KDDC Annual Report 2014

Page 1


KDDC Annual Report w w w. k y d a i r y. o r g

Milk Matters Annual Report Featuring KDDC Sponsors See inside

Supported by

Don’t Forget the Young Dairy Producer Conference & KY Dairy Partners Annual Meeting View the agenda on page 3

2013 KDDC Year in Review Kentucky’s dairy industry is constantly transitioning and 2013 ushered in changes in several areas. Continental Milk Producers, Inc. began marketing KY producer milk and U.C. Milk Co., Madisonville, closed its doors after 86 years of business. Saputo, Inc. a Montreal based dairy processor began procuring milk after having purchased the Morningstar-Murray milk processing plant in late 2012. The London plant, owned and operated by Grupo LALA, a Mexican based dairy company, began procuring independent milk in KY during 2013. The Kentucky Department of Agriculture rolled out a new brand, “Udderly Kentucky Milk”. Processed and bottled at the Prairie Farms, Inc. plant in Somerset and offered for retail at Walmart stores across the state. This KY only produced product guarantees a return of $0.07/gallon or $0.84/cwt. to producers whose milk is processed at the plant. Other marketing happenings saw Chaney’s Dairy milk being bottled and offered in Bowling Green Kroger stores along with 11 Houchens stores in the area. The Southeast Milk Antitrust Lawsuit parties came to a settlement with the biggest payout to dairy farmers in Federal Milk Marketing Orders 5 and 7 in dairy’s history. Although payments will continue for three more years, the Class Action suit was finalized in 2013. Mailbox milk prices have been very good over the course of 2013 averaging nearly $21.00/cwt in Marketing Orders 5 and 7. However, even with nearly record milk prices, feed costs have eaten into profit margins. As corn prices declined some in the waning months of 2013, protein prices held firm not providing much relief to dairy farmers. Even so, the first months of 2014 are shaping up for producers to capture some much needed relief. Record cull cow prices and milk exports are helping keep domestic supply in line with demand. The KDDC staff has been working hard on many fronts throughout the year to keep KY dairy farmers informed and up to speed on the happenings. The programs offered by KDDC, especially the MILK Program, paid out larger premiums than ever before in 2013. Not only that, when we look at the impact of the program since inception, it has exceeded even our best expectations. The Dairy Consultant and MILK Program are highlighted in the next paragraphs. Meetings/Dairy Promotions/KDDC Influence The KDDC regional dairy consultants, (DC) put in a lot of hours and logged many miles as they fulfilled their assigned duties throughout 2013. We also saw Northern KY Dairy Consultant, Willy Campbell say goodbye as he started a new job in October in his home county. The information

below comes from weekly reports provided by KDDC’s DC of farm visits, meetings attended, promotion events held and new program signees. • The DCs made 1,919 total dairy farms visits in 2013. Every dairy farm was visited, although producers were not available on every visit. • Dairy Meetings: 128 educational meetings were cumulatively attended by the DCs. • Dairy Promotions: 93 events across the state were attended including several where KY Kate was exhibited. More than 28,000 total attendees were at these events. • Nutrient Management and Water Quality meetings and the Floyd’s Fork TDL Meetings were attended with KDDC providing input to the KY Ag Water Quality Livestock Committee. • The KDDC Young Dairy Producers Conference and the KY Dairy Partners were held in Bowling Green, KY with over 300 people in attendance. The WI Dairy tour had 65 total attendees. • KDDC was invited and attended the National Dairy Leaders Coalition during the Professional Dairy Producers of Wisconsin Annual Business Conference. The KDDC MILK Program: The information below was gleaned from the MILK Program records accumulated since 2007. • Enrolled 28 percent of all dairy farmers in the state. (216/744 as of Dec. 2013) • Over 48 percent of all milk produced in KY annually is represented in the program. • More than 7,025 tanker loads (50,000 lbs. each) or over 351,267,216 lbs. of milk over base production was generated by MILK Program farmers since 2007. • Approximately $7 million in transportation cost savings to milk handlers by producing an additional 7,025 tanker loads of milk locally. • Increased income of more than $66. 9 million to producers for additional milk over base. • Distributed over $4.1 million in total premiums directly to participating KY dairy farmers. • Instrumental in lowering SCC of KY produced milk to 251,000 ml/1,000 by utilizing regional dairy consultants in collaboration with University of KY Dairy Extension. The KDDC MILK Program had a huge economic impact on dairy farmers, their communities and the state. When combining the $4.1 million Cont’d on page 2

KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund

President’s Corner

2013 KDDC Board of Directors & Staff

Bob Klingenfus


Executive Committee President: Bob Klingenfus Vice President: Bill Crist, Sr. Sec./Treasurer: Tom Hastings EC Member: Jim Sidebottom EC Member: Tony Cowherd

Board of Directors District 1: Ellie Waggoner 270.210.3742 District 2: Jimmy Wright 270.726.7079 District 3: Don Kinslow 270.646.0086 District 4: William Crist, Sr. 270.590.3185 District 5: Tony Cowherd 270.469.0398 District 6: Steve Young 270.688.1364 District 7: Larry Baxter 859.612.2738 District 8: Charlie Edgington 859.229.0442 District 9: Robert List 606.748.2944 District 10: Bob Klingenfus 502.817.3165 District 11: Bill Mattingly 270.699.1701 District 12: Larry Embry 270.259.6903 Equipment: Eric Risser 423.386.7753 Milk Haulers: Mike Owen 270.392.1908 Genetics: Dan Johnson 502.905.8221 Feed: Tom Hastings 270.748.9652 Nutrition: Dr. Ron Wendlandt 502.839.4222 Dairy Co-op: Veterinary: Dr. Charles Townsend 270.726.4041 Finance: Joel Oney 330.464.1804 Former Pres.: Jim Sidebottom 270.932.1517

hen I look back at the direction Kentucky’s dairy industry was headed when KDDC was first started I feel proud. Even though we are fewer in numbers we produce more milk, more per cow, and a better quality of milk. While everything may not be exactly like we would hope for I believe everyone that attends our meetings will quickly see the passion everyone has for dairy farming. Over the past seven years the board members, producers, industry, and advisors have all worked hard as a team. KDDC has tried to be a one stop shop for dairy producers. We all know that none of us can be an expert in everything. Working as a team we have been able to address producers’ issues or direct them to individuals that can help them. Our consultants have played a big role and deserve a lot of credit in this. We have developed working relationships with numerous dairy groups in other states and regions. This has given us a perspective of their problems and them of ours. We have shared ideals for solutions and this has allowed us to sometimes form alliances to reach a common goal. Hopefully many of you were able to benefit from KDDC in the extra dollars the Milk Program brought to our dairy communities. Through the efforts of KDDC we as dairy farmers have gained the ear of Legislators and our regulatory agencies. You have been

represented in numerous issues affecting you such as animal welfare/care, water quality, nutrient management, animal ID, and Federal Milk Orders, just to name a few. We have developed relationships with other Ag Commodity groups such as Kentucky Farm Bureau, Cattlemen, Poultry, and Swine, Corn, and Soybean growers. We worked closely with Government agencies such as NRCS, the Division of Water, Milk Regulatory, State Veterinarian Office, Federal Milk Market Administrators, Kentucky Dept. of Agriculture, EKU, WKU, Murray State, KSU, Morehead State and the University of Kentucky, and the Governor’s Office of Ag Policy. This will be my last newsletter as President of KDDC. I have been involved with KDDC since its inception in 2005. It has been a lot of work, but I would not trade the experience for anything. It has been an education, and given me an opportunity to meet many great people. Without a doubt I need to recognize and thank my wife for all the extra hours of work she did so that I might attend meetings. Thanks again for the opportunity and support.

Cont’d from page 1

Employee & Consultants Executive Director: Maury Cox 859.516.1129 DC-Central: Teri Atkins 859.516.1619 DC-Western: Dave Roberts 859.516.1409 DC-Southern: Meredith Scales 859.516.1966 DC-Northern: Jennifer Hickerson 859.516.2458

KDDC 176 Pasadena Drive Lexington, KY 40503 www.kydairy.org KY Milk Matters produced by Carey Brown

in quality premiums with the $66.9 million dollars from additional milk produced by program participants, the total is over $71 million to KY dairy farmers. Using KY’s 5.8 percent marginal tax rate the $71 million would then generate over $4.1 million in new tax revenues. This returned nearly 100 percent on the $2.1 million originally invested by the KADF. The milk handlers saved over 3.5 times as much in transportation cost. Most dairy farmers usually do business with folks in their local towns creating an economic multiplying effect in those communities. Taken from the U.S. Markets and Outlook, May 2004 publication by Robert Cryan, an economic multiplier is a measure of the larger effect that a change in economic activity (like a factory closing or a new farm) has on the regional economy. According to the USDA/NASS; Bureau of Economic Analysis the economic output multiplier for dairy in KY is 2.5617. Using this output multiplier the total economic impact of the new or additional pounds of milk generated by the KDDC MILK Program would be $182,125,911.00. We think 2013 was another banner year for KDDC Programs. This organization is making huge strides in recognizing DAIRY as a strong player in the commodity markets and returning major dollars for money invested. We thank the KADF, all KY milk handlers, our allied industry supporters, professional advisors and the dairy farm families that have taken the time and energy to invest in KY’s dairy future through the KDDC. We look forward to another successful year in 2014.

