox summarizes his perception of the people he’s served – mostly in Kentucky, but extended to the Eastern United States – during his tenure as Executive Director of the Kentucky Dairy Development Council, a position he’s held since May 31, 2009.
Cox was honored by his peers and colleagues for his service to the Dairy during the Awards Banquet of the Kentucky Dairy Partners Annual Meeting in Bowling Green, KY on February 26, 2019.
Cox had announced a retirement date of March 1st, but since the position has not been filled as of press time, he will be available for additional duties until the time a new Executive Director is named.
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Maury Cox was honored at the KY Dairy Partners to recognize his service as Executive Director of the Kentucky Dairy Development Council. He was presented with a signatory crock, and was delighted to receive a new fishing pole, presented by Tom Hastings.  In case you didn’t know, Maury is almost as passionate about fishing as he is dairy cows and dairy people!
His leadership at KDDC culminates a life-long career in the dairy industry.  He began as a dairy farmer, and later worked for Kentucky Artificial Breeders Association / Select Sires.  He was a founding member of KDDC in 2005, and became the Dairy Consultant Director in 2007.
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As Executive Director, Cox worked closely with and relied on the efforts of his current team of Area Dairy Consultants, who serve four regions across the state.  From left to right (above), they are Meredith Scales, Jennifer Hickerson, Maury Cox, Beth Jones Cox, and Dave Roberts.
On any one day, Maury could be speaking to a committee at the KY Legislature in the morning, visiting a farm in in the afternoon with his barn boots on, and ending the day by promoting milk at a ballpark.
Without a doubt, Maury led his state during the most challenging time of all in 2018 as 19 dairy producers lost their milk contracts and markets.  With grace, poise, and an almost 24-hour effort, Maury led the way to 11 producers eventually finding a home for their milk with either Scioto Milk Producers Cooperative of Ohio, and some with DFA.  As an eiplogue, some of those 11 survivors have since gone out of business as well.
Maury has collaborated with many affiliated organizations to advance the dairy industry in Kentucky, in the Southeast, and across the country. For a number of years, he, working with others, such as the Kentucky Department of Agriculture, organized bus tours and educational trips on a regular basis.
Maury has always appreciated the role an ‘outside perspective’ and exposure to new ideas can play in enhancing a dairy farm when new ideas are applied. The Kentucky Department of Agriculture has been one of his most valuable working partners through the years on these outside trips.  Additionally, he is considered a “Senior Statesman” of the southeast dairy industry.
He has made a point to build bridges with other state producer groups, respecting that there are differences from region to region which affect farmers in every area across the country.  When he learned something that made a difference to Kentucky, he tried every way he could to make that a reality in his home state.
A prime example is the implementation of the Market Industry Leader of Kentucky (MILK) program. With KDDC organizing a collaborative effort of co-ops and processors, the effort was designed to make strong improvements in Kentucky milk quality in order to remain competitive in today’s milk marketplace.
Over the years, this program has supported milk quality improvements, putting $8 Million dollars back into the Kentucky farm economy.  A longer term result is that the collective Kentucky dairy industry is generally more sustainable.
Communications of the KDDC also went to the ‘next level’ under Maury’s leadership.  The Kentucky Milk Matters newsletter is read across the southeast, and is considered an accurate source of current information.
As a regional policy leader, Maury played an instrumental role in the Southeast Dairy Coalition, an informal working group of grass-roots dairymen from several states who worked together to navigate the challenges of the 2009-11 Dairy Crisis, as well as influence the 2012 Farm Bill.
Sometimes as a leader, and sometimes in collaboration with others, he has been a part of many meetings concerning milk pricing and Federal Milk Market Order function, and has worked to effect change in that sector as much as possible.  Getting timely information to his producers has always been a priority.
As parting words, Maury offers this perspective on the future:
“As long as supply outpaces demand, over-order premiums in most markets will be non-existent. Premiums are where the profit is.  Until dairy farmers come together and decide they want something different, fewer and fewer will continue in business.”
Maury’s plans includes more time to recreate and travel with his wife, Sue, and their family, to devote more care to his mother, and of course, spending more time at any favorite fishing spot or watching a Kentucky Ballgame (basketball might be his favorite!)  It’s safe to say he’s as passionate about those things as dairy!
Maury is also a man of deep faith, and applies faith and prayer to every situation. He shows Christian grace in his everyday and his professional life, and his approach to some very difficult situations is a testament to faith in action.
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Maury reminisces with some folks he’s worked with through the years: Bob Klingenfus, a former President of KDDC, Warren Beeler, Executive Director of Governor’s Office of Agriculture Policy, KY Dept.of Agriculture, and Eunice Schlappi, Office of Ag Marketing, KY Dept. of Agriculture.
Robert Klingenfus, a former President of KDDC, says:   “The Kentucky Dairy Community has benefited greatly from Maury’s leadership.  His dedication to serve producers was unparalleled, and he has navigated challenging events with a calm, steady hand.  We can never thank him enough for his efforts.”
Bob continues:  “Maury has been a help to countless dairy farmers. On the surface we see Maury helping with Milk quality problems, division of water issues. But what he is really good at is what he calls facilitating.  He is a good listener and when you are done venting,  he will give a few suggestions and  the names of people that can help you with your problem.  He is careful not to tell you what to do, but facilitates  you with the ability to achieve what you are seeking.  Maury has become the go-to man if you need something; he seems to know everyone. If you need a barn, Maury knows who has built one recently, or sell or buy cows same thing, he put people together to solve problems.
“It has been an honor and privilege to serve you. I am a lucky and blessed guy,” were Maury’s closing words on the evening of the KY Dairy Partners banquet.

