Northeast Dairy Magazine | Q3 2021

PARTNERSHIP

PAMD Names New Executive Director

Third Quarter 2021

FRONT DESK

Ask a Board Member: Supply Chain

OPINION

Impact of Class I Price Formula

DAIRY DEBATE

DFA Blends Dairy/ Plant Alternatives

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Schedule of

EVENTS

WEDNESAY, AUGUST 18 3:00 p.m.

Registration

begin at 3:00 p.m.

Vendor Table Set Up

3:30 p.m.

NYSCM Board Mtg.

5:00-6:30 p.m.

2021 NORTHEAST DAIRY

ANNUAL CONVENTION August 18 - 20, 2021 HELD AT THE BEAUTIFUL

Chautauqua Harbor Hotel Celoron, New York

6:30-7:30 p.m.

THANK YOU TO OUR SPONSORS:

7:00-9:30 a.m.

Breakfast

8:30-10:30 a.m.

Business Session

11:30 a.m.3:45 p.m.

Webbs Candy Shop & Chautaugqua Bell Bus/ Boat Tour

11:00 a.m.

Comedy Center/ Lucille Ball Museum Self-Guided Tour

11:00 a.m.

Golf

5:00-7:00 p.m.

Speed Networking/ Cocktail Hour

7:00-9:00 p.m.

Banquet

FRIDAY, AUGUST 20 7:00-9:30 a.m.

F R I DAY BUSINESS SESSION SPONSOR

Breakfast Business Session Guest Speakers:

T H U R S D AY C O C K TA I L PA R T Y S P O N S O R THURSDAY BUSINESS SESSION SPONSOR

Comedian Tony Deyo

THURSDAY, AUGUST 19

www.thechautauquaharborhotel.com The Chautauqua Harbor Hotel is 9 acres with a beautiful 1,100 feet of lake frontage where you can relax and enjoy the perfect getaway. Bring the family and enjoy the outdoor recreation and water sports, as well as the proximity to wineries and venues like the National Comedy Center.

Cocktail Hour/

8:00-10:30 a.m.

• NYS Senator Michelle Hinchey, Chair, Agriculture Committee • Deputy Commissioner Jennifer Trodden, NYS Dept. of Agriculture and Markets

11:00 a.m.- 1:30 p.m. NDFA Board Mtg.

HOSTED BY:

11:00 a.m.-1:30 p.m.

PAMD Board Mtg.

Convention Registration, Hotel Reservations and Full Agenda can be accessed on our websites:

www.nedairyfoods.org or www.neastda.org

contents Third Quarter 2021 • Volume 4, No. 3

16

PAMD NAMES NEW EXEC. DIRECTOR

BY CAROLINE K. REFF

18

ASK A BOARD MEMBER

How Are Supply Chain Issues

Impacting the Way you do Business?

22

Impact of Proposed Changes to the Class I Price Formula

BY GARY LATTA

25

Oldest State Fair to Resume in 2021

FEATURES 26

THE BUSINESS OF DAIRY

39

Powering Through History

27

Lack of Drivers Top the List of Trucking’s Obstacles

40

Not Sure How to Benefit from Solar Energy?

NDSA Partner Can Help

FRONT DESK 01 2021 NORTHEAST DAIRY

CONVENTION AGENDA

04 PRESIDENT’S MESSAGE, NDFA

Questions Remain as Life Returns to Normal

BY DANIEL LAUSCH

05 PRESIDENT’S MESSAGE, NDSA

Importance of Supply Chain, Workers Brought to the Forefront

BY BILL ELLIOTT

06 EXECUTIVE VP MESSAGE

Business of Dairy Impacts All of our Members

BY OZZIE ORSILLO

08 LEGISLATIVE REPORT

2021 Sessions Show Agendas for Future

BY ALEX WALSH

12 ECONOMIC OUTLOOK

Milk Production Is Up Despite Inflation

BY GARY LATTA

29

BY MICHAEL DODD

42

31

What Is SLAM Technology?

32

Autonomous Vehicles: Are Others Ready to Share the Road With Them?

33

Calendar of Dairy Events

34

Will Autonomous Trucks Create a Shift in the Workforce?

34

Trucks Sold Out Until 2022

35

Solar Farms: Opportunity or Threat?

37

What Is Agrivoltaics?

Who Discovered Solar Energy?

Industries that Rely on Trucking Support DRIVE-Safe Act

38

41

What Does It Take to Qualify a New Driver?

31

BY CAROLINE K. REFF

Solar Farms in Ag Areas: A New Challenge for Land Use Planning

BY JOE LAWRENCE, MS, CCA

45

THE DEBATE ON DAIRY VERSUS PLANT-BASED ALTERNATIVES

DFA Explains Its Decision to Offer Consumers the Best of Both

47

Study Shows No Connection Between Milk Consumption and High Cholesterol

48

Social Media Basics: Learn to Market Your Brand, Build Relationships with Audience

BY KELLY GAGGIN, PH.D.

51

Shade and Energy: Solar Panels Use Shade in Grazing Pastures

Terms You Need to Know to Start Leveraging Your Business in the Digital World

BY MATTHEW FORD

MEMBER NEWS Editor’s Note on Photography Images used in this issue of Northeast Dairy were submitted by various sources and some were taken pre-pandemic, which is why many of the subjects are not wearing masks or other protective gear in the photos.

2 • Northeast Dairy Foods Association, Inc.

54

MEMBER PROFILE

58

MEMBER PROFILE

Jefferson Bulk Milk Co-op: Overcoming Decades of Obstacles to Work Together

KROHNE: Celebrating 100 Years of “the Spirit of Creativity”

BY COURTNEY KLESS

contents Third Quarter 2021 • Volume 4, No. 3

NORTHEAST DAIRY FOODS ASSOCIATION, INC. EXECUTIVE VICE PRESIDENT

James “Ozzie” Orsillo PRESIDENT

60

Member and Industry News

62

Welcome New Members

63

NDFA Co-Sponsors Virtual Dairy Day

BY ALEX WALSH

64

I Get By With a Little Help From My Friends: NDFA, NDSA Hold First Events of 2021

BY ALEX WALSH

66

67

68

VICE PRESIDENT

Kevin Ellis Cayuga Milk Ingredients

Alex Walsh

TREASURER

Randi Muzumdar HP Hood LLC

SECRETARY

Ryan Elliott Byrne Dairy

NORTHEAST DAIRY SUPPLIERS ASSOCIATION, INC. PRESIDENT

Bill Elliott Northeast Great Dane

VICE PRESIDENT

Melissa Fryer Alfa Laval

TREASURER

Ryan Osterhout KCO Resource Management

SECRETARY

Bruce Alling Double H Plastics, Inc.

NORTHEAST DAIRY MAGAZINE TEAM EXECUTIVE EDITOR

James “Ozzie” Orsillo oo@nedairyfoods.org

SALES

FDA Issues Final Ruling on Identity Standard for Yogurt

PUBLISHER/DIRECTOR OF SALES

Anne DeSantis anned@nedairymedia.com

OSHA UPDATE: Keeping Employees Safe in the Heat

70

OSHA UPDATE: Fire

Safety Is Vital in the Workplace

71

Leanne Ziemba

ASSOCIATE VICE PRESIDENT OF REGULATORY AFFAIRS

Leanne’s Kitchen: Watermelon Salad

TOOLS OF THE TRADE

Daniel Lausch Lactalis American Group

BUSINESS OPERATIONS MANAGER

Research Says Most Americans Can Consume Chocolate Milk Daily

72

Advertiser’s Index

Bill Brod billbrod@nedairymedia.com EDITOR

Caroline K. Reff creff@nedairymedia.com CONTENT DIRECTOR

Tim Hudson thudson@nedairymedia.com

Hannah Gray hannahg@nedairymedia.com Lesli Mitchell lmitchell@nedairymedia.com CONTRIBUTORS

Steve Guglielmo steveg@nedairymedia.com

Michael Dodd, Matthew Ford, Kelly Gaggin, Ph.D.; Courtney Kless and Joe Lawrence, MS, CCA

CREATIVE DIRECTOR

PRODUCED BY

Robin Barnes

GRAPHIC DESIGN

Robin Barnes Karley Harmon Renate Wood

Northeast Dairy Media

Editorial correspondence should be directed to editor@nedairymedia.com.

Advertising correspondence and materials should be sent to billbrod@nedairymedia.com.

POSTMASTER: Send address changes to lz@nedairyfoods.org.

COVER DESIGN

STAY CONNECTED

www.nedairyfoods.org www.neastda.org 427 S. MAIN ST, NORTH SYRACUSE, N.Y. 13212 315-452-MILK (6455)

Renate Wood An official magazine of the Northeast Dairy Foods Association, Inc., a nonprofit organization. This publication carries authoritative notices and articles in regard to the activities and interests of the associations. In all other respects, neither the association nor the producer of the publication, Northeast Dairy Media, is responsible for the contents thereof or the opinions of the contributors.

The entire contents are © 2021 by Northeast Dairy Media. Nothing may be reproduced in whole or in part without written permission of the publisher. The association and Northeast Dairy Media reserve the right to print portions or all of any correspondence mailed to the editors without liability on its part and no such correspondence will be returned.

Visit Northeast Dairy Foods Association online at nedairyfoods.org for current information on association programs and services, or call the association at 315-452-MILK (6455). Questions and comments may also be sent to the association at oo@nedairyfoods.org.

NED Magazine | Third Quarter 2021 • 3

Front Desk

Questions Remain as Life Begins to Return to Normal

BY DANIEL LAUSCH President, Northeast Dairy Foods Association, Inc.

I

n all likelihood, no one will want to use 2020, or even 2021, as a reliable baseline when building a budget or business plan. We will instead reference how business and life were before 2020 and the COVID-19 pandemic.

And with that, looking back at business before the pandemic will bring up a lot of questions that we are facing in the future. Like it or not, the past year-and-a-half has changed things in our industry, and we are still working on the answers.

Businesses that did not permanently close during the pandemic are re-opening, and the general public is now trying to get used to a new normal — but why does that new normal seem somewhat abnormal? Why are so many things on the shelves still missing and marked “Out of Stock?” And, why is there a “Help Wanted” sign in every window when a year ago people were desperate for work? When will we see our supply chain recover, so that our processing plants can get the items they need (e.g., ingredients, packaging, replacement parts and even wooden pallets) to keep doing business?

These are the questions that keep me up at night, yet, somehow, some way, the dairy industry continues to move at its own pace. Farmers plant seeds and grow crops to sell for cash or sell to other farmers to feed their animals, which, in turn, means our cows keep producing milk that we need to supply our dairy plants with their most important raw ingredients. Through all the obstacles of the pandemic, and what I’ll cautiously call the “post-pandemic era,” nutritious, finished dairy products are still available for consumers to purchase on the shelves.

This deserves a round of applause for everyone, at every step in the process in the dairy industry.

In some ways, I think we all thought that once the masks were off and the vaccines were administered, we would be home free. However, we’ve found that the chain reaction brings with 4 • Northeast Dairy Foods Association, Inc.

Businesses that did not permanently close during the pandemic are re-opening, and the general public is now trying to get used to a new normal — but why does that new normal seem somewhat abnormal? it another set of obstacles. But, we’re the dairy industry — the salt of the earth — and we’ll make it through. Farmers will do more with less if they have to. Processing plants will strive to produce more finished products while trying to keep costs low.

And, we as an industry, will support our supplier businesses in an effort to help them bring about a broader range of products and services to their customers. We’ll work hard to give consumers the options that they demand, while continuing to remind them — possibly through social media — that dairy is the real deal when it comes to nutrition and taste. I’m not saying it will be easy. The dairy industry has faced obstacles for as far back as the eye can see, but I’m betting there’s still a carton of milk or a few cups of yogurt in your refrigerator right now.

So, let’s set our goals from a time when things seemed “normal,” yet take the lessons from 2020 and 2021 and learn from them. Nobody ever said the business of dairy was easy, but I’m certain our membership believes the hard work we’ve put in will continue to be well worth it.

Front Desk

Pandemic, Shortages Brought the Importance of the Supply Chain and Qualified Workers to the Forefront

BY BILL ELLIOTT President, Northeast Dairy Supplier Association, Inc.

W

hen the general public thinks of the dairy industry, the first thing that comes to mind is probably the delicious part: milk, cheese, ice cream, yogurt and the like. But, as someone who represents the supplier side of our association, the first thing I think of is all the work being done behind the scenes to make sure that summer days are filled with ice cream sundaes and frosty milkshakes.