KDDC Annual Report • Page 2

KY Dairy Partners Annual Meeting University Plaza Conference Center Holiday Inn Hotel - Bowling Green, KY

It’s not too late to register for the meeting or trade show. Contact Eunice at 502-545-0809

Tuesday, February 25 - Young Dairy Producer Initiative 9:00 CST 9:45-10:00 10:00 10:30 12:00 1:00 1:30 2:00 3:00 3:30

Registration Welcome Preparing for a Visit to the Banker - Gary Sipiorski Farm Transitions - Kevin Ferguson Lunch and Speaker Dan Clark Dairy Dozen - Gary Sipiorski Sustainable Dairy Manual Strategies for Remaining Competitive as a Small Dairy Ice Cream Break Udder Health and Udder Dissection - Peter Sook

Tuesday, February 25 - SUDIA/ADA Meeting 10:00 1:00 2:00

SUDIA/ADA Budget Committee Meeting SUDIA/ADA New Director Meeting SUDIA/ADA Board Meeting

Tuesday, February 25 - YDP/SUDIA 2:00-4:30 5:00-8:00 6:00-7:00

Exhibitors Set Up Exhibits Trade Show Open Dinner - Sponsored by KDDC and SUDIA/ADA of Kentucky

Wednesday, February 26 - KY Dairy Partners Meeting 8:00 8:45 9:00 9:35 10:40 11:45-1:30 1:30 2:00 2:30 3:20 3:30

Registration Opens & View Exhibits Welcome SUDIA/ADA Annual Meeting Getting Calves Started Off Right - Dr. Sam Leadley, Ph.D., P.A.C. Ensuring Cows Eat the Right Ration - Trevor DeVries Lunch and KDDC Annual Business Meeting - Trade Show Exhibits Nate Jensen, DMI Director Producer Relations Using Knowledge of Feeding Behavior to Improve Feed Bunk Management - Trevor DeVries Farmer Panel - Raising Milk Making Forages Wrap up and Door Prizes Adjourn

Registration $30/person at the door. No registration fee for Kentucky dairy producers - limit 2 per dairy permit (more than 2 per permit may attend but must pay $30 for each additional person)

We give Industry Experts In: Mulch • Compost • Animal Bedding Fuels • Fuel Pellets • Renewable Energy

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cottage cheese, yogurt, dips, half & half and whipping cream are among the best in the world. It’s proven! Each placed first, second KVMA or third at the 2013 World PO Box 40604 Dairy Expo — the numberFrankfort, 40604 expo in one KY dairy-judging (800) North 552-5862 America.

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The health and productivity of animals is built on proper knowledge and nutrition. Helping animals to reproduce, grow and be more productive is our driving force through a high quality vitamin and mineral premix. At KNS we take pride in being attractive to our customers’ needs. We strive to consistently provide quality service to each and every customer. If you are a current client of KNS we would like to thank you for your condence in our products and services and look forward to continuing to serve you. If you would like for a KNS representative to call on you about what we are able to oϋer your dairy operations please give us a call at 1-800-444-3314 or go to our web page at www.kynutri.com and go to the Contact Us link to e-mail us your information. Kentucky Nutrition Service

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Big enough to cover Kentucky. Small enough to fit in your pocket.

Kentucky Farm Bureau is taking a leadership role in using mobile technology to help keep you informed. Our mobile app (now available on Androids, iPhones and iPads) provides members and non-members alike with access to the latest agricultural industry news, essential public affairs information, action alerts, and daily market updates. The app also offers important details about member benefits and helps you connect with Kentucky Farm Bureau on social media.


Download the app by scanning the QR Code or visit kyfb.com/app

Providing the best quality, most efficient, and most competitive service in the Southwest. A cooperative managed by dairymen dedicated to maximizing milk checks and offering the highest return on equity to producers. Contact us at: 888.828.7827 217 Baird Lane • Windthorse, TX 76389 www.lonestarmilk.net

Animal Health Management Services Dr. & Mrs. Charles G. Townsend, DVM


Thirty-five years of past service to Kentucky’s Dairy Farm Families.... A lifetime of commitment to the future of Kentucky’s Dairy Industry

We are proud to give our support to KDDC

Locations: Bowling Green, Columbia, Edmonton, Eubank, Danville, Glasgow, Hardinsburg, Lebanon & London


We give

FARMERS CREDIT. Farm Credit Mid-America offers loans, leases and crop insurance designed to help rural residents build, farms grow and businesses expand.


