Avian Influenza Mapping Plan to Prevent CA Outbreaks

High Pathogenic Avian Influenza Mapping Plan (HPAI) to Prevent Outbreaks in California

By Patrick Cavanaugh, Deputy Editor

In 2014 and 2015, the outbreak of High Pathogenic Avian Influenza (HPAI) caused unprecedented damage to the mid-western commercial poultry industry, requiring the depopulation of 48 million birds, particularly turkeys and laying hens. There were isolated cases in last autumn in California as well. Migrating birds, generally considered to be the source of HPAI, move throughout the state in their flyways this time of year.

USDA Pacific Flyway Map

Maurice Pitesky, a UC Cooperative Extension population health & reproduction assistant specialist with an appointment in poultry health and food safety, emphasized the importance of the flyways, “These global flyways that waterfowl use to move north and south and back again every single year are like freeways. And in those freeway lanes, different birds interface with each other. So, we might have a Pacific flyway that covers California, but that Pacific flyway can interface with the East Asian and Australian flyway in the Northern Arctic. If you look at the genetics of the strains that were found in North America, especially in California, the genetics match some of the HPAI found in South Korea for example,” Pitesky said.

The Avian Influenza Mapping Plan is like overlaying maps of birds’ flying patterns for an early warning system for commercial operations. Pitesky observed, “We’re really just scratching the surface in how we can utilize maps with respect to surveillance and risk-mapping. For example, if I can locate on a map, where waterfowl, flooded rice fields, or wet fields are, and I can also determine where commercial poultry operations are, then I can start understanding which operations are at highest risk.”

I can triage my focus, outreach, and biosecurity efforts to those farms that are most closely located.

“New techniques are available so our national network of weather radar can actually be leveraged, and that data can be utilized remotely to understand in real time where waterfowl are hanging out. Eventually we can use that information to warn farmers in real time if there are migrating waterfowl near their farm,” he said.

California Ag Today2016-05-31T19:27:03-07:00November 18th, 2015|

Vandenheuvel Justifies FMMO in CA

Vandenheuvel Justifies FMMO in California

By Charmayne Hefley, Associate Editor

This Federal Milk Marketing Order (FMMO) hearing in Clovis, now in its seventh week, still has more ground to cover before it wraps up. Rob Vandenheuvel, general manager of the Milk Producers Council (MPC), reflected on the current California Marketing Order, “We’ve been operating under a separate system for many, many years. And while that may have worked for a good chunk of that time, in recent years, we’ve seen that the California system has not kept up with prices paid for milk in other parts of the country. So we’re trying to get on an even playing field.”

Vandenheuvel said resistance to the FMMO has come mainly from those who currently purchase California milk. “They’re not interested in a system that would require them to pay more for their milk,” he said. “They’ve had a pretty good deal in California, so they’re trying to protect it.”

He said some minor resistance comes from non-California dairymen concerned their prices could decrease should California join the FMMO. “There was talk earlier in this hearing that if dairy farmers in California were put on an even playing field and had more money paid for their milk, would they increase production? What impact might that have on the overall market?”

“When you look at California and the competition for land from pistachios and almonds,” Vandenheuvel said, “dairy is not the only agricultural interest here. So competition for land and competition for water are really going to put a lid on future growth—no matter what the dairymen get paid.”

Significant Losses

Vandenheuvel said the state’s current system has caused a significant profit loss for dairymen in California. “Our milk going to cheese plants is the largest class of milk sold in the state, but it’s still 45 percent of the total milk production. So, the state cheese price is less than the Federal price on that 45 percent of milk. The difference is a shortfall of nearly $2 billion since 2010 for the California producer.”

Vandenheuvel said when all dairies in the United States slumped in 2009, those outside of California were better able to recover under the FMMO than those inside under the CSMO. “When you look at the peaks and valleys that the dairy industry has gone through, we’ve had years like 2009, which was the worst ever,” Vandenheuvel said, “and 2012 was probably the second worst ever due to high feed costs. Most of the rest of the country recovered in the months and years following 2009 and then again 2012.

