Calif. Dairy Organizations Collaborate Regarding Quota Program

Groups Launch Exploratory Effort to Solicit and Analyze Proposals

News Release

Recently, the United Dairy Families of California, California Dairies, Inc., Land O’Lakes, Inc., Dairy Farmers of America, and the STOP QIP organization announced a multi-phase process aimed at soliciting and analyzing industry input on California’s historic quota program.

Included in this process is a series of meetings, starting later this month, open to all dairy producers and interested parties. These meetings are intended to solicit various pathways for the state’s quota program.

1) This multi-phase process includes three key parts: The Think Tank, Producer Feedback, and Analysis.

2) The Think Tank phase is for information-gathering from various segments of the dairy industry. This will include the meetings identified below, where producers will be able to voice their opinion and contribute ideas or concepts.

3) The Producer Feedback phase will allow producers to comment and challenge the ideas developed in the Think Tank phase.

In the Analysis phase, dominant ideas from the Producer Feedback phase will be analyzed for economic impacts, and legal pathways to adoption will be determined.

This process will be implemented with the assistance of dairy industry economist Dr. Marin Bozic and dairy market analyst Matt Gould. Dr. Bozic and Mr. Gould will be conducting an economic analysis of the proposed ideas.

The first series of meetings associated with the Think Tank phase are as follows:

● Tuesday, July 30 – 2 pm to 4 pm – Embassy Suites, Ontario

● Wednesday, July 31 – 9 am to 11 am – Heritage Complex, Tulare

● Wednesday, July 31 – 2 pm to 4 pm – Turlock Ballroom

● Thursday, August 1 – 9 am to 11 am – Washoe House, Petaluma

Meeting space is limited. All participants are strongly encouraged to register at

www.dairyfamilies.org/events

Federal Milk Marketing Order in California in Effect Nov. 1

Questions Arise Regarding Milk Quota

Edited by Patrick Cavanaugh

Dairymen and women throughout California are working hard to provide milk and other dairy products for consumers in California and the world. Because the industry has struggled over the past decade with price swings that have often landed dairies in red, many dairies have gone out of business. Still, other operations relocated to others states where regulations are a fraction of what they are in California.

In June 2018, California dairy producers voted to establish a new Federal Milk Marketing Order (FMMO) for the state. The vote was a paramount step in a long process that would culminate with the new order taking effect on November 1. The order will adopt the same dairy product classification and pricing provisions currently used throughout the FMMO system.

California accounts for more than 18 percent of U.S. milk production and is currently regulated by a state milk marketing order administered by the California Department of Agriculture (CDFA). Once this new FMMO takes effect, more than 80 percent of the U.S. milk supply will fall under the FMMO regulatory framework.

Western United Dairymen is a trade association based in Modesto. Annie AcMoody is the Director of Economic Analysis. She explained that there have been questions from the industry regarding the upcoming FMMO.

Among the often asked question revolves around when the state switches to FMMO in November, what will happen to their quota if a dairy ships milk out of state?

Annie AcMoody: When our California state system goes away to make way for the Federal Milk Marketing Order (FMMO) in November, the Quota Implementation Plan (QIP) will be the language in place to ensure the quota system’s smooth transition into the FMMO system.

When we enter that new world, all market milk received from California producers at a California plant will be assessed for quota. By “received”, the language defines “to convey milk physically into a milk plant where it is utilized within the plant, or stored within such milk plant and transferred to another plant for utilization. This means that a milk truck driver cannot drive by a plant, wave hello to an operator, and keep on going out of state and still call this milk received in California. Basically, if your California milk leaves the state, you will not be assessed for quota.

But you also will not be paid for it. But, if your milk is 60% quota and only 40% of your milk goes out of state, you will be assessed on 60% of your milk and get paid quota on that same 60%. If your quota covers 100% of your milk and 40% of your milk goes out of state you will be assessed on 60% of your milk and get paid quota on that same 60%. In this instance, one could wonder if it makes much sense to keep your quota.

While it may not make much economic sense to hold on to quota you are not paid for, some reasons may validate that decision (perhaps it is expected milk will be shipped to a California plant in the near future). If you were to decide to hold on to that quota, it is important to keep in mind that “if quota is not made active by shipments of market milk to a California plant or cooperative association or is not transferred within the 60-day period, such quota shall revert to the Department”.

