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Dairy Lab Services, Inc. Delivering fresh results for over 40 years!

Annual Report 2020


Dairy Lab Services Annual Report 2020

Table of Contents District Meeting Schedule 2020.............................................................4 District Meeting Agenda 2020...............................................................5 Highlights 2019......................................................................................6 President’s Message...............................................................................7 Manager’s Message...............................................................................8 DLS Organizational Flow Chart............................................................9 DLS Financials 2019......................................................................10-11 DNA Mastitis Test Information...........................................................14 Special Tests Submission Form...........................................................15 IL High Milk Herds by Breed & State Averages 2019..................17-19 IA High Milk Herds by Breed & State Averages 2019..................20-23 DLS DHIA High Milk Cows by Breed 2019.................................24-25 DLS DHIA Herd and Cow Average by Breed.....................................26 Illinois Milk Permit Map.....................................................................28 Iowa Milk Permit Map.........................................................................29 NDHIA Uniform Operating Procedures.........................................31-34 DLS Bylaws....................................................................................37-42 DLS Membership Agreement..............................................................43 Heard of A2 Milk?...............................................................................44 QCS Samples Unknowns Program......................................................45 Iowa and Illinois High Lifetime Milk 2019...............Inside Back Cover Regional Map........................................................................Back Cover

- 03 -




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- 06 -


President’s Message

Pat Reisinger DLS Board President

A big ‘Thank you’ to the Dairy Lab Services Board of Directors. The meeting ideas and discussions are very much appreciated and help make my role as President of the Board very enjoyable and always looking forward for the business. The management staff and employees of DLS do a great job in getting the samples run and the results back to customers quickly and is a very positive reflection on the company. The dairy business gets more challenging every year for everyone but paying attention to the important details and resigning yourself to know that there are things that you have no control over, will help with our own operations as well as reflecting how lab business is handled. With our own operation at home, we are looking to expand to maintain efficiencies and provide a place for the next generation. To have a secure market for our additional milk we need to purchase quota from other farmers that are exiting the dairy business. We typically ask about potential heifers that they might be selling in the future. Anyone that is on DHIA testing will always bring that up with a sense of pride and it is something that has value to us as buyers. Dairy Lab Services has had a few bumps in the road this past year with customers exiting the dairy business along with the competition for dairy farm dollars. This competition is reflected by longer test intervals and lower overall sample volume but yet, DLS is still in pretty good financial shape and we have very good people that make this important information available for our needs. Hopefully the weather in 2020 will be better than what 2019 had for us, but if we survived last year, we can survive anything! That’s farming!

- 07 -


Manager’s Message

Terry Hopper, General Manager

As in years past, when I sit down to write this Manager’s Message with another year under our belt in this dairy business, the speed and scope of change is really something to be marveled. So many things are just not the way they used to be and getting out of one’s comfort zone is always unsettling. Todays ‘super cows’ and heifers that have production, components, type and years of genetic investment are worth little more than cull price. Milk companies are struggling, dairy farms are struggling, A I companies are struggling and seemingly any dairy related business is struggling. All the while, other measures of our economy, such as the stock market, seem to be setting continual new highs throughout the past year. The DHIA organization has always been, first and foremost, dairy herd management information for our members to profitably operate their dairy business. A speaker at a meeting I attended this fall talked about 75% of bulls in A I studs are there by genomic numbers and stated by the time there are milking daughters with actual, real numbers for a bull proof- that would be 3 generations ago. Everyone wants the highest, hottest mating information to maintain a competitive edge and hopefully profitability. I’m not sure where this road is taking the dairy industry but it gets to be an unnerving ride at times. Dairy Lab Services has come through this past year, not unscathed, but still in one piece for our customer’s needs. Competition, longer test intervals, lower sample volume, herd sellouts, larger herds/parlors needing 2 to 9 Field Tech’s for test day, increased costs, decreased revenue are all contributors to the equation that equals this past business year for DLS, much like our customers may have experienced in their own operations. Yet, we are in pretty good financial standing and will be here well into the future. I always say that we have the best customers in the world and to our customers, I say ‘Thank you’. Also a heartfelt ‘Thank you’ to our Field Technicians, management people, lab technicians, route drivers and last but not least, to our DLS Board of Directors who are simply top notch. Looking forward to 2020!!