“California is still reeling. If we had sold off assets, we really haven’t recovered to where we were before 2009. So that $2 billion divided by the 2,000 dairymen that existed at that time in California was the difference between catching up and netting a profit. But actually happened, is that the industry has never recovered the losses, even after a few good years,” he noted.

Out-of-State Dairies Object to Federal Order

Vandenheuvel said that many California dairymen are looking to become part of the FMMO to get on a level playing field with the rest of the country’s milk producers. “If you buy into the theory that California dairymen got a fair price for milk will increase milk production and that would have a negative impact on the rest of the country,” Vandenheuvel said. “The best thing to happen to the rest of the country would be for California to go completely broke and shut down our entire dairy industry because they would be better off because we’d have twenty percent less milk in the whole country. That’s why I don’t think that those concerns are really strong. This hearing is more about the sellers of milk getting a fair shake and the buyers of milk not wanting to pay that fair shake.”

Vandenheuvel said that the way the dairy industry works—with milk spoiling each day—the government had to get involved in order to prevent buyers from refusing to buy one dairy’s milk and significantly devaluing the price of milk. “Cows don’t produce Monday through Friday only; there is no on or off spigot,” Vandenheuvel said. “So when you have a product that is being produced and piled up every day and has to be sold every day to a group of buyers who don’t have to buy every day –and they don’t have to buy from you—you’re at a huge disadvantage negotiating a fair price for that product.

“Imagine going to a car dealership where they had to sell a certain amount of cars that day or the vehicles would literally spoil, go bad and be worthless,” he noted. “You would have a great position to buy a car. That’s where we are, and that’s why the government got involved, said milk is important and we know dairymen are at a disadvantage. So we’re going to play referee between the two parties. Our problem in California is that that referee has been much more on the side of the processors keeping a low price in California.”

Two Main Proposals

Vandenheuvel said that two major proposals have been submitted to the USDA—one from the dairy-farmer-owned cooperatives and the other from the manufacturers. He said the USDA would decide upon the final proposal that will be voted on by producers.

“Manufacturers do not vote on Federal orders,” Vandenheuvel said, “It’s a producer vote. So it really comes down to the USDA. We think we’ve put together—as a producer coalition—a very sound, comprehensive approach of going to a FMMO while still respecting some of California’s issues—like our quota program; our transportation program.”

Vandenheuvel explained that it was very difficult to get the USDA to hold a hearing on the Milk Marketing Order. “We had to basically exhaust every alternative option in the state system,” he noted. “We tried a dozen hearings over the last ten years. We’ve tried legislation in California. We’ve tried suing the Secretary of Agriculture in California. We’ve tried protests and rallies on the steps of the capitol in front of CDFA, and at the end of the day last year our milk prices, compared to the rest of the country, had a bigger gap than we’ve seen in the last ten years.”

Vandenheuvel said the CDFA could have easily addressed many of the issues that caused milk producers to fight for a FMMO. Nevertheless, one issue, the CDFA could not have regulated for producers is interstate commerce. “That’s big for a state like California,” Vandenheuvel said. “We’ve got 35-40 million people here who drink milk and we’ve had situations in the past and currently in which milk is moving into California just to take advantage of the fact that California can’t do anything about it. Only a FMMO can regulate interstate commerce because of the way the constitution is drafted.”

Vandenheuvel said he hopes to see a recommended decision on the order by the middle of next year.

Patrick Cavanaugh2016-05-31T19:27:04-07:00November 9th, 2015|

Dairyman Cuts Diesel Emissions 92%

Kings County Dairyman Cuts Diesel Emissions 92% With Electric Mixer

By Laurie Greene, Editor

On his dairy in the Kings County town of Hanford, Philip Verway reduced his diesel consumption a remarkable 92% from 7,000 to 500 gallons in a given three-week period. His innovative secret to cutting diesel emissions is converting a diesel-powered commodity mixing machine to an electric mixer.

