Shamrock’s Virginia Expansion increases Milk needed 4x; adds $24 Million to area Ag Economy!

8448_Shamrock_Brown_F$24 Million dollars will be infused into the southeast / mid-Atlantic region’s farm economy, with the most impact on Virginia.

Quadrupling the milk purchased by a processing plant is expected;  MD-VA Producers Co-operative is the supplier, and their producers should benefit.

78 new jobs.

$40 Million invested in new processing facilities, expanding Shamrock’s facility in Augusta County, VA after only 2.5 years of operation.

In a region and an industry sorely needing new milk processing capacity, Shamrock Farms has created a lightning bolt of excitement and optimism in the Shenandoah Valley area of Virginia for farms and economic developers alike.

Following is a ‘digest’ of various local and national reports and highlights from each as the news broke on March 29 and 30, 2017.

Press release from the VA Governor’s Office: How public development funds played a role:

The Virginia Department of Agriculture and Consumer Services (VDACS) and the Virginia Economic Development Partnership (VEDP) worked with Augusta County to secure the project for Virginia. Governor McAuliffe approved a $400,000 grant from the Governor’s Agriculture and Forestry Industries Development (AFID) Fund, administered by VDACS.  The company will also receive a $400,000 performance-based grant from the Virginia Investment Partnership (VIP) program, an incentive available to existing companies, to assist the County with the project.  Shamrock Farms will also be eligible to receive sales and use tax exemptions on manufacturing equipment. Additional funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

From the Staunton, VA News Leader:

The expansion will more than double its production capacity, rapidly growing the Shamrock Farms brand, a release said. Once completed, Shamrock Farms will employ more than 120 people at that location. The expansion will increase filling capacity and expand product varieties, sizes and formats.

Shamrock Farms, the creator of Rockin’ Refuel and mmmmilk, is a 95-year old dairy company owned by a single family, the McClellands.  The company has Arizona roots, and still operate their own dairy farm. Shamrock has built a nationwide shelf presence with its innovative dairy products, featuring packaging designed for fast-food and convenience stores.  In recent years, they’ve focused on higher protein drinks to meet consumer expectations.

Shamrock’s statement on the expansion acknowledges the ‘milk as a beverage’ concept:

“As a company we’re always looking for ways to grow and innovate,” said Ann Ocaña, Chief Marketing Officer for Shamrock Farms. “The expansion gives us the capacity and the technology to meet growing demand, expand our offerings and propel milk-based beverages into the future.”

A Waynesboro, VA news publication, the News Virginian, issued an article,  with the following:

Augusta County Board of Supervisors Chairman Tracy Pyles said Shamrock “is a cornerstone in Mill Place Commerce Park and a strong asset to the agricultural community of the commonwealth  . . .  “We have a good location and great workers,” he said. “It’s not a surprise they are expanding.”

Dairy Reporter also shared the news to a worldwide readership.

This Shamrock plant is located along the Interstate 81 Corridor, just southwest of Harrisonburg, in Virginia’s Shenandoah Valley.  This area is one of the southeast’s largest dairy communities.

This plant has only been open since October of 2014, with MD-VA Milk Producers Cooperative as its exclusive supplier.  The company has enjoyed rapid growth for its product line and markets on the East Coast.  Nationwide, Shamrock serves more than 50,000 quick service restaurants and 36,000 c-stores and groceries.  The company has also added Cold Brew Coffee and Milk to its offerings.

All of the public and private parties, which include:

  1. the farmers who produce the high quality milk,
  2. Md-Va Milk Cooperative which supplies the plant,
  3. Local and state governments, and
  4. Shamrock itself

deserve an enormous amount of credit for an extraordinary team effort which fostered this expansion!

As exciting as this announcement is, no one knows better than the dairy industry itself that more plants are needed, provided innovative products continue to come to the market place.  The need for processing capacity is one thing, the ability to process or manufacture a milk-based product for which there is enough market demand is the even bigger – but very necessary – challenge to overcome.

As for now, Shamrock has provided a bit of inspiration and excitement.

Congratulations, Team Shamrock in the Southeast!!  Well done!  We look forward to watching your market grow!

