Political Appointments | Agriculture Census | Annual Meeting Highlights | Dairy Energy Services | Growing Dairy Sales

A publication of Dairy Farmers of America, Inc.

2009 Members
of Distinction

DFAs award recognizes the hard work and

innovation of farms like Gillins Dairy

SUMMER 2009 | VOL.12 | NO. 2

www.dfamilk.com

2009 DFA Annual Meeting

DFA Voices
5

Annual
Meeting
Highlights

From the Editor

If You Were There

14

photo by Chris Ehresman

SUMMER 2009 | VOL.12 NO. 2

14 People. Pride. Passion.

19 DFAs Board of Directors Elects
Officers for 2009
19 Members Introduced to Dairy Risk
Management Services
20 Members Elected to Board of
Directors
22 Dairy Strategies for Todays World
26 Introducing the 2009 DFA Members
of Distinction
36 Investment in Dairy Industrys Future

Member to Member
Making Sure Your Voice is Heard
and Counts
7 Straight Talk
What DFA is Doing on Your Behalf
46 Ask the Expert
What Should a Producer Focus on
to Survive a Low Price Cycle?
54 Q & A
With Tammie Niemoth, Mountain
Area Transportation Department
Manager
56 Area Round Up

News
37 Highlights of the 2007 Census of
Agriculture
44 CWT Update and other news

In Every Issue
4
4
5
9

38
40
41

42

44

Board Listing
Your Team (phone numbers)
Publishers Box
DFA on the Hill
Legislative update and key Obama
political appointments
DFA Spotlight
DFA Programs
DFA Cares
Sustainability
Meeting the Demand for Green
Products
Future in Focus
Developing Leadership Ability
YC Profile: Myles and Lori Payne
News

45 DFA Farm Services

Insurance options and a new
bioenergy service
48 Pride in Our Product
52 Speak Up
Growing Dairy Sales by Meeting
Consumer Needs for Healthy
Products
55 Recognition
63 Classifieds
66 We Are DFA
A&J Dairy of Tahlequah, Oklahoma
Center
Resolutions Insert
On the cover: Cory Gillins, David Puffer and Steve Gillins
of Gillins Dairy represent one of the seven farms chosen
for this years prestigious DFA Members of Distinction award.
Cover photo by Shaun Cloud

Southeast Area
Members of
Distinction Jared
and Anita Munyon

26

photo by Shaun Cloud

YOUR TEAM
DFA Phone Numbers

DFA 2009 Board Members

Kansas City Headquarters

Tom Camerlo, Chair. . . . . . . . . . . . . . . . . . . . Florence, CO

Randy Mooney, First Vice Chair. . . . . . . . . Rogersville, MO
Jerrel Heatwole, Vice Chair. . . . . . . . . . . . . Greenwood, DE
George Mertens, Vice Chair. . . . . . . . . . . . . . Sonoma, CA
Wayne Palla, Vice Chair.. . . . . . . . . . . . . . . . . . Clovis, NM
Bill Siebenborn, Vice Chair. . . . . . . . . . . . . . . Trenton, MO
Tom Croner, Secretary/Treasurer.. . . . . . . . . . . . Berlin, PA

Switchboard.. . . . . . . . . . . . . . . . . . . . . . . 1-888-332-6455

Areas
Northeast.. . . . . . . . . . . . . . . . . . . . . . . . .
Mideast. . . . . . . . . . . . . . . . . . . . . . . . . . .
Southeast. . . . . . . . . . . . . . . . . . . . . . . . . .
Central.. . . . . . . . . . . . . . . . . . . . . . . . . . .
Mountain.. . . . . . . . . . . . . . . . . . . . . . . . .
Southwest.. . . . . . . . . . . . . . . . . . . . .
Western. . . . . . . . . . . . . . . . . . . . . . . . . . .

1-800-926-2667
1-800-837-6776
1-800-735-6455
1-800-279-9122
1-800-626-6455
1-800-994-2674
1-877-622-8250

Programs and Services

These services are available to members:

Agri-Max Financial Services.. . . . . . . . . . 1-866-283-4629

Financing options, including capital loans, operating loans,
equipment leasing and cow leasing
Agri-Services Agency (ASA).. . . . . . . . . . 1-866-297-7729
Health, workers' compensation and life insurance offered
in most states
Dairy Energy Services (DES).. . . . . . . . . 1-816-801-6392
Access to energy audits and bioenergy assistance
Dairy Grazing Services (DGS).. . . . . . . . 1-816-801-6392
A consulting service for producers interested in
incorporating grass-based dairying into their operations
DEPAC. . . . . . . . . . . . . . . . . . . . . . . . . . . 1-816-801-6474
Dairy Educational Political Action Committee
DFA Cares. . . . . . . . . . . . . . . . . . . . . . . . . 1-816-801-6446
DFAs Dairy Risk
Management Services.. . . . . . . . . . . . . . . 1-877-424-3343
Tools for managing the price volatility of marketing milk
DFA/Haylor.. . . . . . . . . . . . . . . . . . . . . . . 1-800-289-1501
Milk hauler liability insurance
Equity Questions. . . . . . . . . . . . . . . . . . . 1-816-801-6512
my401K.. . . . . . . . . . . . . . . . . . . . . . . . . . 1-877-869-4015
mySecurity.. . . . . . . . . . . . . . . . . . . . . . . . 1-888-332-6455

or www.mysecurefarm.com
DFAs on-farm safety and emergency preparedness program
Purchasing/Bulk Buying
DFA members can access purchasing and bulk buying
programs for products and supplies at reduced prices
Eagle Dairy Direct.. . . . . . . . . . . . . . . 1-866-591-2952
(DFA Northeast, Mideast and Central Area members)
Dairy Partners. . . . . . . . . . . . . . . . . . . 1-888-498-0669
(DFA Southeast Area members)
Grainger.. . . . . . . . . . . . . . . . . . . . . . . 1-888-361-8649
(All DFA members)

SUMMER 09

Publications
DFA Leader (quarterly magazine).. . . . 1-816-801-6488
DFA Today (daily e-mail).. . . . . . . . . . . 1-816-801-6622
MemberUpdate (monthly check letter). 1-816-801-6680

Keith Broumley. . . . . . . . . . . . . . . . . . . . . . . . . . . . Hico, TX

Joyce Bupp.. . . . . . . . . . . . . . . . . . . . . . . . . Seven Valleys, PA
Mickey Childers.. . . . . . . . . . . . . . . . . . . . . . . Somerville, AL
David Crowl. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Street, MD
Glen Easter.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Laurens, SC
Craig Edler.. . . . . . . . . . . . . . . . . . . . . . . . . . Browntown, WI
Michael Ferguson. . . . . . . . . . . . . . . . . . . . . . Senatobia, MS
Larry Frederick.. . . . . . . . . . . . . . . . . . . . . . . . . . Baring, MO
Lewis Gardner. . . . . . . . . . . . . . . . . . . . . . . . . . . Galeton, PA
Buster Goff.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hobbs, NM
Don Gurtner. . . . . . . . . . . . . . . . . . . . . . . . . . . . Fremont, IN
Larry Hancock.. . . . . . . . . . . . . . . . . . . . . . . . . Muleshoe, TX
Dean Handy. . . . . . . . . . . . . . . . . . . . . . . . St. Johnsville, NY
Les Hardesty. . . . . . . . . . . . . . . . . . . . . . . . . . . . Greeley, CO
Brian Hardy.. . . . . . . . . . . . . . . . . . . . . . . Brigham City, UT
Kent Herman.. . . . . . . . . . . . . . . . . . . . . . . . Taylorsville, NC
Bill Herr.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Greenwood, WI
Keith Huber.. . . . . . . . . . . . . . . . . . . . . . . . . . . . St. Paul, IN
Steve Matthees.. . . . . . . . . . . . . . . . . . . . . . . . Goodhue, MN
Ralph McNall. . . . . . . . . . . . . . . . . . . . . . . . . . . Fairfax, VT
Pete Mensonides. . . . . . . . . . . . . . . . . . . . . . . . . Turlock, CA
Urban Mescher. . . . . . . . . . . . . . . . . . . . . . Maria Stein, OH
Greg Mitchell.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pecos, TX
Dwight Nash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Elsie, MI
Doug Nuttelman.. . . . . . . . . . . . . . . . . . . . . Stromsburg, NE
Jerry Peterson.. . . . . . . . . . . . . . . . . . . . . . Harbor Beach, MI
Ron Pietersma. . . . . . . . . . . . . . . . . . . . . . . . . . . . Chino, CA
Larry Purdom.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Purdy, MO
Jeff Raney.. . . . . . . . . . . . . . . . . . . . . . . . . . . Adamsville, PA
Ellis Roberts.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Preston, ID
George Rohrer.. . . . . . . . . . . . . . . . . . . . . . . . . . Dayton, VA
Terry Rowlett.. . . . . . . . . . . . . . . . . . . . . Campbellsburg, KY
Clyde Rutherford.. . . . . . . . . . . . . . . . . . . . . . . . . Otego, NY
Ed Schoen. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Phelps, NY
Dan Senestraro.. . . . . . . . . . . . . . . . . . . . . . . . . . Johnson, KS
Larry Shover.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Delhi, IA
Jerry Spencer. . . . . . . . . . . . . . . . . . . . . Sulphur Springs, TX
Sandy Stauffer. . . . . . . . . . . . . . . . . . . . . . . . Nicholville, NY
Perry Tjaarda. . . . . . . . . . . . . . . . . . . . . . . . . . . . Schafter, CA
Charles Untz. . . . . . . . . . . . . . . . . . . . . . . . . . Lake Mills, WI
Case van Steyn.. . . . . . . . . . . . . . . . . . . . . . . . . . . . Galt, CA
Rod Wenstrom.. . . . . . . . . . . . . . . . . . . . . . Fergus Falls, MN
Rob Wonderlich. . . . . . . . . . . . . . . . . . . . . . . . . . . . Ollie, IA
Tom Woods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gage, OK

voices

From
the Editor

If You Were There

Vol. 12 | No. 2 | SUMMER 2009
DFA Leader is the official publication
of Dairy Farmers of America, Inc.,
published since January 1998.

EDITORIAL OFFICES

P.O. Box 909700

Kansas City, MO 64190-9700
Phone: 816-801-6488
E-mail: kisaacson@dfamilk.com
www.dfamilk.com

EDITORIAL / DESIGN TEAM

Monica Massey
Kathleen Isaacson
Chris Ehresman
Kristi Bell
Kristen Coady
Ruby Geinosky
Marjie Knust
Brian Richwine

NATIONAL ADVERTISING

Progressive Dairyman
P.O. Box 585
Jerome, ID 83338-0732
Phone: 1-800-320-1424
Fax: 208-324-1133
E-mail: dfa@progressivedairy.com
Acceptance of advertisement does
not constitute an endorsement by
Dairy Farmers of America, Inc.

SUBSCRIPTION

$20 per year for nonmembers

ADDRESS CHANGES

For change of address,

send mailing labelto:
Editor
Dairy Farmers of America, Inc.
P.O. Box 909700
Kansas City, MO 64190-9700
Please allow eight weeks.

5
SUMMER 09

Kathleen Isaacson
Publications
Manager

If youve never had the opportunity to attend our Cooperatives

Annual Meeting as a delegate, Board director or guest, heres a
glimpse into what it was like at this years meeting.
From the second a member entered the Hyatt Regency Crown
Center in Kansas City, Missouri, they had no doubt they were at a
Dairy Farmers of America, Inc. event, and that DFA is focused on
its members and milk. Banners featuring photos of our members
draped the entire length of the walkway and wrapped support
columns. DFAs mission statement was prominently displayed near
the registration area.
Members and employees greeted each other like long-lost friends.
Even though milk prices were the lowest anyone had seen in a
while, the mood was surprisingly optimistic.
The member-only Leadership Conference on Monday attracted
a lot of attention. This was an opportunity for members to hear
from DFAs management without industry guests present. Rick
Smith, DFA president and chief executive officer, discussed the
Cooperatives success, as well as challenges for the coming year.
During the Annual Meeting, Board Chairman Tom Camerlo
talked about the positive steps DFA and the dairy industry
are making to increase milk consumption. For instance, Tom
Gallagher, chief executive officer of Dairy Management Inc.,
presented some marketing developments that are already increasing
milk consumption across the country. A guest speaker from
GRUPO LALA was a big hit the following day. The companys
focus on health-conscious consumers piqued the attention of many
members. Long lines formed in front of the LALA display after
the presentation as members tried products with unique flavor
combinations like blueberries and pecan milk.
During lunch, members often compared their operations. Two
gentlemen I sat with talked about the best milk parlors. Others
wondered how long the bad prices would hang on and agreed that
everything in the dairy industry is cyclical.
For more details about the speeches, elections, seminars and
awards, check out pages 14 to 36 and pages 42 to 43. Even if you
couldnt attend the meeting in person, this is information you dont
want to miss.

voices

Member
to Member

Making Sure Your Voice is

Heard and Counts

Tom Camerlo
Board Chairman

The great thing about being a part of a

cooperative such as Dairy Farmers of America,
Inc. is that you have the strength of nearly
18,000 voices behind you.
That process begins with a single voice.
Through our Cooperatives grassroots structure,
each individual members voice has the
opportunity to be heard.
One of the most important events at DFAs
Annual Meeting is the formal passage of
resolutions which guide the Board and DFA
management in leading the Cooperative.
This year, several new or revised resolutions
were passed during the meeting. The adopted
resolutions covered a variety of issues, including
encouraging National Milk Producers Federation
to implement supply management programs. A
complete copy of all of the resolutions can be
found in the center of this magazine.

Its important to us that

every decision we make is
in the best interest of you
our members.
6

SUMMER 09

The resolutions process begins at district

meetings held in the fall or spring. These
meetings allow every member an opportunity to
voice their opinions on issues and help steer the
Cooperative by voting on resolutions.
For example, resolutions are passed to guide
everything from legislative action to financial
management to public policy support.
After district meetings, each Areas Resolutions
Committee meets in January, followed by
a meeting of the Corporate Resolutions

Committee in February. Resolutions are

then voted on by delegates at DFAs Annual
Meeting in March. Resolutions Committees
are comprised of members who milk less than
100 cows to those with more than 3,000 cows.
The diversity on these committees ensures fair
representation of DFAs unique mix of members.
DFAs grassroots process, however, is not
limited to just the resolutions process. Yearround, members are encouraged to stay informed
about whats going on in the Cooperative
through communications like DFA Today,
Member Update and this publication, the DFA
Leader. In addition, your field representatives and
elected delegates are sounding boards for your
opinions about how DFA should be run and
what else we can do to bring you more value for
your membership.
I enjoy the chance to talk to members yearround, and to our employees, partners and
customers. Of course, right now is a difficult
time to be a dairy producer, but many of the
members I talked to during Annual Meeting
were optimistic about the future. The one thing
they all shared was the need to be heard.
Your farmer leaders take the responsibility of
managing DFA seriously. Its important to us that
every decision we make is in the best interest of
you our members. You are the most important
part of this Cooperative and your involvement in
the resolutions process and the time you take to
talk to your Board representatives is essential to
DFAs success.
The next time a district meeting is held in your
Area, make sure you attend and have your voice
heard.
Your voice counts.

voices

Straight
Talk

What DFA is Doing

on Your Behalf
Our long-standing relationship with New
Zealands Fonterra Co-operative Group continues.
DairiConcepts, DFAs joint venture with Fonterra,
has been a great success, and we are working with
Fonterra regularly on projects and initiatives that
benefit us both.
GRUPO LALA is another good partner
for DFA. We are a supplier to their Omaha,
Nebraska, cultured products plant and work
closely with them as they plan to expand their
business in the United States. For instance, DFAs
Corporate Board of Directors recently approved
the sale of our interest in National Dairy
Holdings (NDH) to LALA.
LALA has built a unique niche for themselves
by targeting dairy products to consumers in
specific stages of life, from infancy to retirement.
Many of their practices are innovative and
inspiring.
As we look to continue to grow our export
markets, we also look for opportunities to
fill unmet demand around the world. In fact,
immediately following the Annual Meeting, DFA
management met with several executives from Yili
Industrial Group, a Chinese dairy company, to
tour member farms and discuss a potential supply
agreement.
We also continue to work on initiatives
designed to provide relief. In the following pages
youll read more about efforts by DFA, USDA
and other industry groups to ease the current
situation. We are optimistic that things will turn
around sooner than expected, and we continue to
work hard to make that happen.

7
SUMMER 09

Rick Smith
President and Chief
Executive Officer

For the past few months, it has been hard for

those of us in the dairy industry to think about
anything other than the current down price cycle
we are in. There is good reason for that focus.
Dairy producers margins are hugely negative,
and it is not just happening in the United States.
This crisis extends beyond our country. The
supply and demand balance is off throughout the
world.
We are not just waiting for things to get better.
There are several proactive measures we are taking
to try and shorten the current cycle, and develop
new structures for the future.
We continue to work closely with the National
Milk Producers Federation on its Cooperatives
Working Together program, which recently
announced another round of its highly anticipated
Herd Retirement Program (see page 44). We also
continue to work with Dairy Management Inc. on
increasing demand for dairy (see page 52).
Our role on the international stage continues to
expand as our Ingredients division explores new
markets for our dairy ingredients, in countries
such as Japan, Korea, Mexico and China.
We already have strong relationships with
several international companies and cooperatives
like Glanbia plc of Ireland, FrieslandCampina
of the Netherlands and Saputo Inc. of Canada.
Two of our guest speakers at this years Annual
Meeting were from farmer organizations that we
consider strong partners of DFA. Eduardo Tricio
from GRUPO LALA and Henry van der Heyden
from Fonterra Co-operative Group both gave
informative and insightful presentations
(see page 22).

