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KY Milk Matters November December 2020



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KY Milk Matters November December 2020

  1. 1. November - December 2020 • KDDC • Page 1 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk MattersN o v e m b e r - D e c e m b e r w w w. k y d a i r y. o r g KENTUCKY Supported by Inspiring and Practicing the Concept (The Glass is Half Full) page 8 NAILE Results page 10-11 Talking Trade pages 14 Fairdale Total Cali ET Exhibitor Emily Goode. She was Grand Champion Brown Swiss for open and Junior Show (more photos on page 10) The 2020 North American International Livestock Expo Dave Roberts T he 2020 North American International Livestock Expo (NAILE) looked quite different this year than any in the past. The good news is there was a 2020 NAILE and many people worked hard to make it happen in a year where the Covid-19 caused many cancellations. Spectators, other that participants, were not allowed. The number of fitters and herdsman helping with each exhibiter’s animals were also limited. Mandatory mask wearing and social distancing made for some challenges but guess what, no one seemed to be bothered. Everyone was so glad to be out doing what they love, exhibiting their animals and visiting with fellow dairy folks from across the U.S. The total numbers may have been down this year, but the quality of the show lived up to the high expectations the NAILE usually delivers. Kentucky exhibitors represented the state with high quality dairy heifers and cows that have become a trademark at many shows. We would like to congratulate all the show participants and winners. Photo by Dairy Agenda Today Photo by Dairy Agenda Today
  2. 2. November - December 2020 • KDDC • Page 2 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund 2020 KDDC Board of Directors & Staff Executive Committee President: Freeman Brundige Vice President: Charles Townsend, DVM Sec./Treasurer: Tom Hastings EC Member: Tony Cowherd EC Member: Greg Goode EC Past President: Richard Sparrow Board of Directors District 1: Freeman Brundige 731.446.6248 District 2: Josh Duvall 270.535.6533 District 3: Keith Long 270.670.1388 District 4: Bill Crist Jr. 270.590.3185 District 5: Tony Compton 270.378.0525 District 6: Mark Williams 270.427.0796 District 7: Greg Goode 606.303.2150 District 8: Steve Weaver 270.475.3154 District 9: Jerry Gentry 606.875.2526 District 10: Terry Rowlette 502.376.2292 District 11: Stewart Jones 270.402.4805 District 12: John Kuegel 270.316.0351 Equipment: Tony Cowherd 270.469.0398 Milk Haulers: Mike Owen 270.392.1902 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dairy Co-op: Stephen Broyles 859.421.9801 Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Todd Lockett 270.590.9375 Heifer Raiser: Bill Mattingly 270.699.1701 Former Pres.: Richard Sparrow 502.370.6730 Employee & Consultants Executive Director: H.H. Barlow 859.516.1129 DC-Central: Beth Cox PO Box 144, Mannsville, KY 42758 859.516.1619 • 270-469-4278 DC-Western: Dave Roberts 1334 Carrville Road, Hampton, KY 42047 859.516.1409 DC-Southern: Meredith Scales 2617 Harristown Road, Russell Springs, KY 42642 859.516.1966 DC-Northern: Jennifer Hickerson PO Box 293, Flemingsburg, KY 41041 859.516.2458 KDDC 176 Pasadena Drive • Lexington, KY 40503 KY Milk Matters produced by Carey Brown President’s Corner Freeman Brundige A fter “luckily” being able to spend a few days at the 2020 style North American International Dairy Show, I have made some observations about fellow dairy farmers and myself. The appreciation of the beauty of the modern models of all the breeds of dairy cattle resonates with all true “cow men”, whether they have registered or grade cattle at home. Just as importantly are all the friendships and acquaintances that have been developed over the years of sharing that love of great cows and the pride of hoping to breed and show one. I have been involved for right at sixty years from small to large scale in this endeavor and it still keeps me excited about staying involved in a business that at times makes you wonder why you chose it as a way of life. It was that love that kept me going to the barn all those dark mornings and a great way to teach your children many important lessons in life. Not everybody catches the “show bug” but it still can be an important part of showcasing our business to our customers throughout the world. Hopefully in our age of larger and larger farms we will not lose the true joy of working hands on with one of the most graceful, efficient, and “yes” intelligent animals in the world. Not everyone is trying to breed show winners, but we all want our future cows to be productive and long lived, and yes some of that coincides with our show cows. For an old dairyman it was a welcome change from constant election commercials and the useless protests and violence going on. I wonder how these people can feed themselves and their families while showing their ignorance and lack of understanding in the streets of our cities. But that’s another story. Dairy Revenue Protection (DRP) Is Here! This recently released USDA product (DRP) is designed to protect dairy farmers from the decline in quarterly revenue from milk sales. Contact us today for more information about protecting one of the biggest risks to your operation. In Business Since 1972 1-800-353-6108 We are an equal opportunity provider
  3. 3. AlltechNaturally @Alltech ©2018. Alltech, Inc. All Rights Reserved. For over 35 years, Alltech has promoted animal health and performance through management programs and the help of our experts in Mycotoxins, minerals and on-farm support. Strengthen your nutrition for profitable production! Elizabeth Lunsford | (859) 553-0072 ACTIGEN®, BIO-MOS® INTEGRAL® A+ , SELECT GH® BIOPLEX®, SEL-PLEX® AMAIZE®, FIBROZYME® OPTIGEN®, YEA-SACC® for modern dairy production NUTRITIONAL SOLUTIONS