You’ll get no argument from me that delicious dairy foods tend to shine, but they don’t just magically appear on the store shelves. There are countless steps along the way. Machines need parts to make them run — and someone has to know what to do if something breaks down. Containers needs to be designed and manufactured to be secure enough to carry perishable dairy products. Power needs to be generated and new technologies developed to reduce costs and create reliable forms of renewable energy. And, of course, my personal favorite: trucking. Trucks have to be available, with a qualified driver at the wheel, to make sure that the milk is on the move quickly, safely and efficiently. Those are just some of the things that make the dairy business go ‘round.

It’s unfortunate that it took a pandemic and the shortages that came with it, as well as the current difficulties and high costs of getting the products that we need today, for people to take notice of how reliant we all are on the supply chain. It’s a safe bet to say you’ve been out somewhere lately unable to find an item you’ve always taken for granted. It’s frustrating, particularly now that we’re finally able to get out of the house and enjoy life again.

While supplies are hard to get, you might argue that employees are even more difficult to find. Almost every business I pass has a “Help Wanted” sign in the window. This has

had a significant impact on the dairy industry lately. As you will read in this issue of Northeast Dairy magazine, finding a qualified truck driver is like finding a pot of gold at the end of a rainbow. More than two-thirds of all freight in the U.S. is moved by trucks — not just dairy, but every industry — but, at least for now, trucks can’t drive themselves (although, to a certain extent, this may be the future of long haul trucking). I struggle with why, as I see companies offering training, great salaries, more flexibility and even signing bonuses to attract qualified drives. It’s too bad that a career in trucking doesn’t seem to appeal to most people anymore because it can be a great way to make a solid living, as well see our beautiful country. Still, we’re living in a “I just want to push a button” world, where manual labor is looked down upon, as well as dealing with a labor pool that lately would rather sit home and reap the benefits than go out and put in a hard day’s work.

Working in the dairy industry has never been easy, but it is rewarding. Whether you’re a farmer, a driver, a manufacturer, a supplier or scooping ice cream, you’re helping to feed our country — and what’s better than that?

Despite the negatives, I can’t help but have faith that the American spirit of “Getter Done!” will somehow surpass the problems we’ve been facing lately and prevail, just as it always has.

In closing, on behalf of the NDSA, thanks to all who attended our June Byrne Dairy plant tour and Dairy Blender and also those who golfed and ate their fill of delicious food at the Bruce W. Krupke Memorial Golf Tournament/Clambake in July. It was so good to be able to get together again, shake a few hands and see plenty of smiling faces. Enjoy the rest of the summer!

NED Magazine | Third Quarter 2021 • 5

Front Desk

The Business of Dairy Impacts All of our Members One Way or Another

BY OZZIE ORSILLO Executive Vice President, Northeast Dairy Foods Association, Inc.

H

ello readers! In this issue of Northeast Dairy magazine our feature topic is “The Business of Dairy.”

All readers enjoying this issue are somehow tied to the dairy industry, whether you are a processor, manufacturer or distributor of a delicious and nutritious dairy product or maybe you provide goods or services to those dairy processors, manufacturers and distributors. Either way, you are part of the dairy family, and we hope there’s something inside these pages just for you.

The Business of Dairy is not as clearly defined as it was 10, 20 or 30 years ago. Yes, it is true, some matters are still specific to dairy processors, such as the Federal Milk Marketing Order, the Pasteurized Milk Ordinance or the ins-and-outs of obtaining and maintaining a listing on the Interstate Milk Shippers list. These are very specific and incredibly significant to the dairy industry. But, from a macro view, the business of dairy is just like any other business. Companies that provide packaging materials, ingredients, processing and filling equipment, freight, health care, recruitment, utilities — all of them

6 • Northeast Dairy Foods Association, Inc.

must deal with the same core components of running a business. Now there will be some readers who will discount this theory depending on their own discipline, but generally the overlap between dairy and all other businesses is getting larger.

Here in our office at the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, we constantly look for ripples in the regulatory fabric that might impact the dairy industry. And, what we are experiencing is that these ripples are becoming more commonly impactful to members across both NDFA and NDSA. A few examples are recycling and extended producer responsibility bills in New York, New Jersey and Maine. This issue is gaining steam state-by-state and will become a national issue very soon. We are working on employee rights matters, gas tax proposals and many other issues you will see in our legislative report written by Alex Walsh, our associate vice president of regulatory affairs. With that in mind, our efforts now cross over both associations more often than ever before. As we look to the future of our associations and how to become an even stronger voice to law makes across our region

and nationally and on multiple issues, we will be looking to our Northeast Dairy Supplier Association members to participate in our legislative efforts on a case-bycase basis. No, you will not need to give a significant amount of time or become a lobbyist — that’s our job. We simply need your insight. If you are interested in learning how we can help your business and how your involvement will help the common good, please contact our office.

We welcome your participation.

Now on to our events in 2021. Early in June, we held our first live event since our August 2019 conference.

Exclusively for our Northeast Dairy Suppliers Association members, the good folks of Byrne Dairy graciously hosted a tour of the Byrne Hollow Farm culture facility in Cortland, New York. This tour sold out within 48 hours of posting registration, but Byrne’s management team attended our Dairy Blender event immediately following the tour, where our waitlisted folks had the opportunity to speak one-on-one with many of them.

The Dairy Blender provided a fun-filled networking atmosphere coupled with great food, refreshments and live entertainment. Due to the overwhelmingly positive feedback from all attendees,

Front Desk this will become an annual springtime event. Keep your May 2022 schedules open, and watch for more information to follow.

In July 2021, we awarded scholarships once again to members of both the Northeast Dairy Suppliers Association and the Northeast Dairy Foods Association. Scholarships were awarded to undergrads and trade school students of all studies. Funding for our scholarship program comes primarily from our annual Bruce W. Krupke Memorial Golf Tournament/Clambake. Even though the clambake turnout this year was not as robust as years past (due to recent health concerns), the NDSA scholarship remained. Thank you, Northeast Dairy Suppliers Association! We will profile our scholarship winners in the next issue of Northeast Dairy magazine.

In August 2021, our annual conference will be held at the Chautauqua Harbor Hotel in Celeron, New York — an incredibly scenic and elegant venue. We have a full agenda with excellent speakers lined up and new networking opportunities for all. This will be the first-time that we will have our good friends of the New York State Cheese Manufacturers Association joining us. All of us at NDFA, NDSA and the Pennsylvania Association of Milk Dealers welcome the NYSCMA to our conference and look forward to your participation in the years to come.

On behalf of your staff here at the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, we thank you for your support and participation, and we look forward to seeing you very soon!

Here in our office at the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, we constantly look for ripples in the regulatory fabric that might impact the dairy industry. And, what we are experiencing is that these ripples are becoming more commonly impactful to members across both NDFA and NDSA.

Did You Celebrate an Anniversary in 2021?

LET US KNOW! The next issue of Northeast Dairy magazine will celebrate NDFA and NDSA member anniversaries in 2021. If you celebrated 10, 20, 25, 50, 75, 100 or more, please send us an email, so we can include a brief profile on the history of your business.

CONGRATULATIONS!

We hope to hear from you.

To submit your anniversary or for more information, contact our editor, Caroline Reff, at creff@nedairymedia.com by Aug. 15.

NED Magazine | Third Quarter 2021 • 7

Legislative+RegulationsReport

2021 Legislative Sessions Show Agendas for the Future

BY ALEX WALSH

S

ome of the legislatures in the associations’ eightstate region, including New York, have concluded their regular business for the year. As the year continues, they may be called back for special votes, however, for the most part, legislative issues will be at a near standstill until lawmakers reconvene in January. Some states, such as New Jersey, do continue their legislative sessions throughout the calendar year. The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association have been extremely active and engaged on a wide variety of issues in New York, New Jersey and all of the New England states. A few major pieces of legislation were passed at the very end of sessions, which is usually the case, and a few were thwarted because of the efforts of the Northeast Dairy Foods and Northeast Dairy Suppliers associations.

8 • Northeast Dairy Foods Association, Inc.

BILL IN MAINE WALKS THE LINE BETWEEN RECYCLING AND COST

Let’s start in Maine, where the state passed the Extended Producer Responsibility Act, referred to as EPR. (Keep that term in mind, as you will see it mentioned more throughout this article.) This law stemmed out of two paralleling bills, an act to establish a Stewardship Program for Packaging, and An Act to Support and Improve Municipal Recycling Programs and Save Taxpayer Money. Sounds good on paper, right? Especially anything that has “save taxpayer money” in the title. Well, that can be misleading.

At face value, this issue seems like it would be rather cut and dry. However, the Northeast Dairy Foods Association needed to take a delicate approach and be cautious as to not come off as insensitive when it comes to recycling issues. We all know that the dairy industry is a leader in and remains committed to sustainability practices and the environment. The

last thing the industry needs is bad PR because “we are the bad guys who don’t care about recycling.” Processors and manufacturers are taking more and more proactive approaches when it comes to their operations, including packaging.

Companies are working more efficiently, continually developing new technologies, reviewing sourcing options, reducing energy consumption, conserving water and recycling or repurposing production waste. The dairy industry and members of the Northeast Dairy Foods and Suppliers associations devoted their willingness to be engaged, educate lawmakers, listen and learn about different viewpoints in order to show good faith and find common ground. The associations were relentless at reaching out to members of the Maine State Legislature and the governor’s office to find realistic and feasible solutions.

Unfortunately, even after providing testimony, letters and communications with key officials, as well as opposition

Legislative+RegulationsReport from many other organizations, the bill, which ended up being a hybrid of the Stewardship Program for Packaging Act and the Act to Support and Improve Municipal Recycling Programs and Save Taxpayer Money, passed through committee and the legislature. The battle is not over yet. As of mid-June, there were signs that Gov. Janet Mills may have concerns with the bill, as the complexity of instituting this program surfaced. The expense of implementing and operating the program could cost Mainers $134 million per year. So much for saving taxpayers money! The fact is that this program could increase the cost of consumer products by between $99 million and $134 million a year.

Additionally, in a poll conducted by the Campaign for Recycling and the Environment, 64% of Maine residents oppose a state-run recycling program that would increase their costs, as it is estimated to lead to a potential cost increase for a family of four of between $32 and $59 per month. Ultimately, whatever costs the implementation of the EPR program would have on packaging, food and other industries that are targeted would be passed on down to the consumer. Notably, the poll also found that 47% of voters said that the state’s recycling system needs improving, while 43% said the system is working well overall.

There is no evidence that the bill in its current form will improve the recycling system, reduce local taxes or decrease the amount of packaging material sent to landfills. Like many other states, Maine is experiencing the highest increase in pricing for consumer goods that it has seen in a decade. The state also currently lacks the capabilities to accommodate the program. The Maine Department of Environmental Protection would be the responsible agency to manage the new EPR program, and there are many

concerns about whether the department has the financial and human capital resources to take on this tremendous new burden. It is imperative that the state not expedite this program through to gain political points before these factors are considered and solutions are determined.

NDFA ADVOCATES FOR AMENDMENTS TO NYS HERO ACT, APPLAUDS NOURISH NY PROGRAM

Earlier in 2021, New York State also introduced an Extended Producer Responsibility Act. As a refresher, the state Senate had included the bill (S.1185-B) in its one-house budget. It must be highlighted that this bill was included with no hearings or input from industry on the issue. It felt as if this was put in the Senate’s budget through

the workings of a smoke-filled room in Albany. Through conjoined efforts with industry partners, such as the Farm Bureau and the Food Industry Alliance, as well as other sectors, members of the Senate and assembly began seeing more flaws and complexities with the program. As support from the assembly dwindled and there was lack of engagement from Gov. Andrew Cuomo, the bill was removed from the Senate’s one-house budget. That bought more time for legislators to refine the bill and learn and hear more from industry, as well as for the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association to bolster ammunition for the fight that remained during the last two-and-a-half months or so of the session. Luckily, the assembly kept dormant on the issue. The bill remained

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NED Magazine | Third Quarter 2021 • 9

Legislative+RegulationsReport in a holding pattern in the Senate, and there was no same as version1 in the assembly. In fact, the Senate and assembly were not in alignment at all on the issue. The legislative session concluded without the bill being brought to the floor for a vote.

What can be expected is that New York is seeing other states considering and passing EPR bills, and it will resurface again. Hopefully, when it is reintroduced, there will be opportunity for the public to comment and provide testimony from industries the program will impact, as well as an effort to find compromise to make sure it is feasible.

The issue is not going away, and dairy processors, manufacturers and suppliers need to be prepared to adjust to what is coming. The Northeast Dairy Foods and Suppliers associations will remain on guard and ready to defend the industry and your interests on this matter.