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DFA
on the

Hill

Legislative Update
Your look at the issues facing
the dairy industry
Cap-and-Trade Program Recommended
Environmental Fact:

Greenhouse gases range from those that

occur in nature (water vapor, carbon dioxide,
methane and nitrous oxide) to those that are
human made (certain industrial gases).
U.S. Environmental Protection Agency

Proposals Would Halt Tail Docking

MILC Payments Sent Out

Legislation to ban tail docking of dairy cows has

been proposed in both the California and Illinois state
legislatures, and DFA is monitoring the situation.
In California, Senate Majority Leader Dean Florez
(D) has introduced Senate Bill 135, which would
prohibit the docking of dairy cow tails except during an
individual treatment, emergency or operation, provided
the operation is performed by a veterinarian for veterinary
purposes. The bill is endorsed by the Humane Society
of the United States, which recently supported passage
of California Proposition 2, which makes it a criminal
offense to confine hens in battery cages, pigs in gestation
crates and calves in veal crates.
In Illinois, State Senators Antonio Munoz (D) and
Kimberly A. Lightford (D) have sponsored Senate Bill
1336, which amends the Humane Care for Animals Act,
and would prohibit tail docking of any living member of
the bovine family.

The United States Department of Agriculture (USDA)

reports that dairy producers who participate in USDAs Milk
Income Loss Contract (MILC) program should have received
payments in April for milk produced in February. Beginning
April 1, Agriculture Department officials expected to issue
approximately $150 million to dairy producers.
USDA makes MILC payments on a monthly basis
when the Boston Class 1 milk price falls below $16.94 per
hundredweight as adjusted for feed costs. USDA determines
the per hundredweight payment rate by subtracting the
Boston Class I price for that month from the $16.94
MILC payment trigger price, as adjusted for feed costs,
and multiplying the difference by 45 percent. FSA makes
payments up to the maximum eligible pounds of milk
produced and marketed by each operation per fiscal year. The
annual maximum eligible pound limit per dairy operation is
2.985 million pounds per fiscal year.

9
SUMMER 09

Dairy Farmers of America, Inc. is working with

National Milk Producers Federation (NMPF) to ensure
that agriculture is treated fairly in pending climate
change legislation.
Jerry Kozak, NMPF president and chief executive
officer, informed the House Committee on Agriculture
that the best approach would be a cap-and-trade
program, where government would place a limit on the
amount of emissions, provided agriculture is not in the
capped sectors.
A voluntary offsets program under a cap-and-trade
system would offer the best set of incentives for dairy
farmers to pursue emissions management technology
and gain the market benefits as a result. NMPF and
DFA do not believe a carbon tax system to reduce
greenhouse gas emissions would benefit the dairy
industry.

Legislation Proposed to Assist Workers

Two important measures recently have been introduced
to address the issue of a stable and legal workforce for the
dairy industry.
U.S. Reps. John HcHugh (R-NY), who was recently
nominated by President Obama to be secretary of the
Army; Michael Arcuri (D-NY); Rob Bishop (R-UT);
and Devin Nunes (R-CA) introduced H.R. 1660, the
Dairy and Sheep H-2A Visa Enhancement Act. H.R.
1660 would codify the ability of dairy farmers and
sheep ranchers to obtain an initial three-year visa for
nonresident workers. Under terms of the proposed
legislation, the visa could be extended for an additional
three-year period without requiring intervening periods of
absence, or a touch back to their home country.
The legislation is supported by Dairy Farmers of
America, Inc. Contact your representative and urge them
to sign on as a co-sponsor of H.R. 1660.
Sens. Dianne Feinstein (D-CA) and Reps. Howard
Berman (D-CA) and Adam Putnam (R-FL) reintroduced
the Agricultural Jobs, Opportunity, Benefits and Security
Act (AgJOBS), S. 1038 and H.R. 2414 respectively.
AgJOBS restructures and reforms the current H-2A
temporary agricultural worker program by streamlining
the programs administrative procedures; reforming the
H-2A program wage and labor protections; streamlining

the process for admission of H-2A aliens; allowing certain

agricultural operations not currently eligible for the program
to acquire H-2A status; and allowing aliens not currently
eligible to participate in the program to acquire H-2A status.

Downer Cattle Banned From Food Supply

The Obama administration has now finalized the Downed
Animal and Food Safety Protection Act amendment banning
all downer cattle from entering slaughterhouses.
The final rule, announced by U.S. Agriculture Secretary
Tom Vilsack, would remove any cow that suffers injuries
after initial inspection, and inspectors would be required to
tag these cattle as U.S. Condemned, prohibiting them from
slaughter.
A partial ban on downer cows was initiated as a result of the
nations first case of mad cow disease in 2003. But a loophole
allowed downer cows into the food supply if a cow collapsed
after passing inspection, and federal inspectors determined the
animal had suffered an acute injury, but showed no signs of a
central nervous disorder.
In 2008, the Agriculture Department proposed banning
the slaughter of all nonambulatory, or downer, cattle for food
following disclosure that a California slaughterhouse used
forklifts, prods and water sprays to move disabled dairy cows.
Those revelations led to the recall of 143 million pounds of
beef, the largest beef recall in U.S. history.

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DFA on the Hill

Key Obama Political Appointments

All eyes are on the Obama administration to see how
his presidency will unfold. The following agriculture and
environmental appointees will have a significant role in
shaping the future of agriculture for the next few years,
and Dairy Farmers of America, Inc. meets regularly with

representatives from many of these offices.

A second list, featuring appointees in health and human
services and other important agencies, will run in the fall
issue of the DFA Leader.

The United States Department of Agriculture (USDA)

Provides leadership on food, agriculture, natural resources, and related issues.

Secretary

Tom Vilsack
A former Iowa governor with a
background in biofuels. President
Barack Obama noted Vilsacks
support for cellulosic ethanol (a
fuel produced from the stalks
and stems of plants) and his work
toward increasing wind and solar
power. Obama also is a strong supporter of biotechnology.
Confirmed

Deputy Secretary of
Agriculture
Kathleen A. Merrigan

Was serving as assistant

professor and director of
the Agriculture, Food and
Environment M.S. and Ph.D.
program at Tufts University. She
is the former administrator of
USDAs Agricultural Marketing Service (AMS) under
former President Bill Clinton and has a history of work
with sustainable agriculture/organic food production.
Confirmed

USDAs Farm and Foreign Agriculture Services (FFAS)

Delivers commodity, credit, conservation, disaster, and emergency assistance programs
that help improve the stability and strength of the agricultural economy.

James W. Jim Miller

Currently serving as chief of

staff for the National Farmers
Union, a position he accepted
in 2009 after serving four years
as senior analyst for agriculture
and trade on the majority staff of
the Senate Budget Committee.
Miller operated a fourth-generation family farm in
eastern Washington state for more than 20 years. Miller
will oversee all the commodity programs and farm loan
programs. Confirmed

Deputy Under Secretary

FFAS
Burnham John Bud
Philbrook

Co-founder and president of

Global Volunteers, a non-profit
group that sends volunteers to
communities in 20 countries
to work with local citizens on
agricultural, educational, health care and other challenges
facing developing communities. Before co-founding
the organization, Philbrook worked on the presidential
campaigns of Sens. Eugene McCarthy and George McGovern
in 1972. Does not require Senate confirmation

11
SUMMER 09

Under Secretary for FFAS

USDAs Rural Development (RD)

Provides financial programs to support
essential public facilities and services
such as water and sewer systems,
housing, health clinics, emergency
service facilities and electric and
telephone service.

Under Secretary for RD

Dallas P. Tonsager

NRCS Chief
David White

Raised on a dairy farm in South

Dakota, he currently serves as a
board member of the Farm Credit
Administration (FCA). He is also
a member of the board of directors
of the Farm Credit System
Insurance Corporation. Prior to
his appointment to the FCA, he was executive director of
the South Dakota Value-Added Agriculture Development
Center, where he coordinated initiatives to better serve
producers who developed value-added agricultural
products. Awaiting Senate confirmation

Began his 32-year career with

the NRCS as a conservation
aide in Missouri. He has served
the agency in South Carolina,
Montana and in its Washington,
D.C., headquarters. White also
served as a detailee to the Senate
Agriculture Committee, working on Chairman Tom
Harkins staff during the development and negotiations of
the 2008 Farm Bill. Confirmed

Environmental Protection Agency (EPA)

Protects human health and the environment.

USDAs Food, Nutrition and Consumer Services (FNCS)

Administers federal domestic nutrition assistance programs
and links scientific research to the nutrition needs of consumers
through science-based dietary guidance, nutrition policy
coordination and nutrition education.

EPA Administrator
Lisa Jackson
12

USDAs Natural Resources

Conservation Services (NRCS)
Works with private landowners to
help them conserve, maintain and
improve their natural resources.

SUMMER 09

Formerly the New Jersey

Environmental Protection
commissioner and chief of staff
briefly to New Jersey Governor
Jon Corzine. It is difficult to
predict what changes will occur
under Jackson as her appointment
has been criticized by a handful of vocal environmental
groups, while others remain optimistic. Jackson will play
a critical role in upcoming climate change discussions and
is known for her advocacy for reduction of greenhouse gas
emissions. Confirmed

Deputy Under Secretary for

FNCS
Dr. Janey Thornton

Thornton was school nutrition

director for Hardin County Schools
in Elizabethtown, Kentucky, for
more than 25 years where she
transformed the school food
service program during her tenure.
Thornton also served as president of the 55,000-member
School Nutrition Association during the 2006-07 school
year and as president of the School Nutrition Foundation.
Confirmed

Department of Energy (DOE)

Ensures energy security, maintaining the safety, security and reliability of
the nuclear weapons stockpile, cleaning up the environment and developing
innovations in science and technology.

Secretary of the DOE

Coordinator of Energy
and Climate Policy

Stephen Chu

Carol Browner

A newly created position that

has been dubbed the Energy
Czar. Browner is the former EPA
chief responsible for protecting
attempts to more clearly define the
jurisdiction of the Clean Water
Act (ie: CERCLA) and supports stricter limits on engine
emissions. As this is a new position, it is unclear what
authority/jurisdiction Browner will have and how she will
influence the administrations agenda. Does not require
Senate confirmation

Using Less Copper

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Other Environmental Agencies

I used Super Charger

and the cows warts
darkened, scabbed over
and fell off.

White House Council on

Environmental Quality

I used less copper.

Nancy Sutley

Served as Los Angeles deputy

mayor. Little is known about
how Sutley will impact future
environmental regulation,
particularly given the yet-tobe-developed dynamic between
the EPA, USDA, DOE and Energy Czar, among others.
Sutley was recently quoted as saying The administration
is signaling to the rest of the world that the United States
is ready to assume leadership in helping to bring the world
together and reduce our greenhouse gas emissions and
protect the planet. Confirmed

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13
SUMMER 09

A Nobel Prize-winning physicist

whose appointment Obama says
should send a signal to all that
my administration will value
sound science. Chu was serving
as the director of the Lawrence
Berkeley National Laboratory.
Chu won a Nobel Prize for
developing methods to trap atoms with lasers and has
oriented the Berkeley lab to focus on renewable energy and
climate change. Confirmed

Cooperative leaders paid tribute to members,

employees, customers and partners through the
theme of People. Pride. Passion. at Dairy Farmers of Americas 11th Annual Meeting in March.
The event in Kansas City, Missouri, was an opportunity for attendees to hear about the Cooperatives accomplishments and performance for
the year, in addition to presentations from key
players in the industry.
14
1

WINTER 0809
SUMMER

DFAs annual Leadership Conference took place

prior to the Annual Meeting and gave members
a chance to hear from DFA senior management
before industry guests arrived. Also, a Dairy Risk
Management Services (DRMS) seminar was held
for members, giving them the opportunity to
learn more about how DRMS can benefit them
(see page 19).
The turnout at Annual Meeting was great, and
the meeting proved to be beneficial for everyone

who attended, said Board Chairman Tom Camerlo.

Not only are members and guests able to stay
up to date on the Cooperative, DFAs farmerleaders are able to interact with members and
get feedback on a face-to-face basis.
Several members of DFAs management and leadership team spoke at Annual Meeting. Following
are some highlights from the presentations:

TOM CAMERLO
Board Chairman

Your involvement and leadership is important to

the continued success of DFA, Board Chairman
Tom Camerlo told the audience of Board members, delegates and DFA employees. Im very
proud to work alongside all of you. Even when
times are rough, as they are today, there is no
place Id rather be than in this industry.
Camerlo addressed the current low price cycle.

Your involvement and leadership is

important to the continued
success of DFA.
Tom Camerlo
One of the positive steps Camerlo sees is that
members and employees made more than 600
visits to Congress last year that helped DFA
shape dairy policy and regulation. Camerlo
spoke of the Cooperatives efforts to have
government programs like the Dairy Export
IncentiveTri-M-Valley
Program enacted
quickly, which it was,
Farm, LLC
thanks in part to DFAs efforts. He also talked
about the need for improvement in the Federal
Milk Marketing Order system.

Tom Camerlo | DFA Board Chairman Tom Camerlo

shared his optimism for the future.
We all know things on the farm will get better,
he said. When is the question There are many
positive initiatives happening right now that will
help answer when.

15
2
SUMMER
WINTER 09
08

DFA is working with Dairy Management Inc. on

a number of initiatives to increase demand and
meet unmet demand, Camerlo said. One example is the American Legends line of pizzas,
which use 40 percent more cheese per pizza.
Attendees were able to sample the pizzas during
the meeting. Camerlo adds that in the ongoing
battle to balance supply and demand, dairy exports have played an important role in the past,
and that is changing.

Because of todays recession, U.S. Dairy Export

Council and DFA exports will likely shrink by 30
to 40 percent in 2009, he said. A lot of emphasis will be placed on retaining the major markets
that we export to International demand will
bounce back, so its important that we retain our
customer base, both as an industry and as DFA.
Camerlo also emphasized the need for members of the dairy industry to work together on a
global scale.

If were going to be successful as a global industry, there can be no us and them, he said.
The only us is the worlds dairy producers.
Them are the people and industries who want
to take our markets.

RICK SMITH

President and Chief Executive Officer

DFA President and Chief Executive Officer Rick
Smith addressed DFAs financial performance
in 2008. The Cooperative had record operating
income of $63.9 million and net sales of $11.7
billion. DFA and its affiliates marketed 61.2 billion pounds of milk in 2008.

Although the Cooperative had a strong year,

Smith recognized the tough economic times facing everyone.
We feel very directly the hardship, fear and anger youre feeling, he told the audience.

16
3

Smith outlined some of the initiatives DFA is

undergoing to try and relieve the stress its members are feeling. The Cooperative is working
closely with its affiliates and partners to increase
demand, and DFAs consumer-branded
businesses are introducing new products and
new advertising and promotional campaigns.

SUMMER0809
WINTER

In 2008, DFA underwent changes in several

areas, Smith said. Cooperative leaders continued
to work on changing the culture among employees and members.

1. Hyatt Regency Kansas City lobby featuring DFAs Annual Meeting theme.
2. President and CEO Rick Smith. 3. Young Cooperators getting ready to
serve ice cream. 4. Delegates at the Leadership Meeting, which preceded
the Annual Meeting.

We want people who have pride in what they

do and a passion for what theyre doing, Smith
said. We want to provide leadership in the industry, but it doesnt always have to be loud. We
can be quiet leaders.
The Cooperative dealt with challenges in 2008
that included federal investigations by the Department of Justice, the Internal Revenue Service
and the Commodity Futures Trading Commission. Members also were notified of two improper transactions involving former DFA management. All of those issues have been closed,
Smith said.

As I stand here today, there are no more federal

investigations, he said. Thats not to say that
we wont make mistakes in the future, but hopefully they wont be from lack of focus and discipline and youll hear about them from us.

...We have a job to do. We had a

strong year in 2008. But, no matter
what we do, its very limited. We live
and die on pennies, nickels and dimes
and you guys need dollars.

4
WINTER 08

In 2009, DFA will continue to focus on its goals

of increasing its focus on members, staying
competitive, keeping costs down, improving its
image and changing the culture.

Rick Smith
8

Annual Meeting event photos

by Shaun Cloud, Chris Ehresman,
Kathleen Isaacson and Brian White.

5. DFA employee Linda Hottovy (left) handed out registration packets to

members like Jane Gunter of Conway, Missouri. 6. Member of Distinction
wall. 7. Board Director Willem Deboer at his Western Area Council Delegate
Meeting. 8. Visitors to a trade show booth.

MARK KORSMEYER

President, Dairy Food Products

DFAs ingredients and consumer branded
businesses saw several successes in 2008, and
will be working to improve on those in 2009, said
Mark Korsmeyer, president of DFAs Dairy Food
Products division.

Borden cheese and Kellers Creamery both had

good years, and both brands are introducing
new products in 2009. Bordens Friends of Elsie
campaign, which ties Borden cheese to the dairy
farmers who produce it, was successful in four
test markets in 2008. The campaign will expand
in 2009 (see page 49).

Our goal with that division is to coordinate

domestic and international sales and focus on
international markets, Korsmeyer said. The
division also is working on branding DFAs
ingredient packaging.
Korsmeyer addressed the issue of food safety.
Although DFA has always had stringent food
safety regulations, the recent consumer focus
on food safety has increased the need to ensure
that proper protocols and procedures are in
place, Korsmeyer said.
Food safety is the one area that keeps me up at
night, he said. Without food safety, we are out
of business. Its that simple.
18

1. The chairman of GRUPO LALA, Edward Tricio, and his daughter, Maria, tour
the Expo area. 2. Central Area members pose for a photo with DFA employee
Kathy ORoark (second from right) and include Kurt Stahlsberg, Steve Horstman, Frank Ponterio, Byron Lehman, David Slack and Lynda Foster. 3. Jan
Peterson (center), meeting and travel manager for the Northeast Area, speaks
with Board Directors (left to right) Terry Rowlett and George Mertens.

DFA has reinforced its personnel in the area of food safety and work is underway to strengthen the
Cooperatives performance standards, he added.