  4. 4. September - October 2020 • KDDC • Page 4 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Executive Director Comments H H Barlow I t’s the holiday season and 2020 is almost over. This year has been excruciating and none of us have ever been through anything like it before. For me, the big question is what will 2021 bring. Unfortunately, the air of uncertainty is still with us. The dairy world is very much like everything else. We really don’t know what to expect. Milk futures look bad, feed costs appear to be much higher than last year; therefore, it looks like another tough year ahead, but as we saw this year, things can change rapidly. I’m old enough to know that situations are never quite as good as they appear when things look great and never quite as bad when everything looks terrible. Year 2021 will bring some new developments for all of us dairymen. I believe we will see Federal Order reform that should improve the stability of prices. Our lower commodity prices, compared to the world price, will improve our exports, which should translate into higher pay prices. The opening of the huge cheese plant in Michigan will also help our pay price. The cheese plant will use 160 loads of milk/day, which is more than we produce in the whole state of Kentucky. The excess milk being produced in the states north of us should go to the cheese plant instead of coming south to capture our markets. Transportation costs will have a major bearing on our farm pay prices. These are all external factors we have little direct impact on. So what can we change? KDDC is actively working on Federal Order reform alongside 9 other southern states and we believe there will be some positive changes forth coming. I’ve always been told don’t sweat the things you have no control over but concentrate on the factors you can change. With that in mind, what can we as individual dairyman work on to make our own operations more profitable. (1) Set a goal (2) Devise a plan (3) Take action implementing your plan (4) Evaluate your progress and adjust as needed. Be sure and write it down so you can track it. One absolute IMPERATIVE thing every dairyman should do if you haven’t already done so is sign up for the Dairy Margin Coverage insurance. It paid out very good in 2020 and I believe it will pay big again in 2021. The deadline for sign-up is December 11th. Along with every dairy person across the state, KDDC has adjusted in 2020. Our signature MILK program based on quality with milk markets participating with us has ended. The KDDC board and staff have developed a completely new program named MILK 4.0. The board and staff had several meetings to discuss the direction we should go. We enlisted the help of Dr. Jeffrey Bewley to identify the greatest needs Kentucky herds had when compared to the top herds across the nation. We identified 3 areas Kentucky dairies lag behind significantly (1) Genetics (2) Reproduction Efficiency (3) Milk quality. With this analysis, KDDC has designed a program to incentivize Kentucky producers to make significant improvement in these areas. Breeding for higher producing cows, having less days open and producing higher quality milk, all have a direct impact on profitability. The new MILK 4.0 program information and criteria will be available soon in a special edition newsletter. In addition to these performance initiatives, we have developed two other areas to focus our efforts. They are Dairy Beef and Financial evaluations. Dairy beef is a relatively new concept, with the heavy use of sexed semen dairymen have produced an abundance of replacement heifers. This has created two negative situations for most dairyman. First, the value of dairy heifers has dropped significantly. Secondly, the cost of feeding more heifers than you need for replacements is burdensome. National breed organizations, such as National Holstein and the American Angus Association, are using genomics and carcass evaluation to create a list of suitable sires for dairy cows that are not needed for dairy replacements. These resulting crossbred calves are averaging $100-$150 more than a straight dairy bull calf. We view this as an opportunity to create more profit on nearly every dairy farm. The financial aspect of MILK 4.0 is a set of programs working with Cornell’s Dairy Profit Program and Rockingham Financials that are dairy specific. These evaluations will be used to measure a dairy’s true financial position and identify bottlenecks that need to be addressed. All of these programs are new, innovative and, if adopted, will increase success and sustainability for Kentucky’s dairy producers. During this Thanksgiving and Christmas season, we all need to pause to remember God’s blessings. I’m so proud and thankful to be involved in the essential business of food production. Please join me in expressing your gratitude and appreciation to the folks who support and work alongside of us every day. Dairy farming is truly a community experience. I particularly want to acknowledge the folks who make it possible for us to farm. Coronavirus or not, the cows never stop producing. The milk trucks ran every day and all our help, whether family or hired, worked every day…no shutting down, no social distancing, no mask wearing. A BIG THANK YOU goes to each and every one!!! I’m looking forward to closing the door on 2020. It’s time to look forward. We have a vaccine coming which will, hopefully, control the virus and the word ‘shutdown’ will vanish from our livelihood. We need church, holiday celebrations, sports and the Freedom our nation was founded on. The year 2020 has been a year of sudden and dramatic change, but one thing has not…God is still on His throne and He will sustain those who put their trust in Him. God bless everyone!!! Merry Christmas and Happy New Year!!! Raise a glass of custard or eggnog and Keep the Faith.