HPAI in 1 TN flock/house: Days 1 & 2. Stay Calm. Stay Informed. Watch Your Flock. Does Not Pose Risk to Food Supply.

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[UPDATE – March 6, 2017]    Press Conference by Tennessee Department of Agriculture Officials, now archived and available for viewing on YouTube.

Summary of News Conference:

  1. Thus far, minimal impact.  Biosecurity was excellent at the facility, and only 1 of 8 houses had clinical signs, however, the entire affected flock was depopulated / euthanized per disease control protocol.
  2. An initial round of testing in the surrounding area has proved to be negative, a positive sign, but several additional tests to follow.
  3. Any positive tests in neighboring flocks will reset and start a 2-week time clock again.
  4. A half dozen of the incident management team had experience with the national outbreak in 2015.
  5. Excellent records, and management expertise of farm owner, and a knowledge of what to do in certain situations, enabled this quick response.
  6. Exports will be impacted, not yet known to what degree.
  7. Thus far, for an extremely difficult situation, there has been a ‘best case scenario’ in a quick and effective response.
  8. Farm owner and the company who owns the birds (Tyson) are likely covered by some sort of indemnity program. The knowledge of what signs to look for in identifying the disease, and the skills of both enabled the farm owner to identify situation early and contact officials, critical to minimize the outbreak.
  9. Updates provided as indicated by the situation.

A ‘milkshed’ is part of a ‘foodshed,’ and poultry is a part of that worldwide foodshed. Therefore, this blog is taking a bit of a turn with this post.

I’ve got many colleagues and friends with poultry houses or backyard flocks, so as news broke from the Tennessee Department of Agriculture  of an HPAI (Highly Pathogenic Avian Influenza) H7 confirmation in the  lower middle region of TN  on Sunday, March 5, 2017, the texts, posts, and industry emails began flying, and ag communicators got to work.

The first and most immediate point is that ‘HPAI does not post a risk to the food supply,’ according to TDA, as well as many other poultry organizations and animal health officials charged with protecting human health. This disease came to worldwide public attention in 2015 with major outbreaks in midwest poultry houses, turkeys, broilers, and chickens included.  The Tennessee virus is of a different strain, H7, compared to H5, which was the culprit in the outbreaks two years ago.

As this post is written, there is apparently only 1 flock affected – a ‘breeder flock.’  Such a flock producers fertile eggs, to be hatched for broilers or laying hens. Per the protocol already in place, an immediate quarantine has been placed on 30 houses within a 6.2 mile radius of the affected poultry barn. Hopefully – very hopefully – this means the disease has been discovered early, and impact will be minimal.

It is to the credit of a vigilant and informed barn owner who realized something out of the ordinary was occurring, along with competent professional veterinarians, and an emergency preparedness protocol, that diagnosis was achieved quickly after the first reports to the TDA only two days prior.  This is one example of the diligence, planning, and preparedness that makes the U.S. Food Supply the safest in the world.

Along with the initial news release, which has links to many other pieces of information, the Department expected there would be a press conference on Monday, March 6, 2017.

To answer questions in the first phase of the discovery, the TN Department of Agriculture has posted two YouTube videos, in which Dr. Charles Hatcher, TN State Veterinarian, answers the immediate issues, particularly the fact nothing from this flock – repeat NOTHING – has entered the human food supply. The videos can be viewed at these links:

PART 1 – HAPI interview, March 5, 2017:  with Dr. Charles Hatcher, DVM, TN State Veterinarian

PART 2 – HAPI interview, March 5, 2017 also with Dr. Charles Hatcher, DVM

To get an idea of the scope of the matter on the first day of this incidence, this graphic should suffice.  Hopefully, it won’t need too many updates, and this incidence can be contained quickly.

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USDA statistics concerning the US Poultry industry tell us that TN is one of the Top 19 states in the nation for number of broilers.

A Voice of Experience:   Lara Durben,  MN Turkey Growers Association, Chicken & Egg Association of MN, Midwest Poultry Federation

Lara Durben, the Director of Communications for three major poultry organizations, the MN Turkey Growers Association, Chicken & Egg Association of Minnesota, and the Midwest Poultry Foundation, was at the forefront of communications when the first outbreaks occurred two years ago.  MN was at the epicenter of the outbreak.

