After a wonderful weekend at my sister’s guest house in northern Ontario, I returned to the Bullvine refreshed, rejuvenated and enlightened.  While there, I thoroughly enjoyed one of those sessions that can only occur when four adult women have their feet up in a gorgeous garden with favorite food and beverage at hand — I discovered that it’s possible that I have control issues.  What?  As much as I tried to steer (or control) the conversation, I had to finally admit that, despite my sense of adventure, I do like to know what’s happening, when it’s happening and why.  Each visitor that joined us was told of my surprise at the label and, having known me and my family for many years, they unanimously laughed out loud.  So I smiled and made a note to look into this later!

I also smiled when I returned home and the first email I opened was from Andrew who asked me to write something humorous to wrap up introduce the month of July, national celebrations and summer holidays on the Bullvine.  Obviously here was someone who knows the inner me.  So… I went to my desk. Opened my computer and checked the recurring list for the 29^th of the month which read– “#1. Laugh out loud!” Trust me — the milk I had been enjoying with my breakfast splashed out my nose and all over my papers. There at the top of the page was the name of my daily list, “Control Journal!” I kid you not.  I have had this list for many, many years and yet, when confronted by my mother, sister and niece, I found the idea of “control”, when applied to me, somewhat hard to admit.  However, in honor of happiness inspired by a new month and a new perspective, I am ready to raise a glass and confess all.

“My Name is Karen.  I have a drinking problem.”

Let’s set the scene by admitting that my drinking problem starts with my husband.  Murray –definitely drinks too much … milk.  Far too often my kids and I have caught him at the Dairy Queen!

I over indulge too.  We try to hide it but family members often smell chocolate milk on our breath. The neighbours are beginning to suspect. Our blue box overflows with empties.

I remember that for me it started with my grandmother. She had great ideas for recycling stuff for crafts. We had chandeliers from milk bottles.  Place mats from braided plastic milk bags.  I loved her and quickly realized that somebody had to drink the milk in order to get those empties.  No wonder I too grew to look to milk containers and dairies for creativity. At my High School Prom the ceiling decorations were tin foil streamers left from making the lids for glass bottles!

For Murray it’s all about supporting the dairy industry.  Is it stealing if he pockets the creamers from fast food restaurants and buffets?  Or is a grandfather supporting the small motor skills of his grandchildren as they learn to take the foil off of the creamers.  For all he knows, it might be keeping him from losing his own dexterity!

“The Milk Stops Here!” 

Our kids have been aware of the family problem and, in their own way, have done everything to stop the trend from spreading uncontrollably. Two of our three offspring have married lactose intolerant partners.

Of course, I can stop any time that I want to!”

It wouldn’t be easy but I could do it. However sometimes when I reflect back on all the milk I drink, I feel proud.   I look into that cloudy empty glass and think about the dairy farmers and dairy cows in the alleys, barns and milking lines.  I think of all their hopes and dreams. If I didn’t drink this milk, they might all be turned out to pasture.  No work. Their dreams would be shattered.   Then I say to myself, “It is better that I drink this milk and let their dreams come true than be selfish and worry about quitting.”

“Milk has left its mark on our family!”

Even though we are getting further away from actually producing milk, our children and grandchildren still recognize their dairy heritage.  Maybe it will be better for them.  When our children were little the milk came fresh from the barn.  Sometimes too fresh.  When they complained about being teased at school, I urged them to adapt.  Explain the benefits of dairy living.  You can call it, “Show and Smell!”

Some families say, “Hello.  How are you?”  We say, “Got milk?” 

There were early hints that I would be attracted to a milk producer.  Even though my father moved off the dairy farm when I was born, our house was decorated with milk cans, milk bottles, and milk crate shelving units that reminded him of his milk producing youth.  One of the best home movies was created on one trip to the islands which gobbled an entire reel as he battled with the coconut that would not yield the milk he sought. Needless to say, he was unusual in his preference for milk.  He loved Bailey’s Irish Cream …. Without the cream!

“Our mom always cried over spilled milk!”

Milk creates strong bones but doesn’t necessarily create the ability to prevent spills.  The old saying goes don’t cry over spilled milk but I remember one time when the problem went way beyond spilled milk. Uncle Mortimer was somewhat creative in his dairy farming.  He loved milk but he didn’t like that the milk fresh out of the udder was hot. So he came up with the idea of keeping his milking gloves in the freezer overnight. The first – and last– time he tried his, the cow shivered uncontrollably.  She kicked the bucket …. And so did my uncle Mortimer. That was one time we ALL cried over spilled milk!

“Not all our family milk stories are bad.”

Cousin Billy Bob’s mother cured everything with Milk of Magnesia. She got quite a bit of attention, by whipping out her blue bottle to help every situation.  One day Billy-Bob was reading a book when he should have been taking the milkers off. By the time he got his mind back to his job, the cow was so upset she kicked him.  Aunt Milly found little Billy-Bob knocked out cold.  He doesn’t actually remember what happened, however, unlike Uncle Mortimer, he survived to milk another day.  He loves to steal Aunt Milly’s thunder and often entertains with s his “milk of amnesia” story!  Unfortunately that family’s love of fresh milk must be cutting into their profits. What other reason would they have for posting this sign in the milking parlor, “NO DRINKING DURING MILKING HOURS?”

“The Psychological implications of Milk Mania”

For some of our family being crazy about milk has been shortened to just being crazy.  How else can we explain our moo-d swings?  When I was young, my imaginary playmate was a calf.  They had to take me to a psychiatrist to have me de-calfinated.  The same thing happened to my cousin Molly (she called herself Molly-Moo). She spend so much time in the fields trying not to think about cows, she starting thinking she was a horse. Now she doesn’t know if she’s been cured or if she is milk dud. Either way, she’s an udder failure!

“Our family stands up for milk!” 

We never know where the next milk joke will come from but we are all ready to recognize dairy comedians.  After the more we laugh, the less time we will have to drink milk.  Some comedians have one liners, we have milk liners.  We don’t drive the punch line, we milk it for all it’s worth!

The Bullvine Bottom Line

Without question, for our family at least, the greatest historical breakthrough came when someone saw milk coming from a cow’s udder and asked, “Why don’t we drink that?” Oh, I grant you that the wheel was also a fine invention, but the wheel does not go nearly as well with cookies. My name is Karen and I am a heavy milker! See you at the Milk Bar!

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It doesn’t matter what industry your business is in, you have probably encountered misperceptions about what you do or what you sell. The problem with misconceptions is that they can be hard to shake. Just like an urban legend, they become beliefs that are assumed to be facts.

Dairy month is a good time for us, as an industry, to consider the stereotypes and misconceptions that affect the dairy industry.  A recent discussion on the Milk House started with the question “What is the biggest misperception that you think consumers have about the dairy industry?” The lively discussion that followed highlighted several misperceptions and even noted some responses that could be helpful. The following list is in no particular order.

#10. “Organic Is Better Than Traditional Milk”

Response: Everyone is promoting what makes their product different.  Consumers are aware of this and look for points to help them choose between products.” Says Seth Snook, “When organic producers claim no antibiotics no hormones, etc.” it is not intended to hurt the conventional producer but the implication that our products are tainted is damaging.”

#9. “All Large Dairy Farms are Bad”

Misperceptions are not always outside of an industry.  For example, even those with hands on in dairying are influenced by the good and bad experiences they have been exposed to.  Some, like Dave Puppe, are disappointed by the growth and changes in the industry which leaves them feeling that all large farms are equally bad.

Response:  “Painting all big farms with the same brush is playing with the same fire that consumers play with when it comes to farms and livestock in general. It’s safe to say that not all small 40 cow dairies are ethical, and not all big farms are factories.” Sloane Michelle Sanders further clarifies her point, “The general public seems convinced that every farm that has a free stall/parlor environment over a tie stall/pasture set up is abusive. I’ve seen cows flourish in both settings. Look at Luck-E. Kandie hangs out in the free stalls and still looks perfect.

Response: Cliff Shearer gives this definitive answer. “In some ways all farms are ‘factory’ farms and no farms are factory farms. They are all factory farms in the sense that in a contained area ‘ factory ‘ they take a raw product ‘ animal food ‘ and produce a marketable product ‘ milk, beef, eggs, etc. ‘ which is basically how every factory on the planet works. However, none of them are factories because they all deal with animals which makes them into Farms a different thing. No factories are farms because they don’t have livestock, but no farms are factories. To call any farm a factory is misleading – you may as well say General Motors is a farm. It’s just yet another word used by ignorant people to try and devalue what farmers do. I don’t think you can call intensive pig and poultry farms factories – they are still farms – just different systems of farming. Even a 20,000 cow farm is still a farm.”

Response: Ashley Elizabeth Morin weighed in with this considered response. “I would think of a factory as machines producing a product. The work, dedication, time, and effort we put into our livelihoods are what make it a farm. It’s generations of families working together from the past to present to leave an even better tomorrow for our children to carry on. I don’t think the almond milk CEO goes to the factory in the middle of the night because there is a glitch in the system.

You will find the farmer out in the barn, no matter the hour, pulling a calf, iv-ing a cow… the list never stops. That’s the difference to me: the amount of dedication and love it takes to do this every day. It’s not for the faint of heart.”