- 08 -


- 09 -


Dairy Lab Services, Inc. Statements of Financial Position December 31, 2019 and 2018

2019

2018

Assets Cash and cash equivalents Accounts receivable, less allowance for doubtful accounts of $1,500 in 2019 and 2018 Inventories Prepaid expenses Income taxes Other Certificates of deposit Property and equipment, net Total Assets

$

440,060

$

574,575

208,939 17,367

197,950 15,873

0 49,434 306,863 1,219,311

0 55,375 306,502 1,310,160

$

2,241,974

$

2,460,435

$

60,690

$

66,606

Liabilities and Net Assets Accounts payable Accrued expenses Salaries and wages Payroll taxes Property taxes Sales tax Deferred income taxes Total Liabilities Net Assets - Unrestricted Total Liabilities and Net Assets

$

23,882 5,298 12,932 850 52,000

23,422 4,380 12,471 951 67,000

155,652

174,830

2,086,322

2,285,605

2,241,974

Unaudited financial report prepared by Dairy Lab Services, Inc.

- 10 -

$

2,460,435


Dairy Lab Services, Inc. Statements of Activities and Changes in Net Assets Years Ended December 31, 2019 and 2018

2019 Operating Revenues Laboratory analysis Data processing Dues Field services Delivery Other

$

Total operating revenues

1,179,396 418,546 203,392 883,851 123,346 186,940

2018 $

2,995,471

Less: Processing costs Cost of sales National dues

3,225,950

(407,020) (14,538) (25,112)

Net operating revenues Operating Expenses Salaries and benefits Depreciation Supplies and other expenses Total operating expenses Operating income Nonoperating Gains, Net

Change in Net Assets Before Income Taxes Income Tax (Benefit) Expense Change in Net Assets Net Assets, Beginning of Year

(434,742) (22,188) (25,624)

2,548,801

2,743,396

1,690,689 175,519 910,706

1,769,375 166,684 949,500

2,776,914

2,885,559

(228,113)

(142,163)

13,830

11,250

(214,283)

(130,913)

(15,000)

(15,745)

(199,283)

(115,168)

2,285,605

Net Assets, End of Year

$

2,086,322

Unaudited financial report prepared by Dairy Lab Services, Inc.

- 11 -

1,270,838 498,194 235,131 913,215 103,411 205,161

2,400,773 $

2,285,605


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1

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PCDART Management Software

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â&#x20AC;˘ Makes recordkeeping much easier! All management information is in one program â&#x20AC;&#x201C; click on a cow to see her GDWDZLWKRXWVKXŕŞ&#x152;LQJSDSHUVRUWU\LQJWRFDOFXODWHGXH dates, etc. â&#x20AC;˘ Low monthly fee instead of an up-front purchase â&#x20AC;&#x153;I do all the data entry in PCDART and then it interfaces to my other software (DairyPlan and NEDAP). Itâ&#x20AC;&#x2122;s a lot easier when ONE PROGRAM BRINGS IT ALL TOGETHER.â&#x20AC;? Fred Rowe, KY

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- 12 -


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DairyMetrics Benchmarking System

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Support Services

8

â&#x20AC;˘ DRMS is dedicated to providing superior service at no extra cost to the customer Â&#x2021;6XSSRUWWHFKVFRPPXQLFDWHZLWK'+,$VWDŕŞ&#x160;WRHQVXUHDOORI your issues are addressed ´:KHQ\RXSURFHVVDQGXVH3&'$57WKHFRPSXWHUVXSSRUWVWDŕŹ&#x2030;LVVHFRQGWR none! Really, Iâ&#x20AC;&#x2122;ve called other processing centers, but DRMS SUPPORT IS AWESOME!â&#x20AC;? Bryan Stout, Heart of America DHIA

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drms.org 919.614.3120 515.294.2526


- 14 -


- 15 -


Supervised DHI

Supervised DHIR

Unsupervised

Supervised Commercial

Sampling Protocol

Supervised DHI test conducted by certified field tech/rep

Supervised DHI test conducted by certified field tech/rep plus adherence to breed association rules

Dairy producer weighs and samples milk on test day

DHI field tech weighs and samples milk, but certain aspects of the uniform operating procedures are not followed