  5. 5. Zack Burris (270) 575-7001 Mike Owen's father started hauling in 1963. Mike started hauling milk in 1976 when he turned 18, he has hauled milk his entire life. Mike worked for 7 years after high school every day straight driving a milk truck. In 2008, Mike and his son Justin started their own trucking business Owen Transport and OTS Logistics. Justin has worked with Mike his entire life as well. Justin’s wife works for the business along with a nephew that has worked for the business for 26 years. Owen Transport has 75 total trucks and 45 tankers hauling milk and eggs. Today they transport 10-12 million pounds of raw milk a month in Kentucky, Tennessee, Alabama, and Ohio. Mike’s mission is to provide a good service to people! Mark Williams' parents started milking by hand in 1955. Electric milkers did not come until 1961. Our milk was sold to Cudahay Foods which my father also worked as a fieldman representative. In 1975 my brother Billy Joe was fresh out of military and I was fresh out of high school. We built our first grade A parlor. Billy Joe soon began working for Dairyman Inc. After graduating college, he and I were partners with our parents until the early 90’s, at which time he left the farm to own and operate Bluegrass Dairy & Foods. In 2010 the dairy was moved to a different farm, where I currently live. My son Joshua and I are partners in this dairy operation. We milk around 250 cows. We grow about 300 acres of corn for silage. Most of the corn is double cropped with small grains as balage which is used to feed heifers and dry cows. The cows are milked in a double 10 parallel parlor and are housed in bedded pack barns. All grain mix is purchased
  6. 6. November - December 2020 • KDDC • Page 6 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Goldilocks and her “Not too Hot or Too Cold” Dry Cow Diets Joe Sparrow, CPC Nutritionist O ne of the biggest challenges across all U.S. Dairies is the transition cow, and it is my opinion that the largest portion of her issues can be cured by a successful and focused dry cow diet. Since hearing the famed Consultant and Dairyman, Gordie Jones present on the “Goldilocks Dry Cow Diet” early in my nutrition career, I have been recommending this diet to clients. In this brief article, I will go into a bit more detail on the approach, in hopes that if you are experiencing some transition cow issues on your farm, maybe this method can be of help. We all know that an un-successful transition period can result in the following consequences; decreased milk yields, treatment costs, delayed first service and often death loss or culling. In addition, over conditioned dry cows are even more prone to Metabolic issues. Excessive energy in their diets can multiply these problems. Also, higher energy diets in the last trimester can lead to an increase in dystocia, especially on first calf heifers. This lays the groundwork for the thought process behind a Goldilocks Dry Cow diet, which is essentially a low energy, high fiber diet. It is designed to meet the energy and metabolizable protein needs of the dry cow, along with a high level of fiber to keep the rumen full. This allows an increased level of dry matter intake post-calving, and a lower incidence of Displaced Abomasum’s. I typically strive for a diet that contains less than 8 pounds of dry matter from corn silage to keep energy lower than .70 NEL. One of the most important parts of this diet, and often the part that can cause it to fail, is the “bulk” or fiber of the ration. My preferred ingredient is straw, but have seen grass hay, cotton hulls, gin trash, and small grains silage work well if managed correctly. The important thing is that the fiber source is well processed so the cows can’t sort out the ration. It is also vital for the fiber source to have a stable mineral profile so your nutritionist can balance out the K:Mg ratio and supply adequate levels of Calcium from the necessary sources. Make no mistake, these low energy diets cannot work without the addition of some “quality protein”. A goal of mine when constructing a successful dry cow diet is to have over 1000 grams of metabolizable protein; Soybean Meal, along with some other high lysine and potentially rumen bypass forms can help accomplish this. Below are a few summary points of how I go about designing custom dry cow diets for each farm: • NEL ranging from .63-.69 • Minimum of 13% Protein total diet • Minimum of 1000g of Metabolizable protein • Minimum of 280 mg/hd Rumensin • Minimum of 1/3 Replacement with Bioplex Zn, Cu, Mn, Co and Sel-Plex from Alltech • Less than 8# of Dry Matter from Corn Silage • Diet must be processed so that cows can’t sort! We have yet to discuss a close-up dry cow diet versus a far- off; these types of diets can definitely work as a “one group” dry cow diet. I do however have some close-up versions of these diets if herd size allows, with higher levels of Protein and Vitamin A, D, and E. A dry cow diet is only as good as the management practices that go along with it, remembering cooling for dry cows in the summer, along with ample bunk space, plenty of access to fresh clean water, and a dry environment to lay are VITAL! Since feeding a dry cow at times can be very complicated and tedious, I wanted to present an option for Dairy Producers that is simple, yet effective. The dry cow period is an important vacation on the cow, her rumen and mammary system. Make no mistake, we don’t want to underfeed a dry cow, yet over-feeding them can be just as dangerous; hence, the name “Goldilocks: A dry cow diet that’s just right”.
  7. 7. November - December 2020 • KDDC • Page 7 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
  8. 8. November - December 2020 • KDDC • Page 8 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Inspiring and Practicing the Concept: “The Glass Is Half-Full” Donna M. Amaral-Phillips, UK Extension Dairy Nutritionist and Extension Professor A s we look back over the events of this year, 2020 has definitely been a challenging one on many fronts. Milk prices, and now feed costs, have not been a dairy farmer’s friend as well as the challenges associated with the uncertainty and changing landscape surrounding COVID-19. Businesses have had to pivot and quickly change how they provide services and goods. Some businesses, including our dairy businesses, have found ways to adapt quickly to changing markets and/ or consumer preferences. Many of these changes were already occurring, but the rate of change has accelerated necessitating the need to adapt in a quicker, but efficient manner. These businesses embraced change, whether they liked it or not, but understood change was necessary to survive. By embracing the need for change, they were able to select how they changed and could be assured changes best reflected their personal core values and goals for their businesses or operations. Essentially, these businesses looked at change as an opportunity, where the glass was half-full versus being half-empty. One of the best examples I can give regarding how an agricultural business can be nimble and willing to adapt reflects how my local feed-fertilizer store modified the sales counter back in March. One morning, before any recommendations/ restrictions were announced by the governor, my husband went and purchased some mulch for our blueberries. It was very obvious that the sales staff was very leery of the developing COVID-19 situation and did not feel comfortable waiting on customers in a rather small defined space. The next morning this business announced that they only would have drive-up service where their sales staff would come to your vehicle and take your order from the passenger’s side window. Today, they still have this practice in place and last time I drove by, two lines of vehicles, each three vehicles deep were out front waiting for service. The lesson here is two-fold; this business listened to their employees, came up with a solution that worked for them and their