Kevin Abernathy, director of environmental services for the Milk Producers Council, said, “Rob Vandenheuvel, General Manager for Milk Producers Council, Philip and I helped him get a grant from the San Joaquin Valley Air Pollution Control District, a state-appointed board which aims to minimize diesel exhaust output. We put together a proposal, submitted it, and their governing board actually approved the grant. What began as a concept on paper led to the reality of the processes being implemented on-farm. We had it up and running in about three months. Most importantly, the end results are not only meeting, but exceeding our expectations,” said Abernathy.

The entire operation dramatically reduces total nitrogen oxides (NOX gases), pollutants in the San Joaquin Valley, “Our initial expectation based on the modeling was 22 tons of NOX emissions.” The post-project NOX rates were about two tons—a major reduction.

Abernathy said Verway worked with contractors Duport and Supreme to engineer the electrification of the vertical mixers and built some fail-safe components into the system. Impressed, Abernathy said, “Based on what I have seen, they have done a remarkable job, particularly on the multiple fail-safes. Hats off to Duport and Supreme for coming up with technology that works day-in and day-out, 365 days of the year.”

Abernathy also admired the ingenuity in the California dairy industry, “They continue to come up with some of the most extraordinary ideas. It is an absolute blessing to work with them, and they make my job so much fun with projects like this!”

California Ag Today2016-05-31T19:27:05-07:00November 2nd, 2015|

CEO Council on Sustainability and Innovation Launched

Agribusiness CEOs and Bipartisan Policy Center Launch CEO Council on Sustainability and Innovation

Washington, D.C. – Leading agribusiness CEOs announced TODAY they are joining together with the Bipartisan Policy Center (BPC) to launch the CEO Council on Sustainability and Innovation to improve agriculture and food production sustainability.

Leaders of DuPont, Elanco, Kellogg Company and Land O’ Lakes joined the Council, which will research, collect and amplify innovative approaches in the agribusiness industry, over the next several months, to combat and adapt to the realities of increasing climate volatility, a growing population, and other threats to a stable food supply.

“In the next 35 years, experts anticipate demand for animal protein will climb by 60 percent as the population grows in size and affluence. Already demand for milk, eggs and poultry is outpacing anticipated expectations,” said Jeff Simmons, president, Elanco. “We can’t just rely on the public sector to address these challenges. The private sector must deliver innovative solutions that can help farmers sustainably meet our global food needs.”

“Achieving a sustainable future food supply and responding to the challenges posed by climate change are dependent on our collective actions,” said John Bryant, chairman and ceo, Kellogg Company. “Kellogg and others in our industry have a role to play in sharing innovative solutions and inspiring others to progress along their own sustainability journey.”

“To feed a growing global population, the food and agriculture industry must continue to increase agricultural productivity while facing climate variability and resource constraints,” said Chris Policinski, president and ceo of Land O’Lakes, Inc. “By working together, we can be more effective and efficient partners to enable a sustainable and productive supply chain.”

“The cost and availability of food is an issue of critical importance to all Americans,” said Jason Grumet, president, BPC. “The council will help kickstart a more robust national conversation about what’s already being done to promote sustainable food production and what more needs to be done.”

Although there is extensive industry research into various sustainability practices, there is little collective understanding of the strategies being deployed, nor is there public appreciation of adaptation challenges, mitigation opportunities, and the importance of agriculture in what must be a global conversation. The council will highlight and promote these innovative efforts.

The council’s work will culminate in a public report to be released in 2016.