All milkings weighed & sampled on test day

DHI

00

DHIR

20

DHI-OS

40

DHI-COMM

70

Less than all milkings weighed & sampled on test day

DHI-AP

31

DHIR-AP

23

DHI-OS-AP

41

DHI-COMM-AP

71

All milkings weighed & less than all milkings sampled on test day

DHI-APCS

02

DHIR-APCS

22

DHI-OS-APCS

42

DHI-COMM-APCS

72

All milkings weighed, but no samples taken on test day

DHI-MO

33

-----

DHI-OS-MO

43

DHI-COMM-MO

73

Less than all milkings weighed & no samples taken on test day

DHI-MO-AP

34

-----

DHI-OS-MO-AP

44

DHI-COMM-MO-AP

74

DHI-OS-AC

45

-----

DHI-OS-APAC

46

-----

All milkings weighed, but no samples taken on test day – breed or bulk tank average used

-----

Less than all milkings weighed, but no samples taken on test day – breed or bulk tank average used

-----

DRPCs, AI and AIPL) endorsed the new system. Starting this month, DRPCs began making programming updates – input and output programs, interfaces and associated reports and edits. These updates will be completed by Dec. 31, 2010. During the year,

-----

-----

National DHIA, QCS and DRPCs will foster a cooperative effort to provide educational support to field service affiliates and industry cooperators regarding the new test plans. These plans will go into effect Jan. 1, 2011. With the dairy producer’s best inter-

ests in mind, National DHIA/QCS took a leadership position to move the milk testing system forward. The revised program provides tailor-made test plans that are available to all dairies – no matter their size, shape, management strategy or business structure. January 2010 WESTERNDAIRYBUSINESS

www.dairybusiness.com

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0.25 MILE

ONE 15-BARGE TOW

16 RAIL CARS

110 TON 4,000 BUSHELS 33,870 GALLONS

ONE RAIL CAR

2.6 MILES

25 TON 910 BUSHELS 7,865 GALLONS

ONE LARGE SEMI

PM 444 02/25/2019

13.9 MILES ( BUMPER TO BUMPER )

1,050 LARGE SEMIS/TRACTOR TRAILERS

1,050 LARGE SEMIS/TRACTOR TRAILERS

70 LARGE SEMIS/TRACTOR TRAILERS

11,880 TON 432,000 BUSHELS 3,657,960 GALLONS

ONE 108-CAR TRAIN

Source: Iowa Department of Transportation | 800 Lincoln Way | Ames, IA | www.iowadot.gov

two 108-car trains

6 LOCOMOTIVES and 216 RAIL CARS

EQUIVALENT LENGTHS

ONE 15-BARGE TOW AND TOW BOAT

ONE BARGE

26,250 TON 874,995 BUSHELS 23,325,000 GALLONS

ONE 15-BARGE TOW

EQUIVALENT UNITS

1,750 TON 58,333 BUSHELS 1,555,000 GALLONS

ONE BARGE

CARGO CAPACITY

COMPARE ...


AMENDED AND RESTATED BYLAWS OF DAIRY LAB SERVICES, INC. ARTICLE I: MEMBERSHIP SECTION I. ELIGIBILITY. All producers of agricultural products (individuals, firms, partnerships, corporations, or associations) shall be eligible to become voting members of this corporation. In every case following the adoption of these Bylaws, any producer becomes a member when the following three conditions have been met: A. The producer has on file a valid membership agreement with the corporation. B. The producer has purchased products or services from the corporation. C. The producer receives written notification of membership and a copy of these Bylaws. No producer shall hold more than one membership. Employees of this corporation or its service affiliates shall be eligible for membership, if they meet the criteria for membership, but no employee of this corporation or its service affiliates shall be eligible to serve as delegate or director. SECTION II. TRANSFERABILITY. Membership shall not be transferable. SECTION III. TERMINATION. Membership in this cooperation shall terminate if any of the following events occur: A. The member dies. B. The member ceases to be an agricultural producer. C. The member has become ineligible for membership. D. The member has failed to purchase products or services for a period of at least 120 consecutive days. E. The Board of Directors or its authorized representative finds that the member has violated any Bylaw, policy, or procedure of the corporation. SECTION IV. DISCIPLINARY PROCEDURES. Disciplinary procedures in those matters not covered in any way by the NCDHIP Rules (Article IX) shall be administered according to policies determined by the board of directors. Disciplinary procedures in those matters covered by Article IX shall be dealt with as follows: The general manager or designee shall investigate any alleged infractions and shall utilize the following procedures if it appears an infraction has been committed. A. Identify the infraction and submit proposed sanctions in writing to the accused member by certified mail. The proposed sanctions shall be final unless the member submits a written request for appeal within 10 days of receiving the proposed sanctions. The request for appeal must be accompanied by a check in the amount of $500.00. Failure by the member to accept certified notice shall render the proposed sanctions final. B. On timely request for appeal the accused member shall select, within 30 days from the date of that request, three persons from the eleven person Hearing Panel elected by corporate members. The three persons selected shall not include anyone from the same membership region as the accused. The three person panel, within 30 days of the date of selection, will schedule and hold a hearing on the matter. Either or both may be represented by council. The panel will submit a written decision to both parties, and that decision may reaffirm, negate, or modify in any way the previous decisions. If the panel finds for the accused, the $500.00 deposit shall be returned. In the absence of appeal by either party, after a period of 15 days from the date of the written decision, the finding of the panel shall become final. C. Either party may, during the 15 day period, appeal the ruling to the corporation board of directors. The board of directors shall review only the evidence presented at the hearing, and it shall issue its determination based thereon. Neither the members of the hearing panel, the board of directors, officers, nor employees of the corporation or its service affiliates shall become personally liable for decisions rendered or put into effect as provided for in these Bylaws.