#8. “Dairy Farmers Mistreat Their Animals”

Response: The cows are what make me money, so there’s no way I could ever abuse them.  I think that goes for most dairies in general.  The truth is when prices are down, and cuts have to be made, cows still get fed better than me. Always will.” Noting other aspects of animal care, Mark Yeazel and Amber Kilgour report that people are surprised that the cows are not only registered but have names and are recognized by their spots. All respondents agree, “That we couldn’t care less about our animals really makes us angry!”

#7. “Dairy Farmers Are Hands-Off of Everything Except the Profits”

Supporting this position, Dave Puppe declares “I’ve experienced both the smaller and the mega size….the bigger it is, the less respect for the animal….it turns into a factory and the less hands on debate over large farms, Puppe conceded slightly, “I see your point but confining that many cows to concrete and milking them to death is unnatural and wrong……” To which Sanders responds.

Response:  “Milking them to death? Define milking them to death because as far as I can tell, most farms only milk 2 or 3 times a day, regardless of size. I’ve also heard of several smaller herds who never let their cows out of their tie stalls EVER for fear of them hurting themselves. They are in the more-desired (to some) setting, and yet they never see pasture either. There’s good and bad to each.” 

Sloane Michelle Sanders responds with her personal experience.

Response: “I worked for a farm that milked 1,000 cows. The owner is involved in every single operation on that farm. Every single day, he’s out with the team he’s hired, and can frequently be found out in the barn cutting out cows, pushing them up to the parlor, and on occasion lending an extra set of hands in the parlor.”

#6. “Dairies Heartlessly Separate Cows from Calves at Birth”

When non-dairy observers question taking calves from the cow at birth, some dairy managers make the effort of explaining how it is for the good for the health of both mother and calf. In humanizing the event, the general public overlooks the potential for the environment and other animals to pass germs on to the newborn.

#5. ”Dairy Farms Pollute the Water”

The biggest misconception in NZ is that all dairy farmers are filthy rich and also are polluters of the waterways. There is a phrase often trotted out in the media “Dirty Dairying” which means farmers who pollute the water. The belief is that we make so much money that we don’t care about the water or the environment. The truth is that we are most closely watched of all industries in the country, and any pollution is quickly picked up and harshly dealt with. And yes most farm owners [who have worked bloody hard for many decades] are asset rich but we are almost all cash poor. We don’t get our money till we retire.”

Patty Traxler reported a situation regarding an ironic turn of events. “Here in the land of 10,000 lakes as farmers it makes applying manure even more challenging! We have lake people monitoring us all the time which pushes us to do an excellent job. But when the county got a grant to check septic systems of the area 86% of lake homes failed! They now have to put a pipe in to move the waste to a nearby city costing each home hooking up $40,000 or so!!!”

#4. “Dairy Farmers are Rich!”

Since milk is so expensive in the store, consumers assume dairy farmers must be rich.  This misperception was on many lists – some were amused — some wished it was so. Regardless, what farmers get paid is assumed to be making them rich.

#3. “Twice a day Milking” and “Lots of Holidays”

Some who joined the discussion noted that the public thinks “That we simply milk the cows twice a day… And that’s it.” Mark Yeazel’s has experienced this mistaken viewpoint, “You milk with robots, what do you do with all your free time now?” Some were surprised to hear that dairy farmers have vacations, “We have holidays?” Daniel Drummond described dairy farming in a non-holiday framework:” 24/7 on call…..ass to the fire….full bore. Try living with a rocket strapped to your back called debt…..but forget about it when you come in the house and see your kids. Bless the farmer, they need all the help they can get.”

#2. “Women Don’t Do Much on the Dairy Farm”

Dairy women are also misrepresented in the minds of those who don’t know and think “Women don’t do much on the farm. Or that every female farmer is a ‘farm wife’.” Ashley Elizabeth Morin notes, “I’m the farm girl, and my fiancée is the farm wife.” Melynda Naples also pointed out that “Often the female is “the farmer”.  It would make a fascinating article (and statistical study) to see the numbers comparing woman who do the dairying while the husband works off the farm.

#1. “Dairy Farmers are Dumb”

Mark DeBoer and Sam Kenney listed the misperception about farmers being considered dumb.

Kirt Sloan added that some people feel, “Anybody can do it! The truth is that it’s a very complex business with animals, people, and nature…..it is a calling of maximum intestinal fortitude. And I am grateful to work in this industry.” Michael Steele also notes this misconception is out there and adds. “The truth is that most Americans are 4, 5, 6 generations from the farm, we have to do a better job of educating the public.” On that subject, Patty Traxler shared her experiences.” I spend a lot of time educating kids and the public; I want people to see that I am college educated, that I take amazing care of my animals, that they aren’t just a number, that I can be a great mom & a great farmer, and that I work hard to produce an incredible product for the world!!”

The Bullvine Bottom Line

Thanks to everyone who took the opportunity to share their experiences.  Being heard is really what fighting misperceptions is all about! That … and not being buried in a pile of misinformation!

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Much has been written about what goes on in the market free-zone of the southern hemisphere.

The truth in 2015 is that unless the farms have no mortgage, private price contracts with niche companies or no paid staff, Australian producers are as exposed as any other nation’s to low milk prices.

It is hard to generalise on the producer’s position in the world’s third-biggest milk exporting country, because of its size and diversity. The state of Victoria produces 66% of the country’s total milk production (and 86% of the country’s export milk). So it is Victoria that gives the most complete focus to what the bulk of Australia’s dairy farmers face up to every day.

Most Australian dairy herds are challenged by extreme heat at some point of the season. Photo: Sheila Sundborg.

Australia is the driest continent in the world. Its farmers deal with extreme heat in the summer, and water is expensive and often restricted by the government. With heat also comes the risk of fire — and critical management decisions for animal safety and welfare. Floods are also more common that many would expect — both in the tropical parts of the nation and in other areas.

Most herds stand under sprinklers before and after milkings to ease summer temperatures that can reach regularly reach 45 degrees Celsius (113 degrees Fahrenheit). Photo: Sheila Sundborg.

In short, it’s an extreme climate that is home to volatile milk pricing.

And Australia has become a target for foreign investments hunting milk — encouraged by Australia’s Foreign Investment Review Board regulations (FIRB), which are only triggered by the sale of Australian companies whose assets exceed A$231 million (US$176.67).

Canadian milk processor Saputo, spent more than half a billion Aussie dollars (US$382) early last year, to acquire 87.92% of Australia’s oldest surviving dairy company, Warrnambool Cheese & Butter Factory Co Ltd (WCB).

Cynics could argue they were not necessarily buying access to the Asian market (given that Vancouver is closer to Beijing than Warrnambool) and that they were, in fact, perhaps buying access to the world’s cheapest milk.

Australia’s genetics are competitive on the world stage, with North American embryo sales now well established. And the world’s best families are represented throughout the country. Here are two Golden Dreams from the Sid daughter of O’Kalibra.

Most processors paying 40-45c/litre

AUSTRALIA
LAND MASS: 7.7 million sq km
POPULATION: 22 million
IN PERSPECTIVE: Australia is the planet’s sixth largest country after Russia, Canada, China, the USA and Brazil. It is the world’s largest island and the only one of the largest six nations that is completely surrounded by water. Roughly 20% is desert so it’s hardly surprising that it’s the world’s driest continent.
MILK PRODUCTION: 9.2 billion litres of milk

Most of the major milk processors in Victoria are currently paying around 40-45 Aussie cents a litre (0.31-0.34 US cents), which is the cost of production per litre on most farms — without factoring in a return on investment.

Players pulling the strings include the milk processors and two supermarkets, Coles and Woolworths, who between them have a 72.5% market share of Australia’s grocery sector. None seem too interested in the farmers’ financial struggles.

A milk processor can change the game in the blink of an eye – as Parmalat did at the start of February.

Without warning, it sent an email stripping 23 cents/kgMS (kilogram of milk solids), that’s 18 US cents, off some of its suppliers, leaving mid-season prices at A$6.09, or 47c/litre (US$4.66, US$0.36). And it closed its door to step-ups — which are price rise opportunities — for the rest of the year.

However, it didn’t touch the price for many of its New South Wales suppliers. The price inequality between states and regions (at the discretion of the processers) has long been a bone of contention for producers, regardless of whether milk is being used for manufacturing (export) or for the fresh milk market.

And sadly, sudden price cuts have become routine.

One of Parmalat’s producers, Lloyd and Cathy Chesworth, of Willette Holsteins, said the decision would cost them A$90,000 (US$68,830) this season on a 700-cow herd producing seven million litres.

Lloyd, 66, said, “We had all but ordered an activity system for the cows [to monitor heat and herd health]. As soon as we read that email, we changed our mind.

“When you lose $90,000 in a season without doing anything wrong, it knocks the system. The Australia dollar is down 30% compared to last year and world milk prices are down too. It’s doesn’t make sense, and I think they’re being opportunistic at our expense.”

In summer, much of Australia has no pasture in the wake of tougher water restrictions.

Numbers horrify 

Nutritionist and dairy farmer Andrew “Ange” Angelino, of the Dairy Business Centre, agrees. He has been heavily involved in the industry for more than two decades. He advises many of the best operators in the country, and has deep and credible knowledge of the costs and the margins in both Australia and New Zealand.

“The supermarkets are screwing us without any doubt, and the government is not stepping up to stop it.” – Andrew “Ange” Angelino.

He also operates Kentgrove South, a dairy farm at Mt Schank in South Australia, which this season will milk 700 cows — down from 850 because of low milk prices. In addition, he also owns shares in other dairy farms that milk, in total, about 2200 cows.