SUMMER 09

A TIME FOR ACTION

During Annual Meeting, attendees also heard from guest speakers Eduardo Tricio, president of GRUPO LALA;
Henry van der Heyden, chairman of Fonterra Co-operative Group; Tom Gallagher, president and CEO of Dairy
Management Inc.; and Jerry Kozak, president and CEO of National Milk Producers Federation. DFAs 2009
Members of Distinction and scholarship recipients also were honored, and delegates discussed and voted on
resolutions (center spread). In addition, new members to DFAs Corporate Board were elected.
Information on these meetings and actions can be found on the following pages.

5
WINTER 08

While DFA has always been in the ingredient

business, the Ingredients division was formalized
during 2008.

DFAs Board of Directors Elects Officers for 2009

Dairy Farmers of America, Inc. Board of Directors
elected its 2009 slate of officers at the conclusion of the
Cooperatives 11th Annual Meeting held March 24-25 in
Kansas City.
Tom Camerlo, a dairy farmer from Florence, Colorado,
was re-elected as chairman. This is his seventh term as
chairman of the Board of Directors, having served in this
capacity since 2003. He also serves as chairman of the U.S.
Dairy Export Council, serves on the Agricultural Policy
Advisory Committee for Trade and is on the board of Dairy
Management Inc.
Tom Croner of Berlin, Pennsylvania, was re-elected
secretary/treasurer and is chairman of DFAs Finance and
Budget Committee and chairs DFAs Mideast Area Council.
Randy Mooney of Rogersville, Missouri, was re-elected as
first vice chairman. He chairs DFAs Southeast Area Council
and is chairman of National Milk Producers Federation.

Camerlo

Croner

Heatwole

Mertens

Four other members will serve on the Corporate Board

in officer positions as vice chairmen, and each will chair a
committee on the Corporate Board.
Jerrel Heatwole of Greenwood, Delaware, was re-elected
as a vice chairman and chairman of DFAs Government,
Member and Public Relations Committee. He also chairs
DFAs Northeast Area Council.
George Mertens of Sonoma, California, was re-elected as
a vice chairman and chairman of DFAs Fluid Marketing
and Public Policy Committee. He chairs DFAs Western
Area Council.
Wayne Palla of Clovis, New Mexico, was re-elected as a
vice chairman and chairman of DFAs Audit Committee.
He chairs DFAs Southwest Area Council.
Bill Siebenborn of Trenton, Missouri, is serving as a
vice chairman and chairman of DFAs Value-Added
Committee.

Mooney

Siebenborn

Palla

Members Introduced to Dairy Risk

Management Services

DRMS

Dairy Risk Management Services

RMS

manage the margin between costs and income. The target

blend price contract is being developed to help members
reduce basis volatility, which is primarily the volatility in the
Risk Management Services
producer price differential or the pooling differential.
Shonda Wills, director of DRMS, explained how milk
is priced, and Katie Rossini, director of risk management
in the Northeast Area, talked about DRMSs most popular
programs and how they can impact farms during both low
and high milk price cycles.
In addition to holding Area workshops throughout the
country, DRMS staff will be holding webinars in the next
few months and creating an educational DVD.
For more information, call 1-877-424-3343.

Dairy One
Agri-Max
Financial Services

19 2
SUMMER 09
WINTER 08

Almost 200 members arrived early for Dairy Farmers of

America, Inc.s information-packed Annual Meeting to learn
more about DFAs value added Dairy Risk Management
Services (DRMS).
Risk management is a way to help member farms protect
and manage their milk price, regardless of their location or
pricing structure. This special DRMS seminar was a way
for members to better understand the services provided by
DRMS.
During the meeting on March 23, Ed Gallagher, vice
president, economics and risk management, spoke about
ways to protect a dairy operations cash flow and about
several new and innovative programs currently offered or in
development such as the milk/corn contract and the target
blend price contract. The milk/corn contract helps members
manage the feed cost along with the milk price to better

Members Elected to Board of Directors

Woods

1 20

Handy

Huber

SUMMER 09
WINTER 08

At this years Annual Meeting held in Kansas City,

Missouri, 33 Board members were elected to DFAs
51-member Board of Directors. The members of DFAs
Board of Directors are elected to serve two-year terms,
which are staggered so that about half of the Board seats
are up for election annually.
A strong member-owned leadership is vital to DFAs
success, explains Tom Camerlo, chairman of DFAs Board
of Directors. These elected directors make substantial
contributions to the Cooperative and to the dairy industry
overall. Their passion, integrity and good judgment are to
be commended.
Those who were newly elected to the Board include:
Central Area
Area Council
Central
Tom Woods: Gage, Oklahoma
As a partner in his dairy, Woods milks 120 cows. He
reserves part of his 1,500 acres for grazing and raises wheat
and hay on the rest. He is active outside of DFA and
serves on the boards of Dairy MAX and the Oklahoma
Promotion Board and on a committee for Dairy
Management Inc. Hes been an election official for local
and county elections for 20 years.
Northeast Area
Council
Northeast
Area
Dean Handy: St. Johnsville, New York
Handys farm is a seventh-generation bicentennial farm,
owned and operated as a joint venture. The main farm
consists of milking and grain facilities. Combined with
patriarchal and grand patriarchal farms and rented land,
Handy milks 100 cows and has 1,300 acres of corn, grain,
silage, high moisture ear corn, soy beans, alfalfa and grass
for forages.

Raney

Herman

Pietersma

Mideast Area
Area Council
Mideast
Keith Huber: St. Paul, Indiana
In partnership with his son, Huber milks 85 cows and
raises 1,000 acres of corn, beans, wheat and hay. He also is
actively involved in Milk Promotion Services of Indiana.
Huber is president of his county farm bureau and is a
member of his areas soil and water board.
Jeff Raney: Adamsville, Pennsylvania
Raneys dairy operation is a family business, with his
son and daughter-in-law and daughter and son-in-law
involved in the 50-cow dairy. In addition to breeding
and showing Holsteins, they raise corn, soybeans, hay
and pasture land on 300 acres. He also is active on
several boards, including Ag Choice Farm Credit ACA,
Mid-Atlantic Dairy Association and Pennsylvania Dairy
Promotion.

Southeast Area

Kent Herman: Taylorsville, North Carolina

Herman operates Herman Dairy Farm, Inc. with his
father and brother, and they are assisted by Hermans son
in milking 400 cows. They also raise 250 beef cattle and
275,000 chickens and plant row crops and hay on more
than 1,000 acres. Herman is a member of the board of
North Carolina ADA/Southeast United Dairy Industry
Association, Inc.

Western Area

Ron Pietersma: Chino, California

Pietersma operates Legend Dairy Farms, a 3,200-cow
dairy operation at two locations in Chino, California.
He also is a partner in two other dairies, Storms Oasis
Dairy in Fallon, Nevada, and Edgewater Farms in Chino,
California. In addition, he is the owner of Pietersma &
Company, a brokerage firm.

Those members who were re-elected to DFAs Board

include:

Central Area

Larry Frederick of Baring, Missouri; Charles Untz of

Lake Mills, Wisconsin; Rod Wenstrom of Fergus Falls,
Minnesota; and Rob Wonderlich of Ollie, Iowa.

Mountain Area
Tom Camerlo of Florence, Colorado; and Ellis Roberts
of Preston, Idaho.

Southeast Area

David Crowl of Street, Maryland; Lew Gardner

of Galeton, Pennsylvania; and Jerrel Heatwole of
Greenwood, Delaware.

Mickey Childers of Somerville, Alabama; Glen Easter of

Laurens, South Carolina; Michael Ferguson of Senatobia,
Mississippi; Randy Mooney of Rogersville, Missouri;
Larry Purdom of Purdy, Missouri; George Rohrer of
Dayton, Virginia; and Jerry Spencer of Sulphur Springs,
Texas.

Urban Mescher of Maria Stein, Ohio, and Dwight Nash

of Elsie, Michigan.

George Mertens of Sonoma, California, and Case van

Steyn of Galt, California.

Northeast Area

Mideast Area

Southwest Area

Western Area

Keith Broumley of Hico, Texas; Buster Goff of Hobbs,

New Mexico; Larry Hancock of Muleshoe, Texas; Greg
Mitchell of Pecos, Texas; Wayne Palla of Clovis, New
Mexico; and Dan Senestraro of Johnson, Kansas.

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What dairy products are people all

over the world demanding? What
strategies will help dairy farmers?
Thats what dairy companies,
marketing groups and cooperatives
have been asking themselves.

Guests from dairy companies in

Mexico and New Zealand and
from Dairy Management Inc. and
National Milk Producers Federation
discussed their recent findings in March
during Dairy Farmers of America,
Inc.s Annual Meeting in Kansas City,
Missouri.

The correct answer comes in the form

of another question: What sells more milk?

CREATING PRODUCTS FOR A

HEALTHY LIFESTYLE
GRUPO LALA was established 60 years ago by
a group of dairy farmers in the La Laguna region
in the northern part of Mexico. LALA, a multibillion dollar company, is one of the largest dairy
companies in the Americas. It is a leader in
milk, yogurt, cheese, cream and desserts in
Mexico.

22
1

WINTER 0809
SUMMER

Eduardo Tricio | GRUPO LALA

Eduardo Tricio, chairman of LALA, said LALA has

been operating in the United States for almost four
years, and it is committed to the U.S. market and
continuing to grow and make dairy a more dynamic
and thriving industry.
Although LALA has the largest refrigerated
distribution network in Latin America, Tricio
explained that the United States is the largest
dairy market in the world and LALA is committed
to bringing the most nutritious, delicious and
freshest products to consumers in this market; that
is where his companys future lies. LALAs priority is
on products that combine health benefits with the
pleasure of eating.
(Editors Note: LALA acquired National Dairy
Holdings (NDH) from DFA in May. DFA has been
invested in NDH since its formation in 2001, and in
2008, became majority owners after increasing the
Cooperatives financial investment and managerial
oversight. Although DFA was not actively looking to

We live and die depending

on the global market.
Henry van der Heyden
MEETING UNMET DEMAND
IN THE UNITED STATES

Henry van der Heyden | Fonterra Co-operative Group

sell NDH, DFA management was working closely

with LALA and exploring a number of opportunities.
The sale of NDH became an obvious win-win
situation for both parties. DFA will continue to
supply milk to NDHs 18 processing facilities. DFA
also supplies milk to LALAs Omaha, Nebraska,
facility and to some of LALAs co-packers. LALA
also is selling DFAs extra-calcium cheese in the 105
million people Mexican market.)

STRONG FOOTPRINT ON
DAIRY INDUSTRY
New Zealand may be a small island in the South
Pacific, but it has a mighty effect on the
world dairy industry.
Henry van der Heyden, chairman of Fonterra Cooperative Group Ltd., explained that Fonterra
is unique from the global perspective because
more than 95 percent of the milk their 10,800
shareholders produce is exported. Fonterra,
which is a partner with DFA on several initiatives,
is responsible for 25 percent of New Zealands
exports and 40 percent of world dairy trade.

Unmet demand is the difference between what is sold

and what the world is demanding. Tom Gallagher,
chief executive officer of Dairy Management Inc. (DMI),
estimates that 15 billion pounds of additional milk
could be sold if the dairy industry can come up with
the right product.
Americans currently are consuming more dairy
cheese consumption went up 18 percent from 1996
to 2006 and yogurt consumption has increased 86
percent during the same time period.
In 2006, for the first time in 20 some years, milk
consumption went up, Gallagher said. There is a
lot of unmet demand that can be a home for your
production.
Encouraging developments include:
Dominos Pizza Today, 25 percent of cheese
produced in this country is sold on pizza,
compared to 28 percent in 2006. However, the
dairy checkoff is working to boost sales of cheese
used on pizza. DMI worked with Dominos to
create a new line of pizzas, American Legends,
which feature 40 percent more cheese.

McDonalds DMI has partnered with

McDonalds to develop several dairy-friendly
beverages and food items, including the recently
launched MCafe beverage items.

We live and die depending on the global

market, van der Heyden told DFAs members.
We dont even talk about the local market.

SUMMER
WINTER 09
08

23
2

van der Heyden said he expects New Zealands

dairy exports to grow by 2 to 3 percent annually.
He said they see signs that milk prices are
starting to get slightly stronger.
DFA and Fonterra are involved in a joint venture
called DairiConcepts , L.P., which produces
cheese and dairy powders, cheese concentrates,
functional dairy replacement systems, and hard
Italian cheeses for many food industry companies.

Tom Gallagher | Dairy Management Inc.

Jerry Kozak | National Milk Producers Federation

PROACTIVE EFFORTS FOR

TRYING TIMES
As a representative of most of the dairy
marketing cooperatives in the country, National
Milk Producers Federation (NMPF) has been
focusing on first things first during these
trying times, says Jerry Kozak, NMPFs
president and chief executive officer.
Representatives from NMPF have met more than
once with U.S. Agriculture Secretary Tom Vilsack
and sent a letter to President Barack Obama
emphasizing that the dairy industry doesnt need
new resolutions or legislation. Kozak said that the
response from White House staff has been positive.

Kozak said they asked the government to have

the United States Department of Agriculture
(USDA) take these three steps:
Make it easier to buy cheese under the price
support program.
Buy and distribute more dairy products for
USDA feeding programs.
Resurrect the Dairy Export Incentive Program,
which was recently enacted.

WINTER 08

Another positive sign Kozak cited is that the

Cooperatives Working Together (CWT) program
was renewed for two years.
Heres the optimistic message I want you to
take away, he said. We can help ourselves. We
didnt have this in 2003, and DFA has been a
stalwart from the beginning of the program.

safe & simple

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Gillins Dairy, Inc.

Tjaarda Dairy

Pine Tree Dairy, LTD

Koster Dairy
Lumbra Family Farm

WINTER 08

Koepke Farms, Inc.

Tri-M-Valley Farm, LLC

Beyond simply dairying well, they have high quality milk, have instituted sustainable
practices and are good stewards of the land. Some have dealt with urban encroachment, found thrifty ways to implement the latest technology and have risen to the top
in their areas of expertise.
The following pages will introduce you to families we are proud to call DFA members.

2
WINTER 08

he Dairy Farmers of America, Inc. Members of Distinction Award was presented

during the Annual Meeting Banquet on March 24 to seven farms that lead the
way in the dairy industry with innovative practices worth emulating.

LUMBRA FAMILY FARM

Lloyd and Brad Lumbra

Enosburg Falls, Vermont

Northeast Area Members of Distinction

Lloyd and Brad Lumbra live by the motto, Do it

right and do it right the first time. This mindset has
served this father and son well and is one of the
reasons for their dairys success.
The facilities at Lumbra Family Farm in Enosburg
Falls, Vermont, were built 10 years ago, although
to an outsider you would never know it. The parlor and freestall barn, built after their original barn
collapsed on Christmas Eve in 1995, look as though
construction just finished.
DFA Field Representative Dan Delabruere praises
Lloyd and Brad for the upkeep of their facility and
attention to detail that has earned this Gold
Standard Dairy operation several quality awards.
Dan says the Lumbras are committed to producing
quality milk and it shows in the care they take with
every aspect of the dairy. He explains that they also
are vigilant about maintaining their farm equipment.
They are not worried about breakdowns and can
get the job done.
The Lumbras are meticulous about every aspect
of the comfort of their 145 cows. While they use
automatic manure scrapers and clean their barn
regularly, they added some special details such as
cow scratchers, which keep the cows happy and
producing quality milk.

Kara, Brad, Lloyd and Diane Lumbra

The Lumbras efforts

have earned them
the honor of being
awarded Best Flavor
Milk at the Vermont
Farm Show twice.

Lloyd says he decided to install just one

scratcher to see if the
cows would use them.
After the first day,
one cow had used
it so much she had
rubbed off some of
her hair. He decided
they should install another one.
Lloyd says their philosophy is to do a good job and
try to be efficient, and they will continue to succeed.
The Lumbras efforts have earned them the honor
of being awarded Best Flavor Milk at the Vermont
Farm Show twice.
Brad explains the dairy is a team effort. He says
they have a great support system of people, including their field representative, nutritionist and veterinarian that they work with to make their operation
successful.
Part of that team is DFA and the services it provides. The Lumbras take advantage of DFAs health
insurance provided by partner Agri-Services Agency.

WINTER 08

The attention to detail and dedication that the

Lumbras show is what makes them DFAs Northeast
Area Members of Distinction.

PINE TREE DAIRY

Matt and Gail Steiner, Nate and

Anita Steiner, Joel and Katrina
Steiner, Luke and Pam Steiner, Aaron
Steiner, Andrew Steiner, Ethan
Steiner and Matthew Steiner
Rittman, Ohio
Mideast Area Members of Distinction

Its not often you drive down a residential street

instead of a country road to get to a dairy. That,
however, is exactly what you have to do to get to
Matt and Gail Steiners dairy. Numerous singlefamily homes have been built around Pine Tree
Dairy, which was started by Matts family more than
100 years ago.

However, not only is the residential area

surrounding the farm growing, but so is the Steiner
family.
Most of Matt and Gails 11 children and their
families now numbering 30 work on the farm
and live no further away than four miles from the
main dairy except for one daughter who lives
in Connecticut. To support their growing family,
the Steiners have expanded their operations to
numerous sites, since the original farm is essentially
landlocked. Their main herd consists of 350 milking
cows.
While buying and leasing nearby land is one way of
increasing profits, the Steiners decided a little more
than a year ago to try for higher profits by starting a

(Front) Hannah, Allison, Ashley, Leah (Back) Katrina, Calla, Haley,

Joel, Pam, Luke, Nate, Anita, Clay, Matt, Gail, Andrew, Julie, Loise
Aaron (Playset) Evan, Cecilia, Aiden, Joanna and Lydia Steiner.