California Ag Today2016-05-31T19:27:05-07:00October 29th, 2015|

Milk Marketing Order in CA Worries Other Dairy States

By Kyle Buchoff, Assistant Editor

Tom Van Nortwick, owner and publisher of Agribusiness Publications in Fresno for the last 35 years, has been attending the USDA dairy hearing in Clovis to adopt a Federal Milk Marketing Order in California. Van Nortwick warned that should California go with the Federal Milk Marketing Order, the move could hurt prices for all milk producers across the nation.

“Dairymen in other parts of the country have expressed concern that if California dairymen were paid more for their milk, they may go ahead and produce more milk,” Van Nortwick said. “California is a milk-making machine with comparatively fewer dairies. More milk on the market has been proven to create volatility and huge price fluctuations up or down, depending on demand. So California producers’ getting paid more and producing more milk would reduce the price of all milk throughout the country.”

“We found that 2-3% too much milk in the market at any one time can create up to a 40% reduction in price paid to producers,” Van Nortwick explained. “And of course, California is not the only overproducing state; Wisconsin, Minnesota and other midwestern states are also overproducing at this time.”

Van Nortwick also pointed out, “Domestic demand is strong, but exports have shrunk by about 50%, which is about 8% of last year’s market. So when you add an 8% oversupply of milk volume to the market as we broach the time for holiday season orders, and there are strong indications that inventories of milk, butter, powder, and cheese are rising across the country, prices paid to producers will fall.

“Nobody needs prices to go any lower,” stated Van Nortwick. “Our counterparts in New Zealand, Australia, and the European Union are suffering mightily, even more than we are, with record-setting low prices because they think they can just produce more than they can sell. If you produce more than you can sell, you are going to take a hit, and unfortunately it is the producers who end up taking that hit.”

California Ag Today2016-05-31T19:27:06-07:00October 19th, 2015|

ALRB on Entering Private Property

ALRB on Entering Private Property to Educate Workers: Is the ALRB going too far?

By Patrick Cavanaugh, Deputy Editor

The California Agricultural Labor Relations Board (ALRB) wants to enter private property farmland for the purpose of educating farmworkers on their rights as farm laborers in California. Of course, farmers want their workers to be happy and content with their work and that means knowing and understanding their rights as farmworkers.

“But the ALRB is going too far,” said attorney Ron Barsamian of Barsamian & Moody in Fresno, which represents many agricultural businesses throughout California in labor and employment law.

“I wanted to get into some pragmatic issues that I feel have not been considered. For instance, the lack of efficiency in trying to get access to all these different ranches is just not going to work,” said Barsamian. “You are going to have staff tied up forever. I don’t think they have taken into account the different geographical areas, the different ag sectors. For instance, are you going to spend as much time educating two or three people working at a dairy as you would a crew of 50-60 people?”

California Ag Today2016-05-31T19:27:06-07:00October 15th, 2015|

More on Federal Milk Marketing Order

Continued Coverage on Federal Milk Hearing in Clovis

More on Federal Milk Marketing Order: Let the Market Sort it Out

By Patrick Cavanaugh, Deputy Editor

Bill Verboort is the General Manager for AgriTech Analytics (ATA), a national company based in Visalia Calif. Owned by the Holstein Association USA, AgriTech is part of the U.S. Dairy Herd Improvement Association System, and provides data to dairy producers for management, genetic improvement and pedigree purposes. Verboort has been attending the USDA Federal Milk Marketing Order (FMMO) hearing in Clovis, Calif., which is gathering testimony from milk industry people who want, or do not want to abandon the California Milk Marketing Order and adopt the FMMO.

“I think it is a very historic day, because I think California is one of the only major markets outside the FMMO,” said Verboort. “When the Federal system came in the 1930s, there were good reasons for us to be on a state order due to geographic isolation, etc. Today, I don’t see us as geographically isolated as we once were. So why not be part of the FMMO?”

Verboort noted that the FMMO should put California producers on par with the rest of the country when it comes to milk and cheese prices. “That is the intended and anticipated effect,” he said.