He paints an ugly picture of Australia’s future dairy industry unless things change. He says rising core costs on-farm — coupled with milk prices that can drop harder and faster than aeroplanes in heavy turbulence — are taking their toll on this generation, and scarring the next.

Ange says producers need higher and more reliable margins against what nature throws at them, and, more importantly, to encourage their children to get involved.

Tasmania is Australia’s most natural milk-making climate; it’s separated from mainland Australia by 240km of sea.

No happy farmers

NEW ZEALAND
SIZE: 268,680 sq km
POPULATION: 4 million
IN PERSPECTIVE: New Zealand is the size of Colorado. New Zealand’s two main components are the North Island and the South Island, separated by Cook Strait. For a small country, it packs a punch. It’s the world’s biggest producer of dairy products, aided by its near-perfect climate for dairy farming.
MILK PRODUCTION: 20.7 billion litres of milk

I can’t sit here and say I know a happy farmer in Australia at the moment,” he said. “Why is it food around the world is a similar price, if not cheaper than in Australia, but the gap between the price of food in Australia and its farmers is bigger? What is happening to our margin.

“The supermarkets are screwing us without any doubt, and the government is not stepping up to stop it. We were supposed to be flying high when more than 50% of our milk production was being used domestically. It’s now at 60% and we’re still done over.”

“Australians have to feed 3.5kg of grain a day, just to get the same value out of their grass as a Kiwi [New Zealand] farmer feeding no grain.” – Andrew “Ange” Angelino

Ange said in the past five years, his farm’s power bill had lifted from A$70,000 (US$53,535) a year to A$220,000 (US$168,255) — backed down to A$160,000 (US$122,370) after a forthright “chat” with the power company. The hourly rate of contractors used for specialist repairs and maintenance had lifted from A$50/hour (US$38) to A$120/hour (US$92/hr) in some cases.

“They charge like doctors, and may as well arrive in an ambulance when you factor in their travelling,” he quipped.

He said staff costs were also debilitating.

“In Australia we battle to get anyone to work for less than A$50,000 to A$60,000 [US$38,240-$45,890], and you often have to follow them around all day because they don’t know what they’re doing,” Ange said.

“We hear about all these seminars about how to farm more efficiently or how to cut costs. We’ve done all that for years. We are among the most efficient producers in the world now — how about we have a conference about revenue raising?”

Australia’s National Holstein Show (International Dairy Week) held each January is the largest dairy show in the Southern Hemisphere. (See 2015 Results here)

Australia and NZ trail the world on payday

Ange said he wasn’t surprised that Australian and NZ producers are also at the wrong end of the deal when he lined up global farm-gate milk prices on an independent website.

Australia is routinely 30-40% behind its EU and US counterparts. Farmers in China are paid 2.5 times more, and Canadians receive almost double Australia’s price for their milk.

“And what really annoyed me about that, was that the prices were factored last year when NZ was paid the highest prices it had ever seen,” Ange said. “And they were still three Euro cents a litre behind the EU. And once you convert that through the exchange rate, they were six to seven cents a litre behind the EU. Again, that’s on the back of the best price New Zealand had ever seen.”

Ange says generally Australia has the world’s cheapest milk and the core (daily) running costs of pasture-based farmers he assessed eight years ago were A$1250 (US$956) a cow. It meant that they were covering their costs once the cows produced 4000 litres/cow (on a 32c/litre payment, which is US$0.24).

A re-assessment of those numbers in today’s market reveals that core costs have risen to $1800-$2000 (US$1375-$1530) a cow. So, to cover the costs (on pasture) at 4000 litres per cow, producers now needed 46 cents a litre (US$0.35), just to achieve par.

“And in the last eight years, farmers have seen 46 cents a litre just once. How do you think everyone went at 36 cents [US$0.28] two years ago?” he asked rhetorically.

Australian farmers have access to much cheaper land than in NZ. But NZ’s dairy producers do not have to compete against mining for its government’s attention. Consequently, it also enjoys markedly more respect as an industry. It also has the power to slow the country if its farmers are not spending.

Searching for the positives, Ange dug deep. The best he could find was that Australia was “a nice spot to live”, and that milk was mostly produced from pasture, and therefore the protein in the ration for the southern hemisphere was relatively cheap.

“If cows can get most of their protein from grass, their producers are a long way ahead of the game. And one day the world will wake up and realise that pasture-based farming does produce a better product … but that’s another story for another day.

“NZ can do that even better because their climate and grass quality is also better. In the TMR [total mixed ration] world, high-production herd rations are generally corn based, which has no protein. So there is subsequently a high requirement for protein and usually they have to feed 7-8kg soya bean meal to keep the ration in balance.

“Imagine if soya bean meal when to $600-$700/tonne [US$460-$535]. It is almost undoable financially. We [Australia] have to be careful not to over-complicate our ration to the point we are that reliant on buying protein.”

China buying up

Ange said increasing sales of Australia’s agricultural land to Chinese buyers did not bother him.

“I hope they [China] buy it all. Many Australians don’t care. The government doesn’t care — why should we? It would be good if the gap between domestic and export was swallowed up, because then we would have more power against the supermarkets, as they do in NZ, and they would have to negotiate with us.

“Wouldn’t it be nice to tell Mr Supermarket, ‘you can go and buy milk powder from China and bring it back here [Australia] and add chlorinated water to it and try and sell it as fresh milk’, because that’s all generic $1/litre [US$0.76] of milk should be. Ask British farmers how they feel at the moment?”

Some of Australia’s top show cattle could easily compete at the worlds largest shows like World Dairy Expo in the US or The Royal in Canada.

World needs quota

Ange’s summation cuts to the core of what Canada faces right now.

“The whole world needs some sort of quota in my opinion,” he said.

“The world needs more milk, we can do it, but we need to get paid for it. I believe we need more control over supply and demand for this type of industry.

“I look at Canada and at 82 cents [A$0.86] a litre (to the farmer) the Canadian consumer doesn’t complain. They know they have a farmer making money and the town he supports is making money. I’m not sure if Coles and Woolworths have taken over every town in Canada, but weren’t regional centres good when everyone went to the butcher for their meat, the baker for their bread and the pub for their beer?

“That’s when towns were vibrant. I drove through Girgarre and Stanhope on the way to Rochester [in northern Victoria] recently and it was a wake-up call to see the buildings that were shut and the general lack of energy in the community.

“These towns are all located in the heart of Australia’s dairying country and they are struggling. These towns were hit hard by prolonged drought and water restrictions, but there’s more going on now.”

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With two of our three children living outside of Canada, we have been a sounding board for the challenges of trying to eat locally, when you have emigrated from your native country.  For those who went to the US, the changes were small …. Missing Smarties and Tim Horton’s.  Moving to The Netherlands meant not only new and different food, but unrecognizable labels and a foreign language to navigate. Easily recognized brands no longer pointed the way to the ingredients required for home cooking or favorite comfort foods.

This kind of international adaptation is no longer the exception to the rule as the next generations build their career histories and experienced dairy people expand their resumes with jobs farther afield.  Today most who started out on a dairy farm in a small, somewhat isolated rural village have had the opportunity to travel, study and consult in countries beyond the borders of their homeland. This ever moving, international consumer segment, affects everything, not the least of which is producing dairy products to meet local tastes.

Impact of Immigration on North American Food Markets

Most of the North American population growth of the past 20 years is due to immigration. Canada’s annual growth rate in 2011/2012 (+1.1%) exceeded that of other industrialized countries including the United States (+0.7%), Italy (+0.3%) and France (+0.5%). This growth represents a new and growing segment of the food consuming market and opportunities for dairy producers. In the US sales directly from the farm can adapt products more easily than in Canada where increasing the supply managed market means growing a consumer segment. Taking a closer look at the Canadian immigration situation shows that since 2001 most of Canada’s population growth was due to immigration. In 2011, it accounted for 67 percent, according to Statistics Canada, which projects that growth could rely almost entirely on immigration in the future. By 2017, the agency projects one out of every five people could be a visible minority. This raises the question, “How do immigrants fit into or even have the opportunity to buy into the “buy local” proposition?

What’s Missing in Local Markets? How to Find the Taste of Home?

It’s human nature to look for what’s familiar. Amid change, stress and the daily demands of work and family, everyone seeks the comfort of food that is familiar.  While young children in a new country may adapt more quickly to eating the same as their contemporaries, research shows that parents “want something that tastes like home.” If they can’t find those familiar dairy products, their diet switches away from dairy.

Who’s Got Milk?

From the dairy production side, the problem basically comes down to the fact that, without a consumer for the dairy products we produce, the industry is not sustainable. Overlooking the dairy preferences of the immigrant market is short-sighted in planning for the next generation of dairy producers. While great strides are made in genetics, genomics, and dairy management, it will all be pointless if there is no one drinking milk. And yet the questions must be asked, “Who lobbies for milk consumption?” (Read more:  MILK MARKETING: How “Got Milk?” BECAME “Got Lost” and “Got Milk” is becoming “Got More”)

Ethnic Specialist Finds Markets Could Be Hiding in Plain Sight

Sometimes the markets are not as far away or as difficult to supply as we might imagine. Nissim Avraham is an Israeli-born ethnic market specialist for the Dairy Farmers of Ontario (DFO). You might ask, “What is an ethnic market specialist?” Basically, Avraham looks for markets – some hiding in plain sight — in Canada’s immigrant population. While working on a project for his M.B.A. at the University of Guelph, his research looked into demand for dairy products for the Middle Eastern community in the Toronto area. Following a presentation to Canadian dairy farmers the first question was, “Why don’t they make their own?” For Avraham, the answer was to point out that there was an enormous opportunity there. “At the time, the Middle Eastern opportunity had a value of 10 million liters (4 million lbs.) of milk in the Toronto area alone.”  From this opening dialog, Avraham got an interview with DFO, and a new job focused on filling demand for the eleven Middle Eastern, South Asian and Chinese populations in Ontario. Today, he’s a popular guy throughout the Canadian provinces, and his successful practices in Ontario are being replicated elsewhere.