The Steiners
have a nationally
recognized herd
and embryo transfer
program.

certified organic dairy

with 200 cows on 450
acres in Ashland
30 miles west of the
main farm. It usually
takes three years of
not putting chemicals
on farmland until it
can be certified organic. The Steiners sped up the
process by transitioning heifers and purchasing
feed until the land was ready, which it now is.
The family also has had success with their breeding
program. The Steiners focus on health trait
evaluations because they feel it is one of the best
tools for predicting longevity. They have a nationally
recognized herd and embryo transfer program. A
European Union-certified collection facility allows
them to sell embryos overseas.
Utilizing DFA services such as forward contracting
has helped them hedge against price volatility
risk. One son, Luke, and his wife, Pam, have been
active in DFAs Young Cooperator (YC) program
representing the Mideast Area on the corporate
YC Advisory Committee and taking part in YC
activities at DFAs Annual Meeting.
Whatever these Mideast Area Members of
Distinction do as dairy producers, they pool
their strength as a family to get the most out of
dairying.

29
SUMMER 09

DFA Field Representative Will Moore says one of

the biggest challenges facing farms in their area is
co-existing with residential neighbors. The Steiners
are one farm family who show the positive side of
agriculture by keeping a neat, clean and successful
farm.

TRI-M-VALLEY FARM

John and Linda Munyon and Jared

and Anita Munyon
Cane Hill, Arkansas
Southeast Area Members of Distinction

The owners of Tri-M-Valley Farm in Cane Hill,

Arkansas, have found resourceful ways to
implement the latest techniques in dairying.
The dairy is owned by John and Linda Munyon,
their son, Jared, and his wife, Anita. They maintain
170 wet and dry cows on 860 acres.
In this economy, when farmers may wonder how
they can afford to invest in the latest technology,
the Munyons discovered that with a little innovation,
they too could invest in practices usually reserved
for larger farms.
For instance, after Anita read that greenhouse calf
barns were healthier for newborns, the family built
their own barn in the 1990s. A small fan maintains
a 10-inch air space in between two layers of clear
plastic, which acts as insulation, yet sunlight filters
into the barn. This air pocket keeps the greenhouse
warmer during the winter, while still providing the
benefits of sunlight, which helps keep pathogens
down.
The Munyons decided to give composting a try
three years ago when it became legal to compost
large dead animals in Arkansas. This method is
considered more environmentally friendly than
other disposal methods. It takes just two feet of rice
hulls, pine shavings or hay underneath the animal
and two feet covering the animal to encourage

Anita, Linda, John and Jared Munyon

The Munyons are

always looking for
ways to improve
profits and they
accomplish that by
being resourceful.

the decomposition
process. They built
their compost pile
away from water
sources.

To improve mastitis
management and
decrease antibiotic
use, the farm utilizes on-farm culturing for mastitis
pathogens and antibiotic sensitivity tests. Instead of
waiting up to a week to get results, they can usually
find out within 48 hours. They periodically double
check their results with results from DFAs labs. The
Munyons also use the myDFA site to check cell,
butterfat and protein counts.
Another innovation the Munyons have incorporated
is the Thrifty Dipper. The dippers look like a regular
dip cup, but theres a brush on top. The brush
wipes off excess dip. This has cut dip usage by 50
percent.
The family says that in this day and age, theyve
got to be efficient. They add that they are always
looking for ways to improve profits.
If the success seen by these Southeast Area
Members of Distinction is any indication, they will
be innovative for many more years to come.

KOEPKE FARMS

David Koepke, Jim Koepke, Alan

Koepke and John and Kim Koepke
Oconomowoc, Wisconsin
Central Area Members of Distinction

The owners of Koepke Farms are stewards of the land.

These Gold Standard Dairy members challenge
themselves to find tools and resources that can
increase their profits, save them time and improve
their workplace while protecting their environment.

All of the Koepkes cows are registered Holsteins. The

dairy has been home to more than 50 cows who have
produced more than 200,000 pounds of milk during
their lifetimes. One of these bovines was Granny, a
Holstein who is the current lifetime production record
holder at more than 450,000 pounds.
The Koepkes base their herd size on their ability to
use nutrients produced by their cows. Since 2002,
they have participated in Wisconsins Discovery Farms
Program a program which helps the states dairy
farms conduct soil-science research and customize
best management practices.
The Koepkes also have been progressive in
implementing a phosphorus-based nutrient

Kim and John with Colton and Auggie; Jim and Mary Ann;
Alan and Mary Ellen; and Linda, David and Kody Koepke

management plan.
Manure from the
dairy is spread over
every acre of the
Koepkes land and
crop work is done
with no tillage. Using
this method, water
run-off has been
reduced. A six-year
crop rotation system ensures that proper nutrients
are in the soil providing bountiful crops. In addition,
the Koepkes use strip cropping to reduce soil
erosion and have installed drainage tiles to control
water run-off.

One of the
Koepkes Holsteins
is a current lifetime
production record
holder at more than
450,000 pounds.

The family says that the Cooperative has always

paid them competitive prices for their milk and
provided them with financial stability. John says
he also appreciates that he can contract milk
using Dairy Risk Management Services forward
contracting program.
Active in their community, David serves on the state
Ag Source Board; Alan is founder of Professional
Dairy Producers of Wisconsin; Jim is on the board
of the Township of Ashippun Planning Commission
and on the 2009 planning committee for the state
Farm Technology Days; John is a supervisor for the
Oconomowoc Board; and Kim serves on the St.
Pauls Church Board of Early Child Development.
The Koepkes take great pride in their dairy; being
good stewards of the land is an integral part of
their operation and is important to this Central Area
Member of Distinction family.

31
SUMMER 09

Founded by Ruth and Harvey Koepke in 1936, the

dairy is operated today by Ruth and Harveys sons,
David, Jim and Alan, and Jims son, John, and his wife,
Kim. The Koepkes milk approximately 300 cows and
farm 900 acres near Oconomowoc, Wisconsin. Alan
has served as a delegate for the Central Area Council
since 2001.

KOSTER DAIRY
John Koster

Comanche, Texas
Southwest Area Members of Distinction

For John Koster, his dream of owning a dairy farm

was not possible in his home country of Holland.
Milk quotas and exorbitant land prices made
starting a dairy there impossible, John explains.
But John was determined. When he was only four
years old, he told his mother he was going to be
a dairyman. In fact, John would act sick when it
was time for family vacations so he could go to his
grandfathers dairy while his family went on their
trip.
To fulfill his dream, John moved to Sulphur Springs,
Texas, and became employed as a milker. He then
bought 20 cows and started working on a dairy
whose owner let him keep his cows on his land.
After he left that dairy, he started leasing a dairy
and slowly purchased more cows. Six years after
arriving in the United States, John bought his own
dairy in 1990.
Today, he milks 822 cows on his 750-acre Gold
Standard Dairy in Comanche, Texas.
While dairy management in the United States is
similar to dairy management in Holland, there are
key differences.
In Holland, there is no opportunity for growth. Milk
quotas and high land costs make expanding an
operation extremely difficult.

Michelle, Jeff, John, Nina and Katy Koster

The Kosters focus

on improving milk
production and
quality from one
generation to the
next.

While John had

to adjust his dairy
management
practices upon
arriving in America,
one concept he
carried with him
was the importance
of being a part of
a milk marketing
cooperative.

Its a choice he hasnt regretted. He says that DFA

has always treated him right.
One DFA program that John uses regularly is the
myDFA Web site. The site provides him with his
daily lab results so that he can make decisions
concerning the quality of his milk. John also uses
embryo transfer and artificial insemination to
improve milk production and quality from one
generation to the next, and he spends most
mornings working on his herds health and breeding
cows.
John believes that you dairy the way you want to
live your life. John likes his clean and simple. He
also believes in service. John was a DFA Southwest
Area Council member for two years and has been a
board member of the Texas Holstein Association for
the past 10 years.
For this Southwest Area Member of Distinction,
America has proved to be the land of opportunity.

GILLINS DAIRY

Steve and Becky Gillins and Cory and

Stefanie Gillins
Minersville, Utah
Mountain Area Members of Distinction

For the owners of Gillins Dairy in Minersville, Utah,

taking excellent care of both their cows and their
employees has resulted in annual milk quality that is
ranked among the highest in the Area.

Several years ago, Steve and Cory decided that

instead of growing crops, they would focus solely
on dairying and genetics. One of their top bulls,
Canyon Breeze Allen, got their breeding program
started and has allowed them to sell Canyon Breeze
embryos across the world. Awards for their efforts
include the 2008 Progressive Genetics Herd Award
from the Holstein Association.
Steve attributes their accomplishments to keeping
the cows clean and comfortable and making a
conscious effort to do a good job. He says they
simply take care and maintain what they have at
the dairy the way his father taught him, as did his
father before him.
One of the details the Gillins attend to is taking care
of their employees.
The Gillins eight full-time employees and two parttimers are an integral part of the operation. Steve

Becky, Steve, Kennedy, Cory, Zaiden, Stefanie, Syndee

and Clayton Gillins

The Gillins
breeding program
has won them
numerous awards
and international
attention.

attributes the success

of the dairy to good
communication with
his longtime staff.
He is proud of the
people who work
for his family and
believes that one
reason the farm
operates so smoothly is that they have a clear
understanding of the dairys goals.
Steve also believes that if you take care of your
employees, they will take care of you. He provides
health insurance through DFAs Agri-Services
Agency and generous time off. Steve explains that
even though they pay a good, competitive wage,
time off is often just as important to the employees
who have young families of their own.
DFA Field Representative Chris Bean says the
Gillins attention to details and their workers
welfare has made the Gillins dairy operation a
fieldmans dream. The dairy consistently has one of
the lowest somatic cell herds in the Rocky Mountain
region earning them a DFA quality award five
years in a row. Steve also keeps up on the latest
information by serving on the Utah Dairymans
Association board.
This years Mountain Area Members of Distinction
and their employees know that excellence often
means paying attention to the little details.

33
SUMMER 09

The 650-cow dairy, run by Steve Gillins, and his son,

Cory, is not only known for its superior quality milk
their breeding and embryo program has earned
them international attention.

TJAARDA DAIRY

Perry Tjaarda and Ed Tjaarda

Shafter, California
Western Area Members of Distinction

When Perry Tjaarda and his father, Ed, got the

opportunity to build their own dairy in Shafter,
California, 10 years ago, they wanted to make sure
they built an operation that was there for the long
run.
Both Ed and Perry had worked at a couple of
different operations, and had developed opinions
on what they wanted if they got the opportunity to
build.
To make sure that the dairy would be sustainable
well into the future, grading was done to allow for
gravity flow drainage to the final-stage lagoon on
the 900-acre farm. Variable speed drive pumps are
used in the milking parlor and the domestic water
system, saving on energy bills at this DFA Gold
Standard Dairy.
Ten years ago, sustainability wasnt the hot button
issue it is now. The Tjaarda dairy was ahead of the
curve.
They installed center pivots on half of the open
farm ground, and more recently have diversified
their operation to include almond trees. The dairy
also has an agreement with Bio Energy Solutions to
install a digester in 2009.
The Tjaardas also installed a 60-stall rotary parlor,
which allows for more efficient milking of the dairys

Tiffany, Nathan, Pauline, Perry, Blake and Shannon

and (front row) Ed and Sharon Tjaarda

The Tjaardas
focused on
sustainability long
before it became
fashionable.

3,000 cows. Perry

says the rotary parlor
would not have been
the type of parlor he
would have picked 20
years ago.
Technology has
improved in the last
10 years and rotaries
have turned into a very viable way to go, he says.
Perry and his father visited other dairies using
rotaries and saw that the cows loved them.
In addition to requiring fewer employees to
operate, the rotary parlor also allows for the cows to
spend less time in the milking barn, and more in the
open lots.
The Tjaardas keep current on the latest innovations
and legislative actions by serving on industry
boards. Perry is on DFAs Western Area Council,
Corporate Board of Directors, the California Milk
Advisory Board and is dairy chairman for the Kern
County Fair. Ed keeps an eye on the dairy while
Perry is out of town. Perrys wife, Pauline, serves on
the National Dairy Promotion and Research Board.
Perry says that theres a balance with keeping up
with technology, yet keeping things simple. The
more complex things are, the more that can go
wrong, he says.
For this Western Area Member of Distinction,
success means embracing technology while sticking
to the basics and staying involved in the industry.

An Investment in the Dairy Industrys Future

DFA Announces Scholarship Recipients
Eleven outstanding students are one step closer to careers
in the dairy industry after being awarded scholarships from
Dairy Farmers of America, Inc. Now in its second year,
DFAs Scholarship Foundation provides $1,500 awards to
deserving students pursuing careers in dairy.
This years recipients were selected from among applicants
in 23 states. All 11 recipients have strong dairy backgrounds,
and each possesses an impressive roster of academic and
extracurricular success. Awardees were selected based on
their commitment and passion for a career in the dairy
industry; extracurricular activities, awards, recognition and
work experience; and academic achievement.
These students have exemplary academic backgrounds,
but even more so, they each have remarkable passion for
dairying, said Ed Schoen, DFA Board member and chair of
the DFA Scholarship Foundation. DFA is proud to honor

2
0
0
9

MISSOURI DAIRY
GRAZING CONFERENCE
JULY 8-10, 2009
JOPLIN, MISSOURI

Open to all dairy producers and industry professionals

interested in learning more about dairy grazing.




1

Learn the latest in dairy grazing systems

Tour some of the nations best grazing dairies
Network with national dairy graziers
National and international speakers

For more information visit:

http://agebb.missouri.edu/dairy/grazing/conference

WINTER 08

FOR QUESTIONS OR MORE CONFERENCE INFORMATION:

http://agebb.missouri.edu/dairy/grazing/conference
TONY RICKARD: (417) 847-3161 OR RickardT@missouri.edu
RYAN MILHOLLIN: (573) 882-0668 OR MilhollinR@missouri.edu

this group of students who will bring great value to the

industry in years to come.
2009 scholarship recipients include:
Brenda Arnold, daughter of DFA members Bob and
Sharon Arnold of Drexel, Missouri, is a sophomore at
the University of Missouri-Columbia majoring in animal
science.
Curtis Beidel, son of Wayne and Loudenis Beidel of
Newburg, Pennsylvania, is working toward his doctorate in
veterinary medicine at the University of Pennsylvania.
Tyler Boyd, son of DFA members David and Deborah
Boyd of Parrotsville, Tennessee, is a sophomore at Vanderbilt
University majoring in molecular and cellular biology.
Amber Ettinger, daughter of DFA members Edwin
and Cheryl Ettinger of Kinards, South Carolina, will be a
freshman at Virginia Tech in fall 2009 and will pursue a
degree in dairy science.
Stephanie Heilman, daughter of Curt and Barb Heilman
of Kittanning, Pennsylvania, is a junior at Penn State
University majoring in animal science.
Rosemary Liskey, daughter of DFA members Timothy
and Karen Liskey of Harrisonburg, Virginia, is currently a
junior at Virginia Tech majoring in dairy science.
Benjamin Meyer, son of Dan and Jane Meyer of Linn,
Kansas, is a freshman at Kansas State University, pursuing a
major in agricultural economics.
Megan Schrupp, daughter of Vern and Mary Kay Becker
of Eden Valley, Minnesota, is currently enrolled in the
University of Minnesota College of Veterinary Medicine,
working toward a doctoral degree in veterinary medicine.
Ashley Sears, daughter of David and Carrie Sears of
South Deerfield, Massachusetts, is currently a sophomore
at Cornell University working toward a double major in
applied economics and management and dairy science.
Kira Tate, daughter of DFA members Douglas and
Deborah Tate of Larsen, Wisconsin, is a junior at the
University of Wisconsin-Oshkosh majoring in biology. Tates
scholarship was made possible by the Central Milk Producers
Cooperatives George Hansen Scholarship, and she was
selected for the honor by DFAs Scholarship Committee.
Hannah Young, daughter of William and Barbara
Young of Clifton Springs, New York, is a junior at Cornell
University majoring in animal science.

News

Highlights of the 2007 Census of Agriculture

Dairy farmers are a younger breed
Theyre also a productive group, growing about half of all
the corn cut for silage and green chop.
Milk fewer than 100 cows
The average size of a dairy farm is 371 acres. In the
United States, 17,517 farms have 50 to 99 milk cows;
17,133 have 10 to 49 cows; 8,336 farms have 100 to 199
cows; 6,324 farms have one to nine cows; 4,156 have 200
to 499 and 3,259 farms have 500 or more milk cows.
Various income sources
Besides cows, other income from farm-related sources,
in order, comes from patronage dividends and refunds
from cooperatives; custom work and other agricultural
services; crop and livestock insurance payments; gross

cash rent or share payments; state and local government

agriculture program payments; and other sources.
Every state
The summary of farms by herd size notes that there
are 3,259 farms with more than 500 cows in the United
States. Every state has at least one farm in this size bracket
except Alaska and Rhode Island. Eight states -- California,
Idaho, Michigan, New Mexico, New York, Texas,
Washington and Wisconsin -- have more than 100 farms
each in this size bracket.
Family farms reign
How are dairy farms organized? The majority of farms
are family or individuals (45,128). Next are partnerships
(8,425); corporations/family held (3,334); other
cooperatives, estate or trust, institutional, etc. (278); and
corporation/other than family held (153).
Home on the farm
Dairying is a family affair. More than 7 percent had five
or more people living in the operators household. More
than 3 percent had four people living in the operators
household.
For more information, visit www.agcensus.usda.gov.