Of course there are many against adopting the FMMO. “Some are saying if the California producer is going to get more money for his milk, he is going to produce more,” said Verboort. “If you look at the industry over decades, when the price of milk has gone up, producers have produced more. You’ve got to make hay when the sun shines, so to speak. And when prices are down, the cash flows are down, so a producer needs to get more cash. What is the solution to that? Produce more milk!”

“So the California producers are going to produce more milk whether the FMMO system is in place or not; at least that’s the way I see it,” Verboort explained. “But if our producers in California are at a disadvantage to producers in other parts of the country, we need to make an equitable situation here.”

“And the market will shake it out. It is as simple as that,” he said. “We can produce milk products more efficiently in California and I think that is good for the U.S. and for the consumer. If the producer can produce it here more efficiently by getting on the right strategy with the FMMO rather than the California milk order, then we are on the right track.”

“California producers have been on the short end of the stick for a long time,” Verboort said. “Even though last year was a very good year for most producers throughout the country, and for California producers as well, they still sold their milk for several dollars per hundred weight less than the rest of the country,” Verboort said.

As for the hearing taking place in Clovis, Verboort said it seems that the momentum is going in a good direction. “But we will find out; that is what these hearings are about,” he added.

AgriTech Analytics (ATA) is a certified Dairy Records Processing Center.

Part of the U.S. DHIA System, AgriTech Analytics provides data to dairy producers for management, genetic improvement and pedigree purposes.

By utilizing the reports and herd analysis made available by AgriTech Analytics, Herd owners are able to maximize profitability and better position themselves in today’s competitive dairy industry.

________________________________________

Links:

AgriTech Analytics

U.S. Dairy Herd Improvement Association System

California Ag Today2016-05-31T19:27:07-07:00October 14th, 2015|

Outlook on California Poultry

Bill Mattos: Outlook for California Poultry Industry

By Charmayne Hefley, Associate Editor

California’s poultry industry has a positive outlook for the coming year despite the recent outbreak of the highly pathogenic avian influenza plaguing the rest of the nation’s poultry industry. Bill Mattos, president of the California Poultry Federation, said the coming year will see chicken overtaking beef.

“We’re learning from a lot of economists that we are going to have an exciting year for poultry next year and into the future,” Mattos said. “It looks like chicken is taking over beef next year, and all of poultry will be ahead of the red meats. We love our beef and pork friends, but we’re passing them. It looks like the healthfulness of chicken and the capacity to grow locally—everything in California—is looking good for the poultry industry. And we’re excited. We think the chicken and turkey industries will have a good year coming up.”

And although the price of corn is still higher in California versus nationally, Mattos said this industry is still doing well. “We still pay about a dollar or more a bushel for corn in California. But prices are outstanding compared to what they were two or three years ago, so our companies are making some money.”

With the flyways, or bird migration, coming back this fall, Mattos said the California poultry industry is prepared with increased biosecurity on their farms and ranches to prevent an avian influenza outbreak. Mattos said, “It’s very important that we make sure our companies are locking down their facilities—keeping visitors off and maintaining a biosecurity that’s first in the nation—because any type of bird flu that could invade here and spread would devastate the marketplace.”

____________________

California Poultry Federation

Patrick Cavanaugh2016-05-31T19:27:07-07:00October 9th, 2015|

Cornell Kasbergen On Federal Milk Marketing Order

Continued Coverage of Milk Hearing

Dairyman Cornell Kasbergen: We Need Federal Milk Marketing Order

By Patrick Cavanaugh, Deputy Editor

Cornell Kasbergen, a dairyman in Tulare County, is fed up with the flawed California State Milk Marketing Order. So much so, that he and other dairymen and women have a great desire to switch to the Federal Marketing Order.

This idea is presently front-and-center in Clovis, CA as USDA officials are holding an historic hearing that may extend into early November.

“It started three to four years ago when our milk prices were dramatically less than those in the rest of the country, and we wanted to get our industry on a level playing field. It has been a lot of work getting the co-ops together, but we are just at the beginning of this whole process.”