Lost in Translation of the Supermarket Aisle

It could be as simple as an added sign or label. Living in a country where every food product has both French and English (explanations), it doesn’t seem problematic to me to let a particular consuming segment clearly understand the dairy products being offered. However, as my immigrant children will tell you, it can be frustrating and time-consuming to try to find products you want in a foreign, to you, supermarket. Looking for familiar dairy products could make a quick shopping trip into a morning or afternoon of hide and seek. One such example is Paneer.

“We have newcomers from Asia shopping for the first time looking for Paneer. They’re vegetarians who drink full-fat milk, eat yogurt, want a higher-fat butter, and would consume nearly double the dairy products in a year that a native North American would. They couldn’t find Paneer in the market, except a cheap version.” Avraham points out that “Paneer is actually pressed ricotta.” Avraham helped an Italian cheesemaker create and label a more traditional Paneer, which quickly took 30% market share in those markets.

Since that first big success, the calls just keep coming. Avraham now consults with dairy processors in other Canadian provinces,  convincing them that rather than making another version of an existing product, they can go after a market already waiting for them.

Targeting, not Changing, Ethnic Markets

Avraham thinks targeting ethnic markets with specific products is something more countries should look into, including the United States.  “Sure, I can advertise a mozzarella or cheddar to different ethnic groups,” Avraham said. “But why would you go there? You think you’re going to change 5,000 years of Chinese tradition? It’s the first generation that we can target with these products.

Certification Clarity

While it may be difficult to find the familiar, it is also challenging when moving to a new culture to find foods that are important to different religions. When the requirements are understood, labels with particular types of certifications provide a shortcut for consumers who would otherwise have to read an often-complicated ingredient list to see whether they can consume products to conform to their religious preferences. Both sides experienced a learning curve. Processors were not familiar with Halal certification, but Avraham describes it as “Kosher-light”, meaning if you fit Kosher certification — a designation many Ontario processors were already comfortable with — you also fit Halal.

Trade Hurdles

Avraham knows Canadian processors who have orders for their ethnic products in the U.S. However, between exporting tariffs and the higher cost of Canadian milk, trying to fill that market from north of the U.S. border is nearly impossible. Of course, it means that there is potential waiting to be realized by American dairy entrepreneurs who merely have to tap into local ethnic demand.

Niche Markets

Developing markets is something of a Catch 22 situation.  Do you invest millions of dollars in developing a new product?  Millions of dollars converting generations of taste buds to an unfamiliar product. Or take the small step route of modifying products to be more aligned with the new immigrant locals.  In the latter case, there is already identifiable models to build from…the popularity is guaranteed. The challenge is making the match that “tastes like home”. While these modified niche markets will never be huge, they do represent an opportunity.  In the Canadian supply management program, it represent more milk that can be made by dairy farmers.

Growing Local Markets

The 62-year old specialist, Nissim Avraham, has been tagged as the ethnic market milkman.  A more fitting title might be market matchmaker, as he brings together distributors, eager to buy, with processors, who need a little coaching in product presentation. Success stories continue to grow:

• With Avraham’s encouragement, Ontario processors are now making butter ghee, a type of clarified butter; lassi, a fruit-flavoured yogurt drink; and dahi yogurt, a market that has grown from 200,000 to more than two million litres per year.
• There are now about 25 Ontario cheese and yogurt makers with halal certification.

2.2% Growth

In Ontario, products that Avraham helped introduce are now worth 2.2% of the market.  Not huge. But a start.  It’s the incremental growth that says it’s worthwhile in the modern dairy market. The hardest part is having the decision makers recognize the opportunity.

The Bullvine Bottom Line – Eating locally!  Together!!

Regardless of the culture you were born in, trading recipes and eating homegrown and locally grown foods is not only healthy but also an excellent way to build community. Shopping, sharing and eating together creates connections that are good for everyone involved. We may not recognize the opportunities an ethnic market specialist points out but, if the dairy industry doesn’t open itself up to these new markets, we could go from “Got Milk!” to “Not Milk!”

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I have always said, “If you can name the problem you can solve it.”  Today when it comes to food production, the problem being named is unsustainable dairy production.  The answer? Create a synthetic dairy.  California now has Muufri (“Moo-free”) where they are perfecting artificial cow’s milk made from a special variety of yeast that has been genetically engineered to produce milk proteins. In Ireland there is a completely artificial milk being developed.  This is a reaction to the sins of environmental damage, greenhouse gases and water pollution that are held up in the headlines as being committed by industrial farming operations.

The “Name’ Game.

It is ironic that in the beverage advertising industry the word of choice is “milk”.  Today everything from soybeans, to almonds, to rice and nuts is masquerading as “milk”. In California they’ve gone beyond imitation naming to bioengineering.  Perumal Gandhi and Ryan Pandya – two bioengineers in California… are trying to go beyond other milk imitators. Their “out-of-body-udder” aims to match the popularity and health benefits of real milk. This is certainly startling.  After daily focus on developing each udder to realize its full potential, we are now faced with milk that can be created in test tubes.

But Will It Taste the Same?

Imitators come and go.  Successful imitators make the grade by being identical to or better than the original product. Most fall by the wayside, because of poor taste.  Although that sounds more like social commentary, in this case it really does refer to the fact that, so far, the imitators don’t taste like milk.  But what if Muufri can get the taste just right? Then the price factor enters the equation. Is the imitator expensive?  Cheap?

The “Claim” Game

To win the market, milk imitators must make claims that resonate with milk drinkers.  One that is out there is that “Dairy is unsustainable?”  It is up to consumers to ask the second question. “Unsustainable compared to what?”  If you’re talking plants.  Where is the land base that will produce all those crops?  The issues are many.  Too hot.  Too cold.  Not enough ground cover.  And then, as mentioned previously, what do plant based milks taste like?

Is Everything Unsustainable?

The vegan inventors of synthetic milk — Gandhi and Pandya – market their invention as a solution for “overcrowded dairy barns where cows are fed a constant cocktail of growth hormones and antibiotics and have their tails docked and their horns removed.”  It sounds horrible but is it truthful? If we look back at the bioengineers, it is like saying everyone who works in a lab is male, with above average IQ who dresses only in white lab coats.  Talk about unsustainable!

The Negative is Heard Louder Than the Number

When the inventors of milk were making their formula, what percentages moved them forward?  It is frustrating when small statistics are reported to imply large negative impact. In this case the quote is “According to the Food and Agriculture Organisation of the United Nations, dairy production is responsible for 3 percent of the world’s annual greenhouse gas emissions.” Who or what is responsible for the other 97%.  Is 3% a huge amount to be attributed to one source?

Who’s Making It?  Who’s Faking It?

Fortunately for Gandhi and Pandya, synthesising cow’s milk is a relatively simple process. It’s got less than 20 components, and consists of about 87 percent water. Here is the breakdown, according to John Anderson at Gizmag, “Muufri milk will contain six proteins to help form its structure, and eight different fatty acids to give it its rich flavour.” He outlines the process. “The milk is made using the same process that pharmaceutical companies use to produce insulin. DNA is extracted from dairy cows and certain sequences are inserted into yeast cells. The yeast culture is then grown in industrial-sized petri dishes at just the right temperature and concentrations, and within a few days, the yeast will have produced enough milk for harvesting.”

It’s All Milk and Mirrors!

Real milk is the starting point reports  National Geographic “Although the proteins in Muufri milk come from yeast, the fats come from vegetables and are tweaked at the molecular level to mirror the structure and flavour of milk fats,” “Minerals, like calcium and potassium, and sugars are purchased separately and added to the mix. Once the composition is fine-tuned, the ingredients emulse naturally into milk.” This of course means that all of the nutritional values can be tweaked by Gandhi and Pandya, so their artificial milk could potentially be even better for you than regular milk.”

Is this Milk Worth It at Any and All Costs?

Initially Muufri milk will be more expensive to buy than regular milk. This is not an insurmountable problem. Gandhi and Pandya hope to eventually make it cheaper as their production is scaled up. But because it won’t contain bacteria like regular milk does, the shelf-life will be much longer. The pair hopes to have their milk on the market by mid-2015.

The Magic in the Milk Glass

Before ensuring family health, getting to the bottom of the glass can be a double edged sword. Where do you get your information?  Is your Doctor providing preventive medicine?  Do you believe the press?  TV? Your own intuition and feelings? Is there any way to be certain that what you eat and drink is good for you?

With so many sources – good and not so good — you can’t be blamed if you wish there was magic wand that would just fill your table and lunch boxes with the best, safest and healthiest food. However, wishing for a “sure thing” may be what has led to the situation where we now have pretend food. Food that is completely man made … it bypasses all that bad agriculture … drugged animal controversy!  So are you ready for “Let’s Pretend It’s Healthier?”