A piece of legislation that was passed was the New York Health and Essential Rights Act. This bill will impose significant obligations on employers, regardless of size, in an effort to prevent exposure to airborne infectious disease. The law will put in place a burdensome amount of items that companies will need to comply with, including mandating covered employees to adopt and publish a written “airborne infectious disease exposure prevention plan.” The prevention plan must include and address a number of topics, including, but not limited to, employee health screenings, face coverings, required personal protective equipment, hand hygiene, regular cleaning and disinfection of high-risk areas, social distancing (for both employees and customers), compliance with mandatory or precautionary orders of quarantine, compliance with applicable engineering

controls (such as ventilation), designation of one or more supervisory employees to enforce compliance with the prevention plan and any other applicable guidance, compliance with applicable laws, rules, regulations or guidance related to potential exposure to airborne infectious disease at the worksite; and verbal review of the prevention plan standards, related employer policies and rights under the law.

In addition to the above topics, the law also requires the prevention plan to include an anti-retaliation provision.

The law specifically protects workers from retaliation, discrimination, adverse action or threats for exercising their rights under the law or under the implemented prevention plan; reporting violations of the law or applicable prevention plan, reporting an airborne infectious disease exposure concern or seeking assistance or intervention with respect to such concerns.

During the final weeks of session, the Senate and Assembly negotiated and put forth amendments to the bill, which the Northeast Dairy Foods Association advocated for. Some of the amendments passed include that the prevention plan be only applicable during a declared state of emergency, eliminating the workplace safety committees and eliminating the private right of action. Final changes will need the approval and sign-off from Cuomo and could continue to be amended moving forward.

T h e N o r t h e a s t D a i r y Fo o d s Association has been outspoken on the New York Climate and Community Investment Act. This legislation calls for accelerated state-level actions to achieve broad and far-reaching climate change policies. This bill (S.4264/A.6967) includes a new 55-cents-per-gallon

1 A “same as” version is an identical bill in the other House. Both Houses need to pass identical bills in order for the bill to be delivered to the governor for his/her signature to be signed into law.

10 • Northeast Dairy Foods Association, Inc.

gas tax and increased taxes on heating oil, propane and natural gas, which is estimated to increase heating fuel costs by 26%. The Tax Foundation already ranks New York as the seventh highest gas tax in the nation at 43.12 cents per gallon, with California at 62.47 cents per gallon. This legislation would raise New York’s tax to 98.12 cent per gallon, an increase of more than 127%, making New York’s gas tax more than 57% higher than any other state! This bill remained in the Environmental Conservation Committee in both the Senate and Assembly this year. Look to see this issue also possibly gain traction during the 2022 legislative session.

On a positive note, the Nourish New York program was codified by the state this year. This program stemmed from the issues the state’s food supply chain experienced at the onset of the pandemic, In working with state legislators and New York State Department of Agriculture and Markets, the Northeast Dairy Foods Association was able to relinquish some of the stress placed on the dairy industry during this time when store shelves were empty of milk and other products, yet producers and processors were forced to dump surplus raw milk. This program has helped move food for consumers, commercial establishments and schools to pantries and food banks across the state. The Nourish New York program proved to be a vital lifeline to farmers and processors, as well as those in need of food assistance. As New York and the region continues to emerge from the pandemic, this program will remain in place, providing an outlet and possible new markets for dairy and other food products.

Legislative+RegulationsReport HELPED WANTED! NDFA/ NDSA URGE CLOSER LOOK AT UNEMPLOYMENT BENEFITS

While state legislators may not be in the capitols as much moving forward, there are still many other issues the Northeast Dairy Foods Association remains focused and working with regulators on. At state levels, one common problem is finding employees to fill job vacancies. The economy continues to chug on, yet, many people who lost their jobs during the pandemic remain unemployed due to the continuation of unemployment benefits. For some, this is important, as they are seeking to gain employment, but others may be receiving more in unemployment benefits than they would be if they had a job and are essentially taking advantage of the system. The Northeast Dairy Foods and Suppliers associations have advocated to state labor departments to resume and enforce requirements for those currently receiving unemployment benefits and the actively seeking work requirements to get eligible people back into the workforce. Enforcing these requirements will be key to restarting and flourishing our economy once again.

SUMMER’S HERE BUT ASSOCIATIONS REMAIN ON HIGH ALERT

Even though state-level activities quiet down, there is always the possibility of bills being introduced, hearings conducted or other legislative activities.

Additionally, the federal government continues its regular business throughout the year. The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association remain active on several national issues, including trade and reopening border access, disputes and enforcing trade agreements with Canada, rural broadband, Class I mover proposals, federal investments from the

We will continue to voice your concerns and advocate for your best interests.

USDA to strengthening the food system and making low-fat flavored milk in schools permanent, just to name a few.

This exhibits the broad scope of issues the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association are constantly monitoring and engaging with lawmakers and regulatory agencies on a daily basis. It goes beyond just bills and topics surrounding milk regulations.

The associations are working on issues that impact your business in perhaps a more subtle way, such as sustainability, recycling, energy, transportation, healthcare, safety and more. This year’s legislative activities across the Northeast, to date, have seen many similarities, and it can be expected that these trends and issues will continue for the foreseeable future. Regardless, if it is a local, state or federal issue, the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association remain on high-alert for issues that may arise at any moment, and we will continue to voice your concerns and advocate for your best interests.

Alex Walsh is the associate vice president of regulatory affairs for the Northeast Dairy Foods Association.

NED Magazine | Third Quarter 2021 • 11

EconomicOutlook

ECONOMIC OUTLOOK

Milk Production Is Up Despite Inflation

BY GARY LATTA

S

omething on a lot of people’s minds right now is soaring energy prices. The effect of rising fuel prices is being felt not just in the U.S. but around the world. No doubt, most of you have felt the effect at the pump, but energy prices impact nearly everything in our daily lives — running our cars, heating our homes, food we consume and most goods we buy.

Nearly all input costs on a dairy farm, processing plant and in distribution are impacted by energy expenses in many ways.

Gasoline prices are now at a seven-year high and at a national average of about $3.08 a gallon, according to AAA reports. It was just a year ago that pump gas was averaging $1.97 a gallon. New York’s statewide average per gallon price for regular grade gas right now is $3.14 according to AAA. The numbers, of course, vary slightly across states and location.

Massachusetts is at $2.97. Pennsylvania is $3.18. Vermont is $2.98, and Maine is at $3.06 per gallon. And, you can tack on an additional 10 to 20 cents per gallon for diesel.

Some economists believe these fuel hikes are a temporary consequence of the pandemic. Others feel high energy costs to be the fallout from increased government spending driven primarily by the new administration in D.C. U.S. Federal Reserve Chair Jerome Powell indicated in testimony on June 21 that U.S. inflation has increased notably 12 • Northeast Dairy Foods Association, Inc.

in recent months as the economy continues to reopen. Higher rates of inflation reduce purchasing power as time goes on, unless wages and rates of return adjust along with inflation.

The Consumer Price Index for all items rose 5% in May and was the largest 12-month jump since 2008. Food at home rose less than 1%, and food away from home was up 4% in May. The CPI change for gasoline and fuel oil has risen about 55% over the last 12 months.

The Heritage Foundation, a D.C. think tank, reports the recent rise in the CPI is stoking fears of 1970s-style high inflation and stagflation. Stagflation is when an economy exhibits both high unemployment and inflation.

For dairy producers, adding to the woes of energy costs are rising feed prices. Corn is now around $5.30 a bushel, which is about $2 a bushel more than this time last year. Soybeans are $5.60 a bushel more than last year, and alfalfa hay is $7 per ton more than last year.

DESPITE HIGH COSTS, MILK PRODUCTION IS UP

If anyone thought high input costs would slow U.S. dairy producers down, then you have not yet seen the latest Milk Production Report released June 21. May milk production was up 4% above May of last year among the 24 major producing states according to the USDA report. For all U.S. states

EconomicOutlook

combined, the increase was 4.6%. That is a large increase, especially when one considers the exceptional drought that has been ongoing in the West and Southwest since last year.

In recent months, there has also been dangerous heat in the Southwest that farmers must contend with. Heat takes a toll on dairy cow comfort and suppresses milk production. Despite the heat and drought out West, California and New Mexico production was up 5% and 6%, respectively. Oregon was up just under 1%, while Washington, Arizona and Utah were flat to down slightly.

The Northeast has been enjoying quite favorable weather conditions, and May milk production in New York was up 4.2% versus May of last year. Both Pennsylvania and Vermont were up 1.8%, while our neighbors in Ohio were up 3.2%. New York and Ohio both added cows, while Pennsylvania and Vermont reduced cow numbers. However, all four of these states are showing increases in output per cow. Significant growth in milk production is evident in Colorado, Indiana, Iowa, Kansas, Michigan, Minnesota, South Dakota, Wisconsin and Texas.

These states are above the national average for production growth, which appears to be driven by expansions in cow numbers. For the 24 major milk producing states, production per cow was 63 pounds above May of last year with a sizable addition of 152,000 cows.

Some say the way to higher milk prices is by growing demand. However, even demand growth can be overwhelmed by an even greater growth in milk supply. A recent Rabobank dairy outlook forecasts a rather low 1% supply growth among the world’s major dairy producing countries from now until 2022 due to adverse weather conditions and high feed costs — some of which are being experienced here in the U.S. So

far, U.S. production growth shows little sign of abating soon.

The U.S. does, however, seem to be enjoying decent domestic demand for its dairy products with the economy reopening, and exports have been brisk.

U.S. DAIRY EXPORTS ARE COMPETITIVELY PRICED

Combined U.S. dairy exports are doing well, as products are competitively priced in relation to the world market. In its June release, The U.S. Dairy Export Council said, “April proved another robust month of growth for U.S. dairy exports.

Volume on a milk solids equivalent grew by 25% compared to April 2020, with gains in every major U.S. dairy product.”

Butterfat exports are up over 250% versus April of last year.

Cheese exports are up over 50%, while nonfat dry milk and whey are up 16% and 17%, respectively. The USDEC believes that, as international demand accelerates, and we have available competitively priced product from the U.S., we should continue to see strong cheese exports into the summer and early fall.

Exports are utilizing milk supplies and contributing to higher U.S. domestic prices.

LONG-TERM SOLUTIONS TO IMPROVE U.S. FOOD SYSTEM

On the political side, one must notice that U.S. Secretary of Agriculture Tom Vilsack has been busy on a variety of fronts since he took office again in late February 2021. Vilsack seems committed to long-term solutions that rebuild an improved food system in the U.S. Since January, the USDA has provided more than $11 billion worth of assistance to producers, as well as food and agriculture businesses.

CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2021 • 13

Milk production in the United States during May totaled 19.9 billion pounds, up 4.6 percent from May 2020.

Production per cow in the United States averaged 2,088 pounds for May, 61 pounds above May 2020.

EconomicOutlook The number of milk cows on farms in the United States was 9.51 million head, 145,000 head more than May 2020, and 5,000 head more than April 2021.

Monthly Milk Production - 24 Selected States Million pounds

19,000 18,500 18,000

17,500 17,000 16,500

2020

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

2021

Dec

Source: USDA

On June 15, Vilsack announced the USDA’s Pandemic Assistance for Producers Initiative. The USDA claims that, as the economy continues to improve, relief efforts are underway to help producers and ag businesses with securing the resources needed to thrive in 2021 and beyond. The funding associated with this assistance is to serve as a bridge from disruptions associated with the pandemic and improve the food system.

There are several specific improved supports for dairy farmers and processors within this Pandemic Assistance Initiative.

One of these supports calls for additional pandemic payments targeted to dairy farmers that have demonstrated losses that have not been covered by previous pandemic assistance. In a Senate Appropriations Committee hearing on June 15, Vilsack highlighted three specific points in an exchange with Sen. Patrick Leahy of Vermont regarding dairy assistance. The third point Vilsack made was quite interesting. “We are creating a program to help reduce the differential that occurred between Class I and Class III milk pricing because of a disproportionate number of purchases of cheese during the food box effort,” Vilsack said.

A POSITIVE OUTLOOK

Looking ahead at dairy prices, most observers in academia and government feel that they will remain firm as the economy continues to reopen and exports stay strong. How much higher is yet to be seen. Most are also forecasting a narrower gap between Class III and IV prices, which reduce, and hopefully eliminate, negative PPDs. The USDA believes that output 14 • Northeast Dairy Foods Association, Inc.

per cow will drop a bit in the third quarter due to continued heat and dry weather. Exports are expected to remain good, and domestic use will continue to pick up, which will absorb milk supplies.