This excerpt from the QIP means that if your quota milk is not paid on for over 60 days, you will lose it, so you better sell it. This is likely going to be an issue if you ship to a proprietary plant and all your milk goes out of state. If you ship milk to a cooperative, there is more flexibility because that coop has the ability to combine quotas assigned to it by its members.

So as long as the quota total within the coop is not larger than the total amount of market milk produced and received in California, then there should be no issue for you as a quota holder.

What 
is 
defined 
as 
market 
milk?


Answer:
 Grade A milk.

If your milk is Grade B, you cannot have quota now and will not be able to under the QIP. You will not be assessed for it either. Currently, only around 3% of the milk in California is Grade B. WUD will keep an eye out on this topic to ensure that percentage does not deviate significantly. As a reassurance, this is not something that could grow from 3% to 50% in a month since fluid milk is not allowed to take in Grade B milk and the three largest coops in the state (CDI, DFA and LOL) committed to not taking in any more Grade B milk after the transition to the FMMO.

Hilmar Cheese Company Unveils Largest Dairy Mural in the U.S.

Scoop it Forward Event Collects Food for Hilmar Helping Hands 

News Release

Hilmar Helping Hands received thousands of food items on July 13 as part of a “Scoop it Forward” event to celebrate the official unveiling of the largest hand-painted dairy mural in the United States at the Hilmar Cheese Company Visitor Center.

Hilmar Cheese Company owners, employees, local officials and the community brought non-perishable food items to donate in exchange for a scoop of delicious ice cream made with Real California Milk as part of the mural celebration, which honors the partnership between the dairy industry and the local community.

“Dairy farm families are the backbone of many of our local communities,” said Jenny Lester Moffitt, California Department of Food and Ag Undersecretary. “But their impact goes well beyond that. They benefit the entire state—economically and by providing wholesome, affordable dairy foods.”

The mural is part of a national effort to celebrate the contribution of dairy farms and farm families to local communities. The Hilmar Cheese Company Visitor Center was selected by the Innovation Center for U.S. Dairy as one of seven locations across the nation to feature a custom mural as part of the Undeniably Dairy campaign. Undeniably Dairy is an industry-wide, national campaign that aims to increase consumer trust in the practices, principles, and people behind the dairy foods people know and love.

Standing 32 feet tall by 60 feet wide, the mural is a creation of muralist Ed Trask of Richmond, Va. The mural creation used 22 gallons of paint and 273 different colors. It depicts the Hilmar Cheese Company’s founding principles of farmers, family, community and faith—and its passion for Jersey cows. It also depicts a child’s journey from experiencing the visitor center as a youth and showing cows to discovering her devotion to dairy and pursuing a career in dairy innovation and research.

“This mural represents our values and foundation,” said Jim Ahlem, chairman of the Hilmar Cheese Company Board of Directors. “We are grateful to our local communities, our employees, the wholesome dairy foods we produce, the next generation of agricultural leaders developed through 4-H and FFA, and of course, the dairy farm families who ship their milk to us and the Jersey cows that produce it.”

“We appreciate that we were selected as one of the mural locations,” added David Ahlem, CEO and President of Hilmar Cheese Company. “We have thousands of families and school children visit each year. It’s important that people understand where their food comes from, and we hope this mural will bring a new connection to dairy.”

Young Dairy Owner Plans to Thrive in Future

Nevin Lemos Prefers Jersey Cows

By Patrick Cavanaugh, Editor

Nevin Lemos could be the youngest person to own a dairy in California. The 21–year-old owns Lemos Jerseys in Stanislaus County.

Lemos is a fourth-generation dairyman east of Modesto in the community of Lockwood. He grew up on his family’s dairy, and now he’s on his own. His family’s dairy is Lockwood III dairy, which is about five miles from his dairy.

“I’m 21 years old, and I decided to start my own. I wanted to expand the business, and get a little bigger so we can all stay in business, be competitive,” Lemos said.

“We have a plan someday to consolidate the two, and this was our way to grow.”

“It’s my baby here, my business, my passion here,” Lemos explained.

He thinks that it’s a good time to get into the dairy business.

“I’ve had some dairyman that I look up to, and they gave me some advice that even though the milk price is down, this is the best time to get started,” he said.

“That’s if you can … weather through some of the bad times because it’s a long-term investment. This is not a business that you get into for a short while, so if you can buy the cattle at a reasonable price and keep that input down, you’re in pretty good shape,” Lemos said.

His operation is 400 Jersey cow dairy with a double six-herringbone parlor.