Perfection from the Petri Dish

It seems that we are dissatisfied with the food provided by agriculture … now we seek perfection from the petri dish. We have actually come to the point where we have “Bogus Beef and Imitation Milk”.  A quick search tells us that today we have imitation egg mayonnaise, imitation milk and coming soon to a grocery store near you – petri dish meat. Cows are NOT all Bad.

After All, Cows Poo It Forward!

We milk them for all their worth.  They poo it forward by returning fertilizer to the land.  That fertilizer, unlike most, is not created in a laboratory. Manure does a great job building soil structure. It reduces erosion, nitrate leaching, and the energy needed to make natural gas-based nitrogen. We can do a better job in using this valuable resource.

Nature or Nurture?  Cows or Culture?

The one thing that is as sure as death and taxes is our need to consume healthy food and water on a regular basis.  Of course, it’s up to each one of us to choose what actually goes into our moths.  They say that imitation is the sincerest form of flattery but is imitation healthy?

And then there’s “Buy Local!”

Two or three hours north of our farm buying local becomes a question of what can be grown.  This summer market garden producers didn’t get a harvest before the “summer” people – their largest consuming demographic – returned to the city.  It was an unprofitable season and that, only logically, will have a serious impact on the next season, let alone getting through the winter.  And, this is only a very mall example of the actual problems in producing plant based diets.

My questions is, “Are we going to ignore livestock which is renewable?”

Bold statements and brash claims are all well and good.  But, at the end of the day, we’ve got to produce food.

The Bullvine Bottom Line

Are you ready to skip the cows and go directly to the Lab.?  Are you thinking outside the barn?  Not only your livelihood is at stake. Your health is at stake.  Are you ready to fake it?

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You are committed to dairying. You have recognized that changing markets and rising demand for milk, means you will have to expand, specialize or exit. You’re staring at a future that is looming with complications from genetics to finances, and you are not entirely sure which direction you should be headed in. Suddenly an unforeseen challenge is right on your doorstop, and it could mean disaster for everything you have invested in your dairy business.  You thought things were fine.  That’s what “they” have been telling you.  You can’t be blamed for asking, “Why didn’t we see this coming?”

Stuck in the “If only Rut” While the Future is Bearing Down Fast

If only the economy would turn around.  If only government would give us support and protect our markets. If only the consumer would understand that producers are part of their team too!  If only we had unconditional support from the membership.  Oh yes…. And it would be great “If only we had the right people leading us?  You know the ones.  People we like.  So we don’t have to deal with personalities, politics and publicity.”  Yes, the if-only rut is a deep one and very hard to dig yourself out of, once you have given all responsibility for change to someone or something else!  If only that worked!  But … it doesn’t.

Who Is Representing YOU?

Sometimes it seems like the rest of the world continually underappreciates the hard work, planning and vision of modern dairy farmers.  Part of the reason for this is that they are not supported with that same focus and energy when it comes to their boards, suppliers and associations. That is too bad because they impact our long-term viability as an industry.  Take, for example, your breed association, milk recording agency or cooperative AI stud.  You have just read the newsletter where they voted in a direction that has nothing to do with actually supporting your dairy objectives.  Not surprising since the board itself is grossly under-represented by progressive dairy operators who are hands on and in tune with modern dairy growth. In fact, the business agenda hasn’t changed in thirty years.  And neither has the makeup of boards.  They are entirely missing the issues that are well beyond the writing on the wall stage.

Why Aren’t Dairy Associations Relevant To Modern Dairying?

Boards who move industries or associations or dairy operations realize that if great work is going to get done they will have to do it.  However, that takes long term vision, and it is difficult to rock the boat and chance finding yourself out of work. Currently – too many decisions are made that keep people in their jobs and have less to do with making the dairy industry profitable. When it becomes a choice between keeping a grant, maintaining the interests of a major financial supporter or putting some other agenda ahead of the actual dairy operators’ needs, it’s easily seen who wins out. Furthermore, too many dairy co-ops or board decision makers don’t work entirely on farm and see what they do as a perk or supplement or cushion for retirement.  Too often this means they are not motivated to carry out the hard decision making that forward progress always requires.

Who is Serving?  Who is Hiding?

If the boards, associations and suppliers are actually serving the industry they must be comprised of the people who understand what it takes to be sustainable and profitable in the dairy industry.  All sectors of the industry – commercial, show type breeding, purebred – must, at the end of the day, be both profitable and sustainable. We have all been at industry meetings, where the folks at the front of the room said all the right words about where the industry needs to be, but there is always one thing missing.  First: Progress.  Secondly: Actual actions undertaken.  If the group is in exactly the same position as they were a year ago at this time, that actually means they are falling behind. It’s frustrating to receive dairy industry meeting agendas where the only change in the format, presenters and reports is the date at the top of the first page.

Does The Buck Stop In The Barn Or In The Boardroom!

“You have to continue to move forward.  The moment you decide to stand still, the rest of the industry goes by you very quickly.” Thomas Boch speaking of the college sports industry.

To move forward.  Being a board member isn’t a reward for surviving in the dairy industry to the point where you have time to attend meetings.  Time – is the kicker.  The ones who are so busy 24/7 in dairying that they don’t have time to travel for meetings…. to do the homework — know the issues. They aren’t prepared to say “No!” to the status quo. Having said that, it’s amazing how fast a meeting can be wrapped up if one or more of the attendees is showing at a dairy show the next day. There are ways to manage the time, place and length of meetings.  After all, the most important part of a board meeting happens when it is written up and the actions and whom they are assigned to has been recorded. Then the real measure of success comes when the work gets done. Too often the action item remains “incomplete” for far too long.

How Many Of Your Dairy Leaders Use These Excuses!

The Bullvine is fortunate in being able to dialogue with all dairy stakeholders from all sectors of the industry.  We enjoy nothing more than sharing our viewpoints, learning those of others and, best of all, challenging those we meet to confront change for the good of the industry.  We are making excuses when we face something hard but here are the ones that we are getting for the lack of leadership currently facing many dairy organizations and the industry as a whole.

“I would, but I’m too busy” This speaks to the previously mentioned self-preservation priority.

“We would lead but we are currently facing too much competition amongst ourselves.”  This says that they don’t care about you until they can be sure they are the only ones in your wallet.  “We would lead but we are in the midst of downsizing.”  They see the challenges ahead, and they want to hang on to as much as they can for as long as they can, even if it reduces their own effectiveness.

In other words – rather than  making changes that meet the needs of the current and future membership, the associations who make excuses are only considering their own needs. Unfortunately, they don’t recognize that, without a sustainable, profitable industry, they too will disappear.  As Benjamin Franklin put it so clearly, “We must all hang together, or assuredly we shall all hang separately!”

This is NOT a News Flash!

If it was easy to foresee the future, our industry would not be facing the issues and challenges it does. It’s hard work to be progressive.  When you picture the time it takes to serve on industry boards, associations and consulting groups, you might not be blamed for seeing it as a waste of time.  Who needs to sit around a table offering platitudes at best, sharing gossip at worst, and all the time thinking, “My time could be so much better spent back on the farm?”  You’re not wrong if that’s the kind of organization you’re specifically thinking about. Who wants to endure lengthy, time-consuming presentations (aka death by PowerPoint) , bickering board members, deadlocked decision-making, sneaky power grabs or, worst of all, a rubber-stamp committee that might as well not exist at all. Maybe it’s better to wait and see and hope that it all changes (positively) on its own.

Procrastinate Until They Legislate

Indeed, procrastination does lead to change.  If left to its logical negative end, someone will step in, whether it’s the government, banks or competitors. They will then take the decision making right out of our hands. If we are not ready to determine the genetics, herd size, animal care or leadership we need, someone else will do it for us.  The trouble is we won’t have any say, and certainly it will be neither profitable nor sustainable for those who give up their voice. Do we want to be forced to change?

Looking Back.  Looking Ahead.

Thirty years ago not all farmers cared about international markets, research or genetics – let alone genomics.  That didn’t mean, however that Boards, Associations or Universities where ignoring these issues.  Indeed the worldwide reputation of North American dairy cattle impacted the entire industry right back to the farm gate.  Riding that wave may one of the reasons contributing to our current complacency and willingness to rest on past laurels.

Today the very success of not only North American dairying but dairying in developing countries as well has contributed to a more level global playing field.  Contrary to resting on past achievements, it is time once again to take the industry to the next level in all areas: genetics, research, health, tools, equipment and systems. Once again we need leadership.  It’s time to accept that not all of us see the dairy industry in exactly the same way, but all of us need to embrace change that will build the future. Take risks.  Do things differently.   Never lose your courage to move ahead.  Don’t be paralyzed by what is coming at you.  Be energized.

The Bullvine Bottom Line

The goal is not to avoid the issues or to completely eradicate them.  There isn’t a three step plan that will guarantee the future.  The future of the dairy industry will be made by initiators who figure out how to keep moving, when it seems that the only choice is to stay still and remain stuck.  Let’s use our insights to keep this industry where it deserves to grow … in the spotlight!

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As breeders we seldom give thought to the new milk products that consumers will want in the future. We assume that the composition of the milk we ship will not be different from what our cows currently produce. So we continue to select for the proportions of fats and proteins that have existed, wellalmost, forever. But our assumption of no composition change may not be correct. Let’s dig deeper.