The USDA lowered its recent 2021 annual forecast for cheese prices based on a slight softening trend. However, butter, nonfat dry milk and dry whey have all been increased in the forecast. The lower cheese price offsets the increase in dry whey, therefore the Class III forecast was lowered by 25 cents to $17.45 per cwt. Higher expected butter and nonfat dry milk prices raises the Class IV price 10 cents to $15.85. The USDA’s June forecast for the 2021 all-milk price is lowered 10 cents to $18.85 per cwt.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

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AssociationNews

Pennsylvania Association of Milk Dealers Names New Executive Director

BY CAROLINE K. REFF

Y

ou might find Rob Fulton taking in the scenic views, delicious food and beautiful wineries in the Pocono Mountains, visiting family in the lively city of Pittsburgh, enjoying the beaches along the shores of Lake Erie or even visiting Hershey Park, which is located near his home. Although not born and raised in Pennsylvania, you’d never know it, as Fulton has spent much of his career touting all the Keystone State has to offer. In March 2021, he took on yet another way to promote the state’s No. 1 industry when he was named the executive director of the Pennsylvania Association of Milk Dealers.

A graduate of Penn State Harrisburg, Fulton has worked in a number of roles for the Pennsylvania Chamber of Business and Industry, as president of the Pennsylvania Chamber of Commerce Executives, as president and CEO of the Pennsylvania Association of Travel and Tourism, and, most recently, as the CEO and president of the Association of Independent Hospitality Professionals. Unfortunately, the pandemic devastated the travel and hospitality industry in 2020, resulting in Fulton being furloughed. After considering his career options, he decided his skill set might fit dairy processors — and he signed on with PAMD. “I really do love Pennsylvania, and I wanted to use my leadership skills to continue to promote the state in some way,” he explained. “I had some experience in agritourism and promoting agriculture, so working for PAMD seemed like a great opportunity.”

Although he was familiar with the state’s agriculture industry, Fulton worked quickly to get up to speed on the issues surrounding the dairy industry and its huge impact on Pennsylvania’s economy. PAMD, which is a state trade association that promotes and advances the production, processing, storage, distribution and sale of milk and dairy products, currently has 19 members — all fluid processing plants that 16 • Northeast Dairy Foods Association, Inc.

Rob Fulton

Executive Director, PAMD

handle the majority of milk in Pennsylvania. Fulton’s primary role is to support the membership by monitoring regulatory and legislative actions and maintaining a strong working relationship with legislators and the Pennsylvania Milk Marketing Board, which regulates the state’s dairy industry.

“My primary focus is to keep the processing side of the dairy industry healthy and vibrant. Much of my work is to collaborate with those who regulate Pennsylvania’s dairy industry and provide insight to them about what our members are doing, what their concerns are and where they stand on the issues,” he explained. “On the flip side, it is also my responsibility to make sure our members are fully aware of proposed regulations or legislation and ensure they have a voice at the table.”

AssociationNews With his marketing background, Fulton has big plans to modernize some of the public-facing aspects of PAMD, which was founded in 1933. The association’s board of directors recently approved updating its logo and creating both a website and overall social media presence.

“These are essential elements to showing legislators and other government officials, those working within the dairy industry, consumers and other publics exactly who we are and what we do to support one of Pennsylvania’s most important industries,” he said. “PAMD has existed for decades but hasn’t devoted many resources to getting our story out there — but that’s about to change. With the support of our board members, it’s time to modernize our outreach, and I’m confident that my experience in the tourism and hospitality industries can really help serve our membership in this way.”

PAMD has 16 board members, which represent the majority of its membership, as well as an executive committee made up of eight.

NO ONE WANTS TO THINK ABOUT

WASTEWATER

“There are benefits to being a small organization,” Fulton explained. “Almost all of our members are engaged in what we do, and it’s easy for me to keep in touch with everyone, hear their concerns and make sure PAMD is accurately representing their needs.”

PAMD has had a connection with the Northeast Dairy Foods Association and the Northeast Dairy Supplier Association for a number of years, particularly in co-hosting the annual dairy convention. Fulton hopes to collaborate more closely with NDFA and NDSA in the future to the benefit of all three associations.

“This is an exciting time for PAMD. As the country starts to recover from the pandemic, we are taking steps to re-energize the association and make sure the great state of Pennsylvania knows what we do and what we stand for,” he said. “I am privileged to be a part of this organization, and I can’t wait to see what we can accomplish in the years ahead.”

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NED Magazine | Third Quarter 2021 • 17

Supply Chain

ASK A BOARD MEMBER

How Are Supply Chain Issues Impacting the Way You Do Business?

I

n this issue, we’ve asked board members from the Northeast Dairy Foods Association and Northeast Dairy Suppliers Association to tackle a question that many in the dairy industry are dealing with right now. We hope to make this a regular column addressing “hot topics” in the industry.

THE QUESTION:

How do you see supply chain issues impacting the way you do business (either speaking broadly regarding the industry or more specifically regarding your sector of business)? What can be done to overcome these challenges in the short term?

18 • Northeast Dairy Foods Association, Inc.

“We’re seeing more open positions for logistics and supply chain managers, as I think employers have been forced to take a hard look at the critical nature of this part of their business. Those looking to hire logistics or supply chain managers really want to step it up and make sure to bring on someone with a specific set of skills in this area that will help their businesses run as smoothly as possible. The critical nature of supply chain management really came to the forefront during the pandemic when, for the first time in many years, people couldn’t immediately get some of the products or services they needed. We’re still feeling the effects of that, not only due to lack of product but lack of all the people who help get things to where they need to be.

Everyone from CEOs to consumers are taking a closer look at how, when and where things come from as a direct result of experiencing shortages and delays.

Mistakes in the supply chain can cause major cash flow problems to companies, and, in the case of the dairy industry, waste of perishable products. Some of

this is still out of our control as the country continues to recover, but, from what I’ve seen, employers are taking a harder look at this aspect of their business and trying to find the most qualified people that they can for the good of their companies and their customers.”

—Ryan Osterhout, chief operating officer and managing partner, KCO Resources Management, LLC, and NDSA treasurer / board member.

“Cheese was so popular during the pandemic, and cheese buyers want to continue to sell just as much again. We’re hoping that we see consumers continue to buy at that level, but it’s hard to read the demand right now. Retailers are really struggling with visibility to see what consumers are going to do for Q3, Q4 and into next year. But that’s a big question now that consumers are dealing with inflation, and, in the industry, we’re seeing challenges with high diesel costs, as well as packaging and manufacturing costs that are starting to creep up. On the international side of our business, we’re seeing challenges with shipping, delays

Supply Chain with exports, a shortage of containers for our powders, rolling appointments with our warehouse space and trucking challenges. One of the reasons it’s so difficult to predict what consumers are going to do in the future is that no one is quite sure what the labor pool is going to look like. That’s going to impact everyone.

Some of our retailers are having problems keeping up at their own warehouses because of labor shortages and trucking issues, yet they are still holding us to the same expectations. On a positive note, I think the best part of these unprecedented times has come out of our people who, despite being tired after working so hard this past year, have stayed truly focused on their responsibility in helping to feed people during difficult times. We all felt like we were doing something for the good of others. We’ll see what the rest of this year and into next brings.

Given the level of growth we saw during the height of the pandemic, we are trying to be reasonable with our expectations.”

—Tom Herbick, plant manager, AgriMark Cooperative, and NDFA board member “Our particular business, gable top ESL filling machines, has not really been affected by any supply chain issues, as our demand is fairly low compared to other manufacturers. However, others in the food and dairy industries are facing major shortages of stainless steel. Unfortunately, stainless steel has been rationed from the major suppliers, and they have had to pass on surcharges to customers. In many cases, lead times for their equipment have been extended well into late 2021 and 2022. There are no other major suppliers of stainless steel, so equipment manufactures continue to negotiate with suppliers for supplies until the issues with the stainless steel plants are resolved.”

—Paul Knoerl, machines sales specialist, Evergreen Packaging Equipment, and NDSA board member

“Price inflation and inability to obtain raw materials affect the fluidity of a business in the present, but one consideration is the future and unseen risks. Valuation of exposures and insurance limits should be a priority. Building material costs are up. If you suffer property loss, you may be underinsured, which can void replacement cost coverage if there is a coinsurance clause. Additionally, your stock may be underinsured due to increased commodity pricing. Business interruption coverage is a segment of the property policy, and it covers financial loss to a company in a qualified event.

A business interruption loss is complex and can be challenging to quantify. The increased cost of raw materials, building

materials and labor shortages should be a consideration when re-evaluating the business interruption limit since those factors will increase cost and restoration period. Review contingency plans, contracts and purchase orders.

Focus on the supply chain interruption exposure and have secondary suppliers. Consider near shore and domestic suppliers. Modify current contracts in case there are material changes in the way the orders are fulfilled. Use this event as an opportunity to consider what you would do if all of your computer network was locked up in a cyber attack.

What if a specialty piece of equipment breaks down? How long will it take to replace and get running again? Do you have the right key spare parts in case of

NED Magazine | Third Quarter 2021 • 19

Supply Chain an issue with equipment? Contingency plans should cover all potential issues that could come along.”

—Lisa Bolduc, account executive, commercial lines, Brown & Brown Empire State, and NDSA board member “We are seeing a huge problem in delivery that has only become worse this past year. Drivers are hard to come by, which affects raw milk pickup, hiring freight companies and finding drivers on our own. It just seems like there is way more tractor business needed, yet not enough people to drive the trucks. I think we, as a nation, should do things to encourage more people to want to become drivers, such as national advertising describing the great wages that can be made. Maybe even a “got milk?” style campaign would work. I think this will eventually help turn the tide.”

—Aaron Jonas, director of business development, Mountainside Farms, Worcester Creameries, Inc., and an NDFA board member “Supply chain issues are complicating the delivery of goods to almost every market in the U.S., including

electronics, appliances, building materials, and food products, which includes food processing equipment. These delays are the result of an increase in consumer purchasing, spurred on by reductions in COVID-related restrictions and federal stimulus spending. As a result, imports have risen by almost 30% from previous years. This increase, coupled with a reduced workforce to transport goods once on shore, is leading to drastic increases in overseas transit times. The entire supply chain has been overwhelmed, with some ships anchored outside of ports for seven or more days waiting to be unloaded.

Container shortages, longer delivery times and manpower shortages, in concert with the lack of availability of domestic delivery transportation, are leading to a quadrupling of shipping costs. With shipping issues predominantly out of the hands of manufacturers, one solution is to increase component inventory, but this cannot happen overnight. Further complicating matters is increased demand for processing equipment in 2021. This

uptick in demand makes increasing inventories and reducing lead times an even slower process. With limited communication and information coming from freight forwarders, manufacturers may not know what has actually been shipped until late in the production timeline. This results in numerous production schedule changes and revised delivery dates to customers.

This lack of stability causes extra work, increased stress on already tight internal scheduling systems and delays throughout the value stream, frustrating both manufacturers and customers. Longer delivery times for components leads to extended lead times for equipment manufacturing. Rest assured that equipment manufacturers are placing a priority on and putting a great deal of work into limiting the effects of this situation within the industry. Unfortunately, given current supply chain disruptions, some inconveniences and frustration are likely to be incurred.”

—Melissa Fryer, sanitary heat exchange business development manager, Alfa- Laval, and NDSA vice president / board member

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Something to Consider

Proposed Changes to the Class I Price Formula: What Could the Impact Be?

BY GARY LATTA

A

s of late June, the U.S. Department of Agriculture had not yet received a formal hearing request to address modifying fluid milk price formulas under the Federal Milk Marketing Orders. At this time, three very different proposals have surfaced from cooperative groups.

We will take a brief look at them here.

The current formula, implemented in May 2019, is the simple average of the announced Advanced Class III and IV prices plus 74 cents. The intent of this new formula was to help minimize much of the uncertainty that existed under the previous “higher-of” formula and maintain revenue-neutrality. The benefits of improved forward planning and hedging for producers and processors under the new formula were embraced by both the International Dairy Foods Association and National Milk Producers Association. The formula change was authorized by Congress in the Farm Bill signed in late-December 2018.

The new formula worked as intended until COVID-19 ravaged the dairy marketplace and pushed it into the perfect storm. In March 2020, Class III and IV prices collapsed, as the country went into lockdown. In many areas, milk was being dumped, and cooperatives implemented internal supply management programs. In mid-April 2020, the USDA announced the Coronavirus Food Assistance Program, which directs support to farmers and ranchers, as well as the Farmers to Families Food Box program. Cheese exports were strong to begin with due to previous commitments, and the attractiveness of the low U.S. price for a short time on the international market further increased sales. Within weeks, cheese prices rocketed to record highs. The spread between Class III and IV widened.

At times, monthly Class III prices were higher than previously announced Class I prices. High Class III prices incentivized depooling and helped generate negative producer price differentials through 2020.

22 • Northeast Dairy Foods Association, Inc.

In February 2021, the National Milk Producers Federation began releasing comments and ideas to address what it felt was a $725 million shortfall in Class I revenues attributable to the use of the new “average of +$0.74” price formula that was agreed on and implemented in May 2019. NMPF feels that if the older formula (“the higher of”) was still in place, at least $725 million more Class I revenue would have been realized.

