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DAIRY ST R “All dairy, all the time”™
Volume 19, No. 14
September 9, 2017
Life-long dream comes true for Dutch dairyman
Regulations, economics prompt Pentermans to relocate to United States By Danielle Nauman danielle.n@dairystar.com
THORP, Wis. – Sander Penterman dreamed of dairy farming. Government regulations and economics made that dream a difcult one to pursue in his home country of The Netherlands, so Sander set his sights on farming in North America. For the past several years, Sander and his family – wife, Amy, and their ve children, Seth, 19, Brooke, 15, Evan, 8, Izaak, 6, and Ethan, 2 – have been living out their dream, milking 850 cows on their farm, Dutch Dairy, near Thorp, Wis. “There was no future for two brothers to farm in The Netherlands, and to support their families,” Sander said. “My mind was never really set Turn to PENTERMAN | Page 6
DANIELLE NAUMAN/DAIRY STAR
Sander and Amy Penterman milk 800 cows on their farm, Dutch Dairy, near Thorp, Wis. Sander immigrated here from the Netherlands 15 years ago.
Will 2017 be a turnaround for dairy farmers?
Economist points to silver linings in sector, cautions trends By Brittany Olson
brittany.o@dairystar.com
TILDEN, Wis. – After the rollercoaster ride that began in the wake of tumbling milk prices in light of record highs in 2014, many dairy farmers are looking for any sign of having breathing room in their milk checks. Fortunately, there may be signs of a reprieve on the horizon, according to agricultural economist Ryan Kuhns of Farmer Mac, who spoke at a dairy management and marketing seminar in Tilden, Wis., Aug. 29. “According to analyses, 2017 might be a correction year,” Kuhns said. “Most commodity prices are expected to rebound somewhat over the next 18 months, but not back to record highs.” On another note, there are still gaps between net cash income, which Kuhns prefers to use as an indicator of farm protability and net farm income. “Global supplies are just higher,” Kuhns said. Kuhns did point out that ination-adjusted cash income is stabilizing; net farm income continues to decline at a slower rate, but is no longer in complete
powders and cheddar cheese also commanding prices freefall. “Keeping things in a historical context, when lower than what Europe and Oceania (Australia and adjusted for ination we’re still doing better than in New Zealand) can offer. “The United States is lower priced, which puts us the early 1980s and late 1990s,” Kuhns said. Compared to steers, broilers and hogs, dairy in a more competitive position,” Kuhns said. Fluid milk consumption continues to decline as a appears to be the only bright spot in the livestock sector in terms of commodity prices with a 14 percent result of generational effect and families with fewer change for the better compared children. to last year. “In the past, you had milk Broilers and hogs may with breakfast, lunch and dinner, only see a 5 and 4 percent but that has dwindled, beginning jump compared to 2016 levels, in the 1930s,” Kuhns said. respectively, with steers on a 4 “Children are also declining as a percent decline from a year ago. share of the population, and kids A weakening U.S. dollar just tend to drink more milk.” and skyrocketing butter prices However, changes in in the European Union bode consumer preferences have well for American dairymen, driven the rise in milk fat who are able to offer a quality consumption with more people product at a more reasonable eating yogurt and cheese than RYAN KUHNS, AG ECONOMIST price in the global marketplace ever before. for developing nations with an “For yogurt, there is a trend appetite for affordable animal proteins, particularly in toward products perceived as ‘healthy’ as well as the Middle East and southeast Asia. portable and easy to consume,” Kuhns said. “As for “World dairy demand will be driven by a mix of cheese, there is continued demand for cheese-centric developed and developing countries,” Kuhns said. cuisine like Italian and Mexican food, where cheese is “However, a slowdown in Chinese growth could an integral part of many recipes.” negatively impact world agricultural prices.” However, there are other things that dairy farmers Butter is not the only dairy product being sold at a should watch in the months and years to come on lower price by the United States, with milk and whey Turn to OUTLOOK | Page 5
“Most commodity prices are expected to rebound somewhat over the next 18 months, but not back to record highs.”