customers, and most importantly implemented this solution as the COVID-19 health concerns were developing and not after the fact. Sometimes, we need to step outside our comfort zone and embrace new ways of doing tasks, procuring supplies for the dairy, or in how we interact with others in the industry or in our personal lives. One must have a positive attitude and believe you can and will make things work and work well, while taking on the challenge of working through those speed bumps in the road. Embracing change or another way of doing a task is not easy; it is against our human nature. However, in today’s rapidly changing business climate, we need to explore new ways of doing business and quickly adapt to them. These different ways may not be new to others, but may be new to you and those around you. Some examples might include ordering supplies together in bulk or through an on-line vendor. Attending meetings or educational sessions electronically, i.e. “Zoom” sessions, is another example. The silver lining here is that you are able to attend a wider array of educational sessions, view them at your convenience and in smaller segments, and free up time once associated with travel to the event to accomplish tasks in your business, job, or personal life. Several of these educational sessions have built in ways for participants to interact and ask questions. Even for those who do not wish to attend electronic educational sessions, you can benefit from others participating in this form of informational delivery and encouraging them to do so. Many of the articles in dairy magazines, KY Dairy Notes, and here in Milk Matters have their origins from these types of educational sessions as well as information delivered one-on-one to you at the farm level. Open, timely, and two-way communication among all partners, employees, and family members including children on your farm or business, as well as others in the dairy industry, is critical to our industry’s survival now and going forward. Practicing truly open, complete (adjusted for the age of children), and timely communication helps people feel, believe, and act as if they are a valued part of a team where their feelings and viewpoints, and knowledge-base are important, and they are indeed a vital part in implementing potential solutions and changes. By timely information sharing, others can share not only the burdens, but as importantly, the triumphs. All people need to be treated with the same respect and in the same way such that no preferential treatment, either positive or negative, is given to certain groups or individuals. Taking a few minutes to reach out to others can pay dividends especially in rapidly changing times. Recently, in a Wall Street Journal article, the authors talked about how communication had changed as people and companies quickly pivoted to work remotely. One leader they interviewed took it upon himself to personally call all of his employees individually and see what and how they were adjusting to all of the changes associated with remote working and if he could help them. That simple act went a long way in getting his employees to go the second mile, showed his employees he truly cared, and he wanted to help them make the most of the changing times and succeed in that way of doing business. We all can take note of this simple act, especially politicians and those in upper management positions. Change is definitely happening faster than anyone would have predicted. Some people have equated the changes that has occurred since March to those which were on track to occur over the next 10 years. I am not sure that they have changed to that extent, but they have definitely escalated. We, as an industry, individual dairy businesses, and in our personal lives, must adjust to this rapidly changing environment, so we can determine
  9. 9. November - December 2020 • KDDC • Page 9 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund our destiny. Practicing open and timely communication always will be important and help us adjust to change. We need to approach these changes and our response to them with the mindset that the glass is half-full and not half-empty. The path of least resistance always leads downhill. Often times we get easily distracted or overwhelmed and forget to look for problem areas staring us in the face that we can control or at least minimize their impact. For the past 6 months, I have been working from my basement home office. One recent afternoon, I was working downstairs on a deadline. My dogs kept barking and I assumed that they wanted inside, so I went upstairs to let them in—simple enough. Well, I went to the French door to our patio to let them in. I noticed that Teddy was standing off the patio, still barking. I happened to look down and on the rug outside curled up, was a rather large snake—yes I typed the correct word!!!! I knew I had to get this situation under control quickly before my husband, who hates snakes, came back to the house and proceeded to put some holes in the house. Bottom line, I knew I had to take control, do what needed to get done, and then get back to my deadline. As you look around and think about those management areas you can control and work on modifying, remember that you are practicing those concepts associated with that “comfort food” you might be having for dinner that day. ClassifiedAds Comprehensive Nutrient Management Plans (CNMPs). Livestock manure management and water quality BMPs. Ky Division of Water permitting and compliance. Ben Koostra - Professional Engineer and NRCS Technical Service Provider - Lexington - 859-559-4662 Meyer 510 TMR mixers - In STOCK Cloverdale 500 T -TMR mixers - in Stock R150 Gehl - skid loader- 1350 hrs- $20,000 Stoltzfus 10 ton Litter spreader $28,500 Caterpillar 242B skid loader-$17,500 New Holland 790 choppers-@$7500 John Deere 8200 drill $5500 Gehl 1065 chopper- 2 row narrow $7850 John Deere 3975 base unit $15,000 Gehl 8285 feeder wagon $6000 New Idea 363- manure spreader $8500 Artex SB 200- vertical beater- for rental Kemco Bale Wrapper new $29,000 Stoltzfus lime - litter- fert cu 50 $18,500 JD 5085E- loader - 4wd- canopy $33,000 Farmco feeder wagons-15 in stock-call Charlie B. Edgington 859-608-9745 To place a classified ad, contact any of the KDDC Dairy Consultants or Carey Brown at (859) 948-1256 SAVE THE DATE We are currently under planning for our upcoming annual conference. Please check our website and Facebook page for the most current information as we go forward. We all hope Covid will be behind us by then and we can enjoy a normal conference. However, if not we are still dedicated to providing you, our dairy producers, with a beneficial and high quality conference where we can learn more about the dairy industry and come together as a group to share and encourage each other as we all have one thing in common – DAIRY. KENTUCKY DAIRY PARTNERS ANNUAL MEETING February 23 & 24, 2021
  10. 10. November - December 2020 • KDDC • Page 10 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Brown Swiss is Reserve Junior Champion Fairdale Carter Cameo ETV Exhibitor Fairdale Farm LLC Millcreek Lottery Ladyluck Exhibited by Taylor Graves. She was 1st place 4 year old; Senior Champion and Grand Champion of junior Milking Shorthorn show North American International Livestock Exposition Dairy Show Results for Kentucky Exhibitors Open Show Ayrshire 1st Place Senior Three Year Old and Intermediate Champion - MOWRY’S BURDETTE SCARLE Exhibitor- Kadyn Gibson, Tre Wright and Lukus Schmitt-Eminence, KY Open Show Brown Swiss 1st Place Fall Heifer Calf and Reserve Junior Champion Fairdale Carter Cameo ETV Exhibitor- Fairdale Farm LLC-Worthville, KY 1st Place Yearling in Milk Kruses GK Thunder Jaclyn Exhibitor- Fairdale Farm LLC-Worthville, KY 1st Place Age Cow Six Years and Over, Senior Champion and Grand Champion Brown Swiss Fairdale Total Cali ET Exhibitor-Emily Goode-Liberty, KY. Premier Exhibitor Brown Swiss Fairdale Farm LLC-Worthville, Ky.