In other words, all the rise in Class III was not captured under the newer formula, which simply averaged Class III and IV. Had the previous “higher of” formula been in place, Class III cheese would have been the primary driver of Class I fluid and would have increased revenues for producers.

NMPF’s plan is to increase the Class I skim milk price mover from the present 74 cents per cwt to $1.63 per cwt for a two-year period to recoup much of the $725 million from the marketplace. We can assume that raising the mover to $1.63, an increase of 89 cents per cwt, will likely increase retail prices at least 8 cents per gallon. According to a NMPF release, the Class I increment (add-on) would be adjusted based on a moving average of the difference between the “average of” and the “higher of” the advanced Class III and IV skim milk pricing factors over the prior 24 months of May through April.

Increment adjustments would take place only once every two years based on this moving average, and the adjustment would remain in place for the following 24 months. The increment would not be lower than 74 cents per cwt nor increased if the calculated adjustment were less than 5 cents per cwt. So far, NMPF has not formally submitted its proposal to the USDA. Following NMPF’s idea, two more cooperative Class I formula proposals have stepped forward in the past few months.

The simplest of the two is FarmFirst’s proposal to return to the “higher of” formula for calculating Class I fluid prices.

FarmFirst Dairy Cooperative is headquartered in Madison, Wisconsin, and represents producers in Wisconsin, Indiana, Illinois, Iowa, Michigan, South Dakota and Minnesota. The

Something to Consider $6

Cumulative USDA Farmers to Families Food Box Program Funds Dollars in Billions (estimate)

$5 $4 $3 $2 $1 $0

ROUND 1 (May 15-June 30)

ROUND 2 (July 1-Aug. 31)

ROUND 3 (Sept. 1-Oct. 31)

ROUND 4 (Nov. 1-Dec. 31)

ROUND 5 (Jan. 19-April 30)

Source: USDA

cooperative feels the old formula worked well with few problems for nearly two decades and was fully vetted in a national hearing two decades ago.

FarmFirst believes that none of the current suggested proposals will eliminate negative PPDs, but going back to the “higher of” formula will net better performance than experienced during the pandemic. FarmFirst also believes use of the “higher of” will lessen the occurrence of depooling. FarmFirst admits there are many changes dairy stakeholders would like to address, however, negative PPDs are the priority.

According to FarmFirst’s General Manager Jeff Lyons, “Returning to the higher of Class III or IV will get us back to the original intent to create favorable milk prices for farmers.

Minimizing negative PPDs will provide more stability in milk prices, which will set the stage for additional order reform in the future.”

FarmFirst has indicated that it is ready to submit its proposal for consideration to the USDA when the NMPF submits its own.

A third proposal to modify the fluid milk formula emerged in late April from another Midwest dairy group. This concept is being put forth by the Dairy Business Association in Wisconsin, the Edge Dairy Farmer Cooperative, also in Wisconsin; the Minnesota Milk Producers Association and the Nebraska State Dairy Association. This group has retained the services of Assistant Professor Marin Bozic, Ph.D., of the Department of Agricultural and Applied Economics, University of WisconsinMadison, to help develop its Class III Plus idea.

Class III Plus proposes that Class I skim milk prices be calculated as the Class III skim milk price + a Class I skim milk price adjuster. In all FMMOs, advanced prices will be replaced with announced prices. This includes the advanced Class II skim price. There would no longer be advanced prices. The Class I skim price adjuster, to be updated annually, would be equal to the average monthly differences between the “higher-of” Class III and IV skim milk prices and the Class III skim milk price over the prior 36 months of August through July.

Proponents of the Class III Plus concept believe that tying Class I skim prices to Class III skim, along with annual adjuster updates, ensures a greater probability that Class I will be the highest price among the four announced classes. Proponents also feel that by tying Class III to Class I, there will be less incentive for Class III plants to depool. The group feels that eliminating advanced prices and replacing them with announced prices, reduces the occurrence of negative PPDs. The Class III Plus group points out that, unlike the NMPF proposal that reviews the adjuster every two years, it requires the USDA to revise the Class I skim price adjuster each September for the forthcoming year to better reflect more recent conditions.

Since Class III Plus requires USDA to modify the adjuster based on 36 months of data versus NMPF’s 24 months, it would tend to better smooth price shocks. The Class I skim adjuster would not be lower than 36 cents per cwt for 2021 through 2025 to recapture some of the revenue absent in the FMMO pool in year 2020.

CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2021 • 23

Something to Consider

Class III Plus group consultant Bozic is featured in online webinars that describe in detail the mechanics and logic of the plan. Bozic is not shy in sharing his critical opinion of the NMPF proposal, which he describes as a narrow-focused “clawback” of revenue. Bozic claims Class III Plus is a “gentler” claw-back than the NMPF proposal. If there is a sudden price shock, like in 2020, it is paid back over a three-year period, which would smooth out discrepancies and be easier on producers, processors and consumers.

Government intervention in dairy was unprecedented in 2020 through the Farmers to Families Food Box Program, the Coronavirus Food Assistance Program, the Paycheck Protection Program and EIDL Loans/Advances. According to the USDA’s website, contractors have delivered 173,699,775 boxes, estimated to total near $5.5 billion, in five rounds of the Farmers to Families Food Box Program that formally ended April 2021.

Cheese and other dairy products were required to be included in every box.

The NMPF noted that The Farmers to Families Food Box program has delivered approximately $1 billion worth of dairy products — including fresh fluid milk, various cheeses, yogurt, sour cream and more — to needy Americans since this spring. According to Supermarket News, dairy makes up at least one-quarter of all products included in the boxes.

And, according to The Hill, Food Box purchases distorted prices by concentrating purchases among a few selected

24 • Northeast Dairy Foods Association, Inc.

items like cheese. Even the dairy industry, one of the primary beneficiaries of the program, had advocated changes to the program to provide a better mix of dairy products to avoid market distortions.

In late October 2020, NMPF applauded the USDA for continuing to fund the Food Box Program that had delivered $1 billion worth of dairy products to date. “The Farmers to Families Food Box program has proven to be an effective benefit both for families needing assistance and for dairy farmers and processors providing high-quality products to those families via food boxes,” said Jim Mulhern, president and CEO of the NMPF. Bozic raised the question, “What if USDA, the SBA and other governmental agencies had not intervened in 2020?”

Perhaps then the spread between Class III and IV would have been narrower and the current “average-of” formula might have worked better. Sure, prices would have been lower, but maybe Class III and IV would have been sufficiently close to say the current formula worked adequately as intended.

Which world would producers have rather lived in? One absent government intervention, or one with considerable intervention as experienced in 2020?

As this is written, none of these proposals have formally been submitted to the USDA. Once a proposal is submitted, the USDA has 30 days to respond with an action plan to hold a hearing, request additional information, deny the request or hold a pre-hearing information session with interested parties to gather more information.

At a Senate Appropriations Committee hearing on June 15, U.S. Secretary of Agriculture Tom Vilsack said, “We are creating a program to help reduce the differential that occurred between Class I and Class III milk pricing because of a disproportionate number of purchases of cheese during the Food Box effort.” We will have to wait and see exactly what Vilsack means by this as it develops.

In the meantime, we are anxiously waiting to see if agricultural experts in academia will do some computer modeling to determine the impact of these proposals on producers, processors and fluid milk consumers.

Gary Latta is a dairy product specialist consultant for the Northeast Dairy Foods Association, Inc. He has more than 30 years of experience in providing economic analysis, statistics and information to the dairy processing industry.

DairyNews

Oldest State Fair in the Country Will Resume in 2021 With Plenty of Dairy

I

n mid-June, New York State Gov. Andrew Cuomo announced that the 2021 Great New York State Fair, an end-of-summer celebration held in Syracuse, New York, from Aug. 20 to Sept. 6, will not only be open for business (last year’s New York State Fair was cancelled due to the pandemic — the first time since WWII) but will be prepared for 100% capacity. This year’s New York State Fair, which dates back to 1841 and is the oldest state fair in the nation, will be 18 days in duration — the longest ever for this annual event. In recent years, it has attracted more than a million people annually.

“The State Fair is New York’s signature end-of-summer fest, and thanks to our ongoing efforts to follow safety guidelines and get more people vaccinated, the 2021 New York State Fair will be even bigger and better,” said Cuomo. “This is a testament to our remarkable progress against COVID, making it possible for thousands more visitors from across the country to enjoy the unique attractions and experiences that show the best of what New York has to offer. I encourage everyone to make the trip to Central New York this summer and support our New York vendors, as we continue to reopen our economy and bring back beloved big events across the state.”

The governor originally announced that the state fair would move forward on April 26, but at only 50% capacity and without access to most buildings. Since then, however, public health conditions have improved dramatically due to more vaccinations and fewer COVID-19 cases.

Dairy activities will be in full swing when the fair returns this summer, according to Dave Bullard, marketing and public relations manager of the Great New York State Fair. “Agriculture is the reason the fair exists, and the dairy industry is a huge part of New York agriculture,” he said. “We’re always eager to host our dairy events, but this year is especially great because last year we weren’t able to do anything. It’s a great feeling to know that dairy will absolutely be here this year.”

The Dairy Products Building is a must for fairgoers eager to take a peek at the iconic butter sculpture and purchase 25-cent

samples at the milk bar, as well as enjoy a host of other New York State dairy products and dairy-themed displays. On Dairy Day, Thursday, Aug. 26, many events are planned, and hundreds of New York State-made dairy products are expected to be entered by processor and manufacturers in a variety of competitions. Cows will again return to show at the Dairy Barn.

Under the expanded model announced by the governor, fair-goers will be able to enjoy live music and entertainment, Midway amusement rides and concerts, as well as delicious foods, like pizza fritte and funnel cakes.

Indoor space may still be subject to capacity limits to allow attendees to be socially distanced within each building, and those who are unvaccinated will be asked to wear masks throughout the fairgrounds, although they will not be asked for proof of vaccination. Attendees will be required to follow COVID-19 health guidelines from the New York State Department of Health that are in affect at the time of the event. Further details will be announced closer to the fair’s opening day.

Tickets will cost only $3 in 2021, a significant reduction from past years, with children under 12 admitted free.

MASSACHUSETTS TO BRING BACK THE BIG E

In Massachusetts, the Eastern States Exposition, commonly referred to as the Big E, is back, Sept. 17 through Oct. 3, 2021, after having been cancelled last year due to the pandemic. The event, which was first held in 1917, is located in West Springfield, Massachusetts, and is inclusive of all the New England States. It is the sixth largest fair in the country. Dairy-related events include a butter sculpture sponsored by the Massachusetts Dairy Promotion Board, as well as 4-H and Future Farmers of American competitions and dairy cattle judging. For more information on The Big E!, go to www.thebige.com.

NED Magazine | Third Quarter 2021 • 25

Every time we publish an issue of Northeast Dairy magazine, we do so with a mission to keep you, our members, informed on the important topics that are impacting the dairy industry every day.

There are so many facets of the dairy industry, and what happens on the farm may not always seem to impact what happens at the scoop shop, but, in reality, it’s all about keeping dairy top of mind with American consumers. That’s why we’ve decided to cover “The Business of Dairy” in this issue, a wide-ranging theme that covers some of the most critical issues we’re all facing in one way or another.

dairy alternatives. These may not seem to be related on first glance, but they have something in common: they keep our industry moving — on the roads, through the electric grid, in the digital space and on the retail shelves.

Each of these issues has legitimate pros and cons, but that’s OK. Our goal here is to get you thinking. Thinking about how the business of dairy impacts you, your employees, your customers and the consumer at the checkout counter. Thinking about what industry topics you want or need to learn more about. And, thinking about ways to keep dairy at the forefront, no matter what obstacles we meet Four main topics came to the surface as along the way. We hope these topics will we put this issue together: trucking, so- be helpful, and we welcome your feedlar energy, social media and plant-based back.

26 • Northeast Dairy Foods Association, Inc.

T h e B u s in e s s Of D a ir y

Lack of Drivers Tops the List of Trucking’s Biggest Obstacles

BY CAROLINE K. REFF

T

he home page of Wadham’s Enterprises’ website says, front and center, “WE WANT YOU! WE WILL TRAIN YOU! With Our Paid In-House Training Program.”

So, it’s no surprise that when asked what the three biggest issues in trucking are right now, Rick Wadhams, president of the company, simply replied, “Drivers, drivers and drivers.”

Wadhams knows trucking well. His multi-generation owned and operated transportation company, which is an NDSA member, is located in Phelps, New York, and has three components: RIST Transport, Ltd., which handles LTL and truck load freight; ARG Trucking Corp., which transports petroleum; and Earl T. Wadhams, Inc., which is in the business of bulk milk hauling and was the foundation of the company founded in 1949.