37
SUMMER 09

The results of the 2007 Census of Agriculture statistics

were released this spring and are an important tool for
the agricultural industry. The results of the census
from farm size to distribution information can guide
congressional representatives as they review farm policy,
says Elvin Hollon, Dairy Farmers of America, Inc.s
director of fluid marketing/economic analysis.
Conducted every five years, the census provides a
detailed picture of U.S. farms and ranches and the people
who operate them. It is the only source of uniform,
comprehensive agricultural data for every state and county
in the United States.
One of the things the 2007 census showed us is
that there are a larger
number of small farms
than five years ago,
Hollon says. The
current administration
seems very interested in
supporting smaller producers in their policies.
For example, this census asked if farms had an on-farm
digester, Hollon adds. It turns out that 22,000 did. The
census helps show how farms are turning green and now
the agricultural industry can present this information to
Congress on how to best devise farm policies to enhance
sustainable agriculture.
Here are a few highlights of the census as it applies to
the dairy industry:
Fewer farms
There are 57,318 farms primarily involved in dairy
cattle and milk production in the United States, according
to the 2007 Census of Agriculture. In comparison, the
2002 census listed 72,537 dairy farms.
Younger farmers
Dairy farmers are younger. The average age for the
principal operator of a dairy farm is 52 years old while
the average age of all principal operators is 57. There are
101,601 principal operators of dairy farms in the United
States. Comprising only 2.6 percent of all farms, dairy
farmers are 5.5 percent of all principal operators under
age 25 and 1.3 percent of principal operators over age 70.

DFA Spotlight

DFAs Board of Directors held their May

meeting in Washington, D.C. 1. (left to right)
Larry Frederick and Larry Purdom and (far right)
Randy Mooney met with Roy Blunt (R-MO). 2.
Rep. Brett Guthrie (R-KY) (center) met with DFA
Board Director Terry Rowlett (left) and Southeast
Council member Larry Jaggers (right). 3. U.S.
Secretary of Agriculture Tom Vilsack discussed
current agricultural issues with DFAs Board of
Directors. 4. Pete Mensonides, Don Gurtner,
Perry Tjaarda, Ed Schoen, Ron Pietersma, Larry
Purdom, David Crowl, George Mertens, George
Rohrer, Joyce Bupp and Case van Steyn gather
in front of the White House.

Making Sure Your Concerns are Heard

38

SUMMER 09

Most DFA Board of Director meetings are held in Kansas

City, Missouri, home to the Cooperatives headquarters.
Once a year, the directors hold their Board meeting in
Washington, D.C., and a highlight of the event is the visits
to legislators offices about issues affecting the dairy industry.
This year was no different. In early May, 58 DFA members
and staff from 29 states met with more than 100 legislators
offices and other officials. They discussed issues such as
current dairy prices, labor regulations, trade policy and
transportation, environmental regulation, bioenergy and tax
legislation.
Visits like these to lawmakers personalize the dairy
industry and help legislators understand how their decisions
affect dairy producers throughout the country.

Specifically, the members urged their representatives and

senators to activate the Dairy Export Incentive Program
(DEIP), support immigration reform efforts like the
Agricultural Job Opportunities, Benefits and Security
Act and maximize opportunities related to environmental
legislation for livestock agriculture that does not add
unnecessary and burdensome regulation. Thanks in part to
these efforts, it was recently announced that DEIP is being
fully enacted.
Members also spoke about how this current down price
cycle is affecting them and how Congress can help.
U.S. Secretary of Agriculture Tom Vilsack spoke to the
Board and assured them that the U.S. Department of
Agriculture is working on additional ways to deal with the
challenges facing the dairy industry.

DFA Spotlight

DFA Issued Patronage Checks Early

In an ongoing effort to ease the stress these economically
challenging times are causing for its members, Dairy Farmers of
America, Inc. issued a portion of members patronage-sourced
earnings early.
Patronage is the Cooperatives way of sharing the earnings of
DFA with its members. Beginning April 24, 12,312 members
who marketed their milk through DFA in 2008 received a cash
patronage payment equal to 3 cents per hundredweight. A total
of $11.4 million is being paid to DFA members.
Its always been the commitment of the Board of Directors
to share the earnings of the Cooperative with our members
annually, says Tom Camerlo, chairman of DFAs Board of
Directors. This year, we felt it was important to deliver this
check earlier in the year with the hope that we can provide
some assistance in this tough time.
A remaining allocation for 2008 patronage will be paid to
members by September 15. The amount of patronage each
year is based on the amount of milk each member
markets through the Cooperative.

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39

DFA Programs

DFA Cares: A Friend to

Those in Need
2009 is predicted to be a uniquely active hurricane season, but
fortunately a program exists to help members in need when natural
disasters strike.
In 2005, Hurricane Katrina devastated the Gulf Coast from central
Florida to Texas. It was the costliest hurricane on record, causing
hardships for those affected. In wake of the storm, Dairy Farmers of
America, Inc. established DFA Cares as a means to help dairy farmers
struggling to deal with the aftermath.
Several hundred farms were affected by Katrina, says Joyce
Bupp, DFA Corporate Board member and chair of the DFA Cares
committee. They were without power, trees were down, cattle were
everywhere and they couldnt even cash checks or purchase gas.
Today, DFA Cares has donated more than $456,000 in cash and
supplies to those in need. From providing feed to farmers who need to
give sustenance to their cows during blizzards, or financial assistance
to a family who lost a barn in a tornado, DFA Cares is one way the
Cooperative gives back to its members and the community.
To be eligible to receive funds from DFA Cares, one must have
suffered a hardship from a natural disaster, including but not limited

to: wind, hail, tornado, hurricane, snow storm and flooding. The
benefit is available to members, those involved in the agricultural
industry and employees.
DFA Cares is funded through contributions from members,
industry partners and through various fundraising efforts at Corporate
Board meetings and the DFA Annual Meeting. At the last two Annual
Meetings, Young Cooperators manned a booth, selling raffle tickets.
The proceeds were donated to the program.
In addition to financial assistance, DFA also offers the DFA Cares
Hotline, which has proven to be a useful resource for members. By
calling 1-888-404-MILK, members are able to leave a message for a
member of DFAs staff and receive answers to general questions, market
information and consultative services. Members also have access to
a Member Assistance Program (MAP) at 1-800-624-5544, which
offers trained professionals who can give financial and legal advice and
assistance with farm and family stress issues.
To apply for assistance from DFA Cares, or to make a tax-free
contribution, contact your field representative.

A colostrum replacer
from the brand you trust

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Colostrum Replacer. It contains the highest level of globulin proteins
available anywhere 130 grams!

40

SUMMER 09

When colostrum supplies are limited or of low-quality, or when

you want to break a cycle of maternally transmitted disease, turn to
Colostrx 130 Colostrum Replacer.
Consistently high levels of globulin protein derived from the
same source that enriches natural colostrum
Just a single, two-quart feeding
Easier to mix than dried colostrum products
Individual-dose packets make feeding simple and convenient
Your calves futures depend on the globulin proteins they receive
during the first 24 hours of life. Give them a hand by feeding
Colostrx 130 as directed, and get them off to a good start.

Treated with irradiation for

your herds protection
Colostrx is a registered trademark of AgriLabs.

For more information, go to www.Colostrx.com

P.O. Box 3103 St. Joseph, MO 64503

1.800.542.8916 www.AgriLabs.com

2009 AgriLaboratories LTD. All rights reserved.

Sustainability

In an effort to assist farmers in meeting the increasing

demand by consumers for green products, Dairy Farmers of
America, Inc. has joined forces with the Innovation Center
for U.S. Dairy on industry-wide sustainability initiatives.
The initiatives include a number of projects that will deliver
business value for today and tomorrow while helping the
industry to be more environmentally sustainable.
Our producers want to know
what they can do today to help the
environment tomorrow, including
reducing greenhouse gases, says
David Darr, DFA vice president,
sustainability and public affairs.
Several hundred dairy producers,
processors, manufacturers, retailers
and representatives from associations, as well as government
representatives, non-government organizations, researchers,
scientists, and academics have worked together to develop 12
different projects, which reach across all areas of the industry
to:
Assess and reduce energy use and associated greenhouse
gas emissions
Tackle barriers to methane digester adoption
Improve production efficiencies
Develop packaging innovations
When fully implemented, it is estimated that these projects
will contribute $238 million dollars in business value to the
industry.
Some dairy producers might not be aware that many
things they are already doing are considered good, sustainable
practices that the public will applaud, Darr adds. This
provides a great economic opportunity for them, and also
gives us a chance to show that we are preserving our resources
for future generations.
Each of the 12 projects will support the industrys
commitment to reduce greenhouse gas emissions by 25
percent by 2020.
This initiative fits with what the dairy industry has been
known for over the years as good stewards of the land and
animals and producers of wholesome, nutritious products,
Darr says. Its purpose is right in line with the values of DFA,
and the members we represent.

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SUMMER 09

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The Future in Focus:

Developing
Leadership
Ability in
Young Dairy
Farmers

42

SUMMER 09

You could almost see the energy

in the room. A young couple from
Iowa talked earnestly with a guest
speaker about succession planning.
Another couple from New Mexico
swapped stories about their dairy
operation with members from
Colorado.
The event was the Young
Cooperator (YC) Meeting, held in
conjunction with DFAs Annual
Meeting in Kansas City, Missouri,
YC member Loren Horton (left) and Board Director Greg Mitchell (right) meet over dessert.
this March.
DFAs YC program offers
contacting legislators so they understand what dairy farmers
producers who play an active role on a DFA member farm,
do and the impact their decisions have on producers and the
and are between the ages of 18 and 40, the opportunity to
industry. To conclude the days meeting, YCs participated
become ambassadors for the industry and the Cooperative.
in consumer message training conducted by representatives
Through the YC program, participants learn valuable skills
from Dairy Management Inc.
that pave the way for leadership roles in DFA and in the
The next day, the group heard from Ron Hanson,
industry.
This year, YCs heard from a variety of speakers on topics of professor of agribusiness at the University of Nebraska.
interest to their age group and attended both the Leadership Hanson spoke about the importance of having a succession
plan for the dairy and how it can save family relationships.
Conference and Annual Meeting.
Hanson pointed out that this can be an uncomfortable
The conference began March 23 with Monica Massey,
conversation, but one that is imperative in order to ensure
vice president of corporate communications and member
the future success of the operation.
relations, outlining the opportunities associated with
In addition to attending
the Young Cooperator
Through the YC program, participants learn
meetings, the YCs sold
program, such as
valuable skills that pave the way for leadership raffle tickets for DFA Cares
representing DFA at
at the DFA Expo and
various industry events like roles in DFA and in the industry.
scooped ice cream at the
National Milk Producer
Ice Cream Social both great opportunities to meet DFA
Federations Annual Meeting in Washington, D.C., and
traveling to meet with their legislative representatives. Jackie Board directors, members and dairy industry guests. YCs
also met with several staff members for an informal, fun
Klippenstein, vice president of industry and legislative
evening of learning more about the Cooperative.
affairs, gave an update on the issues and opportunities
facing the dairy industry. She spoke to the importance of

The Future in Focus

YC Profile: Myles and Lori Payne

43
SUMMER 09

Dairy Farmers of America, Inc.s Young Cooperator (YC)

program focuses on getting young farmers involved in the dairy
industry and instructs them how to be positive ambassadors for
DFA. DFA members Myles and Lori Payne from Taylorsville,
North Carolina, have embraced this mission.
The YC program has offered me the chance to learn more
about the dairy industry, become an effective advocate and meet
other young dairy farmers from across the country that are facing
the same issues as I am, Myles says.
As active members of DFAs YC program, the Paynes serve as
the chair couple for the Southeast Area YC steering committee.
In this role they are responsible for presiding over the Southeast
Areas annual YC meeting, which promotes the dairy industry
along with DFA and the YC program.
Getting involved in their Area YC program has led the Paynes
to represent DFA on National Milk Producers Federations
(NMPF) YC advisory council. Through this council, the Paynes
also have traveled to Washington, D.C., to meet with their
legislators to discuss issues that are facing them, as well as the
dairy industry. The Paynes say that the visits to our countrys
capital have helped them become acquainted with their
legislative representative, whose office now calls on them when
they have questions about the dairy industry.
It was great to be able to visit our legislators to see that they
really do want to hear from us and are interested in the issues
facing the dairy industry, Lori adds.
The Paynes also are featured in Bordens Friends of Elsie
campaign in connection with American Dairy Brands division
of DFA, which markets Borden brand cheese. This marketing
campaign is helping consumers understand that Borden cheese is
made by a dairy cooperative which is 100 percent farmer owned.
The Paynes will be featured in a variety of ads and advertising
material for this campaign beginning in June and running
through September.
The campaign is a great way to connect with consumers,
says Myles. So many consumers just think the product shows
up on the shelves and this campaign showcases the hardworking
families that produce milk for the product they are purchasing,
Lori says.
In addition to being part of DFAs YC program, Myles is on
the board of directors of the Alexander County Farm Bureau,
North Carolina Dairy Association and serves as vice chair on the
Alexander Soil and Conservation District.
Someone has to get involved and be a voice for our industry.
By being involved, I have the opportunity to know what is going
on and have a say in the direction we are heading, Myles says.

Myles and Lori Payne and their children, Victoria and Cade, operate
a dairy farm in Taylorsville, North Carolina.

News

Largest-ever
Herd Retirement
Underway

June is
Dairy
Month
Help spread the word that in addition
to tasting great, drinking milk may have
the following benefits:
Prevent muscle cramping
Reduce cavities
Improve sleep quality
Reduce the risk of bone disease
and fractures

Cooperatives Working Together (CWT)

has tentatively accepted 388 bids representing
102,898 cows and 2 billion pounds of milk
production capacity in the first of a series of
herd retirements planned over the next 12
months. The number of cows and pounds of
milk represent the largest single herd retirement
carried out in the six-year history of CWT.
CWT is funded by dairy cooperatives and individual dairy
farmers, who are contributing 10 cents per hundredweight
assessment on their milk production through December
2010.
The bids selected ranged from farms with fewer than 50
cows to dairies with over 5,000, demonstrating that farms of
all sizes in all areas are facing a very difficult year in 2009,
said Jerry Kozak, president and chief executive officer of
the National Milk Producers Federation (NMPF), which

administers CWT. Those that took advantage of CWTs

offer to retire their herds will aid others still wanting to
farm by reducing the amount of milk coming to market and
strengthening prices going forward.
CWT field auditors are now visiting the 388 farms whose
bids were accepted, checking their milk production records,
inspecting their herds, and tagging each cow for processing.
All farms should be audited by early July. All bidders will be
notified no later than June 12 as to whether their bid was
among those accepted.

Working to Fight Fears Raised by H1N1

44

SUMMER 09

Dont call this years outbreak of the H1N1 flu virus swine
flu, says the National Pork Producers Council. Consumer
fears, stirred by intense media coverage of the disease, has
already cost the pork industry as much as $7.2 million per
day between April 24 and May 1, according to the industry
group.
Officials at the Centers for Disease Control (CDC)
confirm that the disease is not a foodborne illness and is not
spread by eating pork. The disease has not affected livestock
in the United States, although the Canadian Food Inspection
Agency reports it has found H1N1 flu virus in a single
swine herd in Alberta. The pigs reportedly became sick with
the H1N1 virus after being in contact with a worker who
experienced flu-like symptoms after returning from Mexico.
Since the disease was first identified in Mexico, the
H1N1 virus has spread around the globe. By mid May,
the World Health Organization had confirmed 7,520 cases
in 39 countries, including at least 61 related deaths. A
reported 2,059 of those cases, including 56 deaths, had

been confirmed in Mexico. In the United States, more than

5,710 cases of H1N1 flu had been reported in 45 states by
mid-May, according to the Centers for Disease Control.
Public concern over the disease has resulted in the temporary
closing of schools and restaurants in some countries.
You can limit exposure to the virus through good personal
hygiene, including consistent hand washing, covering your
nose and mouth when sneezing or coughing, and limiting
contact with others if you experience flu-like symptoms.
A cross section of Dairy Farmers of America, Inc.
personnel has been meeting regularly to monitor the H1N1
flu situation and evaluate what action by the Cooperative
may be necessary. DFA recently distributed an educational
poster to DFA plant managers and human resource managers
which identifies preventative measures employees should
take. DFA also is reviewing its business continuity plans,
and working with its customers and suppliers to ensure that
DFA facilities would continue production in the event of a
widespread worker shortage due to illness.

DFA Farm Services

Members Have Access to New Bioenergy Service

In this unstable economy, many people are looking for
ways to cut some of their expenses. One way for farmers to
cut back on expenses is to evaluate their energy usage and
develop a plan to save energy at a minimal cost.
Dairy Farmers of America, Inc. now offers a new service
to members to assist in cutting energy expenses. DFAs
Farm Services division launched a new company, Dairy
Energy Services LLC (DES), in late January to assist
members who are interested in becoming energy efficient
and for those who are interested in on-farm energy
production.
We want to help our members better understand
the road to increased energy efficiency, says Jackie
Klippenstein, vice president, industry and legislative
affairs. Also, for those getting involved in on-farm energy
production, DES hopes to assist them to fully understand
their opportunities for income generation.
One way that DES will serve DFA members is by
offering energy audits through a new partner, EnSave.
EnSave was created in 1991 to provide agricultural
producers with cost-effective ways to reduce operating
costs while saving energy and reducing pollution. EnSave

will conduct farm energy audits per members requests

and then provide a plan for their specific farms. DES
will assist members in finding financial aid to follow the
recommended solution from EnSave.
A few states currently have energy efficiency programs
which offer producers energy audits at no or reduced cost.
For other states, DES and EnSave are seeking funds for
audits by partnering
with state governments
or utilities to facilitate
Dairy Energy Services the development of
programs.
DFA plans to provide more services through DES to
meet the needs of members.
DES will engage in many aspects of the bioenergy
industry on behalf of DFA members. We will provide
information to DFA members who want to learn
more about opportunities for energy efficiency, energy
production and the carbon credit market, Klippenstein
adds.
For more information about DES, contact Klippenstein
at 816-801-6392 or jklippenstein@dfamilk.com.

DES

Competitively Priced Insurance Options Available

ASA

DFA members and will feature fixed co-pays for office visits
and prescription drugs, along with many benefits not subject
to a deductible.
Most experts agree that technological progress is the key
contributor to rising rates. Costly new treatments, cures and
drugs are being developed and raise the cost of health care.
Technological advances also are helping people live longer
and therefore stay in the health care system longer.
The current state of the economy and record-low
milk prices are compounding the burden of increased
health insurance costs for DFA members. However, ASA
remains steadfast in its efforts to provide quality service
while offering a wide range of competitively priced
health insurance options. ASA, through its insurance
carrier partners, offers a variety of cost-effective health
insurance options, including high deductible health plans
that attach to Health Savings Accounts (HSA) or Health
Reimbursement Accounts (HRA).
For more information about ASAs products, call
1-866-297-7729 or visit www.agri-servicesagency.com.