  11. 11. November - December 2020 • KDDC • Page 11 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Reserve Junior Champion honors went to the 1st place winter yearling – KY-Blue Diet Pepsi, owned by Jeff & Lisa Gibson of Eminence, KY Open Show Milking Shorthorn 1st Place Junior Two Year Old KY-BLUE DIET DEW EXP ET Exhibitor-Kadyn Gibson, Tre Wright and Lukus Schmitt-Eminence, KY 1st Place Aged Cow B-D-F POLARIS ABBI Exhibitor- Kadyn Gibson, Tre Wright and Dakota Thompson-Eminence, KY 1st Place Intermediate Heifer Calf Logsdons Comanche Nova Exhibitor- Mckenzie Pedigo and Gracie Logsdon- Smiths Grove, KY 1st Place Intermediate Senior Yearling and Reserve Junior Champion KY-BLUE DIET PEPSI Exhibitor-Kadyn Gibson, Tre Wright, and Lukus Schmitt- Eminence, KY Open Show Red and White 1st Place 125,000 lb. Cow Foltzbrook Advent Jamie Red Exhibitor- Tre Wright, Kadyn Gibson and Lucas Schmitt-Elizabethtown, KY Kinslow’s Armani 91-Red Exhibitor McKenzie Pedigo Reserve Senior Champion and Reserve Grand Champion
  12. 12. November - December 2020 • KDDC • Page 12 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Dixie Dairy Report November 2020 Calvin Covington Another record high for cheese prices. Both barrel and block cheddar cheese at the CME were record high prices for the month of October. As the graph below shows, October is the second “price run-up” this year. Record cheese prices are not supported by commercial cheese disappearance only up 1.5%, and strong monthly cheese production in recent months. USDA purchases for food donation programs is the reason for record high cheese prices. Based on trading last week at the CME, high cheese prices are coming to a close. During the first week of November, blocks declined $0.44/lb. to close at $2.3425/lb. Barrels closed at $2.3175/lb., down $0.2125/lb. for the week. Current USDA dairy donation purchases are estimated at about one-half of what they were earlier in the year. Plus, the donation program is currently due to expire at year-end. Dairy Market News reports the spot milk price in the Midwest, $2.00 below and in some cases $4.00/cwt. below class. These low milk prices are a bellwether for lower cheese prices. Over the past five months there were record Class III milk prices. However, unless USDA purchases are extended, food service sales rebound, and/or milk production declines; cheese prices are headed lower. Butter, powder, and whey. Turning to the other three dairy products that determine federal order milk prices; butter, nonfat dry milk powder (NDM) and dry whey. As the graph above shows, butter has struggled since the middle of the year. The October CME butter price was $1.4550/lb. The price is over $0.65/lb. lower than a year ago, and the lowest October butter price since 2009. Supply is overwhelming demand. August butter disappearance is 9.2% lower than last August while butter production is up 7.8%. Dairy farmers continue to produce more butterfat. Through the first eight months of this year compared to 2019, butterfat production is 2.3% higher. In addition, the butter inventory is about 18% higher than a year ago. Unless something out the ordinary happens, it will be some time before butter gets back over $2.00/lb. Increased export demand is lifting NDM and dry whey prices. The October DPSR NDM price of $1.0670/lb. was about a nickel higher than September. Dry whey was almost $0.03/lb. higher at $0.3480/lb. Through September NDM exports are 25% and dry whey exports are 31% higher than a year ago. Re-building of the Asian swine industry is responsible for higher dry whey exports. So far this year, dry whey exports to China and Indonesia are up 173% and 74%, respectively. Higher NDM prices will result in improved Class IV prices in 2021. And, stronger dry whey prices will help offset some of the decline in the Class III price due to lower cheese prices. Butter, powder, and whey. Turning to the other three dairy products that determine federal order milk prices; butter, nonfat dry milk powder (NDM) and dry whey. As the graph above shows, butter has struggled since the middle of the year. The October CME butter price was $1.4550/lb. The price is over $0.65/lb. lower than a year ago, and the lowest October butter price since 2009. Supply is overwhelming demand. August butter disappearance is 9.2% lower than last August while butter production is up 7.8%. Dairy farmers continue to produce more butterfat. Through the first eight months of this year compared to 2019, butterfat production is 2.3% higher. In addition, the butter inventory is about 18% higher than a year ago. Unless something out the ordinary happens, it will be some time before CME BUTTER AND BLOCK AND BARREL CHEDDAR CHEESE PRICES JANUARY-OCTOBER 2020)
  13. 13. November - December 2020 • KDDC • Page 13 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Milk Prices FMMO 5 November 2020 Class 1 Advanced Price (@3.5%BF) $ 21.44 December 2020 Class 1 Advanced Price (@3.5%BF) $ 23.27 FMMO 7 November 2020 Class 1 Advanced Price (@3.5%BF) $ 21.84 December 2020 Class 1 Advanced Price (@3.5%BF) $ 23.67 AVERAGE DAILY CLASS I PRODUCER MILK – 3RD QUARTER (2018-2020) FEDERAL ORDER 2018 2019 2020 2020 VS 2019 (million lbs) (%) Appalachian 10.4 10.3 10.5 1.1% Florida 5.5 5.6 5.2 -6.3% Southeast 9.8 9.3 8.5 -8.5% Total 25.8 25.2 24.2 -4.1% PROJECTED* BLEND PRICES – Base Zones – SOUTHEASTERN FEDERAL ORDERS MONTH APPALACHIAN FLORIDA SOUTHEAST ($/cwt. at 3.5% butterfat) September 2020 $19.68 $21.85 $19.62 October $18.08 $19.54 $17.70 November $20.00 $21.77 $20.42 December $20.19 $22.49 $20.64 January 2021 $18.85 $21.34 $19.21 February $18.10 $20.99 $18.48 * Projections in bold butter gets back over $2.00/lb. Increased export demand is lifting NDM and dry whey prices. The October DPSR NDM price of $1.0670/lb. was about a nickel higher than September. Dry whey was almost $0.03/lb. higher at $0.3480/lb. Through September NDM exports are 25% and dry whey exports are 31% higher than a year ago. Re-building of the Asian swine industry is responsible for higher dry whey exports. So far this year, dry whey exports to China and Indonesia are up 173% and 74%, respectively. Higher NDM prices will result in improved Class IV prices in 2021. And, stronger dry whey prices will help offset some of the decline in the Class III price due to lower cheese prices. Strong third quarter milk production. Third quarter milk production was 2.0% higher than a year ago. More milk was due to 33,000 more cows, and milk per cow up 1.6%. Looking at the nation’s largest milk producing states, third quarter production was up 2.3% in California, 0.2% in Wisconsin, 3.3% in Idaho, 2.6% in Michigan, 2.4% in Pennsylvania, and 1.1% in New York. Of the 24 milk reporting states, production was higher in 16 and lower in 8 states. Turning to the ten (10) Southeast states, third quarter production was 0.7% lower than the same period a year