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Archive for dairy sector

Defending Dairy: Countering the Push for Plant-Based School Lunch Menus

Wednesday, July 3rd, 2024

Activists are pushing for plant-based school menus. Learn how to protect dairy in schools and counter their influence.

Imagine your child’s school lunch menu shifting from milk and chicken nuggets to tofu wraps and almond milk. With vegan activists progressively advocating for ‘plant-based’ diets in schools, the need for immediate action to change the nutrition for millions of pupils becomes increasingly urgent. This paper investigates the emergence of this movement and its ramifications for the dairy sector and children’s nutritional welfare.

The goal is to find activists’ tactics—from grassroots campaigns in primary schools to college policy changes. Although the shift towards better food options is admirable, we must also consider the potential benefits of this change, particularly its positive effects on the dairy sector and children’s nutritional welfare. This paper aims to shed light on these hopeful outcomes.

The Humane Society of the United States, a leading advocate for animal welfare, wants half of school lunches to be plant-based by 2027. We will review case studies like the University of Michigan’s commitment to cutting animal-based alternatives, examine the most recent AVA Summit in Washington, D.C., and provide actions dairy supporters may take to buck these trends. This problem addresses dietary freedom, financial livelihoods, and essential elements of nutritional education in modern societies.

The Shifting Sands of School Menus: Navigating the Rise of Plant-Based Choices 

Targeted lobbying is driving the growing momentum for plant-based diets in schools. Universities ranging from Western Oregon University to the University of Michigan and the University of Wisconsin-Madison have drastically cut animal-based meals. By providing more plant-based choices, the University of Michigan, for example, is actively striving toward sustainability objectives.

Currently, plant-based options account for up to 20% of meals in K–12 classrooms, while colleges and institutions show higher percentages of 20% to 30%. This discrepancy shows different degrees of acceptance and application across various phases of schooling. With a strong push towards changing eating alternatives, the Humane Society of the United States (HSUS) wants to increase plant-based meals to 50% by 2027.

Important events highlighting the need to integrate younger generations include the Animal & Vegan Advocacy (AVA) Summit in Washington, D.C. Integrating more plant-based options on school menus, advocates seek to inculcate lifetime behaviors emphasizing animal kindness and environmental sustainability.

Activists’ Multi-Pronged Strategy to Plant the Seeds of Change 

Advocates use a diverse strategy to support plant-based diets in schools. Emphasizing the need to address younger audiences—from kindergarten—at the AVA Summit in Washington, D.C., the Early introductions of plant-based ideas seek to instill these ideals into the way of life of youngsters, so vegan alternatives appeal more as they grow.

Crucially important is social media outreach. Facebook, Instagram, and TikHub, activists interact with a large audience, sharing knowledge and success stories. This digital approach uses popular culture and young trends to make plant-based diets attractive and readily available.

Crucially, there are also relationships with young-targeted brands. Working with well-known businesses that appeal to younger groups helps include plant-based messages in goods and marketing initiatives targeted at children and teens. These alliances help make plant-based options on school menus more legitimate and accessible.

These tactics ultimately seek to standardize school plant-based diets, continuously impacting schools. Early education, internet interaction, and deliberate brand partnerships try to change younger generations’ nutritional tastes toward more plant-based choices.

Repercussions on the Dairy Industry: Navigating a New Norm 

The growing number of plant-based meals offered at colleges and universities may significantly change the dairy sector. Traditional dairy products may lose the market as educational institutions move toward plant-based options, endangering the lives of dairy farmers who have long been vital agricultural community members. Less young people drawn to dairy might affect the long-term demand for milk, cheese, and yogurt, influencing the whole supply chain.

Dairy farmers might have to vary their offerings to incorporate plant-based substitutes or risk losing market share to new rivals. Companies that have previously invested in plant-based dairy alternatives might have an advantage, forcing conventional dairy farmers to create or collaborate with plant-based companies. This change might also impact allied businesses, such as equipment makers, veterinary services, and feed producers, and, therefore, influence the whole agriculture industry.

A Proactive Approach to Ensuring Dairy’s Place in School Meals 

To counteract the rising push for plant-based menus, it’s crucial to implement a robust strategy advocating for dairy in school meals. Here are actionable steps: 