45
SUMMER 09

Consumer spending on health care has consistently

grown faster than the overall economy since the 1970s.
In fact, during the past 10 years, the cost of an individual
health insurance plan has more than doubled, making it
challenging for most individuals and small businesses to
afford health insurance on their own.
The DFA member health plan offered by Agri-Services
Agency (ASA) offers more competitive rates than services
purchased by individuals because of the purchasing power of
the Cooperative.
More than 3,000
DFA producers
participate in
Agri-Services Agency
Leaders in Agricultural Insurance
ASA plans, which
are underwritten
by nationally recognized insurance companies to provide
affordable access to quality health care.
ASA does an annual review of products and is working to
develop new products to bring an even broader choice of
plans to better meet the changing needs of DFA members.
These new products will soon be introduced exclusively to

Ask the Expert

What Should a Producer Focus on

to Survive a Low Price Cycle?
By Bryan vonHahmann

Bryan vonHahmann
President
Agri-Max Financial

46

SUMMER 09

2009 will undoubtedly be one of the most

challenging years for dairy producers. While
all industries are experiencing unprecedented
circumstances, dairy producers are experiencing
the largest price drop since 2000 with feed
costs that are 70 percent higher than they were
during the last downturn in 2006. Following
is some helpful information for you to think
about as you manage through this price cycle.
Carefully assess your situation and dont be
afraid to ask for help if needed (consultants,
accountants, etc). Set up realistic monthly
budgets identifying your revenue and
costs to determine expected cash flows. It
is helpful to do these budgets in advance
so you can plan ahead. Communicate
frequently, openly and honestly with your
creditors (and others, including family
members), because it is the only way the
best solution can be determined.
Manage the farm to maximize cash flow.
Improved cash flow can come from
increased revenue, reduced costs, securing
additional credit (restructure debt),
liquidating assets and/or from reserves.
Clean out the hedge row, sell unproductive
assets and clean up the balance sheet. Use
the money on productive assets or pay
down debt.
Base your decisions on facts and not
emotions. For example, before you cut cow
rations, understand the impact it will have
on production and your income. Keep
your cows comfortable; poor cow comfort
levels can lead to poor profitability through
reduced production, poor reproductive
performance and higher cull rates. Manage
what you can and get help where it
is needed.

Implement a management team or a group

of advisers that will periodically help
develop strategies to improve cash flow and
profitability. Including your lenders in your
decision making will give them a better
sense of how the business is performing
and increase their comfort level with any
requests you might make in terms of loan
servicing now and in the future. Lenders
do not like surprises. If you think you
will have trouble making loan payments
and maintaining sufficient cash flow to
effectively run your operation, approach
your lender with a plan that may include
increasing a line of credit, having loans
put on interest-only payment or possibly
restructured. Be sure to include how you
plan to catch up on your payments when
milk prices increase.
While it is not easy to keep perspective in
times like these, focusing on the future and
staying diligent is important. Ups and downs
are inevitable in life, and keep in mind, it is the
downs that make us appreciate the ups.
If there is any way Dairy Farmers of America,
Inc. or Agri-Max Financial Services might be
able to assist you, dont hesitate to call. Youre
not in this alone.
Bryan vonHahmann is president of Agri-Max
Financial Services, which is owned by Dairy Farmers
of America, Inc. and Dairylea Cooperative Inc. and
was created to provide capital to members with lease
and loan options. For more information, call
Agri-Max at 1-866-283-4629.

Pride in
Our Product

May the Best Sauce Win

A special recipe contest featuring Plugr butter has been
created for Dairy Farmers of America, Inc. members and
employees.
Plugr, (pronounced PLOO GRA), is a European-style
butter that is lower in moisture and higher in butterfat than
conventional butters and is popular with professional chefs.
American Dairy Brands (ADB), the DFA division that
markets Plugr, annually holds a Plugr recipe contest
for consumers. However, the ADB marketing department
understood that DFAs members and employees couldnt
legally enter Kellers Creamerys Le Saucier Plugr
Magnifique Recipe Contest, so they created a special,
separate version of the contest.
We thought that our members and employees would
enjoy participating in our contest, says Erin Turley, ADB
brand manager. By having a separate contest, now everyone
has the chance to show off their culinary skills.
Members and employees can submit an original sauce
recipe, as well as the recipe that the
sauce goes on, for an opportunity
to win the grand prize a $350
Williams-Sonoma Saucier Collection.

Entries must be received by September 30, 2009. The

sauce and complementing dish can be a dessert, entre,
appetizer or breakfast item. Plugr butter must be the main
ingredient in the sauce.
Entries will be judged 50 percent on flavor and 50
percent on complete presentation. The winner
will be announced on the DFA Web site
in October and featured in the DFA
Leader.
To enter, visit www.dfamilk.com
and click on the Enter and Win
Plugr box and complete the
official entry form. Forms should
be sent to: Le Saucier Plugr
Magnifique Recipe Contest, 2155
W. Chesterfield Boulevard,
Springfield, MO 65807.

Agri-Services Agency (ASA) understands your particular needs

when it comes to health insurance. We tackle the hurdles of
health care for you, giving you a way to protect those you care about.
Through ASA, DFA is able to offer new, more affordable health
insurance options.
Call us for a quote. We can help.
1-800-654-8840
www.agri-servicesagency.com

SUMMER 09

H e a lt H S O l U t IO N S

48

ASA

Agri-Services Agency

Leaders in Agricultural Insurance

DFa Member
Willem DeBoer with
daughter anneliesse
DeBoer Dairy
tulare, California

Successful Marketing
Campaign Expanded
Consumers have really connected to a
marketing campaign that reminds them
that dairy farmers like you produce
the milk that goes into Borden Brand
Cheese.
American Dairy Brands, DFAs
consumer brands business that markets
Borden cheese, launched the Friends of
Elsie campaign last year with the idea
of helping consumers understand that
Borden cheese is made by a cooperative of
dairy farmers. The campaign also pointed
out that since the cooperative is 100
percent farmer-owned, 100 percent of
the proceeds go back to American dairy
farmers.
The campaign consisted of the
successful launch of the friendsofelsie.com
Web site, print ads, a TV commercial,
online advertising, as well as media

R DEN

TM

CH

ned
100% Farmer-Ow

EESE

relations and in-store promotional visits

by DFA members.
Consumers loved the idea and Borden
saw a 22 percent growth in volume in the
markets where the campaign was tested
Philadelphia, Pennsylvania; Greenville,
South Carolina; Kansas City, Missouri;
and Modesto, California.
Beginning in May, Friends of Elsie is
expanding in select cities in the south and
southeast areas. The campaign will once
again be focused on educating consumers,
particularly moms, about the story
that a 100 percent dairy farmer-owned
cooperative is behind Borden Cheese.
Be sure to become a friend at
www.friendsofelsie.com and show your
support for this campaign.

ort dairy
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Dairy Farme

We are committed to dairy

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49
SUMMER 09

Pride in
Our Product

BO

Fort Morgan Plant

Expansion Nearly
Complete
A $23 million expansion at Dairy Farmers of
America, Inc.s Fort Morgan, Colorado, plant is nearing
completion. The expansion increases the plants capacity
for milk, better serving the approximately 120 local
DFA member dairy farmers who produce 144 million
pounds of milk per month. Construction began in
September 2008. Four new 60,000-gallon raw milk
silos (right) have been added as part of the expansion,
increasing the raw milk storage capacity from 850,000
pounds to 2 million pounds per day.

50

SUMMER 09

DFAs Outstanding Efforts Recognized

Representatives of Dairy Farmers of America, Inc. attended ceremonies this spring in Tarrytown, New York, to accept the 2008 Supplier
of the Year for Raw Materials and Packaging from The Dannon Company. On hand for the ceremonies were (left to right) senior Dannon
representatives David Lainchbury and Luc Saint-Bonnet; Don Jensen, DFA Mountain Area manager; John Wilson, DFA senior vice president,
marketing and industry affairs; Magally Juarez, also of Dannon; Stephanie Klatka, DFA Mideast Area lead director of customer relations; and
other Dannon senior representatives Dirk Van De Put, Bruno Stock, Juan Carlos Dalto and Paul Gardner.

Schulenburg Plant Expansion Begins

To keep pace with steadily growing production demands,
DFAs plant in Schulenburg, Texas, is undergoing a major
renovation. A ground breaking ceremony was held in May
and the project is slated for completion in early 2010. The
$39.4 million project will include both expanding the
physical space and installing new equipment at the facility.
The plant is a leading manufacturer for shelf-stable cheese
dips and salsa. Originally built in 1929 by Carnation Co.,
the it was the first milk plant in the state of Texas. MidAmerica Dairymen (now DFA) bought the plant 45 years
later and has owned and operated the plant since.
Already a prominent employer in Schulenburg, DFA
will become one of the largest following the expansion.
Approximately 70 new full-time jobs will be created.
A key component of the project is the addition of a
complete packaging line, which will
nearly double the plants
capacity. The plant also
is upgrading and adding
equipment for its waste
water system.

Additional project highlights include a new warehouse,

boiler area and product cooling tunnel, expanded freezer
space for raw materials storage and a processing kitchen for
raw material handling. Docks and parking facilities also will
be expanded. In addition, employee support areas including
break rooms and restrooms will be updated and expanded.

From bottom left: Art Farris, chief operating officer of DFAs Ingredients
and Contract Manufacturing division, addresses the crowd; a group of
contractors review blue prints; Mike Zapalac, DFA member from La
Grange, Texas, makes remarks; and Pete Ryholt, plant manager and
expansion project manager, signs, one of the beams for the new plant.
Far right: Artists rendering of the completed
expansion.

Dannon Company Praises DFAs Customer Service

Nominees for the awards were evaluated by a crossfunctional taskforce at Dannon and the final selection
of award winners was made by the companys executive
committee.
Suppliers were assessed on a number of criteria
including environmental sustainability, quality and safety,
cost, accelerating time to market of new or renovated
products, boosts to innovation, protection of competitive
advantage, and the demonstration of shared values with
Dannon.
We have tremendous respect for DFA and are grateful
for the contributions they make to our success, says
Paul Gardner, vice president of sourcing and supplier
development for the Dannon Company.

51
SUMMER 09

The Dannon Company, Inc. recently honored Dairy

Farmers of America, Inc. as its 2008 Supplier of the Year
for Raw Materials and Packaging.
DFA supplies all of Dannons raw liquid milk needs
at its three U.S. facilities in Minster, Ohio; Fort Worth,
Texas; and West Jordan, Utah. According to John Wilson,
DFA senior vice president, marketing and industry affairs,
shortening the supply chain and improving sustainability
practices have been central to this long-standing customer
relationship.
Developing strong markets for our members milk is
central to our business, Wilson says. It is truly an honor
to be recognized by such a respected industry partner as
Dannon, which recognizes and shares our commitment to
producing the highest quality dairy products.

Speak Up

Growing Dairy Sales by Meeting

Consumer Needs for Healthy Products
By Tom Gallagher

Tom Gallagher
Chief Executive Officer
Dairy Management Inc.

52

SUMMER 09

While food fads come and go, dairy products

have remained a healthy, nutrient-rich food that
generations of people want and need. Dairy
producers have known this need since at least
1915, when they formed the National Dairy
Council. Since that time, your checkoff has
funded a wealth of nutrition research efforts
that reinforce milks place in a healthy diet.
The world is dramatically different today
than it was in 1915 or even 1984, when the
national dairy checkoff program was formed.
Today, as consumers choose from an everincreasing array of beverage, snack and other
food options, we must continue to reinforce
consumers reason to believe in dairy. Because of
dairys nutrient-rich profile, we can:
Position dairy as part of the solution to
health and wellness
Work with the industry to meet demand
for good-for-you foods
Highlight the nutrient and economic
value of dairy foods to Americas families
Research shows that many consumers are
aware of only one nutrient in dairy calcium.
A nutrient-rich approach promotes the total
nutrient package and helps educate leaders
and the public about the other key nutrients
including protein, potassium, magnesium and
vitamins A and D.
Nutrient-rich takes a positive, total foods
approach to dietary recommendations, rather
than focusing solely on nutrients to avoid, such
as saturated fat, added sugar and sodium.
Solving health and wellness issues through
nutrient-rich foods can and will help grow
sales by broadening dairys relevance and benefit
to consumer diets. Its good for public health
and for dairy. Research indicates that consumers

understand and embrace the nutrient-rich

approach, because it is a positive and easy way
to make healthy food choices that include dairy.
Further, nutrient-rich foods are economical
because consumers are purchasing foods and
beverages that offer more nutrients per penny
compared to products with empty calories.
To take advantage of this growth opportunity,
the dairy industry must embrace the nutrientrich approach to promotion. The Innovation
Center for U.S. Dairy (established by dairy
producers, through their checkoff investment,
along with National Milk Producers Federation
and International Dairy Foods Association)
provides a forum to bring key industry leaders
together to develop and implement action plans
to promote nutrient-rich dairy foods.
The Innovation Centers board, which
includes representation from Dairy Farmers
of America, Inc., has endorsed industrywide efforts to promote the nutrient value of
dairy. During the next year, the Innovation
Center will undertake specific actions aimed at
increasing education, awareness and acceptance
of the nutrient-rich philosophy with health
professionals, thought leaders and consumers.
This approach can help establish lifelong
dairy consumers and build sales by encouraging
consumers to embrace dairys nutrient and
economic value. After all, milk is the original
wellness beverage.
Tom Gallagher is chief executive officer of Dairy
Management Inc. (DMI), the domestic and
international planning and management organization that works to increase sales of and demand
for U.S.-produced dairy products and ingredients on behalf of Americas dairy producers. Visit
www.dairycheckoff.com for more information.

BY WESTWAARD

8540 Benson Road

Lynden, WA 98264
Phone: (360) 354-6900
Toll Free: (800) 701-3632

Maximize Prot With A Healthy Calf

Includes PLC Control Box

Milk Circulation/Unload Pump
Hot Water Circulation Pump
Water Control Solenoids
Heat/Cool Exchanger
Automatic Wash Cycle with
Peristolic Chemical Pump

In todays dairy economy it is more important than ever

to raise healthy, robust calves in the most economic
method possible. By installing a calf milk pasteurizer
you eliminate the need to purchase expensive milk
replacer, and help increase your calves health and
growth rate. At current milk prices, it costs half as
much to feed your calves directly out of the milk tank
compared to buying milk replacer.
compa
If you have waste milk available the savings are much
greater. For producers who currently feed
non-pasteurized waste milk, it is a great time to make a
change that will result in a healthier herd for the
future. By reducing the risk of Johnes, viral diarrhea,
leucosis, and other harmful diseases being spread to
your calves, you will be improving the quality of your
herd for years to come. With affordable, well built, and
easy to use equipment, Westwaard pasteurizers can be
a great
tool to increase the protability of your dairy.
g
Give us a call and allow us to detail what makes our
pasteurizers stand out above the competition.

120 or 150 Gallon Capacity

Completely Automated Cycle
Automated C.I.P. System
Pump Agitation and
Dispense System
Propane or Natural Gas
Heating
Patent Pending

53
SUMMER 09

Pasteurizer Control
Center Assembly

40 or 60 Gallon Capacity
Completely Automated Cycle
Automated C.I.P. System
Pump Agitation and Dispense
System
Electric Heating

voices

Q&A
Each Q&A column is a conversation with a DFA staff member about their job and how their position helps the Cooperative.

Tammie Niemoth
Mountain Area Transportation Department Manager
How do you serve members?
We are dedicated to providing quality service to both our
members and our customers. We have ample programs in place
to ensure any driver, whether company or contract drivers,
performs his duties to DFAs high standards. We want to ensure
our members that their drivers are handling their milk in such a
way to ensure the highest quality test results.

Tammie Niemoth has been transportation manager in

Henderson, Colorado, for six years. A 25-year Dairy Farmers
of America, Inc. veteran, her prior positions include serving as
accounting manager. Along with overseeing financial operations
for the Mountain Areas transportation department, her present
duties include managing the companys 150 trucks and nine
contract haulers in seven states.

54

What are your responsibilities?

I oversee transportation operations for our 373 members.
My job is to ensure our members have competitive freight rates
and quality service from our company and contract haulers.

SUMMER 09

How large is the Area you serve?

The Mountain Area has eight base points, one each in Delta,
Florence, Henderson, Greeley and Fort Morgan, Colorado;
Salt Lake City and Smithfield, Utah; and Jerome, Idaho. Our
Area is responsible for 312 loads daily totaling approximately
460 million pounds a month from 373 members. We have
229 company employees, 150 tractors, 279 trailers and nine
contract haulers.

What are your goals for members and the department?

The most important thing is to run the operation as
efficiently and economically as we can. Our goal is to keep
freight rates to our membership competitive and our ultimate
goal would be to be able to reduce their rates.
Many tools, such as the Zonar GPS tracking system, help us
to achieve the efficiencies we are looking for. Last year, using
Zonar, we were able to track the amount of time our drivers
idled the trucks and, once analyzed, were able to set a policy
for our drivers on the amount of time allowed for idling.
Our drivers did an excellent job adhering to the policy which
enabled us to save $377,000 in fuel.
Were also looking into contracting out some of our hauling,
because it will reduce the total cost associated with hauling
such as truck and insurance costs. This year were looking at
ways to cut overtime costs; and are looking to reduce freight
rates. Its a tough time for members and we want to provide the
best rates possible.
Whats your favorite part of your job?
I enjoy working for producers and taking pride in our quality
drivers, our quality service and having clean trucks and good
equipment. Its a fun job, and its different every day.
Where did you grow up and what do you do in your free
time?
My dad had a horse farm in Grand Island, Nebraska, where I
went to high school. We used to go to baseball games with our
sons; now theyre 25 and 21. My husband and I like to go to
antique stores to look for treasures. I also like to garden.