ago. Lower production is primarily due to 14,000 less cows. As of September 30, the Southeast States dairy cow population was estimated at 412,000 head. Looking at individual states, third quarter production was 4.1% lower in Florida and 0.2% lower in Georgia. Compared to a year earlier, Florida has 5,000 fewer cows and Georgia 1,000. Virginia’s production was up 2.6% due to steady cow numbers and more milk per cow. Third quarter production was 1.4% higher in Kentucky. Class I Producer Milk. In the three Southeastern federal orders, average daily Class I producer milk for the third quarter of the year was 24.2 million lbs. This is about 1 million lbs. or 20 milk tankers per day lower than last year. As shown below, Class I was higher in the Appalachian order, but lower in the other two orders. Declining Class I sales is the greatest challenge facing the Southeast dairy industry. Blend Prices. There will be another price inversion (Class III price higher than blend price) in October. The October Class III price is $21.61, propelled by record high cheese prices. As shown below, we project October blend prices in all three orders lower than the Class III price. November blend prices are projected about $2.00/cwt. higher than October, due to the Class I market receiving some benefit from higher October cheese prices. Blend prices are projected to increase further in December. Our current projection for 2021 show blend prices (see price sheet) about $0.30/cwt. lower than 2020. USDA’s October projections show the 2021 all milk price $0.40/cwt. lower than 2020
  14. 14. November - December 2020 • KDDC • Page 14 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Talking Trade: New Markets a Must As tough as 2020 has been, there has been some positivity when it comes to international trade Kentucky Farm Bureau A s simplistic as some people may think life on the farm is, in today’s modern era of production agriculture, simplistic is not really a word that is commonly used to describe the day-to-day operations for farm families. And while navigating the current U.S. market environment, dodging weather events, and keeping up with continual advancements in technology, those in the agriculture industry have also had to become global economists, of sorts, in order to make decisions that come with each crop year. But no one expected the year 2020 has turned out to be. Still farmers are farming, and selling, and making the most of what has been dealt to them. It would seem ironic that as tough as the economy has gotten for all sectors this year, farm families could be sitting on top of record yields and production as weather conditions played into their favor. Those anticipated record harvest numbers for corn and soybean growers and some increases in grain prices are offering some glimmer of hope as 2021 gets closer. The new marketing year has also seen a jump in trading, especially with China. But some caution should be taken before putting 2020 in the rear-view mirror. Kentucky Farm Bureau (KFB) President Mark Haney said all farm families are grateful to see export markets improve but warns of counting too much on one market. “As much as we like to see ramped up trade with China, it is still critically important that we also explore other international markets and avoid the proverbial ‘putting our eggs in one basket’ situation,” he said. In regard to those large purchase promises made by China, American Farm Bureau Federation Chief Economist John Newton said the big question is whether or not the purchase commitments turn into actual shipments. “If we actually see those sales materialize, it could go a long way to supporting prices at or above current levels,” he said. And while many factors go into any fluctuation in commodity prices, increased international trade could certainly help. Kentucky Agriculture Commissioner Dr. Ryan Quarles is currently serving as president of National Association of State Departments of Agriculture. He said it is critical that the United States continues to open up markets around the world so that American farmers can benefit from market growth. “In just 2020 alone, we have new trade deals with Japan, China, Canada, Mexico, and have one in the works for the United Kingdom,” he said. This year was supposed to be the year of international trade and agriculture, but obviously has been overshadowed by a global pandemic and its implications.” However, Quarles notes that international trade continues to grow, and one of the major accomplishments related to trade in 2020 was the implementation of the U.S-Mexico-Canada Agreement (USMCA), which revised the more than 25-year-old North American Free Trade Agreement (NAFTA). “Last year, it was all hands on deck to get USMCA ratified,” he said. “This year, it's about moving forward and not losing any momentum getting it implemented.” Quarles led the United States trade delegation during this year’s tri-national accord, which is an annual summit between the U.S., Canada, and Mexico that focuses on agriculture trade. He said having this USMCA in place put the country in a better position to tackle additional trade agreements. “For example, the USMCA is the first trade agreement that has provisions relating to biotechnology and that builds some momentum so that those sorts of provisions can be in other countries' trade agreements, as well,” he said. “With USMCA being successfully negotiated and now implemented, this creates an expectation with other countries that hopefully is replicated. We like to think of this as a new era of modern trade deals that benefit agriculture.” Regarding the recent uptick in expected ag exports to China, Quarles said it's important to realize that despite heavy emphasis on China, there are other markets to work with. “We're also looking at other countries, such as the Philippines, Indonesia, and even Latin American countries that are buying more American (products) every single day,” he said. “We also think it's important that as we grow markets here in America, that we look at what would happen if these trade agreements had not been negotiated. It benefits the Kentucky farmer when we're able to reduce tariffs and increase access in any country in the world.” KFB Farming Footnote Nationally, the United States exports about $140 billion for all agricultural goods. According to the latest information from the USDA’s Foreign Agricultural Service, in August 2020 alone, national ag exports totaled $11,108,971,281. In Kentucky, ag exports are worth an estimated $2.2 billion. KFB President Mark Haney said these numbers are critical to the nation’s agricultural industry. “We cannot ignore the importance of the trade dollar to our farm families here, in Kentucky, and across this country,” he said. “We must continue to do all we can to ensure our farm products have a place on the world market. Our industry is depending on it.”