According to Wadhams, all of his divisions are short on drivers, but not for lack of trying. His milk division pays up to $25 per hour, but that’s not enough to attract the more than 20 drivers he currently needs.

Wadhams has talked to competitors who are all in the same position, advertising on employment websites, airing radio advertisements and putting the call out for qualified drivers any way they can.

“It’s just a pool that’s not out there,” said Wadhams of qualified drivers. “I think many people are still afraid to go back to work because of COVID or if they haven’t yet been vaccinated. Some people have re-evaluated their priorities during the pandemic, and they don’t want to spend as much time on the road, away from family and friends. Some don’t mind driving, but they don’t want to do the manual labor it takes to load and unload. Others have been made too comfortable by the extended unemployment benefits and would rather stay home than work.”

Too few drivers is not only frustrating; it’s costly. Wadhams has done his best to offer drivers incentives in pay and scheduling. “On weekends, we’re short on drivers. We’ve been offered all kinds of business in the milk division that we’ve had to turn down. We just can’t keep overworking the people we do have.”

Wadhams Enterprises started its own training school five years ago for new drivers or those who have a Class B license but want to work up to Class A. It’s quite an investment for the company, as training can cost up to $25,000 per driver, and then there are no guarantees that the person won’t take that training and move to another company.

“Places like Amazon are investing billions of dollars in transportation. Uber is looking into Uber Freight now. Everyone is trying to create their own delivery fleet, and that’s pulling a lot of drivers away from our industry — and just about every other industry, as well,” Wadhams explained.

The American Trucking Association estimates a shortage of approximately 61,000 truck drivers nationwide — a deficit that is expected to grow to more than 160,000 by 2028. When anticipated driver retirement is factored into expected growth in capacity, the trucking industry will need to hire roughly 1.1 million new drivers over the next 10 years — or 110,000 drivers per year.

NED Magazine | Third Quarter 2021 • 27

T h e B u s in e s s O f D a ir y The COVID-19 pandemic further exacerbated the truck driver shortage with not only the realities of the virus but also the closure of DMVs and truck driver training schools, which impacted an already short list of individuals looking to enter the trucking industry. Add to that the skyrocketing demands in online shopping and food delivery, and the driver shortage has become a crisis for both trucking companies and the entire supply chain, including the dairy industry.

MECHANICS ARE SCARCE, COSTS OF SUPPLIES SKYROCKET

Another challenge to the trucking industry is the cost of repairs. “Costs have gone through the roof,” Wadhams said.

“When we have a problem with a truck, it is usually involving electronic sensors and wiring, which have become so complicated that, instead of a couple of hours, it takes a whole day to figure out the problem and then several more hours to make the repair.”

In addition, the cost of tires has increased by 8% this year, and steel and aluminum are up 44% in just the past few months.

Some parts, like microchips and other items made overseas, are simply not available or the prices are staggering.

And, if that weren’t enough, mechanics are scarce, too.

“This is another area where we’re doing all we can to find good help, but there just aren’t enough mechanics out there,” Wadhams explained. “We’re down at least five mechanics right now. Even though the going rate is as much as $27 per hour, we’re still having a hard time attracting and retaining good people — often for some of the same reasons we can’t get drivers.”

Wadhams has no choice but to keep doing his best to service his customers as efficiently as possible, despite the obstacles.

“We have had to be proactive about writing our own future, so we do what we can do to get our name out there, to let potential drivers know that we have increased our pay rate and that we are a great place to work,” he said.

He’d like to see regulations revert to when drivers only had to be 18 years old to cross state lines. “We haven’t recovered from that change,” he said, noting that it looks like New York State will soon change the age requirements, although with restrictions. “That’s a three year gap at a time when young people are getting out of high school and looking for a good paying job.

Even if they consider driving a truck, they would have to wait three years as it stands now. By then, they’ve gone in a different direction, and it’s not likely we’ll get them back.”

buyersguide.neastda.org

REACH MEMBERS BY ADVERTISING IN THE NORTHEAST DAIRY CONNECTION • The official membership e-newsletter of the Northeast Dairy Foods Association, Inc. and Northeast Dairy Suppliers Association, Inc. • Strong open rate of 26% and a click-through rate of 24%.

TWO ADVERTISING OPTIONS AVAILABLE FOR THE E-NEWSLETTER • A Spotlight Ad allows your company to have a 50 word description at the very top of the newsletter, as well as a logo, plus a 600x300 spotlight ad in the body of the text.

• A banner ad is a 600x150 ad that is placed in the body of the newsletter.

Contact Bill Brod by emailing billbrod@nedairymedia.com or calling 315-445-2347, ext. 138.

28 • Northeast Dairy Foods Association, Inc.

T h e B u s in e s s Of D a ir y

What Does It Take to Qualify a New Driver?

BY MICHAEL DODD

I

t’s no secret that truck drivers are in high demand, but when a company is successful in hiring one, there are certain steps necessary before that driver can take to the road. Some of the common questions I get when someone is trying to put on a new driver are: How quickly can I put a new driver on the road? What items do I need to have in my hands before letting a driver go out on the road?

What minimums should I have for hiring a driver?

THE “MUST HAVE” ITEMS BEFORE LETTING A PERSON DRIVE INCLUDE:

• DOT employment application • Current medical card certification (either a medical card or an motor vehicle record showing current medical certification) • Medical examiner certification where you have checked the National Registry of Medical Examiners to be sure that the driver used a certified examiner • A negative pre-employment drug test • Clearinghouse Full Query with no prohibitions • A road test form and certificate (391.31(g)) or CDL license or certificate accepted in lieu of road test (391.22).

• A CDL is acceptable. Doubles/triples or cargo tankers must have a road test certification for the specific vehicle within the previous three years.

ITEMS THAT YOU MUST HAVE WITHIN 30 DAYS INCLUDE:

• A motor vehicle record from states (391.23), which must be obtained within 30 days of employment and must be for the prior three years. Note that regulations require this within 30 days, but I suggest that you have this and review it prior to letting the driver operate your vehicles.

• Previous employer information (391.23), which much be obtained within 30 days of employment, must be for the prior three years. The information must be verification of employment, and include any information on DOT accidents, or any other accidents that the previous employer may want to provide), and the drug and alcohol test results/violations. The drug and alcohol inquiries from previous employers will be phased out by Jan. 6, 2023.

This is being replaced by the Clearinghouse Full Query as it adds three years of data to the database.

CONTINUED ON NEXT PAGE ► NED Magazine | Third Quarter 2021 • 29

T h e B u s in e s s O f D a ir y ITEMS THAT ARE NEEDED LATER DOWN THE ROAD INCLUDE:

• An annual review of driving record (391.25), which must be done at least annually and must keep a copy of the state inquiry results in the file. The motor carrier must consider the driver’s accident record and any evidence that the driver has violated laws governing the operation of motor vehicles and must give great weight to violations, such as speeding, reckless driving and operating while under the influence of alcohol or drugs, that indicate that the driver has exhibited a disregard for the safety of the public.

• Lists of violations (291.27) — part of the annual review — include the driver provide a list of driving violations for the previous 12 months. The driver shall sign this list if the driver has already provided this information as required by 383.31, then they don’t have to repeat the information. 383.31 requires that drivers notify their carrier within 30 days of any vehicle violations, other than parking tickets of which they have been convicted.

The notification must be in writing and contain the seven items listed in 383.31 • Medical examination kept current, or motor vehicle record as required, kept current.

• Medical Examiner’s Certification kept current • Annual limited or full query from the Clearinghouse.

Suggest items for the driver qualification file include: • A copy of their current driver’s license (although this is not required but highly suggested).

Another question I’m often asked is: What do I do about an existing employee who I want to make a driver? The easiest and best thing to do is to treat the employee as a brand new hire. Make sure you have used a DOT driver application form.

If not, then have the employee fill out a new DOT employee application. You must still do the previous employer background checks for the previous three years, but you are able to count the time the employee was working for you in another capacity in that time period. Be sure to do the pre-employment drug screening.

Some of the suggestions above are minimum requirements and, if not met, could possibly disqualify someone from being considered for a driver position. These are only suggestions, and you are free to modify these to meet your local hiring environment and driver availabilities

30 • Northeast Dairy Foods Association, Inc.

ELIGIBLE DRIVERS MUST:

• Have at least two years driving experience or have completed a course of instruction from a driver training school that operates equipment similar to the company.

• The appropriate license for the type of vehicle to be operated and the applicable endorsements.

• A current medical examiner’s certification (medical card or MVR showing current medical examination certification).

• The ability to read and write in English.

• An acceptable driving record.

AN ACCEPTABLE DRIVING RECORD MEANS:

• No major violations in the last three years. A major violation is a citation that involves any drug or alcohol violation in connection with the operation of a motor vehicle; homicide, manslaughter or the use of a motor vehicle for felonious purposes, hit and run, reckless driving, a speeding violation 15 mph or more above the posted limit, speed contests, drag racing or attempting to elude an officer of the law; driving while a license is suspended or revoked, use of a cell phone while driving, failure to use a seatbelt.

• A maximum of three minor moving violations in the last three years. A minor violation is any moving traffic citation other than a major violation (e.g., speeding less than 15 mph above the posted limit, failure to stop or yield, improper lane change, etc.). The following are not moving citations: motor vehicle equipment, load or size requirements; improper display or failure to display license plates; or failure to sign or display registration card.

• A maximum of one at-fault accident in the last three years Following these guidelines and collecting this information will help ensure that your new driver is road ready.

Michael Dodd is a DOT consultant for GAWDA.

T h e B u s in e s s Of D a ir y Industries that Rely on Trucking Support The DRIVE-Safe Act

T

rucks currently move more than 70% of domestic freight throughout the U.S. Lack of drivers has contributed to an already shaky supply chain due to COVID-19. To that end, 117 organizations representing all levels of the U.S. supply chain sent a letter in April to transportation leaders in Congress urging passage of the DRIVE-Safe Act legislation to remedy the growing shortage of truck drivers by promoting opportunity and enhancing safety training for emerging members of the trucking workforce.

While 49 states and the District of Columbia allow individuals to obtain a commercial driver’s license and operate commercial vehicles within their respective states at age 18, these same drivers cannot cross state lines until they are 21.

The DRIVE-Safe Act would change this through a rigorous two-step apprenticeship program that creates a path for younger drivers to participate in interstate commerce.

As the name implies, however, the legislation’s first priority is safety. In order to qualify, candidates must complete at least 400 hours of additional training — far beyond what is required of any other CDL holder in the nation. All those participating in the apprenticeship program would be accompanied by an experienced driver in the cab and would only be allowed to drive trucks outfitted with the latest safety technology, including active braking collision mitigation systems, forward-facing event recording cameras, speed limiters set at 65 miles per hour or less, and automatic or automatic-manual transmissions.

The legislation has had strong bipartisan support in the 116th Congress on both sides of the aisle, and representatives in agriculture, manufacturing, retail, foodservice and transportation industries all over the U.S. have banned together in support.

So far, the DRIVE-Safe Act has been introduced into the Senate, according to Alex Walsh, associate vice president of regulatory affairs for the Northeast Dairy Foods Association, but, as this article goes to press, there has yet to be any movement on it. The dairy industry, and almost every other industry that relies on trucking in the U.S., continues to watch this issue carefully.

What Is SLAM technology?

If you’ve been following the development of autonomous

vehicles, you may have heard the term “SLAM,” which

stands for Simultaneous

Localization And Mapping.

This technology allows you to construct a map and

localize your vehicle to that

map using algorithms. SLAM technology is based on

computational geometry and computer vision. It’s not only found in the autonomous

vehicle space but is also

making strides in robot

navigation, robotic mapping and odometry for virtual or augmented reality.

NED Magazine | Third Quarter 2021 • 31

T h e B u s in e s s O f D a ir y

Autonomous Vehicles Are Almost Ready, but Are Others Ready to Share the Road With Them?

N

ot long ago, the idea of self-driving cars and trucks seemed like something out of “The Jetsons,” the iconic 1960s cartoon TV series. But, fast forward to today, and there’s no doubt about it — autonomous vehicles are on the move. The four manufacturers that dominate the U.S. market for long-haul trucks are taking driverless vehicles seriously. Each has partnered with leading developers of self-driving vehicles: Daimler with Alphabet’s Waymo; Navistar with tuSimple Holdings; and Volvo and Paccar with Aurora Innovations, a startup founded by former executives from Waymo, Tesla and Uber.

Many companies have pushed back progress and release dates due to the 32 • Northeast Dairy Foods Association, Inc.

pandemic, but there have been trials of these self-driving vehicles taking place in the trucking industry for a while now.