Value Added Is the New Game

Some breeders have not been willing to accept the generic approach and average price for the milk they ship. To that end we see A2 milk taking market share in some countries, butter making a comeback (Read more: 12 Things You Need to Know About A2 Milk) and breed specific milks also catching market share. All in an effort to generate more revenue. It takes effort but the rewards appear to be well worth it.

The growth in milk’s market share of the food dollar will come from new specialty, health or pleasing to the palate products. Cold fluid milk in not currently the drink of choice in countries where the population growth will occur and it cannot be priced above other beverages.

To get new value added products will take something other than the milk our cows have been producing. This has been talked about for some time but until genomics came on the scene it had only been talk, as we had no way of linking genetics to products.  (Read more: The Dairy Industry – Past, Present and the Future,  “Got Milk” is becoming “Got More” and MILK MARKETING: How “Got Milk?” BECAME “Got Lost”)

Takes Shareholder Collaboration

For the vast majority of milk produced, the customers next in line for the milk producers sell, are the processors.  So to garner the maximum farm gate price, breeders will need to supply their processor with the milk that can be used to yield the value added product. But it’s not a simple thing.

Changing Milk Composition – Possible or Impossible?

What we are talking about is genetically changing for instance the protein composition of the milk cows produce. It is possible to feed cows a special diet or grow feeds on a certain soil type and relatively quickly alter composition to produce a specific product. It takes time to identify the desired parents, select for and then produce the cows that will produce the milk with unique composition.

A study currently underway in Scandinavia is collecting genomic data on individual cows and three breeds for the proportions of casein and whey proteins they produce. The Jerseys have higher concentrations of kappa casein known to be favourable for cheese making. The Swedish Red have a higher concentration of genes not as favourable to cheese making and the Holsteins have the highest relative composition of beta casein. However, within each breed, there are cows that have the ‘good’ genetic make-up, favorable for increased cheese production. The next steps of the study will be to actually quantify relationships and, once the results are available, refine selection for increased cheese production.  The good news is that producers wishing to receive increased returns for the milk they sell for cheese, will be able to develop herds that allow them to do that.

Can Breeders Get Started Now?

At present the tools to identify animals with the ‘good’ genes are not available. However that should not stop breeders wishing to develop bloodlines that will give them more cheese. Selecting for protein yield or CM$ (Cheese Merit Dollars) are good starting points. Instead of using NM$ (Net Merit Dollars) or FM$ (Fluid Merit Dollars) for sire or dam selection, breeders should use CM$. To maximize on-farm profit, selecting for CM$ is superior to using single trait selection and selecting for protein yield only. As more information relating genomic profiles with cheese production becomes available, breeders will be able to fine tune their selection.

Sires that Stand Out

At the present time genomic and daughter proven sires that stand out for CM$ include the following:

• Mr Mogul Delta 1427 (203HO01468) CM$ 1115
• Cogent Supershot (224HO02881) CM$ 1099
• MR Shot Dozer (151HO00696) CM$ 1067
• Roylane Socra Robust (7HO10524) CM$  921
• Clear-Echo Nifty Twist (20HO14335) CM$  885
• Kings-Ransom Erdman CRI (1HO09880)  CM$  856

The Bullvine Bottom Line

Breeders wishing to position themselves for having breeding stock and producing milk that is favourable to cheese production need to get started on using sires in their breeding program that have CM$ values over $1000 CM$ for genomic sires and $800 CM$ for daughter proven sires.

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As dairy breeders, we pay special attention to the nutritional needs of our dairy herds.  As food consumers, we are also well aware of the responsibility of keeping ourselves and our families healthy.  It sometimes feels like being placed between a rock and a hard place. This is especially true when we read headlines that vilify farmers or the food we produce. Fortunately, in the case of butter, the pendulum is swinging in a more positive direction.

“Who Can You Believe?”

Over time butter has been blamed for everything harmful from obesity to heart disease. Dr. Ancel Keys – an American scientist who studied the influence of diet on health – believed saturated fats were the leading cause of heart disease because of their high caloric values and cholesterol levels. In 1961, the American Heart Association endorsed Keys’ hypothesis on fat, and the war against saturated fats was on. That same year, Keys was featured on the cover of Time magazine. Needless to say, margarine sales flourished while butter purchases plummeted.

“The Start and End of My Butter Blues!”

I am exactly the right age to remember the campaign against fat that came to the forefront in the 1960s.   I distinctly recall the difference that switching to margarine made in the taste of food. Butter had always been at the top of my list for improving bland tasting foods.   Gradually my grandparents and parents were won over to the idea of margarine as a healthier alternative to butter. I wish I had known that I could have pointed them to master chef Julia Child. It might have helped.  But maybe not. Sometimes the way we accept information is more mystery than recipe!

“Good Sense. Good Science.  Butter Brings Them Together Again!”

It has taken a long time, but hindsight regarding butter is becoming 20/20. Using the considerable data collected it is now possible to compare inverse relationships as the consumption of butter dropped and cancer and heart disease soared.  Certainly the rise in cancer and heart disease can no longer be blamed on high-saturated-fat butter. Indeed new research points to other contributing factors which need pro-active attention. Common sense needs to become more common.

Source: Enjoy Saturated Fats, They’re Good for You!

The New Tune “Bring Butter Back” Is Hitting the Health Charts

Whenever we are in agreement with opinion reversals, we happily report that the change of tune. Today, after additional research and failures to curb obesity and type 2 diabetes, researchers are indeed singing a new tune. So-called heart healthy spreads, hydrogenated vegetable oils, margarine and shortening are under scrutiny. Excess dietary sugar creates insulin and leptin resistance, which can lead to obesity and inflamed arteries – which both raise the risk for a heart attack.  It’s not over-dramatic to declare that fighting obesity is a battle we all wage. But not all of us recognize the harm that one or two cans of soda can inflict. (Every American consumes on average 400 8 oz. servings of Coke products per year!) However, let’s stay focused on butter.

“Butter UP!” It’s High Time We Melted Those Butter Myths.”

Currently, both sides of the butter market — production and consumption — are strong.  In 2014 butter consumption in the US reached its 40 year peak of 5.6 pounds per capita, compared to 4.1 pounds in 1997. Meanwhile, margarine has fallen to a 70-year low. The butter boom, at least in part, has been attributed to a shift in consumer preferences away from processed foods and back toward natural foods.

“What you Don’t Know About Butter, Could Fill a Crock!”

It’s time to review and revise what you know about butter.

• Almost as harmful as bad science is misleading advertising. Everyone who has a product to sell uses advertising to support purchases by targeted consumers. Imitation products made from vegetables, weeds, seeds or nuts are packaged like real dairy products and have the words “milk” or “dairy” in their names or advertising. They are a choice. But they are definitely not dairy even though advertisers keep churning things up.
•  “Overall intake of dairy products was not associated with mortality. A possible beneficial association between intake of full-fat dairy and cardiovascular mortality needs further assessment and confirmation.” (European Journal of Clinical Nutrition (2010) 64, 569–577; doi:10.1038/ejcn.2010.45;)
• There are a lot of fat soluble vitamins in butter. This includes vitamins A, E and K2.
• Butter contains short and medium chain fats which are metabolized differently from other fats. They lead to improved satiety and increased fat burning.
• Butter is an excellent source of a fatty acid called Conjugated Linoleic Acid. This fatty acid has powerful effects on metabolism and is actually sold commercially as a weight loss supplement.
• Conjugated Linoleic Acid has been shown to have anti-cancer properties as well as lowering body fat percentage in humans. However, some studies on CLA show no effect on body composition.
• In 2013, the USDA began the process of banning trans fats from the American food supply.

“Upgrade to a Butter Vocabulary”

New terms that you may want to spread around are Vitamin K2 and Butyrate.

Vitamin K2. As previously mentioned, butter contains Vitamin K2. Vitamin K2 is somewhat rare in the modern diet. It is involved in calcium metabolism. Low intake of K2 has been associated with many serious diseases, including cardiovascular disease, cancer and osteoporosis.

Butyrate: The 4-carbon fatty acid butyrate is created by bacteria in the colon when they are exposed to dietary fiber. Butter, is about 3-4% butyrate. In fact, butyr-ate derives its name from butter.

“Does Butter Make My Butt Look Bigger?”

Nutrition authorities often recommend that we choose low-fat dairy products. That way, we can get the calcium we need without all those “bad” fats and calories. Furthermore, despite the higher calorie content, eating high-fat dairy products is NOT associated with obesity. Modern research results point to high caloric intake and artificial ingredients as the more likely culprits impacting current health challenges.  In 2012, a study examined the effects of high-fat dairy consumption on obesity, cardiovascular disease and other metabolic disorders. They discovered that high-fat dairy did NOT increase risk of metabolic disease and was associated with a reduced risk of obesity.

“Always Consider Where It’s Coming From”

Making better choices is what makes life such a challenge and an opportunity.  Always consider where the information you’re buying into is coming from.  Try to avoid agendas of the information provider.  Obviously The Bullvine has a definitely pro-dairy viewpoint.  Having said that, the choice to accept, reject or react is up to you!  With instant access to news, we are bombarded with information 24/7.  We need to understand that headlines sometimes are aimed at sensationalism and are not necessarily scientific fact. Furthermore, when it comes to eating, you can have too much of a good thing. Just because something is good for you, it doesn’t follow that you should overindulge. But, having said that, there are some well-supported reasons for choosing butter.

“Butter is the Source for GOOD Fats.”