Lara was a lion, working to distribute information to poultry farms themselves, as well as being a factual, informed liasion for news outlets and consumers to get accurate information.  Having seen an industry through the storm, she is a strong voice of experience.

I really appreciated her taking time from a Sunday afternoon to answer my requests for information.  She indicated via messages she had already been contacted by others. She has suggested the following articles/resources; linked to here for your convenience:

The Worry and Work on Avian Influenza

Avian Flu:  What I Want You to Know

Additionally, these were her contributions posted at Agriculture.com:

Avian Influenza:  A Few Questions and Answers

Avian Influenza in MN: What Does this Mean?

From Minnesota Turkey, with links to MN Extension publications:

Avian Influenza  (An overview)

For BACKYARD POULTRY FLOCKS – From Minnesota, a state who has a vast amount of experience  with avian influenza  (a 2 pg. pdf to print)

For PASTURED and ORGANIC FLOCKS  (Also from Minnesota – a 2 pg. pdf to print)

UPDATES (as they become available):  Where to find them:

Tennessee Dept. of Ag:  Alerts

University of TN Extension: New web page, launched on Monday, March 6

USDA APHIS: Biosecurity for Birds

And articles from the popular press and ag industry sources:

From the Guardian: a report sourced from the AP

Via Yahoo: another AP report, news affects stock prices of poultry companies

From Chicken Check-In: Contains info on current outbreak and what  producers do to prevent avian flu.

From Watt AgNet: Timing of response from recognition of signs to diagnosis

From Tyson Foods: Owner of the birds, their ‘heightened security’ protocol and expectations

From the TN Poultry Association:  Organization and Industry was already on high alert, due to season and timing of migratory flyways

For now, those with backyard and commercial flocks should not panic, yet review information related to the physiology of avian influenza. (see above).

Here is a list of resources that will be updated as needed:

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The GE Crop Report: Feeding the World, Safe Science

May 17th was just yesterday, but it is a yesterday that will go down in history as a day that has monumental implications for farmers, agribusiness, food, food producers, food companies, and  consumers.

The Committee on Genetically Engineered Crops: Past Experience and Future Prospects, a group of world-renowned scientists and sociologists organized by the National Academy of Sciences,  announced the results of the most comprehensive study and analysis ever completed on Genetically Engineered (GE) and Genetically Modified Organisms (GMO).

Their conclusion: “the study committee found no substantiated evidence of a difference in risks to human health between currently commercialized genetically engineered (GE) crops and conventionally bred crops, nor did it find conclusive cause-and-effect evidence of environmental problems from the GE crops.”

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The committee announced their findings in a webcast, launched a website, and published a 420-page report. (find links to the webcast and the report at the website).  It will take quite some time to sift through all of that information, so there will be more reports and posts forthcoming. As one whose family farm is a row-crop operation, this report affects me directly as a grower, directly as an agriculture / food communicator, and directly as a consumer.

From watching the webcast, one of the things that most impressed me was that in the course of their work, the committee directly reached out to groups (deniers, some will call them) opposed to and fearful of this science which has been practiced since the 1990s. Organizations and individuals were asked to bring their questions, cite their studies, and have them evaluated during the process.  It was determined, based on scientific protocols, that much of the ‘fears’ are based on false science, and procedure not-in-keeping with world accepted protocol, which has served us well for decades. More on that later.

But for now, I will share some photos and links, as well as the four pages of the brief.  That is enough to get started on this journey of ‘feeding the world – together, based on science.”

First,  I would like to thank the Committee and its Chair, Dr. Fred Gould, of North Carolina State University. Dr. Gould moderated the webcast.6729_NAS_GE_Report_Gould_AgCentral_F

Dr. Gould stated the many factors that had gone into the committee’s conclusion:  GMOs are not Harmful to Human Health (Thanks, USA Today, for the headline & story!):

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One of the things that caught my eye was this graph displayed during the webcast, which outlined the layers of information processing used by consumers as they form their opinions of GMO science.

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And for now, I’ll leave you with the four pages of the ‘brief report.’  This will be a good starting point for discussions to come.

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(All credit for the 4-page report goes to the Committee on GE Crops, NAS).

