Funneling milk into manufacturing Negotiations to finance a $62 million expansion of the Ovid plant began in the summer of 2008. In August, the lender, Chase Bank, “expressed a sense of urgency to close the documentation as soon as possible,” said John Dilland, MMPA’s general manager at that time. The deal was accelerated and completed just days before the collapse of Lehman Brothers and Bear Stearns, which ignited a global financial wildfire that froze credit and triggered a U.S. recession.
Michigan’s milk supply is increasing
3 4 to
%
annually
In 2012, guests line up at Choates Belly Acres in Jackson County for one of five Breakfast on the Farm events hosted by MMPA member families to connect consumers with farmers. Held in conjunction with MSU Extension and industry businesses, the events attracted between 2,000 and 3,000 people per farm. Also hosting breakfasts in 2012 are Goma Dairy, Marlette; Gingrich Meadows, Leroy; VanDrese Farms, Cornell; and Judge Dairy Farm, Shepherd.
Despite the recession, the Ovid improvements were completed on schedule in 2010. They included a new dryer capable of processing 5,000 pounds of milk per hour into a variety of value-added dairy protein products. The expansion nearly doubled the plant’s capacity and quickly proved its value. Three years after the expansion’s completion, it had already generated a 150 percent return on investment. In 2012, the Constantine plant added new cream storage and handling equipment that allowed the cooperative to more fully use its butter churning capacity. The investment proved to be another case of good timing as U.S. butter consumption reached a 40-year high in 2014. MMPA used a $100,000 grant from the Michigan Department of Agriculture and Rural Development to install an oxygen-free milk powder packaging system at Ovid in 2013. The cooperative was the first whole milk powder manufacturer in the nation to use the system. To keep pace with Michigan’s milk supply, which is currently increasing 3 to 4 percent annually, the cooperative formed a strategic alliance with Foremost Farms USA in 2014. The two cooperatives jointly invested in reverse osmosis technology installed at MMPA’s Constantine plant. The equipment concentrates three loads of milk into one by removing water and condensing milk solids. This reduces the cost of milk transportation, which helps to maximize returns for MMPA’s dairy farmerowners.
MMPA member Earl Horning explains how a milking machine works to a group of “mommy bloggers,” Michigan mothers who write on topics of nutrition and food for families. Horning’s farm was one stop on a daylong tour to give these women a better understanding of the source of the dairy products they feed their families.
60 | Celebrating 100 Years of Michigan Milk Producers Association
Making policy a priority Though the Michigan Milk Political Action Committee (MMPAC) had been supporting pro-dairy and ag candidates’ campaigns since 1977, its importance became more pronounced in the 2000s as regulatory and federal policy pressures mounted. In 2013, President Ken Nobis urged members to contribute to the MMPAC to “cut through the static” when communicating with lawmakers. “It’s not a matter of if lawmakers will make decisions impacting Michigan dairy farms. It’s a matter of when and which way they’ll vote,” he said. “The MMPAC gives us a seat at the table and gives us a chance to educate legislators about modern dairy operations and build lasting relationships. If we don’t tell our story, someone else will.”
MMPA President Ken Nobis takes Sen. Debbie Stabenow, chair of the Senate Agriculture Committee, on a tour of his farm. Dairy farmers nationwide were appreciative of the Michigan senator’s persistence in passing the 2014 Farm Bill.
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