  1. Nutritional Education Initiatives 
    Develop comprehensive nutrition education programs that highlight dairy’s benefits. Emphasize essential nutrients like calcium, vitamin D, and protein in milk, cheese, and yogurt. Conduct workshops with dietitians to engage students and parents in understanding dairy’s role in a balanced diet. 
  2. Establishing Strong Partnerships with Schools 
    Forge partnerships with local schools to ensure dairy remains on menus. Collaborate with school nutritionists to create appealing dairy-rich meal options. Sponsoring school events and wellness programs can keep dairy at the forefront of students’ choices.
  3. Highlighting Balanced Diets 
    Promote balanced diets through campaigns focusing on the synergy between food groups. Use social media, newsletters, and community outreach to share how dairy, whole grains, fruits, and vegetables contribute to health. Professional testimonials add credibility.
  4. Dairy-Focused Campaigns and Initiatives 
    Implement campaigns showcasing dairy’s benefits. Activities can include dairy-tasting events, farm tours, and cooking classes. Collaborate with school TV channels and online portals to stream educational content on dairy farming and its dietary role. 
  5. Student and Parent Engagement
    Organize informational sessions and participatory activities for students and parents. Create programs where children learn to prepare meals with dairy—host parent-teacher meetings to address nutritional concerns and respond to plant-based arguments.
  6. Showcasing Dairy’s Role in Local Economies 
    Highlight how dairy farming benefits local economies. Present data on jobs and revenue generated by the dairy industry in-school presentations and community events to foster support for local dairy farmers. 

Implementing these strategies will ensure that dairy’s benefits are well-communicated and appreciated, safeguarding its place in future dietary choices.

Notable Success Stories in Dairy Promotion

The NFL’s “Fuel Up to Play 60” initiative, sponsored by the National Dairy Council, is one noteworthy success story. This program advances school dairy consumption by promoting better living with nutrient-dense foods like milk, cheese, and yogurt. Higher demand for dairy in program cafeterias by schools has been noted, therefore stressing its influence on school menus.

The Dairy Council of California’s “Dairy Optimization in School Meals” project is another outstanding effort. This initiative offers instructional materials on the advantages of dairy and teaches school nutrition personnel to include dairy in well-balanced meals. Participating schools have seen improved diversity and quality of dairy products, raising student happiness and involvement in school lunch programs.

The Bottom Line

Unquestionably, plant-based activists are making significant breakthroughs within academic buildings as we negotiate the changing dynamics of school meals. Driven by activists committed to imprinting their beliefs in the next generation, the demand for “plant-based” alternatives in schools is expanding. This endeavor differs from early kindergarten influence to alliances with young-oriented companies and social media marketing.

By 2027, organizations like the Humane Society of the United States want more plant-based meals available at K–12 institutions, colleges, and universities. Survey data and favorable taste-testing event answers indicate an increasing student inclination for these alternatives. For the dairy sector, this change offers both possibilities and difficulties; it must change to stay in school meals.

The consequences are significant, pointing to a societal change toward a more plant-based future connected with ethical and environmental issues. Strong school alliances, nutritional education, and campaigns stressing balanced meals, including dairy, should form part of our proactive strategy. Although the emergence of plant-based meals at educational institutions poses difficulties, it also enables the dairy sector to interact significantly with the younger generation. The encouragement of dairy’s advantages and local economic contributions can guarantee that it remains a mainstay of school food.

Key Takeaways:

  • Vegan and animal rights activists are advocating for increased “plant-based” menus in K-12 schools, colleges, and universities.
  • Institutions like the University of Michigan, University of Wisconsin-Madison, and Western Oregon University have pledged to reduce animal-based choices.
  • The Humane Society of the United States (HSUS) aims for 50% of institutional dining program meals to come from “plant-based” sources by 2027.
  • Currently, “plant-based” offerings comprise 20% to 30% of college and university menus but only up to 20% of school district menus.
  • The AVA Summit emphasized indoctrinating younger children, starting from kindergarten, to further vegan and animal rights agendas.
  • Activists employ strategies like social media outreach, university campus tables, and partnerships with youth-focused brands to gain interest.
  • Dairy advocates can mitigate the influence of these activists by adopting proactive measures.

Summary:

Vegan activists are advocating for plant-based diets in schools, causing a shift in nutrition for millions of students. The Humane Society of the United States (HSUS) aims to increase plant-based meals to 50% by 2027, addressing dietary freedom, financial livelihoods, and essential elements of nutritional education. Advocates use various strategies, including grassroots campaigns, social media outreach, and working with young-targeted brands to make plant-based options more accessible. However, the growing number of plant-based meals in colleges and universities may significantly change the dairy sector, potentially affecting traditional dairy products and endangering dairy farmers. Dairy farmers may have to adapt their offerings to incorporate plant-based substitutes or risk losing market share to new competitors. Companies that have invested in plant-based dairy alternatives may have an advantage, forcing conventional dairy farmers to create or collaborate with plant-based companies. To counteract this trend, a proactive approach to advocating for dairy in school meals is crucial, including developing comprehensive nutrition education programs, establishing strong partnerships with schools, and promoting balanced diets through campaigns focusing on the synergy between food groups.

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Unmasking Supply Chain Vulnerabilities: The Untold Struggles of Dairy Farmers in Times of Disruptions and Pandemics

Tuesday, July 2nd, 2024

Learn how dairy farmers deal with supply chain issues during pandemics. What problems do they encounter with feed supply and product distribution? Discover the answers now.