  15. 15. November - December 2020 • KDDC • Page 15 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Introduction of Dorsey Ridley, GOAP Executive Director I n August, Gov. Andy Beshear appointed Dorsey Ridley of Henderson to serve in the role of executive director for the Governor’s Office of Agricultural Policy (GOAP). Under Ridley’s direction, GOAP will continue to help support the important dairy industry in Kentucky. Since the inception of the Kentucky Agricultural Development Fund, more than $22 million has been invested in the dairy industry through different programs and projects, such as the Kentucky Dairy Development Council. One of the most common programs utilized by Kentucky’s dairy producers is the On-Farm Energy Efficiency Incentives Program. “My hat is off to the dairy producers of Kentucky that milk their cattle 365 days a year, regardless of the weather just to provide dairy products for our state and nation,” said Dorsey Ridley, GOAP Executive Director. “I am dedicated to doing all that we can through GOAP’s programs to help our dairymen and women.” Ridley has a long-standing record of public service. Previously, Ridley served in the Kentucky House of Representatives from 1987 to 1994 and the State Senate, as senate caucus chair, from 2004 to 2018. Ridley proudly represented Caldwell, Crittenden, Henderson, Livingston, Union and Webster counties. Additionally, Ridley sat on the Senate Agriculture Committee for 15 years. Professionally, Ridley has been employed by Independence Bank, as regional business development director and former president of Independence Bank in Henderson. Independence Bank currently is the largest agricultural lending community bank in Kentucky. Reared on his family’s cattle farm in Henderson, Ridley is a graduate of Western Kentucky University and received his B.S. in business and agriculture. Reared working on a family cattle farm, Ridley is a lifelong advocate for the agriculture industry. Ridley is married to Glenn Hodge Ridley and together they own and operate a grain farm in Henderson. They are the parents of four adult children and enjoy two granddaughters. KDDC and Zoetis: Increasing Genetic Progress Through Genomic Testing Nicholas Randle, Zoetis, Manager, Dairy Genetics Marketing I t has been just over 10 years since genomic testing was introduced to commercial dairies. Since the beginning, many discoveries and advancements have occurred in the technology. Genomic testing is the process of using DNA to predict the outcomes and generational passing of traits with higher reliability than using parent average data. Zoetis has been working to increase the value of genomic testing by introducing profit-driven traits and indexes for dairy producers. CLARIFIDE® and CLARIFIDE® Plus are the two genetic evaluations that are offered by Zoetis for dairy producers in the United States. These evaluations use the Council for Dairy Cattle Breeding (CDCB) database and a Zoetis internal database to produce traits that are easy to use on farm. Most of the traits that you read in a Bull book from any AI company are the same ones available to any producer through CLARIFIDE and CLARIFIDE Plus. Reliability increases on these traits almost triple in most cases when comparing genomic values to parent average. The main reason to use genomic testing is to have better data when making critical on farm decisions. Through collaborative talks with Kentucky Dairy Development Council, Zoetis will be helping KDDC’s members strategize and understand the value of genomic testing through CLARIFIDE and CLARIFIDE Plus. Utilizing the genomic data available, members will be able to build a stronger herd genetically with a focus on the most important traits to them. More information on genomic testing can be found at www.
  16. 16. November - December 2020 • KDDC • Page 16 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund MONDAY, JANUARY 18 8:00 am ACCM Board of Directors Meeting 10:00 am GA Milk Board of Directors Meeting 11:00 am Registration Opens (all day) 12:00 pm GDYF Board of Directors Meeting 12:00 pm The Dairy Alliance/ADA of GA Meeting Board Meeting 2:00 pm Impact of Risk Management Programs on 2020 Producer Cashflow, Dr. Marin Bozic, MN 3:15 pm State of the U.S. Dairy Industry Post Covid-19 – Mary Ledman, Rabobank 4:00 pm International Markets and Expectations for 2021 – Secretary Tom Vilsack, USDEC TUESDAY, JANUARY 19 7-8:00 am Continental Breakfast 8:00 am New Waste and Manure Technologies - Biofiltro 8:45 am Inflations and New Technology to Improve Milk Quality – Dr. Roger Thomson 9:30 am Exhibit Break 10:30 am On-Farm Milk Testing and Managing Results – Dr. Justin Graham 11:15 am Teat dips and other new products – Dr. Roger Thompson, ABS 12:15 pm DHIA Awards Luncheon 1:45 pm Crossbreeding Beef on Dairy – Dr. Tim Timmons, ABS 2:30 pm The Demise of the Holstein Steer market – Justin Cleghorn, Cactus Feed Yard 3:15 pm Exhibit Break 4:00 pm Advances in Holstein Genetics that Address Health, Milk Components and Culling – Dr. Jeff Ziegler, Premier Select Sires WEDNESDAY, JANUARY 20 7-8:00 am Continental Breakfast 8:00 am Milk on My Mind Marketing Update and Partnership with Kroger – Amanda Lucey and Kroger 8:45 am The Sustainability Initiative and What is In It for Everyone – Geri Berdak, The Dairy Alliance and Caleb Harper, DMI 9:30 am Exhibit Break 10:15 am Understanding Dairy Risk Management Programs – Christine Brodeur, DFA Risk Management 11:00 am SE Dairy Market Outlook - Calvin Covington ADJOURN TENTATIVE AGENDA PLEASE NOTE THAT SPEAKERS, TIME SLOTS AND TOPICS MAY CHANGE AT ANY GIVEN TIME DUE TO CHALLENGES AND PROTOCOLS RELATED TO COVID-19. THIS IS A TENTATIVE AGENDA.