Recognition
Member Lands Prestigious Position
Eric Paulson has been named executive secretary of The Virginia
State Dairymens Association. Paulson is the son of Dairy Farmers
of America, Inc. members Calvin and Claudia Paulson of Port
Republic, Virginia. He worked on the family farm and has
management experience on a large dairy in Rockingham County.
Paulson most recently worked for Ferguson Enterprises.
Eric Paulson

Diamond in the Rough Award

A Dairy Farmers of America, Inc. member has been honored with a prestigious
award that recognizes outstanding women in New Mexicos agricultural industry.
The Diamond in the Rough award, created by Women in Ag Leadership, was
presented this year to Michelle Heavyside of Portales, New Mexico. Michelle is
the founder and president of United Dairy Women. She also is director of the
annual DairyFest for Eastern New Mexico; and chairman of the Milk Lovers
Ball, a fundraiser for three local childrens homes. She has served on the board
of directors for the Eastern New Mexico Food Bank, Dairy MAX and the New
Michelle Heavyside
Mexico State University Agricultural Science Center Advisory Center.

Learn
L e a r n How
H o w Fresno
F r e s n o State
State
Upped
Up
p p ed Milk Production and Cut Costs

"We installed 3 MacroAir Big Fans two years ago in the free-stall barn of our 150 cow Dairy
Teaching Facility at Fresno State University. This installation replaced 14 high maintenance
box fans and increased the cfm by 11,000. My Maintenance Staff reports the Big Fans were
simple to install, have required very low maintenance and have resulted in a substantial
energy savings compared to the old system of fans. Our Dairy Production folks have seen
a substantial increase in our herd average milk production since the installation of the
new fans. They have observed the cows spending more time up and eating during the
hot summer months than what we have experienced in the San Joaquin Valley.
We are very pleased with this technology and the MacroAir Company.
We are exploring other opportunities we have on our Farm
Laboratory to utilize these fans."

55
SUMMER 09

Mike Mosinski, Agricultural Operations, California State University Fresno

CALL TODAY

866 668 3247

Area Round Up
ME

Northeast Area

VT

Brad Keating
Northeast Area
Chief Operating Officer

NH

NY

MA
CT
RI

About Our Milkshed

Member Farms: 1,552

PA

Member lbs.: 2,979,000,000

NJ

Other: 5,998,000,000
2008 Total Milk Marketed: 8,977,000,000

WV

Keeping in Touch with Members

Visiting and meeting with members has been a
priority for me and Council Chair Jerrel Heatwole
throughout the first half of the year. Weve talked to a
number of you face to face and look forward to meeting
more of you throughout the summer. In times like
these, accurate and up-to-date information is crucial.
Talking with you at your farm or at a local member
meeting to share the most recent pricing projections
and provide an industry update is helpful. More
importantly, though, these meetings provide you with
an opportunity for open dialogue and a forum to get
your questions answered. We value this communication
and look forward to more of it in the coming months.

56

SUMMER 09

Northeast Milk Marketing Update

The Northeast has been no different than many other
DFA Areas in terms of having to handle a significant
amount of milk lately. Our balancing plants are
running at full capacity and have been for some time.
Production has been steady to higher in all areas of the
Northeast since the first of the year, and while dairy
tends to be a recession-proof product, there has been
a softening in demand in our region as a result of the
poor economy. We are seeing signs of improvement,
though, bolstered by the Easter and Passover holidays.
Our hauling and transportation units are in the final
stages of making plans for the spring flush.

MD

DE

DFA Members Host Swearing In

Pine Island Farm, a DFA member farm located in
Sheffield, Massachusetts, recently hosted the swearing
in of Massachusetts new Commissioner of Agriculture
Scott Soares. The farm, owned by the Aragi family since
1964, was the backdrop for the early morning ceremony
that Massachusetts Gov. Deval Patrick attended as
well. Farmers from the area, as well as agribusiness
professionals from all over New England, attended.
Spindler Bulk Transport Inc., the hauler for the Aragi
farm, provided an immaculate DFA milk truck for the
special event. The Aragis were complimented by state
officials on their farm and their graciousness to host the
event.

Ceremony: From right, Louis Sr., Matthew, Holly and Louis Aragi, look on
as Massachusetts Gov. Deval L. Patrick, back to photo, swears in the new
Commissioner of the Department of Agricultural Resources Scott Soares,
far left. The Aragis own and operate Pine Island Farm, the largest farm in the
state of Massachusetts and the site for the swearing-in ceremony on
April 10.

Area Round Up

Mideast Area
Dennis Rodenbaugh
Mideast Area
Chief Operating Officer

MI
PA

About Our Milkshed

Member Farms: 2,037
Member lbs.: 4,838,000,000
Other: 3,989,000,000

IN

OH
WV

2008 Total Milk Marketed: 8,827,000,000

KY

Efforts Rewarded
Wed like to congratulate Ayers Farms, Inc. of
Perrysville, Ohio, for being named the Ohio Livestock
Coalitions Dairy Environmental Stewardship Award
Winner. This 700-cow member farm was recognized for
their use of innovative conservation practices on their
dairy, crop and timber operation.

We also are proud of DFAs recognition as Dannons

2008 Raw Materials and Packaging Supplier of the Year.
You can read more about this award on page 50. You play
an important role in maintaining this great relationship
with the Mideast Areas largest Class II customer. By
shipping high quality milk, you enable us to meet this
customers needs and help get a delicious product to
consumers. This award belongs as much to you as to all
the other Cooperative members and staff who work with
Dannon.

Super Kosher Request

In our efforts to add value to your milk, we are
preparing for a second super kosher project in Adrian.
This run will process 16 million pounds of milk into
several varieties of milk powder for export to Israel.
Our customer has requested that we use as few farms as
possible to supply the milk, because for the product to
qualify as super kosher, a rabbi must be at the farm to
observe milking. Weve always maintained that there has
to be additional value for the membership at large for us
to pursue a project like this. We are collecting increased
premiums on those products produced at Adrian and
evaluating future opportunities for other super kosher
dairy products.

57
SUMMER 09

Counting Our Blessings

The approach of better weather gives us all something
to look forward to. Many of you also are anticipating
the increased production that comes at this time of year.
That extra milk can present some challenges, but the
Mideast Area has been working to prepare to market the
additional volumes.
The poor general economy has affected sales with
existing customers, but we are serving two new customers
in this Area who are taking a combined 40 million
pounds a month. This will certainly help with balancing.
We also have many Swiss cheese makers in this part of
the country and their business is strong, which is moving
milk. As we have in the past, well be offering incentives
to our Class I customers and possibly making cheese for
Dairy Food Products. By working with customers close to
home, we are able to reduce our out-of-Area, underclass
sales which also minimizes our transportation costs.
Another asset we have for dealing with spring balancing
is our Adrian, Michigan, plant. Im pleased to report
that theyve completed their reverse osmosis installation
on time and under budget. This effectively doubles their
processing capacity, making the plant even more efficient.

Area Round Up
IN

Southeast Area

VA

KY

NC

TN

Sonia Fabian
Southeast Area
Chief Operating Officer

About Our Milkshed

WV

MO

OK

AR

SC
MS

TX

AL

GA

LA

Member Farms: 2,385

Member lbs.: 4,290,000,000

FL

Other: 5,127,000,000
2008 Total Milk Marketed: 9,417,000,000

Promising Signs
During this economic downturn, the last several months
have been stressful for dairymen. Low milk prices, coupled
with high production input costs, have challenged members
to find new ways of managing their dairies. But price recovery
should be coming soon, particularly if the milk supply begins
to tighten up.
Officers Elected
Early this year, your council reorganized and elected new
officers. Randy Mooney, Rogersville, Missouri, was elected
chairman; Mickey Childers, Somerville, Alabama, vice chair;
Michael Ferguson, Senatobia, Mississippi, second vice chair;
Jerry Spencer, Sulphur Springs, Texas, third vice chair; and
Jeff Smith, Comer, Georgia, secretary.
Industry Representation
Roy Martin
(second from right),
president of the
Louisiana Council of
Farmer Cooperatives,
presented the 2008
Coop Leader of
the Year Award to
DFA member (left
to right) Lanny
Conerly and his wife, Joyce, of Kentwood, Louisiana. Sam
Royer (far right), DFA field representative, also attended the
ceremony. The award is given to individuals who have shown
strong leadership abilities and contributed significantly to
cooperative education and promotion.

Additionally, officers were elected in each of our marketing

regions as well as representation on other regional boards such
as Dairy Cooperative Marketing Association, Inc./Southern
Marketing Agency, Inc. and Southeastern Dairy Cooperative
Association, Inc. Also during this quarter, and as part of the
promotion process, organizations such as Midwest Dairy,
Southeast United Dairy Industry Association, Inc. and Dairy
Max, elected new board members and delegates from their
respective geographic regions. I had the opportunity to attend
my first Southeast United Dairy Industry annual meeting and
found it a good opportunity to visit with DFA members who
serve in these capacities.
Others recently elected to leadership positions included:
* Jenny Senn, Newberry, South Carolina, executive
committee of the board of National Cattlemens Beef
Association
* Randy Mooney, Rogersville, Missouri, new chairman of
National Milk Producers Federation
Those chosen for awards:
* Lanny Conerly, Kentwood, Louisiana, 2008 Coop Leader
of the Year by the Louisiana Council of Cooperatives
* Jeff Smith of Smith Dairy Farms, Comer, Georgia,
Outstanding Farm Family of the Year by the Georgia Young
Farmers

Bel Brands USA

We held a customer meeting in mid-March with Bel Brands
USA. Bel management traveled to Knoxville, Tennessee, to
discuss its business and planned expansions, and we brought
Bel Brands up to date on DFA. We are exploring ways we can
work together to enhance each others operations.

Area Round Up
ND
MN

Central Area
Randy McGinnis
Central Area
Chief Operating Officer

WI

SD

IA

NE

IL

About Our Milkshed

Member Farms: 3,122
Member lbs.: 5,551,000,000

KS

MO

Other: 2,003,000,000

OK

Annual Meeting
More than 110 council members, delegates, resolution
committee members and alternate delegates attended
the Central Areas caucus on March 24, which was held
in conjunction with DFAs 11th Annual Meeting. Doug
Nuttelman, chairman of the Central Area, and I answered
questions from the officers. As you would expect, at the
forefront of discussions was the current economic squeeze
on dairy farms. The meeting centered on topics such as milk
price projections, proposed changes and activities to improve
the situation.

animal health and milking supplies to barn equipment and

silage covers through this money-saving program. Members
have told us that anything we can do to help them access
additional opportunities for evaluating and accessing inputs
is useful to their viability. Eagles cost-saving focus is one
way that can help.
Ordering is easy and convenient using the 24-hour
ordering process. Call 1-866-591-2925 or, you can
access available products and the most recent promotions
on the myDFA Web site and on Eagles Web site at
www.EagleDairyDirect.com.

Cleaning and Sanitation

With attention focused on milk prices, its a good time
to remind members not to cut corners on milk quality. Its
important to follow guidelines to produce the best quality
milk. Proper cleaning of milking systems will ensure a high
quality, salable product. Low bacteria count milk generally
leads to premium payments. A clean, sanitary system will
help maintain those low bacteria counts and return dollars
in your milkcheck.

CWT update
Cooperatives Working Together (CWT) officials
announced on March 11 that the program achieved the
required level of support (67 percent of the nations milk
supply) for a two-year commitment. We are disappointed
in the lack of support for this program among many
Midwest cooperatives. DFA, Land O Lakes, Foremost
Farms and National Farmers Organization are the only
fully participating cooperatives in the CWT program.
While many can debate various aspects of the program,
independent studies have proven the value of the program
in improving the balance of milk supply and demand and
improving dairy farmer income.
Read page 44 for more information.

Eagle Dairy Direct

Eagle Dairy Direct, one of DFAs Farm Services, became
available to the Central Area on April 1. Eagle provides
members with the opportunity to purchase farm inputs and
supplies directly from manufacturers and suppliers in small
or large quantities. Members can order everything from

59
SUMMER 09

2008 Total Milk Marketed: 7,554,000,000

Area Round Up
KS

Southwest Area
David Jones
Southwest Area
Chief Operating Officer

About Our Milkshed

OK
AZ

NM

TX

Member Farms: 401

Member lbs.: 8,541,000,000
Other: 3,590,000,000
2008 Total Milk Marketed: 12,131,000,000

Production Growth in the Southwest

The rate of milk production growth in the Southwest Area
has slowed the last few months. Milk production growth during
the months of January, February and March 2009 compared
to the same months of 2008 was 4.8 percent, 3.0 percent and
0.9 percent respectively. In spite of what seems to be increased
culling by our members, and more than 13,000 cows leaving
the industry from discontinued operations in our Area since
the first of the year, our production is still above last years level.
Members throughout our Area tell us their cows are milking
very well. This is due in part to the extremely mild winter
weve had.

60

SUMMER 09

Council and Spring Meetings

The Southwest Area Council regularly meets during the DFA
Annual Meeting in Kansas City in March. During this meeting,
Southwest Area delegates and resolution committee members
have an opportunity to attend the council meeting as well. In
addition to normal business items, this year the group received
a first-hand briefing on the plant expansion currently underway
at Southwest Cheeses plant in Clovis, New Mexico, and the
upcoming Federal Order Producer Handler hearing in May.
This hearing is of keen interest to members in the Southwest
due to a large producer handler plant that recently opened in El
Paso, Texas. This plant operates under the name of GH Dairy,
and it has already had a negative impact on the premiums we
are able to collect from other bottling plants in our area.
We completed our spring member meetings in early April.
As you would expect, the main topic on members minds was
the milk price. Members wanted to know how it could go
from being so good to so bad so fast. As everyone knows, this
revolves around supply and demand and the economy, not just
in the United States, but around the world. Members mostly
wanted to discuss what it will take to get us out of this crisis and

how to moderate this tremendous price volatility in the future.

Discussions ranged from some type of national supply control
to individual dairy farmers better utilizing risk management
tools.
Dairy Risk Management Services
Prior to 2004, several members in the Southwest Area were
utilizing Class III forward contracts. At that time, the main
contract available to members was the basic fixed price Class III
contract. After fall 2004, the number of our members utilizing
forward contracting dropped tremendously. Since that time,
Dairy Risk Management Services, a DFA member service,
has developed several new contract programs that provide
more options. We are holding several meetings to discuss these
new options and hope these tools can be used to help you
better manage price volatility in the future. Talk to your field
representative for more information.

Kerry DiCiccio (front left) of Dublin, Texas, talks to DFA employee Elvin
Hollon during a council meeting break.

Area Round Up

WA
MT

Mountain Area
Greg Yando
Mountain Area
Chief Operating Officer

OR

ID
WY
NE

About Our Milkshed

Member Farms: 381
Member lbs.: 5,600,000,000

UT

CO

Other: 120,000,000
2008 Total Milk Marketed: 5,720,000,000

Bank Closed
The Mountain Area is dealing with the repercussions from the
failure of the New Frontier Bank in Greeley, Colorado. On April
10, the state bank commissioner, by order of the Banking Board
of the Colorado Division of Banking, closed the bank. The bank
provided financing to about 20 DFA member farms in Colorado
and another 20 more member and nonmember farms in Kansas,
Nebraska, Oklahoma, Texas, New Mexico and the Southeast. The
bank has been ordered to give depositors 30 days to move their
money and is working to transition the dairy loans to alternative
financial institutions. This will not occur without tremendous pain
and likely casualties; one of the many results of aggressive lending
practices that may end in some form of prosecution of bank
officials.
While this is an isolated and extreme case, dairy producers are
doing their best to work with their bankers, and vice versa in many
cases, to endure this financial quandary until supply and demand
converge and profitable milk prices once again put a spring in our
members step. Mountain Area management and staff have been
hosting numerous member meetings throughout the spring and
providing frequent milk price forecasts to members assisting
where we can in the many budget challenges on the farm.

This expansion will assist the Area in handling surplus milk more
efficiently, as well as help stage milk for the new Leprino plant
scheduled to open in Greeley, Colorado, in spring 2011.
Other projects in the Area include a cheese trial at the Beaver,
Utah, plant to make non-traditional Gouda. Early results were
promising; however the price of Gouda in Mexico has fallen to $1
per pound, which makes the economics impossible and a project
we will not pursue at this time.
Supplier of the Year
The Dannon Company, Inc. recently named DFA its 2008
Raw Materials and Packaging Supplier of the Year. DFA supplies
Dannons three yogurt plants located in Ohio, Texas and Utah.
This accomplishment is a credit to the quality of milk that you
as members produce for our many customers. Kudos also goes
out to our many employees who handle the day-to-day logistics of
pickup/delivery, testing, accounting and farm survey/inspections.
This is a tangible result from all of your efforts to reliably supply
a high quality product to our customer. Thank you for a job well
done!
Happy Trails!

61

Plant Expansion
The big project in the Mountain Area at this time is the
commissioning of the plant expansion in Fort Morgan, Colorado.

SUMMER 09

Plentiful Milk
Despite cows going to market, the milk keeps finding its way
to the bulk tank. Early feedback from membership is that the
Cooperatives Working Together herd reduction doesnt appear
to offer enough of a financial incentive, compared to the idea of
holding off until their cows are more valuable and when supply and
demand are more closely in line. The banks may have a different
opinion of this than some of their clients.
Mountain Area Council members (left to right) Lynn
Pack of Idaho Falls, Idaho, and Dwain Forester of Royal
City, Washington, confer during an Area meeting held
concurrently with DFAs Annual Meeting.