- 37 -


ARTICLE II: REGIONS AND DISTRICTS SECTION I. REGIONS. The territory of the corporation shall be divided into eleven (11) regional areas, each containing approximately one-eleventh (1/11) of the total membership. Any region that does not vary more than 25 percent in its membership from one-eleventh of the total membership shall be deemed to have the satisfied the requirements of these Bylaws. SECTION II. DISTRICTS. Each Region shall be divided into districts within the region. The geographical area of a district shall not be smaller than a county, and its boundary lines shall conform to the county lines. A district shall include 50 or more members but shall not include more than 350 members. SECTION III. INITIAL REGIONS AND DISTRICTS. The initial boundary lines of regions and districts shall be determined by procedures set forth in the plan of the merger. SECTION IV. REDISTRICTING OF REGIONS AND DISTRICTS. At the third regional meetings held subsequent to the merger the delegates in each region shall elect one member from their region as member of a redistricting committee. That committee shall, in the year of its election only, redistrict the territory and establish regions and districts as described in Sections 1 and 2 of this Article, if the committee deems such redistricting necessary and desirable. It shall utilize membership roles as of the most recently concluded calendar year. The report of that committee shall be filed with the Secretary at least 90 days prior to the next district meetings, and in the absence of fraud and/or gross arbitrary action the report of the committee shall be final. If two board members are in the same region upon redistricting, the new regions will have an election to elect new board members. No member of the Board of Directors shall be a member of the redistricting committee. SECTION V. VOTING RIGHTS. Each member shall have voting rights only in the district in which the memberâ&#x20AC;&#x2122;s principle agricultural operation is located. Questions of assignment to districts shall be resolved by the Board of Directors.

ARTICLE III. MEETINGS SECTION I. DISTRICT MEETINGS. A. Members of each district shall hold an Annual District Meeting, at a time and place set by the Board of Directors. Notice of the Annual District Meetings, and any Special District Meetings, shall be mailed to each member in the district not less that fifteen (15) days prior to the meetings, or they may be published in the regular publication of this corporation and sent to the membership not less than 15 days prior to the first district meeting. B. More than one district may be combined to hear reports, but each district must meet separately to elect delegates. C. Each district meeting shall be conducted by a chairperson in which the district is located, or a designate. D. A quorum shall consist of 10% of the members eligible to vote in the district, not to exceed 50. E. Delegates and their responsibilities. 1. Delegates shall be elected by the members at each Annual District Meeting. There shall be one delegate for each 50 members or a major fraction thereof. 2. Alternates shall be elected to serve if the delegate is unable to serve. There shall be one Alternate for each three delegates with a minimum of one Alternate per district. The qualifications for an Alternate shall be the same as those for delegate. 3. Delegates and Alternates shall serve for one year, or until the next Annual District Meeting, whichever comes first. 4. A delegate must be a member eligible to vote in the district in which elected. A delegate who loses eligibility shall cease to be a delegate and will be replaced by the elected Alternate. In the event no eligible Alternate is available, members in the district may meet to name replacements. 5. Delegates shall keep informed on the affairs of the corporation and shall serve as a communication link with the members of the district. 6. At their respective regional meetings, the delegates shall elect the members of the redistricting committee and the Hearing Panel. There shall be one committee member and one panel member from each region. The term of office shall be three years for redistricting committee members and one year for hearing panel members. 7. At their respective regional meetings, the delegates shall elect the board of directors. 8. A delegate shall have one vote on each question.