Though it is a significant component of our diet and essential for rural economies, the dairy sector suffers major supply chain problems. These issues become evident during disturbances like the COVID-19 epidemic, influencing labor availability, feed supplies, and transportation of perishable goods. Strengthening the sector against further shocks depends on an awareness of these difficulties. The issues dairy producers deal with and the consequences of supply chain disruptions are investigated in this paper. It advises calculated actions to foster sustainability and resilience. Every disturbance highlights the connectivity of our supply chains and the necessity of solid and adaptable mechanisms to help farmers and food security.

Understanding the Supply Chain: A Lifeline for Dairy Farmers

Dairy producers rely on the milk supply chain for revenue, so its efficiency and strength are vital. Unlike other agricultural sectors, dairy production is complex because milk is perishable and mainly generated locally. This regional dairy supply chain in the United States needs help to incorporate modern technologies to guarantee seamless milk delivery from farmers to customers.

Truck drivers play a pivotal role in the dairy supply chain, especially during periods of high demand, such as the COVID-19 pandemic. Handheld tools have revolutionized real-time tracking and communication, enhancing the efficiency of transportation logistics. When integrated with advanced routing and scheduling systems, these tools are instrumental in optimizing milk shipping, reducing delays, and minimizing spoilage. More than a technological tool, this innovation is a beacon of hope for a resilient supply chain, helping to avert transportation and storage issues.

Further difficulties arise from supply systems’ worldwide character. International commerce compromises the system even as it expands markets. Disturbances in anything—from feed imports to export logistics—can have broad consequences. We need a robust local system to manage global problems like pandemics without drastically affecting consumers or farmers. This system must include local feed production, varied export markets, and contingency strategies for many possibilities. These steps will help improve the dairy sector’s resilience and lessen the dependence on worldwide supply networks.

Seasonal variations in dairy output further add to the complexity and need for careful planning and production balance. To satisfy consumer needs, farms must control times of both shortage and excess. Good supply chain management and seamless manufacturing, transportation, and storage coordination are essential. This guarantees milk’s continuing excellent quality from farm to table.

From Farm to Table: Where the Breakdown Begins

Although milk’s route from farm to table calls for exact coordination, the COVID-19 epidemic highlighted several areas needing work. Delays in animal feed deliveries harmed dairy farms, influencing cow health and output levels.

Milk’s delivery to processing facilities also presented problems. Although routing software seeks to maximize paths, truckers’ growing dependence on portable devices and the localized character of the U.S. milk supply chain caused delays resulting from interstate limits and labor shortages.

Processing factories turn raw milk into many goods. Products like cheese, with longer manufacturing cycles, were disrupted, affecting supply and financial stability. Seasonal production alters imply farms have to balance their capability for output. Data insights offered by precision dairy farming technologies help to maximize these processes.

The supply chain has to be able to resist unplanned interruptions. Advanced technology promises more resilience and efficiency. The epidemic underlined the importance of infrastructure investment and backup preparation. To help the sector be stable, dairy producers and associated players must improve the supply chain.

The Domino Effect: How Feed Supply Disruptions Impact Dairy Farms

For dairy farms, feed delivery interruptions cause significant problems rather than minor annoyances. Interventions in forage and basic grains may alter dairy product quality, lessen milk output, and decrease cow productivity. Finding other feed sources raises expenses and calls for speedy adaptation to new nutrition profiles, which runs the danger of compromising cattle health.

American regional milk supply networks exacerbate these issues as farmers in certain regions experience localized shortages and price swings, taxing profit margins. This problem emphasizes the importance of intelligent logistics and necessary backup preparation.

Technology may assist in lowering these risks using precision dairy farming, a data-driven method of dairy farm management, and sophisticated monitoring and logistical tools. Modern routing and scheduling tools, as well as handheld tools for drivers, help to enhance milk movement. Still, the 80,000-pound weight restriction for trucks complicates matters. Resolving feed supply interruptions requires a diverse strategy, including regulatory support, planning, and creativity to safeguard the dairy sector.

Logistics Nightmares: Distribution Challenges in the Dairy Industry

Outside interruptions and inefficiencies aggravate the logistical problems facing the dairy sector. Particularly in times of great demand or disturbance like the COVID-19 epidemic, the geographical character of milk supply networks in the United States makes distribution more difficult and results in bottlenecks and delays.

The 80,000-pound weight restriction for trucks is one major issue, raising transportation expenses and impacting dairy logistics’ carbon footprint. Although computerized routing and scheduling help to enhance transportation, rules still need to be improved.

The dairy supply chain is brittle, and timely, temperature-regulated deliveries are vital. Any delay could damage the safety and freshness of products, leading to financial losses. Though they have increased productivity, innovations like mobile gadgets and real-time monitoring software must be deployed more broadly—especially on smaller farms.