Area Round Up
NV

Western Area
Glenn Wallace
Western Area
Chief Operating Officer

About Our Milkshed

Member Farms: 300

CA

AZ

Member lbs.: 6,093,000,000

Other: 2,456,000,000
2008 Total Milk Marketed: 8,549,000,000

Member Services
The DFA Farm Services division exists to assist members in all
areas of their business. These services support members needs in
the areas of health and workers compensation insurance, feed or
operation loans and Dairy Risk Management Services (DRMS),
which brings stability to the price members receive for their milk.
Recently, the Western Area invited representatives of DRMS to
meet with members, discuss their needs and explain how the risk
in California milk prices can be hedged using Class III milk prices.
A DRMS program can deliver a milk price safety net through an
effective hedging strategy for DFA member farms. The Western
Area is planning more meetings and member visits with DRMS
representatives throughout the year.
DFA also is developing an excellent resource for members in
the field of bioenergy. DFAs new Dairy Energy Services offers
members advice and information about this growing field. If
interested in these services, please contact your field representative
so that a meeting can be scheduled near your dairy.

62

SUMMER 09

New Sales Opportunities

The Western Area continues to develop new milk marketing
opportunities for its members milk. The second half of 2009 holds
growth opportunities as we are preparing to supply new markets.
On October 1, we will expand our relationship with Kraft Foods
and take on additional milk sales to the Tulare, California, plant.
We also are eagerly anticipating the opening of the additional
cheese line at Leprinos Lemoore, California (West), plant
tentatively scheduled for late summer and fall. This expansion is
expected to eventually require an additional 1.5 million pounds of
DFA member milk per day.

Several other opportunities are being explored, including a 2010

expansion of HP Hoods plant in Sacramento, California, and
continued growth at Western Dairies in Yerington, Nevada, and
Central Valley Cheese in Turlock, California. We also are working
closely with Dean Foods to maximize their bulk sales while not
interfering with our own bulk sales, which in the end will benefit
DFA by the placement of additional member milk into their
plants.
Hughson, California, Plant Update
The 1/4-pound butter retail line has made huge improvements
in overall efficiency improving from 45 percent efficiency a year
ago to 79 percent in March. This resulted in approximately
$145,000 in additional revenue for the plant. Through competitive
bidding and renegotiation of haul rates, annual hauling costs for
waste water from the plant have been reduced by $373,000. An
additional $100,000 of annual savings will be realized on the costs
of polymer chemicals used for waste water treatment. Current
Hughson improvement projects include a high-heat condensed
capability. This will allow us to produce condensed product for our
Ventura, California, plant, which bottles Frappuccinos, as well as
produces heat-treated powders. Due to age and U.S. Department
of Agriculture recommendations, we are replacing two silos. The
addition will add 70,000 gallons of raw milk storage capacity and
improve our ability to balance milk in the Western Area.

MARKETPLACE
Cows, Bulls & Replacements
Purebred Holsteins, Brown Swiss
R
FO E & Holstein/Swiss Cross Bulls
SAL Service age. From high-type production dams,
RHA 28,000 lb average. Delivery available.

(319) 480-2484 or (319) 480-2696

LEASE QUALITY DAIRY CATTLE

Payment based on cows YOU select
Leasing cows since 1990
Low lease rates
THE SUNRISE GROUP, INC.
TOLL FREE (888) 920-6789

Professional Quality Bulls

Choose
oose from Red & White & BW. Deep pedigrees,
vaccinated, tested negative for Johnes, BVD PI. All
virgin bulls with breeding soundness exams.
WE CAN DELIVER.

Make your next bull your best bull!

(920) 980-5700

REGISTERED HOLSTEIN BULLS

out of top A.I. sires, VG and EX dams
with records over 30,000. More than
30 years of A.I. breeding. Den-Tex
Dairy, Waco, Texas (254) 822-1852 or
(254) 822-1501

Registered & Commercial

HOLSTEIN BULLS

For sale by the pound or by the

pedigree. Bred to stand up to todays
commercial environment. Stressing
good udders, good feet and legs, and
dairy strength. Semen tested, delivered
and guaranteed. Call for free brochure.

STRICKLER HOLSTEINS
S

(620) 365-9233
FOR SALE - OUTSTANDING Holstein
Bulls from our high-producing dams and
top A.I. sires. Shover Shodel Holsteins,
Larry Shover, Delhi, IA (563) 926-2574
or (563) 926-2402

SERVICE-AGE REGISTERED AND

COMMERCIAL Holstein bulls. Boyd
Brothers, Bolivar, MO (417) 267-2452,
(417) 777-1775 (cell)

REGISTERED HOLSTEIN BULLS

We have a large selection ready for
service. Sired by top A.I. Sires and
out of our best cows.
GREEN MEADOW FARMS, INC.
6400 HOLLISTER RD
Elsie, MI 48831
(989) 862-4291

MILK?
NEED
?
TIGHT
ERS
CASH
PRING
S
E
D
S
TRA
EIFER
H
WELL
N
E
P
FOR O ORTBREDS!
H
AND S

Cows, Bulls & Replacements

R&R
R & R DAIRY
CATTLE
Dairy Cattle

Rogers, New Mexico

Large number of top-quality springers,
short-bred and Jersey Cross heifers.
All vaccinated, dewormed, deloused
and headlock broke.

REGISTERED BROWN
SWISS GENETICS

Breeding age bulls and embryos

from high-producing dams and top
A.I. sires. Hilltop Acres Farm
Calmar, Iowa (563) 562-3763
www.hilltopacresfarm.com

REGISTERED HOLSTEIN BULLS

Good selection, delivery available
anywhere. Ruth McLean, 8029 West
Farm Road 156, Republic, MO 65738
(417) 732-2430 or (417) 861-1402

Dairy For Sale

SOUTHWEST IDAHO
Jersey dairy 67 acres, Double 12, 836
lockups, open corrals, agreement for
milk with Sorrento creamery. Close to
town. Great Investment! $1,699,000

Wade (208) 867-5818

www.mywebcashstore.com/newkirk5818

Services
SLICK CONCRETE? WE HAVE SOLUTIONS!

Sam
am Robin: (505) 749-2818 ce
cell
(505) 273-4394 home
Josh Robin: (601) 757-6320 cell
Tommy Robin: (601) 833-4799 home

Get ready for a lot of milk!

REGISTERED, A.I. SIRED HOLSTEIN
BULLS from the number one CTPI
herd in Texas and Oklahoma. Bulls are
fertility tested and priced reasonably.
Many hold state production records.
Jerry and Scot Vieth, Windthorst, TX
(940) 631-6104 or (940) 631-6374

TOP QUALITY
DAIRY CATTLE.
*Holsteins & Jerseys.

BULLS AND SPRINGING HEIFERS

We will help you fill your needs if
we dont have what youre looking for!
Marty O. Mickelson 435-258-5665
999 North 800 West Lewiston, UT 84320
435-258-5656 - FAX
435-757-0811- Mobile

HOLSTEIN BULLS semen tested and

ready to go. Sired by Outside, Binky, Lyle
and Pay Day. Out of dams up to 32,000
pounds milk, 3.9 fat. (816) 667-5692,
(816) 262-1225, (816) 667-5330

Breeding Bulls
For Sale

Holstein breeding
bulls from some of
todays top cow families at reasonable
prices. We strive to breed for
longevity, production, and type.

SHEMA Holsteins
Marlin Bontrager

319-330-4513

LEASE TOP QUALITY DAIRY CATTLE

Lowest rates in the industry. Call
The Sunrise Group, Inc.
(888) 920-6789

COX DAIRY HEIFERS - Fresh heifers

and springers on hand at all times.
40 to 60 fresh, 200 to 300 bred and
springer Holsteins, 1,150 lbs to 1,350 lbs.
Winnsboro, TX, (barn) (903) 365-7542,
(home) (903) 365-2329 or (mobile)
(903) 372-2108

REGISTERED JERSEY BULLS from a160

cow dairy. 34 excellent and 110 very good.
DHIR average over 21,000 and excellent
dams over 32,000 on the best.
GABY Jersey Farm ~ Greeneville, TN
(423) 470-2054 or (423) 620-9343

HEIFERS AND COWS (milking and dry)

Turley Dairy has replacement heifers and
cows on hand at all times. We also buy
and sell entire herds, any size, any breed.
Contact Travis Turley (254) 967-2911

HOLSTEIN BREEDING BULLS,

wholesale, closed herd, disease free, DHIA
records, registered, A.I., large selection,
volume discount. Dealers welcome.
Brainard Dairy (800) 841-2624 PIN #29 or
(580) 855-2619

Concrete Grooving, Texturing, Scabble Grooving.

Forty years combined experience.
Thousands of jobs done. Call anytime:

(800) 294-1202

SLICK CONCRETE?
Grooving Amer icas Dair ies
with the or iginal wide groove.
MID-ATLANTIC SCABBLING SERVICE
(800) 658-8070
S.E. States - THE SCABBLER MAN
(800) 692-0123
Western States - CONCRETE ROUGHENING
(800) 869-2755

BARN FLOOR
GROOVERS
1/2, 3/4, 1-1/2 Wide Grooves

Diamon
Concrete d Sawed
Te
Concrete xturizing,
Special PMilling,
ricing.
Call

for infor
ma

tion!

Protect Your Cows From

Injuries and Slippery Concrete
s&REE3TALLS
s(OLDING!REAS
s&EED,OTS
s0ENS
s3TALLS
s7ALKWAYS

Dick Meyer Co., Inc.

CALL TOLL FREE
1-800-228-5471
www.barnoorgroovers.com

Email:dmgrover@uniontel.net

Products / Equipment
MUST SELL!

NDE Vertical Mixer Wagon 2802

1,120 cubic feet.
Less than a year old.

(605) 870-1762

HOOF TRIMMING

MADE EASIER
6 Slotted Carbide Flat Disc

WANTED
Bulk Milk Coolers
All Sizes!

DFA Equity
FOR SALE: $99,764. Will sell for
$50,000. Call (717) 729-9730 or
email: deshanks@abcmailbox.net
FOR SALE: $89,331. Will sell for
$65,000. Call (909) 851-2913
FOR SALE: $7,447. Best offer.
Call (903) 221-0570

Hoof trimming
discs, ranging
from beginning to
advanced discs available.
t
Fits 4-1/2" and 5" grinders
t
Clog-free see-through design
t
Trim cows, horses and sheep

FOR SALE: $4,500. Call either

(502) 722-8841 or (502) 722-8956
FOR SALE: $111,263. Call Lloyd
at (940) 541-2588

800-843-3912
www.rotoclipinc.com

FOR SALE: $37,000 in equity, will

sell for $28,000. Contact either
Clint at (785) 317-9393 or Jan at
(785) 766-8206

Agitators, pumps, rubber scrapers, silage

packers, performance, durability, economy.
Call John at (519) 897-1891

Entertainment

FOR SALE: $17,812. Will sell for

$12,824. Call (601) 783-5114

MILKING EQUIPMENT

BILL CHITWOOD, HUMORIST AND

DAIRYMAN 50 years, available for
meetings and motivational speaking
with his Overall Wit and Wisdom. Call
(877) 894-Bill (2455)

(641) 424-2792
SPANJERMACHINES.COM

BUY - SELL - TRADE

Used Bulk Tanks, Cooling Equipment, Claws,

Pulsators, Take Offs & more

Salvage House
800-844-5427

www.hamilton.net/salvage

email: salvage@hamilton.net

Hay For Sale

Want to Buy & Sell

ALFALFA

All Bale Sizes Can be Delivered

(316) 644-0180
lesteruselton@live.com

ALFALFA ALFALFA ALFALFA

4x4x8, 3x4x8 & 3x3x8 Premium DAIRY quality
Testing 150-220 RFV, Delivery in USA.

S ATISFACTION G UARANTEED !

Calll Ch
Chad
d at 11-800-501-4919
8000 501 44919
919
Central States Alfalfa Corp

Morning Star Farms

Greensburg, KS

All classes of ALFALFA available

FOR SALE: $33,481. For details,

call (304) 647-5093
FOR SALE: $25,000. Best Offer.
Call (620) 382-4752
FOR SALE: $570,000. Ready to sell.
Call Ben Shelton at (704) 546-2210
FOR SALE: $79,000+. Make an
offer. Call (866) 367-3478
FOR SALE: $5,500+. Best offer.
Call Dee Dee at (707) 479-0128 or
John at (707) 664-9753
FOR SALE: $94,365. Best offer.
Call Anthony at (530) 405-6155

Advertise
in the

Brome, Bermuda and Wheat Straw

also 4x4s, 3x4s, 3x3s

LEADER

We strive to provide the best freight options in the industry

(800) 320-1424

Give Kevin a call at (620) 546-3507 to discuss your needs

We are DFA
Billy Simpson

A&J Dairy: Tahlequah, Oklahoma

Our family has been milking for five generations. When
my grandfather, Austin Simpson, started in the dairy business,
he milked his cows by hand. My dad, Ralph Simpson,
eventually took over the operation. I realized about 18 years
ago that I needed a bigger place, so I established my own dairy
10 to 12 miles down the road from my dads farm. My son,
Anthony Simpson, bought his own cows two years ago and
now operates Simpson Farms on the same location as
my place.
We milk a total of 226 cows and grow about 400 acres of
pasture and hay.
Our most recent building projects include a new hay
barn near Anthonys house and a new parabone dairy barn. Its
a double-12. So far, so good. We like being able to milk cows
from behind. Before, we used a double-7 herringbone.
We depend on DFA to market our milk and weve been
with DFA the entire time weve been in business. Our family
also has had good experiences with DFAs Young Cooperator

Program. My wife, Sandra, and I were involved in the

program several years ago and really enjoyed a trip we took
to Nashville, Tennessee. We learned a lot about the industry
and had a good time. Anthony and his wife, Kelli, are now
involved in the program.

One of the more unusual things weve done is

participate in a photo shoot for television and print ads for
one of DFAs partners, Hiland Dairy Foods. The commercial
focuses on the fact that Hiland Products are made with milk
produced by hardworking farm families.
The issues that affect our dairy the most are
extremely low milk prices and high feed costs. Weve been
working with our feed salesman to try to keep our feed prices
down and weather the current storm.
The thing I like best about dairy farming is getting
to stay home and help raise the grandkids Anthonys sons
Bailey and Dylan.
The Simpson family includes (left to right) Anthony, Kelli, Dylan, Sandra
and Billy, and Bailey (front right) Simpson.

Fresh from our

farms to your table.
Meet Our Farm Families

The Simpson Family, A&J Dai

ry - Tahlequah, Oklahoma
Hiland Dairy is farmer owned and made
close to home. So, you always get
homegrown quality and goodness with
absolutely no added growth hormones.

Find out more at: HilandDairy.Com

While the FDA has found no significant difference between milk from treated and
untreated herds, some of our customers prefer their milk to come from untreated cows.

Manufacturer's Coupon
Do Not Double

55 Off

Expires
4-30-09

Manufacturer's Coupon
Do Not Double

45 Off

Expires
4-30-09

Manufacturer's Coupon
Do Not Double

75 Off

Expires
4-30-09

SCC dropped from 235,000 to 195,000.

- Robert Brouwer

Nothing to lose and everything to gain

John Schuh

John and Susan Schuh

40 Holsteins, Manitowoc County
Wisconsin
Robert Brouwer -Manitowoc,
Brouwer Dairy
RHA:
24,000
Portales, New Mexico (Roosevelt(2x)
County)
SCC: Before 150 to 200,000
2000 cows
After 80 to 120,000

Weve been using Udder ComfortTM since October

2008 for When
fresh heifers
and mastitis.
We have
I decided
to try Udder
Comfort
also seen it
lower
our
SCC.
We
kept
track
in
two years ago, my wife was against
February and
March:
the control
group
did not
itat
firstshe
thought
it was
a sales
gimmick.
Today,
we are
both convinced
drop near as
much as
the Udder
Comfort
group,
by the results.
We are
well satisfied
says third generation
dairyman
Robert
Brouwer,
with
the job Udder
Comfort
and
owner of the
2000-cow
Brouwer
Dairy,does,
Portales,
we
saw
a
benefit
right
away.
We
use
New Mexico. In February we tried Udder Comfort
it as
soon
as wecell
notice
anyWe
swelling
so
on cows with
high
somatic
counts.
sprayed
we
can
catch
a
problem
before
it
it on the affected quarters after all three milkings
becomes
a bigger
for a few days.
The result
wasproblem.
that 26 out of 29
cows dropped their SCC.
SCC really dropped. Before we started
with Udder Comfort, our SCC was 150
The total group average SCC dropped 64%.
to 200,000. Today, its 80 to 120,000,
By March, they dropped even more, plus we did
says John Schuh. He and Susan milk
a second group
with similar
results.
Bulk
40 Holsteins
at their
dairyOur
farm
near
Tank SCC had
been
at
235,000
for
January.
Manitowoc, Wisconsin. Today, we
By April it use
dropped
down to 195,000,
which for
no intra-mammary
antibiotics
doubled our
quality cows.
bonusBut
from
cents
lactating
we9 still
doper
the dry
hundredweight
to
18.
Were
going
to
keep
using
treatments. We dont have to worry
Udder Comfort
this
way
for
SCC.
What
I
really
about withholding or milk residue,
like is we can
it without
worrying
about per
and use
were
saving several
milkings
withholding
theWe
milk.
Comfort
a
cow.
useUdder
the lotion
anddoes
the spray,
good job on
the
SCC, and
the same
we
and
noticed
theat
spray
workstime,
very well
rubbing
it in. the bulk tank.
have morewithout
peace of
mind about

We have tried other products, and they

did not work. With Udder Comfort,
we notice a much faster response in
getting the cows back to their normal
production. As for trying it: You have
nothing to lose and everything to gain.

In The System

Quality Udders Make Quality Milk

Keep the milk

flowing!
1.888.773.7153
1.613.543.3263
uddercomfort.com
Available with most
local retailers.
For external application to the udder only after milking,
as an essential component of udder management.
Always wash and dry teats thoroughly before milking.

Quality...
performance...
and value!

ns
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