LOOK INSIDE FOR OUR CENTRAL PLAINS DAIRY EXPO PREVIEW EDITION!
DAIRY ST R “All dairy, all the time”™
Volume 20, No. 2
March 10, 2018
“I’m leaving with no regrets and with the dairy in good hands.” – Jerome Salzer How economic indicators are inuencing Terminal illness dairy’s future leads Salzer to
One last milk check
By Jennifer Coyne jenn@dairystar.com
Editor’s note: This is the rst of two articles on Dr. David Kohl’s presentation, “Positioning for success in cyclical economics,” hosted by Ridgewater College Farm Business Management Programs on Feb. 21 in Willmar, Minn. WILLMAR, Minn. – The agriculture industry has entered another year of troubling market conditions, and dairy farmers are holding their breath waiting for the next turnaround. “We have this elongated cycle that I call the grinder. It’s a grinder on nancials and emotions. Throughout the cycle, you redene success, and that will look differently for all of us,” said Dr. David Kohl, Professor of Emeritus at Virginia Tech in Blacksburg, Va. Whether success is nancial stability, peace of mind or even certain family matters, there are several obstacles in reaching success for dairy farmers. In Kohl’s presentation, he spoke of the many national and international economic indicators inuencing the dairy industry, and ultimately, every farmer’s version of success. The markers can be broken into ve categories – international partnerships and trade agreements, the U.S. dollar and general economy, the Federal Reserve System, weather and consumer trends. As the industry sits in a surplus-type of environment, international trade agreements will become more critical over the next six months. Last year, President Trump ended the United States’ partnership with nations in the Trans Pacic Partnership (TPP), and is currently negotiating trade deals with Canada and Mexico as part of the North American Free Trade Agreement (NAFTA). Turn to FUTURE | Page 5
sell cows
By Jennifer Coyne jenn@dairystar.com
ST. JOSEPH, Minn. – After 39 years of dairy farming, Jerome Salzer will soon receive his last milk check. On March 7, Jerome and his family – wife, Jean, and son, Terry – sold their 130 milking cows and close-up heifers as part of the partial herd dispersal of their farm near St. Joseph, Minn. “The timing is not right, but I was diagnosed with cancer Dec. 18 and decided to sell the cows,” said Jerome, who will turn 66 years old in June. Jerome’s fate was known only a week before Christmas. Turn to SALZER | Page 10
JENNIFER COYNE/DAIRY STAR
Jerome Salzer holds up a picture of his family Feb. 27 while at his home near St. Joseph, Minn. Salzer sold 130 milking cows and close-up heifers March 7 because he is terminally ill with liver cancer and cirrhosis.
Agropur expands its Lake Norden cheese plant
85,000 cows needed to meet facility’s capacity By Jerry Nelson
jerry.n@dairystar.com
LAKE NORDEN, S.D. – Agropur held a groundbreaking ceremony on Feb. 27 for a $250 million expansion of its cheese plant in Lake Norden, S.D. The expansion project, with expected completion in early 2019, will triple the plant’s processing capacity from 3 million pounds of milk per day to 9 million pounds of milk per day. This increase will demand milk from approximately 85,000 additional dairy cows in order to supply the plant’s needs. “Agropur is committed to
JERRY NELSON/ DAIRY STAR
Doug Simon, Agropur President of U.S. OperaƟons, addresses a gathering of industry and business leaders during a groundbreaking ceremony Feb. 27 at Agropur’s cheese plant in Lake Norden, S.D. continuing its development in the North American market. This announcement is very
good news for the growing dairy industry and dairy farmers in the region,” said
René Moreau, president of Agropur. Agropur Inc. is a subsidiary of Agropur Cooperative, which was founded in 1938. Agropur’s headquarters are located in Saint-Hubert, Québec, Canada. Davisco Foods International constructed a mozzarella cheese plant in Lake Norden in 2003. Agropur purchased the facilities from Davisco in 2014. “The Lake Norden project is an important part of our longterm business strategy, which targets continued expansion through acquisitions as well as organic growth. We are eager to get to work on this new and important project,” said Robert Coallier, CEO of Agropur. Work on the expansion began several months ago. The Turn to AGROPUR | Page 6