For goods with extended expiry dates, rail travel might be a more consistent, reasonably priced choice that helps relieve road traffic load. But this requires infrastructure growth and investment, taxing an already strained sector.

The logistical problems of dairy distribution draw attention to the necessity of changes and fresh ideas. Stakeholders have to cooperate to strengthen and simplify the supply chain. Dairy producers, supply chain partners, legislators, and regulators should all be part of this cooperation. Working together, funding technology, and supporting legislative reforms can help improve the dairy supply chain and increase its resilience to future shocks. These group efforts are necessary for weaknesses to continue undermining the sector’s stability and expansion.

Pandemics Unveiled: COVID-19 and Its Toll on Dairy Farms

The COVID-19 epidemic underlined the relationship between farm operations and distribution and demonstrated how brittle the dairy supply chain may be. Lockdowns impacted labor, hindering farm maintenance and milk output.

Farmers had to contend with tight rules and move to selling directly to customers when eateries shuttered. The 80,000-pound weight restriction for vehicles transporting significant milk volumes makes transferring such quantities more difficult.

Feed shortages caused by global supply chain problems degraded herd health and output. With fewer employees and tight health regulations, processing plants suffered, reducing capacity.

Technology may be helpful here. Digital technologies and precision dairy farming enhance information and communication. Smaller farms, however, may require assistance to pay for these expenditures.

COVID-19 made clear that a more robust, adaptable supply chain is vital. Reviewing truck weight restrictions and rail travel might make the system more resistant to future issues.

Financial Struggles: The Economic Impact of Supply Chain Disruptions on Dairy Farmers

Dairy producers struggled greatly financially during COVID-19. Disturbances in the supply chain caused delays and added financial burdens. The unexpected decline in demand from restaurants, businesses, and schools left farmers with excess perishable goods, hurting their financial situation.

The problem worsened with the regional character of milk supply networks in the United States. Unlike centralized processes, the scattered dairy business had more significant financial difficulties and delays. Seasonal variations in dairy output further complicate the matching of market demand.

Though costly—many farmers cannot afford them—technological solutions like precision dairy farming might increase supply chain efficiency. Truck transportation expenses rise with the 80,000-pound weight restriction. Although other technology developments and mobile gadgets aid, their initial cost might be a deterrent.

Ultimately, the economic effects of supply chain interruptions during COVID-19 showed the financial systems of the dairy industry. To address these problems, we must increase resilience, use modern technology, and advocate laws simplifying logistics.

Future-Proofing: Strategies for Building a More Resilient Dairy Supply Chain

Dairy producers. Must act pro-ahead to keep their businesses free of issues. Precision dairy farming, among other technological instruments, helps monitor herd health and production during disturbances. Effective routing and scheduling tools help milk go to processing facilities, lowering logistical risk.

A localized approach to milk production provides stability by limiting dependence on long-distance transportation, minimizing interruptions, and supporting sustainability. This approach reduces the carbon impact and cuts the journey distance.

One must use sustainable supply chain techniques. Investing in renewable energy, such as solar or biogas, lessens the need for outside sources and satisfies customer demand for environmentally friendly goods.

Solid and honest ties with suppliers are essential. Creative portable tools help processors, farmers, and truckers coordinate better. Sharing real-time data enables fast reactions to disturbances.

Finally, dairy farms should have contingency plans for all disturbances, from severe storms to pandemics. These strategies should include many sources for necessary materials and different ways of delivery. Dairy producers who foresee difficulties and equip themselves might convert weaknesses into assets.

The Bottom Line

Many dairy producers depend critically on the dairy supply chain. Particularly in times like the COVID-19 epidemic, disruptions may lead to shortages of feed supplies and issues transporting goods to customers. They looked at how these disturbances affected the GDP. Any disturbance has a significant effect on farmers as well as the whole sector. Strategies for a robust supply chain must so be followed strictly.

Policymakers and businessmen should prioritize strengthening the dairy supply chain. New technology and financial assistance, among other support tools, should help farmers cope with interruptions. Moreover, increasing consumer knowledge might support resilience development. We can safeguard dairy farming’s future by encouraging adaptable plans and sustainable methods.

Fixing supply chain weaknesses in the dairy sector is vital socially and economically. Being proactive will guarantee dairy producers a solid and sustainable future.

Key Takeaways:

  • The COVID-19 pandemic highlighted critical vulnerabilities within the dairy supply chain, emphasizing the need for more robust, resilient systems.
  • Technological advancements, such as handheld communication devices and sophisticated routing software, can mitigate disruptions and enhance efficiency in dairy logistics.
  • Localizing supply chains and investing in infrastructure, such as rail transportation for dairy products, can reduce dependency on global logistics and extend product shelf life.
  • Sustainable practices, including adopting renewable energy sources, offer dual benefits of reducing reliance on external suppliers and meeting eco-conscious consumer demands.
  • Innovative solutions and strategic planning are essential to navigating the complexities of seasonal dairy production and effectively balancing supply and demand.