The subject matter discussed yesterday included the emerging science of ‘omics,’ (genomic, proteomics, and much more).  We’ll get to that later, but for now, here’s the homework for the minute.

SE Milk Litigation: Appeal Deadline Expires, Dean Foods Payment 3 may be processed

Sun Photo by Phil GentryFederal Court House

The wait is apparently over for Dean Payment #3 per the Dean Foods/SMA Settlement Agreement in the Southeast Milk Litigation to be processed.

The deadline to file an Appeal to Judge Ronnie Greer’s October 16th, 2014 “Order Authorizing the Third Distribution of Dean Settlement Funds” has now expired. In this instance, an Appeal would have been filed with the US Court of Appeals for the 6th Circuit, located in Cincinnati, Ohio.

Unless official filing documents are received via the United States Postal Service at the Sixth Circuit offices with an appropriate postmark, payments can now be processed and mailed to producers.
Per Federal Court rules, there is a 30-day time frame in which an Appeal an Order may be filed, which may occur when Motions are filed prior to the entry of an Order.

According to court documents, a dairy farmer, who had become a board member of the SMA board following the Dean/SMA Settlement which became final in June of 2012, but prior to the DFA Settlement Agreement claims deadline of March 31,2013, received the first Dean Foods Settlement payment, but was denied the DFA Settlement Payment and Dean Payment #2.

This producer had filed a Motion asking the court to reinstate his eligibility for settlement payments, given the timing of his placement on the SMA Board. A clause was in all of the Settlement Agreements declaring Board Members of all defendant Co-ops to be ineligible for payments, but this specific instance of when a board position was filled was not addressed in the original documents, and so the Motion to reinstate was filed.

Producers who filed claims directly with Rust Consulting may expect that they will receive checks within a couple of weeks. Producers who used third-party filers may take a bit longer to receive their checks.
The amount in this cycle of checks will be similar to amounts producers received in the Dean Payment 2, paid to class members in September of 2013.

As far as future payments, producers can expect to receive their monies. Thus far, the defendants have been very responsible in depositing their monies in escrow accounts by the deadlines agreed upon in the original Settlement Agreements. This process is diligently monitored by the Court.

However, each payment cycle is always subject to various court proceedings, so the timing of receipts of payments by producers may vary. Two additional Dean Settlement Payments are set to be filed, one in 2015 and one in 2016. The possibility of an additional DFA payment remains if specified utilization rates are not reached by certain deadlines.

Class members should be aware that until the final payments are made, this is an ongoing legal matter, with a number of legal filings subject to changing subsequent payment schedules.

Producers will be notified of additional developments in this historic Class Action litigation when they occur. For a history of the case, including many official court documents, interested parties may visit http://www.southeastdairyclass.com.

Litigations are just one portion of the worldwide milkshed.

FARMLAND – a Journey: Part 1(a) – Coincidences, or Serendipity?

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Farmland is the cornerstone of my life.
“Farmland” is a film, recently released by Allentown productions.

Through a series of fortuitous events in one of the world’s biggest cities, seeds were sown that would grow into my future perspective on ‘Farmland’ the movie.

Farmland the film, a documentary directed by award winner James Moll, has thus far met with mixed reviews. The farm-for-a-living community is thrilled that a film champions their life quietly, eloquently, and factually. Six young farmers represent the collective farming population as folks who do their job well despite challenges. The ‘food movement’ has reacted in a full-spectrum manner; some have been respectful with sincere questions and comments prompted by their attendance at screenings, while others have been nothing less than vilifying and condemning with their comments.

This review will be a bit different than others, due largely to my dual role as a life-long farmer and agricultural communicator. A great deal of my efforts have been spent in frequent interactions with consumers, answering their many questions about what we do on a farm, and why, and how that affected (or not) the food they ate. I have learned to view the profession of full-time farming from the perspective of a consumer three-generations removed from the farm.

The ‘official review’ post will come in a couple of days, but it will be much easier for a reader to understand if they first vicariously go on my trip with me, via a travelogue of photos of the jam-packed 48 hours on my trip to, and in, New York City. From the minute I received an invitation to the film’s screening (thanks, Lorraine Lewandrowski, for your references!), flights to and fro, to getting back on a return flight, this trip proved to mirror a lifetime of food-to-plate bridge-building.