To find an office near you go to e-farmcredit.com Farm Credit is an equal opportunity provider

Southeast Area Council IDEXX testing solutions 10411 Cogdill Road support the health and success Knoxville, TN 37932-3353 of your dairy operation, every step of the way. BETA-LACTAM





For more information and to order SNAP® milk residue and contaminant tests, contact your IDEXX representative at 1-800-321-0207 or visit idexx.com/dairy.




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For more information and to order SNAP® milk residue and contaminant tests, contact your IDEXX representative at 1-800-321-0207 or visit idexx.com/dairy. IDEXX testing solutions support the health and success of your dairy operation, every step of the way. BETA-LACTAM








© 2013 IDEXX Laboratories, Inc. All rights reserved. • 100850-01 All ®/ TM marks are owned by IDEXX Laboratories, Inc. or its affiliates in the United States and/or other countries. The IDEXX Privacy Policy is available at idexx.com.

Mammoth Cave Dairy Auction Selling Every Tuesday at Noon Buyers & Sellers are Welcomed!

PO Box 129 Smiths Grove, KY 42171


r e d i v o r P y r i a D Your Full Service now, whenCo-op every is penny The Dairy Department Right at Valley Farmers a full counts, service dairy provider with services ranging isn’t it time DHIA? a 24-Hour Emergency from building and design to waste management systemsyou andtried also providing DHIA Records be one of the rst things you consider when have to watch every build pennyfacilities. with Service. Valleyshould Farmers Co-op is fialso a general contractor andyou is involved in design your dairy cows. DHIA gives you more for your money. Contrary to those lame excuses you Valley Farmers Co-op has been in ag business over 60 years. sometimes hear about DHIA costing too much, well they’re just not true. DHIA Management Records can costValley as little Farmers as 1% of your total cost producing Co-op is aofdealer for milk. many quality dairy equipment lines including:

Without management information at your fingertips, how can you tell which cows are your best producers? Which cows are spreading formation you need to feed, breed and cull your herd. DHIA helps your bottom line. Isn’t it about time you gave us a try? Our organization has the emphasis on service, with each customer’s individual needs as or first priority. We offer a variety of dairy management packages designed to fil the needs of all dairy producers. Mid-South is proud to support Kentucky Dairy Development Council. We salute these dairy workingcall together to improveorthe dairy industry. Contact us for all For producers 24 hour service 270-438-3928 800-467-2150 your Dairy Record Management and DHIA needs! Pete Graber, Russellville, KY 417-831-6931 1551 N. National Ave. Spring MO 65803 David Newlin, Routeeld, Supply & IPS Sales • Lavern 800-756-3442 Martin, In Service Maintenance 417-831-6230 mwspoon@mid-southdairy.com

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901 Columbia Hwy. Greensburg, KY 42743

Central Farmer’s Supply of 270-932-5101 Green County

Stuart Ditsler Louisville, KY

901 Columbia Hwy. Greensburg, KY 42743


Clark Dairy Supply Bardstown, KY

Clark Dairy Supply


Cornerstone Veterinary Clinic Drs. John & Beth Tabor, DVM’s

Cornerstone621 Veterinary Clinic Terry Wilcutt Hwy. Drs. John & BethRussellville, Tabor, DVM’s

502-348-6774 Bardstown, KY


621 Terry Wilcutt Hwy. Russellville, KY




Logan County Animal Clinic, LLC Large & Small Animal

Logan County Medicine &Animal Surgery Clinic, LLC Large & Small Animal Medicine & Surgery

Jon M. Todd, DVM • David Woodall, DVM Jon M. Todd, • David Woodall, DVM Caleb Bohrer, DVMDVM • Ellie Gripshover, DVM Caleb Bohrer, DVM • Ellie Gripshover, DVM

KOETTER & SMITH, INC. KDDC would like to PA R T N E R I N G T O D AY F O R A G R E E N E R T O M O R R O W ™

thank all of our sponsors for your help and support over the past year!

Jeff Roll


285 Hopkinsville Road 285 Hopkinsville Road Russellville, KY 42276 Russellville, KY 42276 Office: (270) 726-3511

Office: (270) 726-3511 www.loganvet.com www.loganvet.com


8991 Louis Smith Road Borden, Indiana 47106

office: (812) 903-4038 fax: (812) 903-4035 mobile: (812) 431-1579 jroll@koettersmith.com

Double DoubleSSLiquid LiquidFeed FeedServices, Services,Inc. Inc.