Healthy Saturated Fats The “war” against saturated fat was NOT based on real science. And speaking of good, there are good fats, and there are bad fats for us to learn to recognize. Saturated fats raise HDL (the good) cholesterol and change the LDL from small, dense (very bad) to Large LDL, which is benign.

Butter Does Your Heart Good

Recent studies suggest that there is no association all between saturated fat and cardiovascular disease. Unfortunately in our misguided enthusiasm we replaced healthy butter with unhealthy highly processed Trans fats. Trans fats are the bad guys and cause all sorts of diseases. In the Framingham heart study, they examined the effects of butter and margarine on cardiovascular disease.

Butter vs. Margarine Showdown

Margarine significantly increased the risk of cardiovascular disease, while butter had no effect.

Another study revealed that high-fat dairy consumption reduced the risk of heart disease by a whopping 69%, most likely due to increased Vitamin K2 intake.

Conclusion: “You can’t Beat Butter.”

Well, actually you can beat butter but in terms of better eating, butter bashing has gone bye, bye!

In all the hype over good and bad, we sometimes are told or assume that if it tastes good it must be bad for you. It’s important to weigh the facts and make responsible choices.  Allowing butter to regain its place at the table, is a win-win-win for science, health and good taste.

The Bullvine Bottom Line

It`s time to bury the myth that butter is bad for you right along with  the accompanying threats, scare tactics and alarm bells.  The information is out there. It is based on real science and makes good sense and most importantly you can declare with confidence, “If you know what’s good for you …. eat butter!”

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Sixty-six years ago, did organizers know that fairy tales would be getting renewed attention in the 21^st Century? Last year there was Snow White And The Huntsman and then Hansel And Gretel: Witch Hunters  and now Jack The Giant Slayer. None of them however have the hands on experience (pun intended) of “Alice in Dairyland”, who writes a new chapter of dairy memories in Wisconsin every year. It may not start, “once upon or time” but for 25 year old, Kristin Olson, who is the current Alice in Dairyland, carrying out this role is definitely a dream come true.

Seeing the World Through The Milking Glass

Every good dairy tale starts on a farm and Kristin‘s story is no exception.  The 2013 Alice recounts some of the benchmarks that prepared her this role. “I grew up in Fond du Lac, WI with my family’s small show herd, Crestbrooke Holsteins and Jerseys, with my parents, Tim and Barb, and brother, Kyle. Throughout my youth, I was very active in the Wisconsin Holstein Association, as well as 4-H and FFA. I pursued a degree in Life Sciences Communications from UW – Madison, where I held numerous leadership roles in the Association of Women in Agriculture, Badger Dairy Club and National Agri-Marketing Association, and several internships, before graduating in 2010. After graduating, I worked at Accelerated Genetics in Baraboo for about three years as the Dairy Advertising Coordinator, before being selected for my current role as the 66th Alice in Dairyland last month. I reside in the Windsor-Deforest area with my husband, Trent, who is still involved with his home farm in Lewiston, MN, and is also employed with ABS Global in Deforest.”

Kristin (Natzke) Olson, with my parents, Tim and Barb, and hubsand Trent and brother, Kyle.

Kristin has always felt a magical connection with agriculture!

We should always remember no matter what role we play in business, life or the dairy industry that we are making lasting impressions on formative young minds.  Such was the case for Kristin. “Having first met Alice in Dairyland in 4^th grade, Alice has always been a figure I’ve looked up to and respected throughout my life. All of my combined experiences during my youth and college years really developed my passion for communicating agriculture’s story.”  With such strong early impressions of Alice and her lifelong ties to agriculture, it isn’t surprising to hear her say, “I am so excited to now be able to share my passion with Wisconsin and hopefully inspire people along the way!”

Waving the Agriculture Wand On Behalf of Wisconsin!

Kristin’s enthusiasm is exactly what the Wisconsin Department of Agriculture, Trade and Consumer Protection looks for in their official agricultural ambassador. Becky Paris, the Alice In Dairyland Program Manager, outlines how the selection of this one year, full-time public relations employee is made. “Each year a diverse group of highly qualified applicants make the position selection a difficult process.  The Alice in Dairyland selection puts everyone through a rigorous three day series of interviews including public speaking, writing, TV and radio interviews, tours and an individual interview.” The 66^th Alice in Dairyland Finals were held in Calumet County in the Northeast section of Wisconsin. Speaking of the  selected candidate, Becky notes “Kristin proved she possessed the ability to positively impact Wisconsin agriculture in the role of Alice in Dairyland.” Kristin deflects the emphasis from herself and onto the host county. “Calumet County’s agriculture is so diverse, which was showcased on the agri-business tours they put on. We enjoyed a wide variety of tours from an innovative dairy farm featuring a rotary parlor, to Honeymoon Acres greenhouse which offers a variety of plants for everyone and sells over 15,000 hanging baskets annually, to the world renowned Sargento cheese. There was so much to see and learn!”  A gracious  Alice indeed!

Kristin doing an interview with WSAW channel 7

Dairyland: “All the better to delight you with!”

With her banner and tiara and her ongoing passion for dairying, Kristin will go far and experience much as Alice in Dairyland. “Throughout my year as Alice, I will travel nearly 40,000 miles, make over 400 appearances and speak with 10,000 students on the importance of Wisconsin’s $59 billion agriculture industry. I’m very much looking forward to traveling throughout the state and meeting people from all backgrounds and walks of life while sharing the message of Wisconsin agriculture!” Becky Paris tells us the ways in which this is a one-of-a-kind program is constantly changing to reflect innovations in Wisconsin’s agriculture industry.  “Alice is unique in the versatility of her role: one day her role is relaying the modern picture of agriculture to a growing urban population, the next she is educating students on careers in agriculture, and the next she is reaching out to all consumers through TV interviews discussing one of the many diverse agricultural facets in Wisconsin.  Working with our agricultural industry partners, Alice provides a relatable link between producers, processors and consumers.”

Thanks to the Wisconsin Corn Promotion Board Alice in Dairyland will travel 40,000 miles in the flex fuel Tahoe across the state on E-85, a cleaner burning fuel made from corn!

Alice’s Ag Adventure is Just Beginning

Alice in Dairyland is contracted public relations position for which Kristin will receive a $40,000 state paid salary.  Coinciding with Dairy Month, the fully packed year of activities is off to a good start says Kristin. “Having started on June 3, I’m just beginning to scratch the surface of all of the wonderful opportunities that lie ahead for the year. So far, my greatest experience has been traveling throughout the state and meeting wonderful people while being able to celebrate June Dairy month in America’s Dairyland and share my passion of the dairy industry with others.”

Life Before Alice In Dairyland

No doubt there will be many times during the coming year when Kristin will reflect on the experiences, training and personal support that led her to this exciting opportunity.  She gives much of the credit to her parents Tim and Barb Natzke. “At a very young age my parents   taught me the importance of hard work, dedication and perseverance. From practicing leading stubborn calves for hours and hours on end as a little girl in order to win that showmanship contest, to preparing for the Alice in Dairyland finals in order to make a dream a reality, they’ve always been there for encouragement and also to push me to my highest potential.”

The Bullvine Bottom Line

Both Kristin and Becky encourage others to seek out this once-in-a-lifetime opportunity. “Whether you’re considering the job of Alice or not, I advise people to cultivate their passion for all things agriculture and spread its message to those you meet. It is our food, fiber, fuel and for many, a way of making a living.” Kristin agrees with Becky and invites people to follow Alice on her travel blog or on Facebook and Twitter and adds this endorsement. “Consider the role of Alice in Dairyland and then absolutely go for it.”

It is indeed a wonderful dairy world out there. Congratulations to Kristin and warm thanks for inspiring our Bullvine readers to share the Alice in Dairyland message “Agriculture! Happily ever after!”

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There are basically three ways that boards operate that are familiar to dairy farmers. First there are the ceremonial ones that largely rubber-stamp whatever the CEO wants.  Then there are the traditional boards that try disjointedly to attempt to influence.  Finally there is the progress board that is comprised of a group of experienced leaders who add value. I have no doubt that you have experienced at least two of these three main board types.

We all give lip service to the fact that we would like to have the highest performing boards leading our dairy associations. Are we successful? A quick check of how we put board members in place might hint at a less than performance-oriented selection process.  Boards are only as good as the directors that sit on them.

To my mind, a healthy board is one where there are numerous potential candidates eager to lead.  Healthy boards have a rigorous nomination process and, after the directors are in place, there are periodic checks of board performance and, more and more frequently, peer evaluations.  Do these steps sound familiar?  Probably not.

There was a time when members were face to face with board directors often enough to have a real idea of their position on issues and ability to deal with them. Boards today often cover much larger geographical areas and rely on electronic reporting.

Nothing is more disappointing then having the opportunity to vote on qualified candidates and then discover the individuals can’t, won’t or don’t deliver as expected.

After all, this isn’t like government (or we say it isn’t) where the expectations are already low and there is skepticism. But on most dairy boards the directors are our friends and peers.  They’re nice. That’s the conundrum.  It would be easier to accept if they were grumpy, snarly and complete strangers.  That NOT being the case , we are faced with living out our disappointments when we realize that the change we hoped for isn’t going to happen or, unfortunately, the problems are getting worse.

Boarded Up!

Sometimes we need to identify the root problem that causes some directors not to grow. That problem is often a loss of passion and enthusiasm on the part of members of the Board. For whatever reason they either didn’t have or have lost their spark. An effective board is composed of people who have real excitement for the work of the organization and can sustain that excitement. Of course, that’s easier said than done.