Summary:

The dairy sector is facing significant supply chain challenges due to the COVID-19 pandemic, impacting labor availability, feed supplies, and perishable goods transportation. Modern technologies can help ensure seamless milk delivery by incorporating handheld tools that revolutionize real-time tracking and communication, optimizing milk shipping, reducing delays, and minimizing spoilage. A robust local system is needed to manage global problems without affecting consumers or farmers. Good supply chain management and seamless manufacturing, transportation, and storage coordination are essential for maintaining milk quality. Precision dairy farming technologies can help maximize processes and resist unplanned interruptions. Stakeholders must cooperate to strengthen and simplify the supply chain, funding technology, and supporting legislative reforms to improve the dairy supply chain and increase resilience to future shocks. To address the economic effects of supply chain disruptions during COVID-19, dairy producers must act proactively, using technological instruments like precision dairy farming, effective routing and scheduling tools, a localized approach to milk production, sustainable supply chain techniques, strong supplier relationships, and contingency plans.

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Categories : Highly Pathogenic Avian Influenza
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USDA Reports 10-Month Decline in U.S. Milk Production: May Numbers Drop 1%

Monday, June 24th, 2024

Find out why U.S. milk production has been decreasing for the past 10 months. Learn how cow numbers and milk output per cow are affecting the dairy industry. Read more.

The USDA’s preliminary May Milk output report shockingly reveals a consistent drop in U.S. milk output extending for ten months. With May showing a 1% decline from the same month last year, this steady dip points to significant shifts within the dairy sector. The continuous drop has changed the scene of milk output worldwide and pushed industry players to change their plans.

The ten-month run of low milk supply draws attention to systematic problems U.S. dairy producers face: narrow revenue margins, changing feed prices, and bad weather.

Reviewing the USDA’s data, we see: 

  • U.S. milk production fell to 19.68 billion pounds in May 2024, down 0.9% from the previous year.
  • Cow numbers decreased by 68,000 head, reflecting broader herd management strategies.
  • The average milk production per cow dropped by 3 pounds, influenced by various regional factors.
MetricMay 2024May 2023Change
U.S. Milk Production (billion pounds)19.6819.86-0.9%
U.S. Cow Numbers (million)9.359.418-68,000 head
Average Milk per Cow (pounds)2,1052,108-3 pounds
24-State Milk Production (billion pounds)18.87519.009-0.7%
24-State Cow Numbers (million)8.8938.945-52,000 head
24-State Average Milk per Cow (pounds)2,1222,125-3 pounds

A Deeper Dive into USDA’s May 2024 Dairy Estimates 

CategoryMay 2024May 2023Change
U.S. Milk Production (billion pounds)19.6819.86-0.9%
U.S. Cow Numbers (million head)9.359.42-68,000 head
U.S. Average Milk per Cow (pounds)2,1052,108-3 pounds
24-State Milk Production (billion pounds)18.8819.01-0.7%
24-State Cow Numbers (million head)8.898.94-52,000 head
24-State Average Milk per Cow (pounds)2,1222,125-3 pounds

The early projections for May 2024 from the USDA show significant changes in American dairy output. Down 0.9% from May 2023, the total U.S. milk output is 19.68 billion pounds. 9.35 million, U.S. cow counts have dropped 68,000 head from the previous year. Down three pounds year over year, the average milk output per cow is 2,105 pounds.

Milk output in the 24 central dairy states dropped 0.7% from May 2023, coming to 18.875 billion pounds. Down 52,000 head from the year before, cow counts in these states are 8.893 million. With an average milk yield per cow of 2,122 pounds, the milk output has slightly dropped from the previous year—3 pounds less.

Delving into the Dynamics of Cow Numbers: A Tale of Decline and Resurgence

YearTotal U.S. Cow Numbers (millions)24-State Cow Numbers (millions)
20209.458.92
20219.508.95
20229.478.91
20239.358.84
20249.358.89

Cow counts from the USDA show declining and then rising trends. The U.S. dairy herd dropped 68,000 head starting in May 2023, underscoring continuous industry difficulties. However, there has been a slight rise since October 2023, which has driven herd size to its most significant since late 2023.

The 24 central dairy states had a similar trend. From the year before, the combined herd of these states dropped 52,000 head, yet it somewhat recovered with a 5,000 head rise from April 2024. This points to a partial recovery in certain areas while others continue to suffer.

It’s important to note the stark differences at the state level. While Florida and South Dakota saw a gain of 27,000 heads, New Mexico experienced a dramatic drop of 42,000 heads. These variations underscore the influence of local elements such as climate, feed availability, and state-by-state economic forces.