“You know, my parents have the Holsteins. I’ve grown up around the Holsteins all my life. I showed Holsteins in 4-H growing up and love the Holstein breed but decided to go with the jerseys for a few reasons. One is they’re high in fat and protein components. I ship to Hilmar Cheese, so there’s good incentive there to get a premium off the fat and protein. Also with the reproduction, the Jerseys breed back so well.”

Lemos said he gets a 30% pregnancy rate.

A lot of the dairy cow feed is grown around the dairy operation.

“My landlord farms the 50 acres with the dairy. And I purchase the feed from them,” Lemos said. “Of course, that’s one of the significant inputs into the dairy. Feed is a bit of a high right now with exports. I put all my corn silage in Ag-Bags … to minimize my shrink, and that’s been going pretty well.

Lemos said in June, he can say he’s been going after it and his dairy for one year, and he knows he’s going to keep on going.

“I will most definitely keep going. Just getting started is the most challenging part, especially in a year like this year. I’m breaking even … if not slightly in the black. But I look forward to seeing what it does in years to come,” Lemos said.

Just building the herd and establishing it, Lemos is going to sit on some money for a little while before he starts to see it again.

Still, he said of operating his own dairy at 21 years old, “It’s the dream, my passion, it’s really what I love, and I would not have it any other way.”

Got ice cream! (Thanks to UC Davis)

By Trina Wood

Chances are when you’re scooping that vanilla bean ice cream into your bowl for dessert, you’re focused on the flavor about to hit your taste buds, not on whether it may give you a foodborne illness.

That confidence in the safety of California’s dairy products  — the state’s top agricultural commodity, valued at nearly $7 billion in annual retail sales — results in part from the efforts of the San Bernardino branch of the California Animal Health and Food Safety laboratory system.

This network of laboratories, headquartered at UC Davis and administered by the UC Davis School of Veterinary Medicine on behalf of the California Department of Food and Agriculture, performs surveillance and diagnostic testing for livestock and poultry.

The San Bernardino laboratory carries out such work on milk and dairy products that are submitted by the state’s Milk and Dairy Foods Safety Branch. The lab’s on-site bacteriology section tests for a variety of disease-causing microbes including  ListeriaBrucellaSalmonellaCampylobacter and E. coli O157:H7 — all of which can cause severe illness and even death.

Protecting against foodborne diseases

The U.S. Centers for Disease Control and Prevention estimates that each year roughly one in six Americans (or 48 million people) get sick with a foodborne disease.  Of these, 128,000 are hospitalized and 3,000 die from these illnesses.

However, such diseases have almost been eliminated from licensed milk and dairy products, thanks, in large part, to a strong regulatory framework, including adherence to pasteurization and laboratory standards.

Approximately 1,500 samples of milk, dairy products and water arrive monthly at the San Bernardino lab resulting in approximately 4,200 tests conducted by a team of eight technicians. These microbiological assessments monitor bacteria populations and the effectiveness of pasteurization in destroying harmful bacteria.

Partnering with California

“The laboratory system has been a successful partnership between the state and UC Davis since 1987,” said its director, Richard Breitmeyer.

He noted that it was natural in the 1990s to expand the lab’s statewide regulatory testing services to include milk products. Before then testing was limited to samples from only Southern California.

In 2000, the California Department of Food and Agriculture was so impressed with the accuracy and timeliness of the California Animal Health and Food Safety laboratory system that it placed all such statewide regulatory compliance testing in the network of labs, in a move that  enabled the state to cut costs, speed analysis and consolidate testing.

The San Bernardino lab

Three years ago, the state asked the laboratory system to also begin testing  milk and dairy products for chemical components such as fat and protein content. The San Bernardino lab now provides this service.

“I’m proud of our efficiency,” says Jose Gallegos, the San Bernardino lab’s supervising dairy analyst, who has been with the laboratory system for 20 years and oversees the milk quality testing lab. “Results are rapid and consistent, and reduce the number of people who become ill in the event of an outbreak.”

The San Bernardino laboratory is considered the state reference lab for California and holds the distinction of being the only veterinary facility in the nation set up as a regulatory testing facility. In addition to running tests for the state, the laboratory also is certified by the U.S. Food and Drug administration, under the National Conference of Interstate Shippers program guidelines to run microbiological tests.

Testing dairy products

As part of this testing program, the state sends samples from three sources: the farm, processing plants and retail establishments where the finished product is sold. The lab also tests some exports such as ice cream for microbiological components and dry goods such as powdered milk.