Here’s to you, Maury!  Those sentiments are a thousand times reciprocated!  We know we’ll be seeing you around!

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We have been blessed you chose to serve us.

Multiple Component Pricing for FMMOs 5 & 7; A Meeting, Action Plan, Information

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Will Multiple Component Pricing be implemented in the Appalachian (FMMO 5)  and Southeast (FMMO 7) Milk Orders?
Multiple Component Pricing, a way to value milk at the farm level based on components found in milk (protein, butterfat, and other non-fat solids),  rather than the skim/butterfat pricing currently implemented, is on the table for the two geographically largest milk orders in the Southeast United States.
Florida and Arizona do not price milk based on MPC, and those areas are not included in this current request for change.
An April 2nd request for a hearing to evaluate the implementation of Multiple Component Pricing for Federal Milk Marketing Order 5 (Appalachian) and FMMO 7 (Southeast) was filed with USDA-AMS by National All-Jersey, Inc.  The 86-page document can be reviewed here.
A great article concisely summing up the request and important factors has been written by Dave Natzke of Progressive Dairyman; read his perspective at this link.
The Tennessee and Kentucky Farm Bureaus have joined together to host an information meeting before the request for Multiple Component Pricing is fully evaluated; A Federal Order Hearing on the matter is tentatively scheduled for July 30, 2018
This May 16th meeting provides producers with a means of direct contact with FMMO officials who can explain not only the MCP proposal, but milk market pricing in detail, and how producers’ milk checks are affected by various market factors.
The details about this FB Information meeting, scheduled for May 16th in Knoxville, TN, are:
What:  Meeting with Dana Coale, Deputy Administrator for USDA -AMS Dairy Programs, along with several officials of Market Administrator Offices in Federal Orders 5 & 7
For:  Any dairy farmer in Federal Milk Marketing Orders 5 & 7
Organizers:  Meeting has been organized by TN and KY Farm Bureau organizations
Several state Farm Bureaus have been involved in dairy farm matters in the past few months – please give them a THANK YOU!)
Date: Wednesday, May 16, Knoxville TN  11:00 am
Time:  Sandwich Lunch @ 11 am; Lunch begins promptly at Noon EDT
Where: University of TN Ag Campus, Hollingsworth Auditorium. Plant Sciences Bldg.
             2505 East J. Chapman Drive; Knoxville, TN  37996
For:  Any dairy farmer in Federal Milk Marketing Orders 5 & 7
Purpose:  To discuss current market procedures and proposed market changes
RSVP / Register by May 11th: 
        Roxann Sanders – Email at rsanders@tfbf.com – OR
                                      Phone at 931-388-7872, ext 2231

The Invitation Letter and Announcement:

Jeff Aiken, TN Farm Bureau President, and Mark Haney, Kentucky Farm Bureau President, co-authored this meeting invite, which was also mailed to dairy producers:
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The Meeting’s suggested agenda:

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Following the announcement of these Knoxville, TN meetings, USDA-AMS has posted an “Action Plan” with a proposed calendar of activity related to Multiple Component Pricing.  Please note additional proposals can be accepted until June 1st!
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Resources for Additional Consideration  (Highly suggested reading!!!):