Interwoven Influences on Milk Output per Cow: The Balance of Weather, Feed Costs, and Income Margins 

StateMay 2024 (lbs)May 2023 (lbs)Change (lbs)Change (%)
Florida2,0001,970301.52%
Minnesota2,2102,180301.38%
Wisconsin2,1002,075251.20%
Illinois2,1502,120301.42%
Iowa2,3002,270301.32%
Kansas2,1202,100200.95%
California2,0502,075-25-1.20%
Vermont2,0002,025-25-1.23%
Pennsylvania1,9802,005-25-1.25%
Indiana2,1002,125-25-1.18%

Income margins, feed prices, and regional weather have all played a role in the decline in milk yield per cow. Adverse weather patterns, such as droughts or excessive rainfall, can impact feed and water availability, which in turn can influence cow health and output. High feed prices might drive farmers to choose less nutritious substitutes, which can also affect milk output. These factors highlight the need for a comprehensive approach to address the issue, including strategies to manage weather risks and stabilize feed prices.

Income margins are crucially important. Tight margins often force difficult choices on herd management, reducing expenditures on premium feed or healthcare and, therefore, affecting milk yield per cow.

States like Florida, Minnesota, and Wisconsin reported increases in milk yield, up 15 to 30 pounds per cow, presumably owing to better local circumstances and enhanced procedures compared to year-to-year improvements.

States like California, Vermont, Pennsylvania, and Indiana reported losses of 15 to 25 pounds per cow, on the other hand. California’s ongoing drought and other difficulties, such as changing feed prices and economic pressures, highlight the careful balance between environmental elements and farming methods.

The Bottom Line

The USDA report by May shows a continuous drop in important dairy indicators—ten consecutive months of declining U.S. milk output; May 2024 down about 1% over last year. Though there have been some recent increases, national cow counts have dropped by 68,000 head. Because of regional variations in feed prices, weather, and economic constraints, milk yield per cow decreased somewhat.

These patterns point to a declining milk supply, which would be expected to raise milk prices. This change in prices could benefit medium-sized manufacturers, but it also poses challenges for the sector, including high feed prices and economic difficulties. These factors are driving the industry towards farm consolidation and increased use of technology. The decline in milk output also underscores the need for innovation and policy support to ensure sustainable development in the sector.

Given these trends, it’s clear that the sector needs to innovate to counter these challenges. Strategies such as improving feed efficiency, genetic selection, and dairy management could prove beneficial. Moreover, policy support is not just beneficial, but crucial for ensuring sustainable development in the industry.

Key Takeaways:

  • U.S. milk production for May 2024 is estimated at 19.68 billion pounds, a decrease of 0.9% compared to May 2023.
  • U.S. cow numbers have dropped to 9.35 million, down 68,000 head from the same month last year.
  • The average milk production per cow in the U.S. has marginally declined by 3 pounds, totaling 2,105 pounds per cow.
  • In the 24 major dairy states, milk production is down 0.7%, with total output at 18.875 billion pounds.
  • These 24 states have seen a reduction in cow numbers by 52,000, now standing at 8.893 million.
  • Despite the overall decline, some states like Florida and South Dakota show robust growth in cow numbers and milk output.
  • Conversely, significant decreases in milk production have been observed in states such as New Mexico and California.

Summary: 

The USDA’s preliminary May Milk output report shows a 1% decline in U.S. milk output for ten months, indicating significant shifts within the dairy sector. The ten-month run of low milk supply is attributed to narrow revenue margins, changing feed prices, and bad weather. The total U.S. milk output is 19.68 billion pounds, with cow numbers decreasing by 68,000 head. The average milk production per cow dropped by 3 pounds, influenced by regional factors. The U.S. dairy herd dropped 68,000 heads starting in May 2023, underscoring industry difficulties. However, there has been a slight rise since October 2023, driving herd size to its most significant since late 2023. Interwoven influences on milk output per cow include income margins, feed prices, and regional weather. States like Florida, Minnesota, and Wisconsin reported increases in milk yield, while California, Vermont, Pennsylvania, and Indiana reported losses.

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Categories : Dairy Industry
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Farmers Warn New Zealand’s Visa Changes Threaten Dairy Industry’s Future and Worker Stability

Wednesday, June 12th, 2024

Are visa changes threatening the future of New Zealand’s dairy industry? Discover how new regulations impact farmers and workers, and what it means for productivity.

Recent changes to the Accredited Employer Work Visa system have rocked the dairy sector in New Zealand. These changes create significant challenges for migrant workers and farmers, thus endangering the industry. The modifications involve:

  • shorter maximum stays and shorter visa terms
  • A new minimum English standard, more hiring criteria, more advertising requirements
  • Increased levels of experience and skill criteria

Todd contends that these new challenges could destroy output and tax an already taxed workforce, compromising a vital part of New Zealand’s economy.