And so, the journey begins.

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The first leg of the flight took me over the rolling farmscapes of Virginia’s Shenandoah Valley. The crystal-clear skies made it easy to see many farmsteads, many of which I was already familiar with due to drives to search out dairy cattle for consignment sales, or just to visit with farm friends. It’s highly possible I flew over dairies which are home to descendants of the Registered Holsteins I owned several years ago. A new friend, whom I met last summer at an AgVocacy conference, also pointed out I could have flown over her farm. And I was near to Monticello, the home of Thomas Jefferson, who not only was president, but an avid and forward thinking agriculturist.

This segment ended in Washington, DC, home of USDA, the government arm which implements farm policy, and Congress, who enacts that policy. While my neighbors and I have always lived the results of any Farm Bill, this recent Bill is the first on which I had dug into on a deep level due to reporting and communications for farmers and farm organizations. A Farm Bill affects both farmers and consumers, from commodity pricing to feed and supply costs to grocery prices. Farmland is affected by such a Bill.

Next stop: LaGuardia Airport and New York City.

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Leaving the gate after getting off the plane, the very first sign I saw was this one: connecting Food and Farm with Film, albeit in a different context. Joe Ciminera is a celebrity chef from PBS, who has taken on the cause of fighting childhood obesity. However, I was a bit amused he is raising money for a noble cause through proceeds from Sci-Fi and horror films, another project of his! Oh well, at least he’s akin to a farmer in that he wears many different hats at the same time!

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Just a few steps later, this “Welcome to New York” sign greeted vistitors by an airport quick-stop deli, with items that had to come from farms – somewhere. Industry estimates put sales of food and beverage at $6.6 billion level at North America’s top 50 airports alone. All that economic activity had to start – on farmland, of some size or span.

Next up, a cab ride that could only be described as “meant to be,” for whatever reason!

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I had to laugh when I climbed into this cab! Of all of the million cabs which pick up passengers at LaGuardia, how in the world did I end up in one with a Cowabunga mirror ornament?!? What were the odds – me, with a lifelong affiliation with Holstein cows and cows of all colors and the farms that feed them, in a world’s shopping mecca, riding into the city in a taxi with a swinging Holstein! [The Italian driver and I did discuss the merits of mozzarella vs. parmigiana!] Random occurrence, or serendipity? I’ll leave that for you to decide! First the cow – then this driving by . . .

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By this time, I was feeling a bit of “Really? Here?” Although this was my first time on the freeway from LaGuardia into town, one of the last things I expected to see was a load of pretty darn good hay through my cab’s window. Square baled, so the hay may have been destined for the iconic Carriage Horses or one of the area’s horse race tracks, or even headed to farms on the other side of the city, but this fact remains – the hay was grown in fields, on a FARM, somewhere.

After arriving at the hotel, my first goal was to locate the theatre where the screening would take place, mostly so I could gauge my ‘exploring time’ in order to make it to the Big Event on time the next evening. With suitcases safely taken care of, next on the list was to walk in the direction of the Theatre, (around the block and down a street), and then find lunch. Thanks to a scant breakfast, travel schedules, and busy trip prep the day before, I hadn’t eaten much at all in the previous 36 hours, and was ‘headache hungry.’ At this point, I didn’t care what kind of food, I just wanted someplace clean.

First things first – the theatre proved to be only a short distance away, on the backside of the block of the hotel. Although I had done a bit of searching on the internet before the trip, and despite the ‘glam image’ associated with the Tribeca Film Festival, this is the building put in context with surroundings:

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A reclaimed, but unassuming building (on the outside), topped by an exterior of a mix of condos, offices, and storage space is the headquarters of one of the world’s most known Film Festivals. Since the Festival, the property has gone on the market for upwards of $1 million.

Now on to lunch – I turned around to make my way down the street, and to say I caught my breath is an understatement:

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The new Freedom Tower, marking the site of the greatest modern-day American tragedy, is one of the most humbling sites I’ve ever seen. One is compelled to stop, and reflect, and say a prayer of gratitude.

Farmland is Foodland, and on to New York City food in the next post.