In 2019, for example, NDFA member Land O’Lakes moved 40,000 pounds of butter 2,800 miles from Quakertown, Pennsylvania, to Tulare, California with an autonomous tractor trailer. It took three days, and the experiment included only one vehicle hauling the popular dairy product, but it was, according to the butter maker, the first cross country commercial freight trip made by a self-driving truck According to Land O’Lakes, the truck was equipped with Plus.ai’s advanced autonomous driving system, which uses multimodel sensor fusion, deep learning visual algorithms and simultaneous location and mapping (SLAM) technologies. The vehicle drove night and day

on interstates through various terrains and weather conditions, construction, tunnels and other obstacles typical of a traditional haul made with a driver behind the wheel. A safety driver was onboard as a precaution, and a safety engineer was also present to monitor system operations, but essentially the truck was driving on its own.

In a news release, Shawn Kerrigan, COO and co-founder of Plus.ai, said, “This cross-country freight run with Land O’Lakes shows the safety, efficiency and maturity of our autonomous trucks, which are already delivering freight for other partners several days a week. Continued advances in our autonomous trucks will make it possible for these quick, cross-country runs to be the norm of the future. We are excited to demonstrate what our technology can

T h e B u s in e s s Of D a ir y already achieve, while meeting rigorous autonomous driving safety and food transportation compliance standards.”

As the pandemic winds down, progress on autonomous vehicles is certainly winding up. How exactly that will work still remains unclear. Many companies are working on similar systems where a lead truck controls the acceleration and brakes of a fleet of trucks that follows, so that they all accelerate or decelerate together. Some systems require a driver to be in place in a lead vehicle, while others let software take the wheel. This concept of “platooning” is thought to reduce air resistance and decrease fuel costs. Many systems are designed for trucks to drive autonomously on highways, while leaving the more intricate beginning and end of the trips under human control. Other companies are experimenting with removing truck cabs and using “drivers” who monitor, control and supervise a number of trucks away from the vehicle.

Most people embrace advances in technology, but there is a stop gap between what is deemed an inconvenient technological glitch (e.g., your Wi-Fi is down) and what might pose a life and death safety concern (e.g., an 80,000-pound autonomous tractor trailer in the next lane). Drivers of all kinds don’t yet trust that this kind of technology can make necessary decisions on its own, and some companies interested in using these kinds of vehicles are still working through liability concerns. Until there is a greater level of confidence in autonomous vehicles, it is unlikely that they will be used to their full potential.

Many in the autonomous trucking sector, however, believe that implementing more dependable and functionally safe algorithms and electronics will eventually win over the skeptics and result in a safer, more efficient and more cost-effective driving experience for everyone.

2021 C ALENDAR OF

DA I RY EV E NTS SEPTEMBER SEPT. 3: National Food Bank Day SEPT. 5: National Cheese Pizza Day SEPT. 6: National Coffee Ice Cream Day SEPT. 12: National Chocolate Milkshake Day SEPT. 15: National Cheese Toast Day SEPT. 16: Queso Day SEPT. 18: National Cheeseburger Day SEPT. 20: National String Cheese Day SEPT. 22: National Ice Cream Cone Day SEPT. 27: National Chocolate Milk Day SEPT. 29: World School Milk Day

OCTOBER OCT. 7: National Frappe Day OCT. 9: Moldy Cheese Day OCT. 15: National Cheese Curd Day

NOVEMBER NOV. 9: National Greek Yogurt Day NOV. 11: National Sundae Day

DECEMBER DEC. 13: Ice Cream Day DEC. 13: National Hot Cocoa Day DEC. 24: National Eggnog Day NED Magazine | Third Quarter 2021 • 33

T h e B u s in e s s O f D a ir y Will Autonomous Trucks Create a Shift in the Workforce?

Many are looking at autonomous vehicles as a way to solve the driver shortage, while others find that absurd. In March, Meera Joshi, the acting administrator of the Federal Motor Carrier Safety Administration, drew attention when she publicly stated the autonomous truck technology would negatively impact truck-driving jobs.

At the agency’s Analysis, Research and Technology Forum, she was quoted as saying, “We can argue about scope and timeline, but what we can’t argue about is that this is a reality — there will be a major shift in workforce. If it’s your livelihood that seems like it’s being threatened, it is an immediate problem.

If (you’re a technology developer), it feels like things aren’t moving fast enough. The infrastructure is not built, and it seems further out. Nothing will happen overnight, but automated vehicles will certainly make inroad into the workforce.”

She continued, noting that it was the priority of the Biden Administration to “understand that there are extremely real and broad impacts to automation

on people’s livelihood” and that she, President Joe Biden and Secretary of Transportation Pete Buttigieg

need “to make sure we have our hands around how

we can best prepare the workforce for this change, regardless of timetable.”

The U.S. Department of Transportation seems committed to making sure the U.S. becomes a leader

in autonomous driving. In a statement on its website, it said, “The U.S. Department of Transportation is committed to facilitating a new era of transportation innovation and safety and ensuring that our country remains a leader in automation. USDOT is acting as

a governor and facilitator, partnering with a broad

coalition of industry, academic, states and local, safety advocacy, and transportation stakeholders to support the safe development, testing, and integration of automated vehicle technologies.”

The DOT’s Automated Vehicles Comprehensive

Plan and other documents related to autonomous vehicles can be found at www.transportation.gov.

Trucks Sold Out Until 2022 According to Bill Elliott, sales representative at Northeast Great Dane and president of the NDSA board of directors, trucks of all kinds are sold out until at least early 2022, and truck bodies aren’t expected until the end of 2021 or first quarter of 2022.

“It sounds great to be sold out of trailers and truck bodies, but right now there’s very little to sell that can be built this year,” said Elliott. “Most of our customers won’t see their first trucks until 2022, and you can’t build a body until you get a truck.”

“Right now, truck manufacturers have thousands of trucks sitting in the lot waiting for a small, scarce 34 • Northeast Dairy Foods Association, Inc.

but necessary microchip to complete the trucks,” he said. “It’s pretty much day-by-day. You cannot quote trailers, for example, if you have no idea what they are going to cost. Most companies have stopped quoting customers at all right now because no one knows what the price of materials is going to be by the end of the year.”

Truck and trailer sales have also been impacted by the cost of materials. “It’s an unpleasant call to make to a dairy manufacturer to say that his costs are going to increase by a double-digit percentage because of the price of steel, aluminum, petro chemicals, etc., but that’s the reality out there right now,” Elliott said.

T h e B u s in e s s Of D a ir y

Solar Farms: Opportunity for Renewable Energy Options and Financial Gain or a Threat to Food Security and Local Economies?

Chances are you’ve taken a drive through the countryside somewhere in the Northeast and seen a solar farm — dozens and dozens of huge solar panels lined up in neat rows in open fields soaking up the sun. Dairy farms, often pointed to as major sources of greenhouse gas emissions, have become major players in this growing source of renewable energy that harnesses the sun’s rays using a complex photovoltaic system that typically supplies commercial power into the electricity grid. The concept is not without controversy, however. Those in favor of this type of technology see harnessing solar to create energy as a no-brainer for surrounding communities and the nation, as a whole. In some cases, this allows farmers to create their own power, thus decreasing energy costs on the farm. In other cases, it allows struggling farms to stay in business by leasing some or all of their land to companies looking for places to erect solar farms. Others, however, aren’t quite sure, with community members sometimes citing the solar farms as an eyesore and others wondering whether the benefits outweigh the impact that the loss of farmland has on food production and local economies. As the push for renewable energy sources and the struggle to keep farms going strong continue, the following articles present some of the facts related to both sides of the story.

SOLAR FARMS PROVIDE OPPORTUNITIES FOR DAIRY FARMS Solar energy isn’t new, but it has become much more mainstream as Americans look for more reliable renewable energy sources. In New York State, for example, the Climate Leadership and Community Protection Act calls for installing 6,000 megawatts of solar by 2025 and has some of the most rigorous goals of any major economy in the world, according to climate.ny.gov. Similar initiatives are taking place in other states, as well. In April, President Joseph R. Biden announced a target for the U.S. to achieve a 50% to 52% reduction in greenhouse gas pollution by 2030. While some of these plans are purely focused on the environment, others, like solar projects, are intended to make economic sense, with benefits to businesses and homeowners alike, that can lower electric bills, offer tax credits and off-set utility cost.

According to Goldman Sachs, the demand for solar energy has essentially tripled over the past seven years, as more and more businesses are committing to becoming net carbon NED Magazine | Third Quarter 2021 • 35

T h e B u s in e s s O f D a ir y

neutral. Amazon, for example, recently pledged to reach net zero emissions by 2040 and use 100% renewable energy by 2030. Other major players are prompting a growing consumer demand, as well.

The dairy industry is both benefitting and contributing to the increased use of solar energy. Farmland, including both agricultural and dairy, is attractive to solar developers, as it is typically already cleared, relatively flat and easily accessible. Farmland is more desirable than barren land, as it is typically moist, which is an important part of making solar panels work efficiently through the cooling effects of water vapor. In addition, good quality land used for agriculture is historically accessible to the necessary infrastructure like roads and powerlines, which are important criterion for solar developers. This is a boon to farmers looking to sell or lease land for a profit. According to greencoast.org, the U.S. is the fourth largest solar producer in the world, which means land leasing rates have skyrocketed.

Farms can benefit in a couple of ways. One, they can invest in their own solar panels in an effort to meet energy needs on the farm, consequently reducing energy costs dramatically.

Power from solar can keep an entire farm operating — from lighting and refrigeration to running water pumps and powering electric fences. While there is a significant initial investment to the farmers, many incentives are available, and the long term energy costs can save a typical farm tens of thousands of dollars annually. Often times, farms will produce more energy than they can actually use, particularly as most energy use takes place during the day. In this case, farms can also profit by selling excess power to local utility companies.

Another option is for farms to lease land to solar developers to host a commercial solar farm. In this instance, developers rent land at a fixed rate from the farmers, and both the farms and the developers share in the revenue produced by the electricity sales. This is also a viable option for those farmers who

36 • Northeast Dairy Foods Association, Inc.

can no longer afford to remain in business or are deeply in debt. Leasing their land can often help them maintain the long history of a family farm at a time when dairy farming can be economically challenging. Even farms that are holding their own can use solar energy to increase the long-term value of their farms, as those using clean energy are proven to be more attractive to potential buyers.

According to the Word Bank’s Global Solar Atlas, which provides a calculator to determine how much solar energy can be produced when given a certain measurement of land, a 125-acre, 18 megawatt solar farm in the Northeast has a photovoltaic power output of 22,519,000 kWh per year. That’s enough energy to power about 3,000 residential homes and would yield approximately $1.1 million annually in revenue from electricity sales, which, in most of the Northeast, runs about 5 cents per kWh. (According to World Bank calculations, solar farms in the Southwest and across the Atlantic coast can generate up to 50% more electricity per acre due to more optimal weather conditions.)

Solar farms and their equipment generally last 20 to 25 years. But the good news for farmers is that the land used for solar farms can be converted back to agricultural use at any time. The timeframe of use for a solar farm often gives the farmland a chance to recover, which makes for a richer and more valuable soil later on. While all of this is good news for the dairy industry, there are those who believe that solar projects are depleting the availability of land to produce food, which could, in the long term, interfere with food security, so the topic is not without controversy.

Of course, who knows what great innovations may come along in the coming years to further harness the power of the sun, but it’s important to know that existing solar farms and the equipment involved to keep them running do not harm the land but instead seem to only increase its value on many levels.

T h e B u s in e s s Of D a ir y What is

AGRIVOLTAICS? For those farmers who don’t want

to wait several decades to use the land, there is sometimes the option

of agrivoltaics. This term describes

the intertwining of agricultural

activities with solar panels. Some energy companies and farmers

have been experimenting with using farmland to both harness solar power and continue some level of

farming. Beehives around the solar

panels are one way of incorporating agrivoltaics. Depending on the

height of the solar panels, livestock can still exist and graze between

the structures, too. Small animals, like poultry, can easily roam among

the panels and benefit from an area that provides both sun between

the panels and shade underneath

them. Some solar farms offer solar panels that are set a bit higher —

Reduce the Risk of Contamination

about 7 feet — allowing other forms

Our color-coded offering can help minimize the risk of crosscontamination and lay the foundation for a solid food safety program.

of livestock to co-exist. Sheep are

probably the most common, as they can easily graze under and

between the solar panels, but even cows and horses can be in the mix depending on the size of the solar

farm and height of the panels.

Grazing under the solar panels can actually shade cows from the

sun, and cooler, more comfortable cows are known to be healthier and produce more milk. There is

even current experimentation with growing crops in and around solar panels. Researchers are moving quickly to test the potential of

agrivoltaics, which may add yet another benefit to solar farms.