Having the USDA here is, in itself, a big beginning,

Kasbergen has worked hard to drum up interest in the idea. “When I was a co-op board member at Land O’Lakes, Inc. [a national, farmer-owned food and agricultural cooperative milk cooperative], we worked with other dairy co-ops and their members to get educated. We discovered, for the last three to four years, California’s whey value in its milk pricing formula deviated from national prices, and California producers were losing money. Once we realized we were leaving a lot of money on the table—over a million dollars a day—it opened people’s eyes. That’s why we are having this hearing.”

“The California Department of Food and Agriculture intentionally left the state’s whey prices lower than the rest of the nation, and though we’ve been petitioning them over and over again to rectify the issue, they have failed,” said Kasbergen. “That’s why we have gone this route in getting our milk prices formulated by the federal government rather than by the state. Our state has really let us down.”

“The CDFA has taken hundreds of millions of dollars out of the dairy farmers’ pockets, the loss is killing the dairy industry in California,” said Kasbergen.

California Ag Today2016-05-31T19:27:07-07:00October 9th, 2015|

Dairyman Xavier Avila on Federal Milk Marketing Order

Continued Federal Milk Marketing Order Hearing Coverage

Kings County Dairyman, Xavier Avila Worked Hard to Get Federal Milk Marketing Order on the Docket

By Laurie Greene, Editor

Xavier Avila, a dairyman in Kings County, is monitoring the USDA Federal Milk Marketing Order (FMMO) Dairy Hearing in Clovis very closely. “Well, I was one of the ones who pushed for it five or six years ago. It’s kind of dear to me to get it done,” he said.

Avila explained, “As a kid growing up in the sixties and seventies, all my family members who were in the dairy business talked about how bad it was before the orders. Milk needs to be picked up everyday, so it it’s really easy to mess the market up if you don’t pick up a guys’ milk or threaten not to pick it up. So the California marketing order was established to bring order to California milk.”

Avila said the California marketing order worked for many years when dairies across the country were making the same amount of money per hundredweight. But prices are not equal now, and California dairy farmers are getting paid much less than those other parts of the country.

“We set up a solution on end-product pricing. Yet in California, the CDFA was not following the rules. If the rules had been followed, we wouldn’t have a need to go to the FMMO,” said Avila. “But CDFA just wouldn’t follow the rules regarding end-product pricing and the USDA does follow the rules; so it is just a simple matter of going with the people who are following the rules.”

“For the past ten years,” Avila said, “our whey prices have been much less than the national whey price, so the California dairy industry has lost billions of dollars.” “It’s really simple. There are six pounds of whey per every 100 pounds of milk. Basically for the last few years, whey was 60 cents/pound. Doing the math, 60 cents times 6 pounds; you come up with a total of $3.60 for the whey in each 100 pounds of milk. With the California Milk Marketing Order, we were paid just 25 cents towards that total and the plant kept the rest. The Federal order is basically the reverse; not quite, but almost the reverse.”

Avila is bullish on the California dairy industry’s conversion to a FMMO. “I think it’s going to happen. Nothing is for certain, but the industry is united. Milk is the same everywhere, and I think it is in California dairy farmers’ hands because we are going to vote on this. Whenever you produce the same product and earn far less for it, it is inevitable that something is going to happen.”

Avila noted it will take some time, “but I knew that from the start, it would not be quick and easy. We are looking at anywhere from one to two years,” Avila said, affirming his belief the California dairy industry can hang on for two years. “We’ve got not choice. Now with the drought, there are other crops you can do better with. Some dairy farmers will leave the business just because they have something better to do than milk cows. So we see this as saving the California dairy industry,” Avila said.

Click here to view Video of Xavier Avila, September 22, 2015.

California Ag Today2016-05-31T19:27:08-07:00October 6th, 2015|