Multiple Component Pricing (MCP) first began taking place in the Federal Order System in the Great Basin Milk Marketing Order in 1988.  [The Great Basin Order is referenced in this 2002 testimony to a Western Milk Marketing Order Hearing.]
Since that time, several orders have consolidated, but the great majority of the United States dairy producers are paid on a MCP basis.  At this time, this map generally defines the geographic locations of FMMOs across the United States, however, California was conducting a producer referendum, in which voting ended on May 5th to finalize entry into the Federal Order System:
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Producer groups in the southeast, including the Kentucky Dairy Development Council, the Georgia Milk Producers Association, and the North Carolina Dairy Producers, have endorsed a Multiple Component Pricing structure.  The Tennessee Dairy Producers Association is currently opposed (as of May 10th).
Each and every producer should take the time (and it may take a few hours) to evaluate Component Pricing and how it will affect your farm’s income in the future!  Isn’t your farm’s future worth that time?
AND – each producer is highly encouraged to attend the May 16th meeting in Knoxville to have a chance to ask direct questions to USDA-AMS officials.
Your future income depends on accurate information – please make the most of this meeting opportunity!
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3 Southeast Dairy Events: Networks Working Together to Find Solutions

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A Compilation of stories and news about 3 challenges affecting Southeast Dairy Producers:  Dean Foods, Maryland-Virginia and Piedmont

 Southeast Dairy:  In the News. Pushing Forward.
 