If only we were able to build good boards from the get-go! Clearly, the framework of the board as a whole, and of each director, is paramount.  The stakes are even higher when selecting directors today when the talent pool of people who are willing to accept new directorships is shrinking while the need for effective decision making by dairy organizations is becoming even more crucial.  At the very least, the board as a whole needs at least eight competencies represented by several directors:  business judgment; general management experience or perspective; finance; industry knowledge and trends; leadership; international markets; strategic thinking ability and crisis management expertise. Depending on the organization, the threats and opportunities may require more depth in some of these areas than others.

With the right people in place it is imperative that they know what their role is.  It is far too easy for Board members get bogged down in the administrative details. After all, many of them run their own businesses.  They are comfortable with the details.  However staff focus is on the details and the Board focus is on vision, policies and financial oversight. There are three main areas that every board member should be aiming to contribute toward.

1. Lead domestically, collaborate globally. (Even national or local Boards must keep the global picture in mind).
2. Innovate continuously for a sustainable future
3. Inspire the next generation

We need to raise our expectations. For the sustainability of our industry, boards need to become more results oriented. And we as members need to hold them accountable. Too often we see Boards getting mired down in the administrative details that should be left to staff to carry out.  It is the vision and policy (and of course finances) that are the concern of the Board.  A strategic plan with measureable outcomes and assignment of tasks is the main work of a Board.  It doesn’t end there.  It needs to be dynamic.  The biggest weakness of any Board occurs when they do not have an “ACTION” agenda that is reviewed, revised and put in place.

Tracking Open Action Items is key to Board effectiveness. One of the first indicators that an organization is struggling is that open action items are not tracked and reviewed. (Open action items are required actions that have not yet been completed.) Instead, directors only see and react to the latest “fires” that are presented around the board table. Whether open action items are critical to address now or not, they should not entirely be forgotten.

Tracking Board and Chief Executive effectiveness is also key.  Too often (especially if there isn’t a crisis) there isn’t a procedure in place to evaluate BOTH roles.  Quite often boards just go through the motions. In the end this could weaken the entire structure of the organization.  Commitment comes from having a stake in the outcome.

With decades of board experience, I no longer have the patience for what I term” silly agendas”. It’s frustrating to commit time and energy to find that you are merely required to rubber stamp the agenda of the CEO, Staff or a particular interest group. In those cases, it might have been more honest to send out a report, ask for an email vote and have the vote sent in.

When you are not actively involved, another weakness can take hold— the “numb out” factor. One of the first signs that a board is in trouble is when members have opinions that they don’t express during meetings. If you find yourself sitting in a board meeting and realize you have “numbed out”, then you’re not doing your duty as a board member.  Effective boards guard against this by providing full backgrounds to directors at least a week before each meeting. One of the clearest indicators to board members that the organization is not taking them seriously is if they don’t get materials in time for adequate review before board meetings. Committee reports, action reports, financial report and  materials that can help board members act on any major decisions should be available before decision-making is required.

Once directors are fully informed the entire board should be invited to comment. Really invited—not just presented with the rote question, “Is there any discussion?  Whenever there’s good dialogue and everybody feels like their opinions are valued and that it’s okay to open their mouths, that’s when progress will be made.  Directors should get their work done in between meetings not in between agenda items as the meeting is progressing. Good director research will be brought to the table. Good information will form the basis for discussion. The board will be aligned and involved and transparent. This is the kind of Board that makes a difference to the industry.

In all of this discussion we mustn’t forget to ask, “What is the role of the membership?” Regardless of the people and the goals of the Board, unless the membership is engaged no progress will be made.  The work of the Board doesn’t start and end at the Board table.  There must be commitment to keeping open, transparent communication with the membership. And the membership is responsible to keep it going both ways.  Support works best when it comes from both sides.

A healthy board process creates dynamics in which everyone is engaged and listening, adding value, supportive of open and authentic exploration of ideas and participating in balanced ways.  You know you have the right directors in place, when they are providing the membership with a springboard to a sustainable dairy future!

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Dairy producers around the world can be forgiven for having a romanticized vision of producers in Australia. We imagine that, like the country, the industry is big, bold and populated by the friendliest people you could ever meet. Well, that`s the story. But unfortunately our peer group is finding it impossible to stick with it! Headlines report that a full blown “Crisis” is turning things upside down with “Massive job losses!” and “Rural Debt Approaching $60 Billion” It is hard to imagine what they’re going through.  However, it isn’t only financial strife that is hitting that usually Teflon group known as Aussie dairy farmers.  The downturn has gone on so long that it is spreading beyond the farm. Many rural towns that rely on farm dollars are closing businesses because of the financial impact.   Banks are closing down on lending.  It’s dire straits for everybody. In the long term it doesn’t look any better.  ABARES (Australian Bureau of Agricultural and Resource Economics and Sciences) forecasts a 36 cents per litre farm-gate price within five years – well below the cost of production. For many families who make up the backbone of Australia’s third biggest agricultural industry, the threat of going under has turned from “it will never happen” to “it could happen soon”!

Quit or Lose Everything?

Yes! Although renowned for their warmth and informality and universal love for their country, today’s Australian dairy farmer is facing serious challenges. It is estimated that 20 per cent of south-west Victorian dairy farmers are potentially in great trouble with the banks. The current 6,700 dairy farmers in Australia is a number that is down considerably from 12,000 a decade ago. And instead of enjoying productivity and success even fourth generation dairy farmers are on shaky ground and seeking options before it’s too late. For many that time is here. “There comes a time when you’ve got to stop.  That’s why we’re getting out because I don’t want to walk away with nothing.”  Year after year of losses have affected what options they face in leaving too. Those who have clung desperately to their dairy operations are finding it next to impossible to sell, especially in the last two years.  There are hundreds of dairy farms for sale in south-west Victoria. Unfortunately there are very few buyers. Farmers who previously expect up to $7000 an acre are struggling to get offers of $4000 or $5000. On the sale of an entire farm that could mean a million dollars less after years of dedication and hard work.

Dollars and Senselessness

From the outside looking in, we would love to identify what caused this situation in Australia and, hopefully, guarantee that our own national industry, wherever we’re from, isn’t on the same path.  However, the causes of Australia’s crisis are eerily familiar:

1. Milk prices are NOT rising.
2. Input costs – electricity, fuel, wages, feed and water – ARE rising.
3. Investments were made that look foolish in hindsight.
4. New policies and new taxes add new burdens.
5. Not heeding #’s 1 to 4.

… C.O.P.s and Robbers

Two variables have had particularly unpleasant repercussions in Australia.  Dairy farmers are usually resilient and cope with Cost of Production challenges with belt-tightening and management methods that have seen them through the regular up and down cycles of the dairy industry.  However, COP creativity can’t make a stand against the highway robbery that appears to be happening in Australian grocery store aisles.  Press releases report that “At the moment the milk price we’ve been getting is 25 or 26 cents a litre.  The cost of production does vary from farm to farm, but for us it’s around 43 cents a litre.”  As if that wasn’t disheartening enough, the strong Aussie dollar (and who doesn’t want a strong national currency) is severely weakening the dairy industry. But the blows just keep on coming.

Coles says the milk war is not to blame for lower prices.

Milk Wars

Dairy producers worldwide face country specific challenges. Even so the battle between two parts of the same industry is disconcerting for Australian producers. “Two years ago Coles discounted its home brand milk to $1 a litre.  Its decision sparked a milk war as the other supermarket chains followed suit. This has driven down the farm gate milk price. Coles argues the milk war is not to blame and has undertaken an advertising campaign to put a better spin on their role. Dairy Farmers president Noel Campbell replies, “Part of the reason why people are so angry with the Coles situation is, whether you supply domestic or the export market, people think milk being sold for $1 a litre is just wrong. “The amount of capital expended on the farm,. The amount of labour expended on the farm, long hours etcetera, people just see it as a slap in the face.”

Seeking Solutions

When milk is cheaper than water, a universal cry is raised, “Help!” Some Australian groups turn to the government. “The government should appeal to the consumer to support our local dairy industry and the additional 50 cents per litre would be distributed direct to each farm by way of 12 cents per liter and would keep this quality product on our supermarket shelves,” Coffey Hunt On-Farm Agribusiness partner Garry Smith said.  “We need to get more money paid for our milk and continue to reduce our costs and inputs.” Good suggestions but another hurdle is thrown up since there have been savage cuts to agricultural R&D right around the country. Places to seek innovative solutions and leadership are running out. Farmers are understandably agitating for low interest or no interest loans to help them through until prices improve.  One suggestion is that there could be a consumer-paid 50-cents-a-litre Dairy Industry Support Initiative on milk.

Is Today’s Crisis Tomorrow’s Disaster?

Wherever they are, but most especially in Australia, farmers need to start thinking about the big picture beyond the farm gate. Failure to face the future could mean that the opportunity to build a sustainable industry is lost.  Profitability is the goal.  We need to stop internal competition and fighting before the entire industry is lost.

The Bullvine Bottom Line – Who’s Next?

The milk industry is volatile and affected by many variables. That’s not new but now there is a new world order of dairying nations.  Everyone – perhaps foolishly – buys into the story of a glowing future where demand soars and there is a wealthy future for dairy farmers.  Unfortunately here and now Australian dairy farmers must face the reality that they are no more profitable now than they were a decade ago. Something needs to change or the down under romantic story will become the down under dairy industry tragedy.

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