  17. 17. November - December 2020 • KDDC • Page 17 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Georgia Dairy Conference to be Hosted in January D airy farm families and industry leaders of the Southeast dairy community will gather Jan. 18-20 for the 2021 Georgia Dairy Conference at the Riverfront Marriott in Savannah. This three-day conference provides attendees the chance to listen to nationally known educators and engage with the nation’s leading industry suppliers at the tradeshow. With 81 dairies and over 120,000 cows represented at the 2020 GDC, the 2021 event will build on the success of previous years. The agenda features speakers who will present on topics ranging from milk quality management, genetics, dairy risk management programs, and retail marketing. Veterinarians and animal nutritionists attending the 2021 Georgia Dairy Conference can earn continuing education credit hours. Registration and certificate of proof can be found at the registration table. A tradeshow featuring industry sponsors and exhibitors is held in conjunction with the Conference and provides representatives with the opportunity to spark conversations with dairy producers. Last year, the GDC featured more than 80 exhibitor booths. Our GDC staff is working hard to ensure that safety protocols are in place to minimize the spread of germs during our event. Due to the outbreak of COVID-19, we are navigating the decisions for the event day by day and we take the safety, health, and well-being of dairy farmers and attendees seriously. Like many other events, our conference is in an unpredictable position. We will continue to stay abreast of the situation and have safety protocols in place for the event. To learn more about our efforts visit our website at https://www.gadairyconference. com/covid-19-measures-at-gmp. Updates and announcements about the 2021 Georgia Dairy Conference will be posted on our website at www. Sponsorships and exhibit space are available and early reservations are recommended for prime options. KDDC is happy to announce the funding approval from the Ag Development Board for the calendar years 2021 and 2022. The support and leadership of the board is an integral part of KDDC helping to continue our mission in educating, representing and promoting Kentucky’s dairy producers and dairy industry as a whole. This approval also covers our new MILK 4.0 program. Look for more information on MILK 4.0 program coming up in the near future. There’s a lot of work to be done but your staff is eager to get started with our new programs and hopefully they will make all of us more sustainable and profitable.
  18. 18. November - December 2020 • KDDC • Page 18 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund The Dairy Alliance Helps Bring Kentucky Cheese Cares to Kroger A new initiative to help Kentucky’s food-insecure families is bringing Kentucky Proud artisan cheese products to 10 local Kroger grocery stores. Kroger, the state’s largest purchaser of Kentucky Proud products, kicked off the launch of the Kentucky Cheese Cares program in October. Kentucky Cheese Cares is a partnership between The Dairy Alliance, Kentucky Department of Agriculture, Kentucky Center for Agriculture and Rural Development, Kroger, Feeding Kentucky and local dairy farmers. The new initiative, which encourages consumers to purchase select Kentucky Proud artisan cheeses, will increase access of dairy products to the food insecure while supporting Kentucky’s dairy farmers. By purchasing these award-winning Kentucky cheese products, fifty cents from each unit sold at participating Kroger locations will be used to distribute dairy products through the Feeding Kentucky food bank network. Within the first week of sales, all participating stores sold out and had to quickly restock, showing consumers interest in the program. Currently, special Kentucky Cheese Cares coolers provided by The Dairy Alliance are placed at ten Kroger locations containing products from Harvest Home Dairy, Kenny’s Farmhouse Cheese and Wildcat Mountain Cheese. In time for the holiday season, consumers looking for delicious cheeses for appetizers or an elegant touch to a daily meal will be able to support their state with each purchase. Kentucky Classes Take a Virtual Farm Day T he Dairy Alliance held a virtual tour at Harvest Home Dairy in Crestwood, Kentucky. Using Zoom and Facebook Live, dairy farmers Bob and Angie Klingenfus led students from across the region, including 29 Kentucky classrooms, around their dairy farm. Viewers learned about calf care, cow comfort and the milking process. The students and additional viewers on Facebook saw fun cow facts on their screens throughout the live tour, while the 4th to 8th grade classes were able have questions answered ranging from breed and fur colorings to how equipment works. With a total of 335 classrooms and 2,559 students in the region interacting with the Harvest Home Dairy tour, the virtual farm tours provided an opportunity for students to connect to the farm whether they are learning from home or the classroom. To watch the virtual tour, you can visit The Dairy Alliance Facebook page and watch the recording.
  19. 19. November - December 2020 • KDDC • Page 19 KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund Allied Sponsors PLATINUM Ag Central Alltech Bel Cheese Bluegrass Dairy & Food Burkmann Feeds Cowherd Equipment CPC Commodities Kentucky Department of Agriculture Kentucky Farm Bureau Kentucky Soybean Board Prairie Farms Shaker Equipment Sales Southwest Dairy Museum GOLD Dairy Express Services Farm Credit Services Givens & Houchins Inc. Mid-South Dairy Records Select Sires Mid-America SILVER Grain Processing Corporation Kentucky Veterinary Medical Association Luttrull Feed Owen Transport South Central Bank BRONZE Bagdad Rolling Mills Bank of Jamestown Central Farmers Supply Hartland Animal Hospital Kentucky Corn Growers Association Limestone & Cooper Mammoth Cave Dairy Auction QMI Quality Mgt Inc. Wilson Trucking Special Thanks to Our Sponsors
  20. 20. 176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph Non-Profit US Postage PAID JAN 14-16 Kentucky Cattlemen’s Association Convention, Convention Center, Owensboro JAN 18-20 Georgia Dairy Conference, Savannah Marriot Riverfront, Savannah, Georgia FEB 23 KDDC Young Dairy Producers Conference, Sloan Convention Center, Bowling Green, KY FEB 23 Dairy Awards Banquet, Bowling Green, KY (6PM) FEB 24 Kentucky Dairy Partners Meeting and Industry Trade Show, Sloan Convention Center, Bowling Green, KY MAR 17-18 Professional Dairy Producers of Wisconsin Business Conference, Kalahari Resort and Conventions, Wisconsin Dells, WI Calendar of Events