AEWV Changes Risk Affecting Stability of Dairy Industry: Struggling Farmers

The Accredited Employer Work Visa (AEWV) has been a lifeline for many New Zealand businesses, particularly the dairy sector. Its main goal is to let companies employ migrant workers instead of suitable New Zealanders, addressing critical labor shortages. For years, this visa has allowed dairy producers to bring in qualified laborers from all around, guaranteeing continuity and output.

Still, the farming community is quite concerned about recent AEWV changes. The changes announced include several new criteria that might impede the conventional support the visa has provided:

  • Shorter visa terms for most ANZSCO Level 4 and 5 jobs
  • Shorter maximum stay in New Zealand
  • Mandatory minimum English language requirements
  • More advertising and hiring rules
  • New minimum levels of knowledge and experience

The changes must be clarified from a farming perspective since we are trying to be productive, boost the national economy, and maximize our finest resources.

Visa Revisions Threatening Workforce Stability Create Serious Problems for Dairy Farmers

The changes in the Accredited Employer Work Visa (AEWV) system have presented many difficulties for dairy producers. The main issue is the possible loss of experienced workers who have become indispensable for agricultural activities. As Todd notes, these employees, who have integrated with the local community and are experienced in agrarian tasks, face the possibility of being returned to their native countries. This situation compromises the general operational stability and the farmers’ output.

The strict criteria and shorter visa terms mean that farmers could have to split ways with staff members familiar with their farms and operations. Replacing these seasoned employees is a complex task, particularly considering the dearth of local candidates qualified for or interested in filling these positions.

“When we lose these guys, nobody here wants to do that job,” Todd says. The challenge is exacerbated by the fact that local workers find less appeal in jobs like dairy farm assistants and general hands, mainly classified under ANZSCO Level 4 or 5.

Often, fruitless searches for local replacements result in more work for current employees and extra stress for the farmers. This turns into operational inefficiencies, possibly endangering workers’ welfare and the dairy industry’s financial contribution. The emotional and psychological stress cannot be emphasized since the possibility of overworking looms large and threatens the mental health of people trying to survive on their farms.

Dairy Industry Migrant Workers: Overcoming New Challenges and Uncertain Future

There are several worrying ramifications for migrant workers now employed in the dairy sector. The latest modifications to the Accredited Employer Work Visa (AEWV) introduce several new criteria that greatly affect these workers’ capacity to stay employed in New Zealand.

The new minimum skills and experience level is, first and most importantly, a significant obstacle. These days, migrant workers must show at least three years of relevant work experience or a qualification of NZQF Level 4 or above. Many find this demanding since they often need more official credentials. They may discover that getting verifiable work references, tax records, or other independent evidence is challenging in satisfying the three-year experience criterion.

Still, another major challenge is the minimum level of English required. Today, migrants have to pass an English language test covering reading, writing, listening, and speaking. This thorough test can be intimidating, particularly for those who are only good at oral communication or may find the reading and writing parts difficult.

These new criteria not only endanger the employment stability of present employees but also cause extra emotional and financial weight. Migrants might have to spend more on resources and preparation to satisfy these requirements, making staying in New Zealand economically impossible. Moreover, the pressure and stress of fulfilling these new criteria can aggravate uncertainty and instability among migrant workers, thus influencing their general welfare and employment performance. This situation paints a bleak picture of the challenges they face, often with no clear path forward.

Overall, these developments might cause a notable migration of the migrant workforce, resulting in the loss of experienced and qualified workers. The dairy sector may see a drop in morale and an increase in workloads for the remaining employees as workers encounter these new difficulties, aggravating the already tricky working circumstances. This potential loss of experienced workers is a significant concern, as it could lead to a decline in productivity and a strain on the remaining workforce.

Legal Expert Elly Fleming: Negotiating the Complications of New Visa Rules

Associate Pitt & Moore Lawyers Elly Fleming has been front and first, helping farmers navigate the subtleties of the new visa rules. She voiced significant worries about the legal complexity and extra weight these changes place on businesses and employees.

Fleming underlined that the amendments demand migrants to show at least three years of relevant work experience or hold an appropriate NZQF Level 4 or above qualification. “In many cases,” she said, “migrants may lack such qualifications, making it difficult to meet these rigorous criteria.” Comprehensive documentation—including tax records and work references—still adds another difficulty, usually surprising companies and their employees.

Furthermore, the English language requirements create rather significant obstacles. Companies with a painstakingly developed qualified workforce over the years risk losing valuable staff members who might find the demanding language test difficult. “The test isn’t just about oral communication but also reading and writing, which can be quite overwhelming for many migrants,” Fleming said.

These extra criteria and the consequent application process delays have caused both sides more stress and financial pressure. Fleming advised companies to carefully budget their workforce requirements and consult experts to negotiate this complexity properly. “Minor mistakes can have major consequences,” she underlined, stressing the increased pressure and the possible existential threat these developments provide to many farming activities. This underscores the urgent need for legislators and legal professionals to address these issues promptly.