State milk and dairy officials may submit samples from a location if a report comes in that someone has become ill after eating or drinking at a particular business. State and federal investigators also routinely check farmers markets and small establishments for raw or illegally processed milk and dairy products that could pose a serious health risk. Those products are sent to the San Bernardino lab to be tested for the presence of bacteria or improper pasteurization.

Samples sent to the lab must be transported at the proper temperature, arrive within 60 hours of collection and be properly packaged before they are tested for general bacteria populations. If the testing criteria aren’t met, those samples are rejected for testing and reported to the state for recollection. Any test results indicating the products were not produced in compliance with state regulations are reported to the California Department of Food and Agriculture, which is authorized to enforce the regulations.

After milk samples have been analyzed for bacteria and other indicators of improper sanitation at a facility, they move on to be tested for drug residue and other unwanted substances such as antibiotics, which may have been used to treat sick cows.

Farmers are required to keep milk out of the supply line until the medication has cleared from the cow’s system and the milk meets strict requirements established by the FDA. Other testing, such as checking for proper pasteurization and possible water contamination, complements the tools used by state officials to ensure the quality and safety of the milk supply.

“We’re always looking at developing better tests and working with our partners to provide the highest level of service,” Gallegos says. “Knowing all the quality testing processes in place, I feel great about drinking milk!”

About CAHFS

CAHFS is a public service program of the university. The primary objectives of the CAHFS are to provide appropriate and timely diagnostic support to safeguard the health of California’s dairy, livestock and poultry industries and to protect the public health from animal disease.

 

Yolo Food Bank Receives Grant from National Dairy Council

Source: Woodland Daily Democrat

Yolo Food Bank announced that it has been awarded a $10,000 grant from the National Dairy Council to increase dairy capacity for the Food Bank’s partners.

This grant was awarded to 20 food banks, nationally, with Yolo being the only California food bank to receive it, according to the Yolo Food Bank.

The Food Bank plans to use these funds to purchase refrigerators for some of its partner agencies.

“We would like to thank both the National Dairy Council and the Dairy Council of California for this generous grant,” said Karen Strach, director of programs at Yolo Food Bank. “A number of our partners have limited or no access to refrigeration and therefore are unable to distribute dairy products to their clients. This grant will allow us to increase the number of food pantries that will be able to provide dairy products to local residents.”

Between May 2013 and April 2014, Yolo Food Bank distributed 117,000 pounds of dairy products. It is anticipated that this grant will increase the amount of dairy products that the partner agencies are able to distribute by approximately 5,800 pounds each year.

The mission of Yolo Food Bank is to alleviate hunger and malnutrition in Yolo County. Through its programs and partnerships with 60 nonprofit partner agencies, approximately 23,000 residents are served each month.

Established in 1915, NDC comprises a staff of registered dietitians and nutrition research and communications experts across the country. NDC has taken a leadership role in promoting child health and wellness through programs such as Fuel Up to Play 60.

Developed by NDC and the National Football League (NFL), Fuel Up to Play 60 encourages youth to consume nutrient-rich foods and achieve at least 60 minutes of physical activity every day. – See more at: http://www.nationaldairycouncil.org/AboutNDC/Pages/AboutNDCLanding.aspx#sthash.628ntxdh.dpuf

Milk Price Changes for April 2014

The minimum price of milk is the price that dairy processors must pay for milk used to produce dairy products.

National commodity prices, primarily Grade AA butter, cheddar cheese, nonfat dry milk, and dry whey are significant factors in determining the minimum milk price.

Compared to last month, the national commodity prices for western dry whey and nonfat dry milk increased, while cheddar cheese and Grade AA butter decreased.

CDFA reports:

  • whole milk decreased four and three tenths cents per gallon
  • reduced fat milk decreased four and six tenths cents per gallon
  • lowfat milk decreased four and nine tenths cents per gallon
  • skim milk decreased four and one tenth of a cent per gallon

The Dairy Marketing and Milk Pooling Branches are involved with the economic and fiscal regulation and oversight of the dairy industry.

Activities and responsibilities of the Dairy Marketing Branch include oversight of the production and marketing of milk and dairy products which includes the regulation of minimum milk farm prices and dairy trade practices in the marketplace.

Activities and responsibilities of the Milk Pooling Branch include the administration of the Milk Pooling Act which provides standards for distributing monthly statewide market milk revenues to all California dairy producers.

The Branch also administers the Milk Producers Security Trust Fund which provides a resolution for defaulted payments to dairy farmers from milk buyers.