Introduction:
In the past two weeks, in a time of already depressed milk prices, there has been a three-fold challenge to dairy farms in the southeast.  Tennessee, Kentucky, Virginia, and North Carolina all have farmers affected, with varying degrees of uncertainty about their milk buyer futures.
To say these past days have been painful and a flurry of concern, high emotions, and rumor mills have resulted is an understatement, but yet, as the dust settles, some activity has encouraged some hope, and herd owners are beginning to look forward. Many are making decisions based on faith, and in a calm fashion based on what they believe best for their farm. Some of those farms are being public, while others are remaining cautious and quietly seeking answers behind the scenes.
Bright Spot? Yes!   One farmer asked if there was going to be any good news to share about this whole mess, and yes, actually, there are two:
First, phone calls, texts, and Social Media outcries have indicated loudly and clearly that consumers, government officials, fellow farm organizations, and economic development personnel are indeed concerned about preserving ‘local’ or ‘regional’ milk in their areas, and appear to be eager to learn how they can help accomplish that.
Hopefully, this newfound energy can be channeled for long-term purchases of local milk, from local farms.  Time will tell. Consumer outreach is going to have to continue.
The second is this:  We still have upwards of 40 herds (at least in TN) shipping to Dean. The company is still the largest volume buyer of ‘local’ milk in TN at its three plants.  Putting that in perspective, every Dean Direct herd in Indiana,  with the exception of one, received letters of notice. Several were herds well over 1000 cows.
Background:  The three part challenge:
1.) Dean Foods:  On Friday, March 2, news broke of upwards of 115 (tallies still underway) farmers in 8 states receiving 90-day termination notices of their supply agreements to Dean Foods plants.  10 Tennessee herds and 22-25 Kentucky herds were affected, with 25-27  in Indiana, 42 in Pennsylvania, 6 in the Carolinas, and a yet unknown number in New York.  Three plants in our area – at Athens, TN, Spartanburg, SC, and Louisville, KY are involved in the contract termination decisions.   Herd sizes in all states range from under 100 to 1000 cows; 20 Million pounds of Indiana milk will need to find a new home, or be removed from the already overabundant nationwide supply.
The herds involved were Dean Direct producers, meaning the farm itself had a purchase agreement with Dean Foods plants, instead of gaining access to the plant through a milk co-op. Farmers who were members of co-ops did not receive these termination letters.  All of this activity followed a Dean Foods Earnings Announcement on Monday, Feb. 26 in which the phrases such as ‘rescaling the supply line’ foretold of company wide cuts to come.
2.)  During:  the week prior to the Dean Foods announcement, rumors began to circulate that Piedmont Milk Producers, based in Blountville, TN and serving farms in TN, VA, and NC,  was restructuring their business. (Story below with a video link)
3.)  MD-VA Milk Cooperative with 1,500 members from Pennsylvania to Florida, and some in Kentucky and Tennessee, sent a Feb. 27th letter to all of its members that their advance milk payment checks, expected at the end of the month, would fall to levels of $12.62 cwt in FO 5 & 7, and $10 in FO 1 and $33. The company said it was working on financial restructuring and was renegotiating credit facilities. Over the weekend, sources have begun to indicate that the problems may have been resolved to some degree, but the company has not made any official announcements. With settlement checks expected within a couple of days, some direction will be known.
In the days since, there has been a flurry of activity following the first notices: meetings of  farmers, meetings of farmers and agribusiness personnel, meetings of dairy organizations, and frequent phone calls between many parties in positions to help chart a future course.  AgCentral has been busy assisting producers in a variety of ways in a three-state area. While we have yet to have a formal working group to address what can be done and how to approach a dairy future, a tremendous amount of contacts have been made information gathered.
Following is a “Digest” of some the best information available, in no particular order – stories mentioned include stories of the Watsons and the Stooksburys, as well as a couple of stories from Ohio which further outline the far-reaching affects of the Dean announcements:
1.) Dave Natzke, an experienced and respected dairy industry reporter, now with Progressive Dairyman, published a broad perspective view of the Dean Foods story, and puts it in context with the dairy industry and events across the country. In his article, Dave reports that the Walmart plant was originally announced as a $165 Million Dollar venture, and provides a glimpse into how the Walmart plant may source their milk.
2.) Sherry Bunting, Farmshine, reports with a focus on PA, where 42 herds lost Dean contracts.  She notes hauling routes were a factor in terminated Pennsylvania herds, and reports the loss of a Food Lion contract, which was a factor which triggered a decision regarding 5 TN herds in Greene and Hamblen Counties.
From the article: “This affects all size herds and is not a large or small farm thing,” said [Reace] Smith, [of Dean Foods Corporate Communications.]  While she was unable to supply specific information about the farms that were terminated, she said the widespread volume adjustments at multiple plants across four Federal Orders was necessary do to the new Class I plant (Walmart) coming online this month and the loss of a contract through a competitive bidding process. (Food Lion).” 
It is the loss of that Food Lion contract, previously filled largely through a Carolina plant(s), which created a shift in milk hauling from plant to plant, and created an excess at the Dean/Pet plant at Spartanburg, SC, which had to be eliminated.  The milk from five (5) producers in Hamblen and Greene Counties in TN was being hauled to Spartanburg. Those producers are now searching for new markets or making decisions to sell cows.
Dewey Morgan, of the Daily Post-Athenian, in the hometown of the Mayfield plant,  cites these significant stats:
Regarding declining consumption and increased production: “Americans are drinking about 3 gallons less per person since 2010, and 11 gallons less than 1975, while every year, 350 Million more gallons of milk are produced than the year before.”
Amount of local milk: The Dean Foods plant in Athens ‘still sources 90% of our milk from Tennessee.’
The Watson Family: their stories on WVLT-TV and on the Knoxville News-Sentinel website:
The Watsons, who farm near Sweetwater, TN, were one of the southeast TN farms who received 90-day notices.  The senior generation is Robert and Rosemary Watson (mom and dad), who farm with their sons Josh and Caleb.  The family is known for being extremely generous members of their community.  Both Josh and Caleb have been featured in news stories in Knoxville, TN media:
  •  Josh: From WVLT-TV, a story and video clip: Josh states that he doesn’t entirely blame Dean Foods. He adds: “there’s a lot of jobs that revolve around the dairy – it will hurt them.”
  • Caleb: Both a video and a photo album have been posted at the Knoxville Sentinel website. Caleb notes the family will continue to look for a milk buyer, and will look at other options to diversify, he says they will survive.
  • Front Page: The Knoxville News Sentinel published a front page story featuring Caleb on Tuesday, March 13.
Piedmont considering new business structure and how the company operates: story on Knoxville WBIR-TV
  • Brant Stooksbury, and his father Brian in Jefferson County, currently ship their milk through Piedmont Milk Sales, with offices at Blountville, TN. Piedmont, who represents farms in Northeast TN, Virginia, and North Carolina (the great majority are in NC) is making business changes.
 
Farm & Dairy:  Provides additional details on  WalMart distibution
WKBN-TN at Waynesboro, Pennsylvania – a video story describing some of the trickle down effects.
Ongoing:  This story will continue to evolve over the next few weeks, and spring crop work is already cranking up.  We know this challenge is great, but this region has overcome challenges before: at this time 25 years ago, many of us were digging out from a record blizzard, and some went without power for days. 27 years ago, in February of 1991, 400 herds received notices of a Pet bankruptcy, and lost a month’s worth of milk payments, along with having to scramble to find new milk handlers – there were no 90-day notices.
No doubt, our dairy industry is changing, but we have proven we can survive.
P.S.   Rod Carmichael has scheduled a complete herd dispersal for April 27.  Please mark that date on your calendars and keep Rod and Donna in your thoughts.