Finally, as Fleming advises, these legal challenges call for immediate attention to stop long-lasting harm to the agricultural sector. She suggests that legislators should review and solve these onerous rules, and that businesses should carefully budget their workforce requirements and consult experts to negotiate this complexity properly. By taking these steps, we can work towards a more equitable and sustainable visa system for the dairy sector.

New Visa rules significantly jeopardize New Zealand’s dairy sector and economy.

Analyzing the broader economic effects of the visa changes exposes a worrying situation for the dairy sector and New Zealand’s general GDP. The possible decrease in production under the new rules becomes a significant concern. Forced to leave, skilled workers could bring their knowledge to other nations like Australia or Canada, aggravating the already severe labor shortage in the agricultural sector.

The dairy business must spend considerable expenses and time training new staff members as experienced workers leave. This never-ending cycle of hiring and training disturbs operations and reduces efficiency, directly influencing production. Farmers such as Stephen Todd show annoyance at the impracticality of these developments, particularly in light of their sector’s efforts to positively impact the national economy.

Moreover, the financial expenses and administrative load related to fulfilling the new visa criteria could deter companies from hiring migrant workers entirely. Under this situation, workforce numbers could drop even more, putting more pressure on the surviving workers and causing some farmers to close their businesses.

Ultimately, these visa changes could have rather significant broader economic effects. New Zealand risks losing a key component of its agricultural workforce as productivity falls and educated workers search for opportunities in more friendly nations, affecting its economic stability and growth.

Mental Stress on Farmers: Managing Job Insecurity and Rising Workloads

The mental health effects of more job uncertainty and workload for workers and farmers are significant. A dairy farmer, Stephen Todd, raises these issues, noting that the new visa restrictions could cause “some pretty tough times with people in mental states because they’re overworked.” The financial burden of continuously retraining new employees and the emotional toll of losing long-term, trusted staff members compound the stress. Farmers’ pressure to keep output can lead to more anxiety and burnout, thus generating an unsustainable and unhealthy workplace. Maintaining the mental health of people working in the dairy sector is essential; therefore, legislators should give these issues top attention.

The Bottom Line

Given the recent revisions to the Accredited Employer Work Visa, it is evident that the dairy sector could suffer greatly. With the new visa rules imposing more demanding criteria and shorter stays, dairy farmers like Stephen Todd deal with losing experienced and committed team members. These developments endanger lower output and further burden already fragile farmers. Legal professionals such as Elly Fleming draw attention to the complexity and extra weight these regulations impose, particularly about professions at ANZSCO Level 4 or 5 and the new English language requirements.

The government must understand how these visa changes could affect the dairy industry and the general economy. One must adopt a balanced strategy that guarantees equitable conditions for migrant workers and preserves the stability and efficiency of the dairy sector at the same time. Legislators should review the changes to produce a more fair and sustainable answer that helps all the engaged parties. Legal standpoint: Add knowledge from Pitt & Moore Lawyers’ associate Elly Fleming, who has been assisting farmers to deal with the new visa rules. Talk about the legal complexity and the extra weight employers and employees bear.

Key Takeaways:

  • Dairy farmer Stephen Todd highlights the adverse impact of AEWV changes on the industry’s productivity and workforce stability.
  • New amendments include shorter visa terms, reduced stay durations, mandatory minimum English language proficiency, and increased hiring regulations.
  • Farmers face the challenge of losing skilled workers and the cost of retraining new employees.
  • Legal expert Elly Fleming notes widespread confusion and concern among employers regarding the new requirements.
  • Migrant workers must now demonstrate at least three years of relevant work experience or a relevant qualification of NZQF Level 4 or higher.
  • The new English language tests pose a significant hurdle for many migrant workers, impacting their ability to stay in New Zealand.
  • Potential delays and additional costs in the visa application process put financial strain on both workers and employers.
  • Fleming advises employers to seek professional guidance and plan their workforce needs meticulously to navigate the new regulations successfully.
  • Farmers warn that increased workloads and job insecurity could lead to elevated stress levels and mental health issues among their ranks.

Summary: The Accredited Employer Work Visa (AEWV) system in New Zealand has faced significant changes, including shorter visa terms, shorter stays in New Zealand, mandatory minimum English language requirements, more advertising and hiring rules, and new minimum levels of knowledge and experience. These changes could impede the conventional support the visa provides, potentially leading to a decrease in production and labor shortage in the agricultural sector. Legal expert Elly Fleming has advised companies to carefully budget their workforce requirements and consult experts to negotiate these complex issues. The government must adopt a balanced strategy that ensures equitable conditions for migrant workers while preserving the stability and efficiency of the dairy sector.

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