- 38 -


9. Delegates shall vote in place of and for members on all questions that require membership approval at special, regional, and annual meetings of the corporation. Voting at district meetings shall be done by the membership of the district. SECTION II. REGIONAL MEETINGS. The delegates from each region shall meet after the district meetings to elect a hearing panel member. Every third year they shall also elect a director and a redistricting committee member. All elections shall be by ballot and shall require a majority of ballots cast. If more than one ballot is required to reach a majority, the succeeding ballots shall be limited to the two candidates who received the highest number of votes on the previous ballot. A majority of the delegates elected from a region shall constitute a quorum. Attendance by and Alternate when a delegate is absent shall be counted as attendance of a delegate for purposes of determining a quorum. Regional meetings may be held in conjunction with the annual meeting of the corporation, if the board of directors deems it appropriate to do so. SECTION III. ANNUAL MEETINGS OF THE CORPORATION. Only delegates duly elected at District Meetings shall be eligible to vote at the Annual Meeting or any special Meeting of this corporation. In any case where the delegate is absent, the Alternate must vote instead. A. The Annual Meeting shall be held not later than 180 days after the end of the fiscal year. The time and place of the annual meeting shall be set by the board of directors. More than one annual meeting may be held if the board of directors deems it appropriate to do so. B. Written notice of the annual meeting shall be prepared by the secretary and mailed to the last known post office address of each delegate and alternate not less than 15 days prior to the date of meeting. In lieu of mailed notice the notice may be published in the corporations newsletter not less than 15 days prior to the meeting date. Failure of any delegate or Alternate to receive the notice shall not invalidate any action, which may be taken by delegates at the meeting. C. Attendance of at least a majority of the total voting delegates shall constitute a quorum of any annual or special meeting. Attendance of an Alternate when the delegate is absent shall be counted as attendance of the delegate for purposes of determining a quorum. In the event a delegate quorum is not present, matters before the delegates will be decided by a majority vote of delegates present. SECTION IV. SPECIAL MEETINGS. A special meeting of a district, a region, or the corporation may be called by the board of directors or the president. Special meetings may be held at multiple locations and times but yet be considered a single meeting, when the Board of Directors deems it appropriate to do so. A special meeting of a district, region, or corporation shall be called upon receipt of a written petition signed by 20% of the voting constituency of the district, the region, or the corporation. The voting constituency of a district is the members of record; the voting constituency of a region is the delegates from that region; and the voting constituency of the corporation is the delegate body of the corporation. Notice of time, place, and the purpose shall be in accord with the provisions for an annual meeting. No business shall be considered at a special meeting expect as stated in the notice of the meeting. SECTION V. VOTING BY PROXY. There shall be no voting by proxy at any district, regional, annual, or special meeting.

ARTICLE IV: DIRECTORS SECTION I. QUALIFICIATIONS. Except for the first board of directors as specified in the plan of merger, the board of directors shall consist of eleven (11) directors, one elected from each region at the annual regional meeting. The term of office shall be 3 years. At the first election of regional directors, regions 1, 4, 7, and 10 shall each elect a director for a three year term. Regions 2, 5, 8, and 11 shall elect a director for a two year term. Regions 3, 6, and 9 shall elect a director for a one year term. Thereafter all terms shall be for three years. A. Only members in good standing shall be eligible to serve as directors. If a delegate is elected as director, that person loses delegate status and is replaced by an Alternate. B. No person shall be eligible to serve as director whose spouse, sibling, offspring, or parent is employed by the corporation or one of its service affiliates. C. No individual may serve more than four consecutive three year terms as director. There shall be no limit to the total number of terms or years that individual may serve as director, so long as consecutive term requirement has been met. D. A director must be a member within the region where he or she serves as director.