KYCowherd Women in Agriculture Equipment

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PO Summersville Box 4409 1483 Old Rd. Lexington, KY 40544 Campbellsville, KY 42718

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877-266-8823 270-465-2679 www.kywomeninag.com 270-469-0398

Chaney’s Chaney’sDairy DairyBarn Barn Carl Carl && Deborah Deborah Chaney Chaney Nashville “Give9191 Your Cows The Advantage...” 9191 Nashville Road Road Bowling Green, KY Bowling Green, KY 42101 42101

Proud Proudof ofour ourdairy dairy heritage and excited about heritage and excited aboutour ourdairy dairyfuture. future.

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800-928-FEED 800-928-FEED

dvantag AHOOF e CARE

Hartland Animal Hospital

Cowherd Equipment 1483 Old Summersville Rd. Specializing in functional & Campbellsville, KY 42718 therapeutic “hoof trimming”

Hydraulic Shane McCoy Upright270-465-2679 Chute 615.210.9246 cow comfort cowhoofhealth@gmail.com


A hoof trimmer that cares about your cow’s hoof health and over all well being.

KY Holstein Cattle Club, Inc.

HartlandDr.Animal Hospital Kevin Nance 6425 South Jackson Hwy. Horse 42749 Dr.Cave, Kevin KY Nance 6425 South Jackson Hwy. Horse Cave, KY 42749 270-528-6082

270-528-6082 Thomas Veterinary Services

KDDC would like to 156 Vincent Street Smiths Grove, KY 42171 thank all of our sponsors President: Anthony “Pearl” Hamlin 859-613-8511 Dr. Roger C. Thomas for your help andDr.support Travis England, Associate Vet. 859-333-7238 • janeransdell@yahoo.com over the past year! 270-563-0011 1178 Cummins Ferry Rd. Salvisa, KY 40372

llville, ucky Justin Owen 270-392-1909

Mike Owen 270-392-1908

Russellville, Kentucky

Feed Dairy Supplies Minerals Seed Minerals Pet Feed Pet Feed Seed Cleaning Pet Supplies Pet Supplies And More! Dairy Supplies Seed 270-475-9999 Seed Cleaning fax 270-475-9187 Feed

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Your Genetics, Trusted. Reproduction Valued. and Udder Health Suppported. Resource

Animal Safety Contact: Solutions David McGlothlin, Richmond, KY 859-544-3944


Stuart James, Anna, IL 618-697-1316 1-800-621-8829 Todd Riggs, District Manager www.neogen.com 812-483-7846

Visit www.afimilk.com for more information

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* Because of factors outside of Purina Animal Nutrition LLC’s control, individual results to be obtained, including but not limited to: financial performance, animal condition, health or performance cannot be predicted or guaranteed by Purina Animal Nutrition LLC. ©2014. Purina Animal Nutrition LLC. AMPLI-Calf is a registered trademark of Purina Animal Nutrition LLC. Purina and the Checkerboard are used by Purina Animal Nutrition LLC, under license only in the United States and its territories (including Puerto Rico).

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DAIRY PRODUCTS ASSOCIATION OF KENTUCKY David Klee, Executive Director 502-867-7843

Proud supporters of the Kentucky Dairy Development Council & Kentucky’s Dairy Farm Families

Bel-Kaukauna Bluegrass Dairy & Foods Dean Foods Flavorich Louis Trauth Dairy Southern Belle Dairy Turner Dairy UC Milk


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rtment of A a p e D gr cky

For more information contact KDA: Eunice Schlappi, Dairy Marketing Specialist Eunice.Schlappi@ky.gov 502-564-4983 www.kyagr.com Photo taken at LeCows Dairy

  

Non-Profit US Postage PAID Boelte-Hall LLC Permit No 1478

176 Pasadena Drive Lexington, KY 40503 859.516.1129 ph www.kydairy.org

2014 Dairy Calendar of Events February February 22 KY Holstein Cattle Club Annual Meeting @ Noon- Harrodsburg February 25-26 Young Dairy Producer Conference - Bowling Green, KY February 25-26 KY Dairy Partners Meeting and Industry Trade Show Sloan Convention Center, Bowling Green, KY

March March 11-13 KYFarmStart Short Course, U of KY, Coldsteam Dairy

April April 4-5 Kentucky National Dairy Shows & Sales - Louisville, KY

Milk Matters KDDC Annual Report

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