SECTION II. ADDITIONAL DIRECTORS. If the territory served by this corporation is enlarged by consolidation, merger, acquisition, or other means, these Bylaws may be amended to include additional

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regions and directors. In the absence of such an amendment, the redistricting committee will reorganize existing regions to comply with these bylaws. SECTION III. REMOVAL OF DIRECTORS. A director may be removed for cause by a majority vote of the delegates from the region which the director represents at any annual or special meeting of the region. The resulting vacancy shall be filled by election with the delegates of the region voting. Any director who becomes ineligible to be a member shall cease to be a director at the same time. SECTION IV. FILLING VACANCIES. Except for the first board of directors, any vacancy on the board of directors shall be filled by appointment by the board of directors. Candidates for appointment shall be limited to elected delegates from the region in which the vacancy occurs. Duration of the appointment shall be until the next annual or special meeting of the region, at which time the delegates from the region shall elect a director. When a vacancy leaves a term of office incomplete, the election shall be for the remainder of the unfulfilled term only. SECTION V. MEETINGS OF DIRECTORS. The board of directors shall meet as follows: A. The annual meeting of the board of directors may be held immediately following the Annual Meeting of the corporation without further notice, but it must in all cases be held not later than ten days after the annual meeting. B. The board of directors shall meet from time to time as deemed necessary by the board of directors. Meeting for purposes of this bylaw is defined as a physical gathering of the directors at a specific geographical location, or simultaneous communication between the directors without gathering at a specific geographical location, so long as the other requirements for meeting are adhered to. C. The president may call additional meetings at any time and shall do so upon request by a majority of the directors. SECTION VI. NOTICE OF MEETING. Advance notice of all regularly scheduled directors meetings shall be mailed to each director not less than ten days prior to the meeting date, or a meeting may be held on written waiver signed by all of the directors. SECTION VII. QUORUM. A majority of the directors shall constitute a quorum at any and all board meetings, but a lesser number may adjourn to another time upon giving notice to the absent directors of the time and place of the adjourned meeting. Matters before the board shall be decided by a majority vote of the directors present. SECTION VIII. ACTION WITHOUT MEETING. Any action required or permitted by Articles of Incorporation, Bylaws, or statute may be taken by the board of directors, providing a consent in writing, setting forth the action is signed by all directors entitled to vote on such action. SECTION IX. COMPENSATION. Directors shall not receive any salary for their services, but the board of directors may authorize a fixed sum for the time actually spent on business when approved by the board. Directors shall also be reimbursed for expenses necessarily and actually incurred while on business authorized by the board. All compensation and expense reimbursement shall be in accord with applicable statues. SECTION X. EXECUTIVE COMMITTEE. The board of directors may designate 4 or more directors to serve as an executive committee. The executive committee shall have only those powers permitted by law and expressly delegated to it by the board.

ARTICLE V: OFFICERS SECTION I. ELECTION. The directors, at their annual meeting, shall elect a president, a vice president, a secretary, and a treasurer. The offices of secretary and treasurer may be assigned to one individual at the discretion of the board. Only the office of treasurer may be held by a person who is not a director, if the board deems it appropriate. The board may set compensation for officers who are also directors. SECTION II. DUTIES OF THE PRESIDENT. The president shall preside over all meetings of the corporation and the board of directors, perform all duties normally assigned to a presiding officer, and discharge other duties as may be prescribed by Bylaw or by the board of directors.

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SECTION III. DUTIES OF THE VICE PRESIDENT. In the absence of the president, the vice president shall perform the duties of the president. SECTION IV. DUTIES OF THE SECRETARY. The secretary shall record all votes and keep minutes of all meetings, have general charge of the books and records of the corporation, sign necessary papers for the corporation, and keep other records authorized by the board of directors of these Bylaws. The board may delegate a portion of the duties to an employee of the corporation. SECTION V. DUTIES OF THE TREASURER. The treasurer shall perform those duties with respect to finances which are prescribed by the board of directors. The board may delegate a portion of the duties to an employee of the corporation. SECTION VI. REMOVAL OF OFFICERS. The board of directors may remove from office any officer when it deems the best interest of the corporation is best served thereby.

ARTICLE VI: DUTIES OF THE BOARD OF DIRECTORS SECTION I. GENERAL MANAGER. The board may select, employ and fix the compensation of a general manager. The board is also empowered to discharge the general manager. SECTION II. BONDS AND INSURANCE. The board of directors shall require all officers, agents and employees of this corporation, who are responsible for any of its funds or property, to give bonds. The cost of said bonds shall be paid by the corporation. The board shall provide for insurance of this corporationâ&#x20AC;&#x2122;s property, or property which may be used in the possession of the corporation. In addition, the board shall provide for insurance covering liability for accidents to all employees and the public. SECTION III. FINANCIAL ACCOUNTABILITY. The board of directors shall install and maintain an adequate system of accounts and records. At least once each year the financial records of the corporation shall be audited and a report of the audit shall be made to the members at the annual meeting of the members. SECTION IV. DEPOSITORIES. The board of directors shall select the depository or depositories for the corporation and shall designate those persons who have authority to sign checks and other instruments.

ARTICLE VII: FISCAL YEAR The fiscal year of this corporation shall begin the first day of January and end the last day of December.

ARTICLE VIII: INDEMNIFICATION Each director, officer, agent, or employee of the corporation, now or hereafter serving as such, shall be indemnified by the corporation to the fullest extent permitted by the laws of the State of Iowa. Such indemnification may include, but not necessarily be limited to, all claims and liabilities including reasonable settlement to which such person has or shall become subject by reason of serving or having served in such capacity, or by any reasons of any action alleged to have been taken, omitted, or neglected by such person shall be indemnified against, or be reimbursed for any expense incurred in connection with, any claim, or liability arising out of the personâ&#x20AC;&#x2122;s own willful misconduct or gross negligence. The board of directors may purchase, at its discretion, insurance to provide for such indemnification.

ARTICLE IX: INCLUSION The current version of the National Cooperative Dairy Herd Improvement Program Rules (effective January 1, 1989) shall be considered an integral part of these Bylaws. Any changes in these rules or standards, including change of title, shall be considered integral to these Bylaws. No formal action to amend Bylaws shall be required.

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ARTICLE X: FIELD SERVICE AFFILIATES Any local association providing field services at the time these Bylaws become effective shall be eligible to continue as a service provider, providing all of the following conditions are met. A. The association must execute a written contract with this corporation, and it must adhere to the terms of that contract. B. The association must meet or exceed all standards set by this corporation, NDHIA, NCDHIP, applicable statues, or other regulatory agencies. C. The association may not contravene member’s rights and obligations under these Bylaws. D. This corporation shall not stand responsible for the operations or actions of the local association. It shall determine only whether the local association meets the requirements to serve as field service provider.

. Combinations or mergers of local associations are considered continuing local associations in the context of these Bylaws. The corporation may authorize, by written contract, other legal entities to provide services. Any such authorization would be at the sole discretion of the Board of Directors, and it must be deemed to be in the best interests of the corporation.

ARTICLE XI: LIMITS OF LIABILITY The corporation itself provides a range of services to members or clients directly or through its Field Service Affiliates. It also engages or facilitates on behalf of its members or clients additional services procured from agencies external to the corporation. Where choice of that agency external to the corporation rests with the member or client, the corporation cannot be held liable for the acts, errors, or omissions of that external agency. This bylaw provision does not abridge in any way whatsoever the member’s or client’s right to seek satisfaction or redress from the external agency, nor does it preclude the corporation from rendering assistance to the member or client where it is feasible to do so.

ARTICLE XII: AMENDMENT OF BYLAWS These Bylaws may be amended by majority vote of the delegates assembled at an annual meeting or special meeting of the corporation, provided the proposed amendment has been adopted by resolution of the board of directors and such amendment or a summary thereof is published with the notice of meeting.

ARTICLE XIII: EFFECTIVE DATE The effective date of these Amended and Restated Bylaws shall be March 25, 2011. These Amended and Restated Bylaws supersede the original Bylaws of the Corporation and all amendments thereto.

A Publication of Dairy Lab Services, Inc.

- 42 -


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Profile for The Dubuque Advertiser

Dairy Lab Services 2019 Annual Report  

Founded in 1978 and owned by approximately 1100 dairy producers scattered across Iowa, Illinois, Wisconsin and Minnesota. Dairy Lab Services...

Dairy Lab Services 2019 Annual Report  

Founded in 1978 and owned by approximately 1100 dairy producers scattered across Iowa, Illinois, Wisconsin and Minnesota. Dairy Lab Services...