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1-800-826-8302 nelsonjameson.com sales@nelsonjameson.com NED Magazine | Third Quarter 2021 • 37

T h e B u s in e s s O f D a ir y

SHADE AND ENERGY

Solar Panels Used as Shade in Grazing Pastures Cow comfort. An industry term that we hear all the time, but how to achieve that perfect balance of comfort and practicality is a debated topic. However, for grazing herds, Brad Heins, University of Minnesota assistant professor and Extension organic dairy management specialist, might have found just the right answer.

Heins and his team, including graduate student Kirsten Sharpe, installed a 30-kilowatt solar powered system in the pasture of their rotational grazing system at the West Central Research and Outreach Center in Morris, Minnesota. The system provides shade for their milking herd and energy for the milking parlor.

Using solar and small-scale wind energy, as well as a heat reclamation system, the 300-cow dairy has a goal of net zero energy. They also are working with the University of Minnesota Morris on a new solar-powered system. They will be putting up a 200-kilowatt system that the dairy will use for shade for the cows while grazing and all the energy will be used by the University.

In order to identify the positive impact of the shade on the cows, Heins and Sharpe monitored the rumen internal temperature. They wanted to determine if the solar panels decreased heat stress in cows. They found a half degree decrease in internal body temperature of cows that had access to the solar panels as shade, as compared to cows that did not have access, showcasing the positive impact in cow comfort.

To help highlight this work, the WCROC and Extension hold field days for farmers and industry alike. They have had visitors from not only Minnesota but across the nation and on YouTube. Watch one of their videos at https://z.umn.edu/cowsolar.

38 • Northeast Dairy Foods Association, Inc.

Heins has also been monitoring four other dairy farms for the past year-and-a-half in order to learn how efficient the farms are with their energy usage and identify opportunities to expand renewable energy.

Adapted with permission from the University of Minnesota Extension.

T h e B u s in e s s Of D a ir y POWERING THROUGH HISTORY “We are like tenant farmers chopping down the fence around our house for fuel when we should be using nature’s inexhaustible sources of energy — sun, wind and tide. …I’d put my money on the sun and solar energy.

What a source of power! I hope that we don’t have to wait until oil and coal run out before we tackle that.”

Those were the fortuitous words Thomas Edison said to automobile giant Henry Ford back in the early 1930s.

Clearly, Edison’s vision was spot on, even if it took 80 years to realize. Edison, known for inventing the light bulb, a battery system for electric cars and the first steamdriven power station, clearly understood the power of the sun long before others and also had concerns about potential problems with coal and fossil fuels.

(Source: “Uncommon Friends: Life with Thomas Edison, Henry Ford, Harvey Firestone, Alexis Carrel and Charles Lindbergh” by James Newton.)

GIVE US SOMETHING TO CHEW ON. Are you introducing an interesting product?

Have you instituted cutting-edge processes?

Are you welcoming a new hire?

Is your business expanding, moving or changing?

Do you have other news to share?

Northeast Dairy magazine is always looking for Member and Industry News.

Email your information, news releases and/or captioned photographs to us at editorial@nedairymedia.com.

NED Magazine | Third Quarter 2021 • 39

T h e B u s in e s s O f D a ir y

Not Sure How to Benefit From Solar Energy? NDSA Partner EPC Can Help Your Business Make the Switch

A

s an endorsed service provider of the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association, Energy Partner Consultants of Latham, New York, has been working with farms, businesses and homeowners to determine if tapping into solar power projects is a good option for them. According to CEO Wendy Martin, who is also an NDSA board member, the opportunities and benefits from solar power are growing.

Energy Partner Consultants works with customers to mitigate risks and reduce electricity and natural gas costs by using a variety of means to identify the most competitive rates for a farm, business or resident. The company evaluates and advises on opportunities for savings, compares rates, negotiates and executes energy agreements and performs ongoing contract management on behalf of customers in order to maintain the best rates, as well as manages risk-based customers’ specifications and budgets.

“We continually study the energy industry in order to deliver our clients the options best suited to their energy management needs,” explained Martin.

“Energy Partner Consultants has established alliances with local, regional and national companies to ensure the best sources and lowest costs for your 40 • Northeast Dairy Foods Association, Inc.

energy. By offering the widest array of supply and demand options from the best providers, we also help limit our clients’ exposure to market volatility to the greatest extent possible. We also guide our clients through different government and ISO programs that help reduce energy costs, provide lucrative incentive revenue and relieve strain on grid infrastructure.”

According to Energy Partner Consultants, only 8% of New York residents have the ability to put solar panels on their roofs. Until recently, that meant most people who wanted to reap the benefits of solar power didn’t have the ability, according to Martin. “By using community solar, the other 92% can still benefit just as fully,” she explained, “as now there are a number of programs and

T h e B u s in e s s Of D a ir y incentives that will allow more people to take advantage of this renewable energy source. You can reduce your carbon footprint while saving money.”

Martin’s company has been enrolling farms, businesses and private residences for the last year-and-a-half and seeing more farms leasing land to solar investors. She noted that New York State and California have been leading the way in enrolling businesses and local residents in these programs, but she expects to see almost every state in the U.S. offer similar opportunities in the near future.

At present, only a small portion of New Yorkers are enrolled — and Martin attributes that, in part, to a slowdown during the pandemic — but she is very optimistic that “this clean affordable option will continue to grow as more and more people understand how it works and how they can reap the benefits.”

Karen Veazy of Lamb Farms in Western New York decided to enroll in a program with the assistance of EPC. The Lamb and Veazy families that operate the dairy farm were interested in the program as a way to save money on their energy bills. The typical energy bill on

a farm can total into the tens of thousands of dollars each year. Veazy said the farm doesn’t have solar panels on their property but instead decided to enroll in a nearby community solar project that reduces the energy costs on the farm by about 10%. The savings has helped the farm, and she said the services of EPC were very helpful in getting started.

“It made good sense for us,” Veazy said. “Energy Partners Consultants helped us get started last year and has been with us all along the way in case we have questions. But, so far, it’s been an easy process that was a good financial decision for us.”

While it may all sound too good to be true, it’s not, according to Martin.

The only catch is that community solar is only available in certain areas, and projects require consumer demand to be built. “Fortunately, the demand is growing and greater access to community solar projects is on the rise,” she said.

For more information on enrolling in solar projects in your area, contact Energy Partner Consultants at info@ epchq.com or visit www.energypartnerconsultants.com.

Who Discovered Solar Energy?

In 1839, French physicist Alexandre-Edmond Becquerel discovered the photovoltaic effect, which is the operating principle behind solar power.

At age 19, Becquerel was experimenting in his father’s laboratory with electrodes, silver chloride and silver bromide when he created the world’s first photovoltaic cell. (His father, Henri Becquerel, helped discover radioactivity.)

(Source: Archives.org)

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T h e B u s in e s s O f D a ir y Solar Farms in Agricultural Areas

A New Challenge for Land Use Planning

BY JOE LAWRENCE, MS, CCA

L

and use decisions are one of those topics that can seem rather insignificant at the micro-level, such as converting one acre of land to a housing lot.

However, at the macro-level it has massive ramifications on our townships, counties and the world.

It’s certainly not a new topic, as significant concerns around the loss of agricultural land to development have existed for decades, and organizations such as American Farmland Trust have worked to educate on the issue and protect land, but there are new forms of development pressure exerting themselves on farmland.

The term development is often associated with progress; however, the terms are not always synonymous. This is precisely why the loss of farmland to development has been a point of concern for so long. The most obvious concern when farmland is lost is often from a food security standpoint. Another aspect, often-overlooked, is the economic impact of agriculture on local economies. And, more specifically, how the economic contribution of a new land use compares to the use of that land for food production.

While different sectors of agriculture utilize different metrics to measure economic impact, the focus here will be dairy.

A study from Cornell University sought to understand the economic multiplier of the money paid to dairy farmers for their milk. The study looked at all the ways farmers spend their money to continue operating their farm and determined that for each dollar in gross milk sales, $2.29 are generated in the economy through purchases and the jobs these purchases support. Other studies have found similar values, though sometimes expressed in different units such as dollars per cow.

As with any model, assumptions are needed to look at the impact of this from a land use standpoint, but data exists to make some pretty sound assumptions.

In most areas, we can reasonably use two acres per cow (and her replacement) for a good balance of meeting forage needs 42 • Northeast Dairy Foods Association, Inc.

and balancing manure management on a dairy. The next step is to decide on a milk price and level of production per cow.

Again, these can be debated, and milk prices certainly vary over time and by region, but for this purpose the recent 2020 Cornell Dairy Farm Business Summary report will be used, which is $18.25 per CWT and 26,355 lbs. per cow.

Plug these numbers into the economic multiplier, and the result is an annual economic impact of over $10,900 per cow or over $5,400 per acre.

Setting aside the very legitimate concerns regarding loss of farmland from a food security standpoint, this value can be used to pose the question: Will the new land use generate more than $5,400 per acre in economic activity?

A form of development pressure that is relatively new involves the push for renewable energy. Renewable energy sources are critical to mitigating climate change, but as with any development, planning is critical. This push allows with advancements in technology have put solar energy at the forefront, even in relatively cloudy, snowy states like New York.

Agricultural land offers a convenient place to develop solar projects as the land is already clear and often relatively flat and accessible. Furthermore, historically high-quality agricultural land often led to development of major infrastructure (main roads, powerlines) because of where the first successful settlements were located. This further focuses the current development pressure on some of our highest quality agricultural land, as access to sizable electrical infrastructure is another important criterion for solar developers.

For farmers, solar opportunities may present themselves in two ways. First, a farm can invest in solar panels to help meet the energy needs of their farm businesses, reducing energy costs. There are a number of incentive programs for doing so, and farmers can find resources in their respective states for this.

Second, and the focus of this article, is the leasing of land to a solar developer to host a commercial solar farm on a farmer’s

T h e B u s in e s s Of D a ir y

land. In New York, the Climate Leadership and Community Protection Act calls for installing 6,000 megawatts of solar by 2025, a trend also seen in other states and at the national level.

While solar offers many benefits, it does have a relatively large land use footprint compared to other energy sources. Most estimates indicate that 5 to 7 acres are required to produce one megawatt from solar. For New York, this equates to 35,000 to 42,000 acres of land to meet 2025 goals.

In contrast, a wind farm example from the Tug Hill region of New York State offers some perspective. While some literature reports the footprint of wind farms as the total area of the farm, from an agricultural land use standpoint the footprint is really only the towers, access roads and power lines, as all other land within the project footprint remains viable for farming.

According to data for the Maple Ridge Wind Farm in Lewis County, New York, the project covers 21,000 acres, but only about 1% is the actual towers and infrastructure. The nameplate capacity of the project is 320 MW, so this equates to approximately 0.65 acres per MW, nearly nine times less than solar.

It should be acknowledged that there are efforts underway around agrivoltaics — food and fiber production under and around solar installations. These prospects have generated some excitement. But, perhaps more significant than the question of how we produce food within the footprint of solar is the question of market opportunities for the potential products.

Exploring these market opportunity questions, at a much deeper level than happening currently, will be critical to seeing any meaningful economic impact from agrivoltaics.

It is also important to recognize that not all land is created equal, and while protecting farmland is important, protecting our best land has a higher impact. In the context of environmental and economic sustainability, it could be argued that some less productive farmland would be better suited to be utilized for an alternative use, as its low productivity creates a higher environmental footprint and cost of production when used to support a dairy cow.

Leasing land for this purpose can certainly be a welcome income source for a farm, particularly in a time of such price volatility, and this is certainly an important factor. For some farmers, it could be just the boost they need to keep the farm going. This topic also elicits discussion about landowners’ rights. Without diminishing the importance of these points, the past has taught us just how important higher-level land use planning is. Examples of disputes and challenges resulting from the lack of planning appear, almost daily, in news stories from communities across the country.

On the surface, the opportunity for a farmer to lease a parcel of land to a solar project seems to have a number of benefits. The farmer receives income from the land and the local community typically receives some level of compensation

NED Magazine | Third Quarter 2021 • 43

T h e B u s in e s s O f D a ir y

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44 • Northeast Dairy Foods Association, Inc.

in the form of Payments In Lieu of Taxes agreements and other incentives that generate more funds than the taxation of the open land. However, this is also a case where the actual value of what is being given up can be greater than the value of the new development. Using currently available numbers, relatively productive farmland (the 2 acres per cow scenario) generates over twice the economic activity as a solar project.

Land productivity must drop to 4 to 5 acres per cow before the economic activity of solar rivals supporting a dairy cow with that acre. Furthermore, while solar leasing is a potential opportunity for land owned by the farm, it can be a threat to a farm who leases land if the landlord chooses the more lucrative solar lease over leasing to the farm.

Taking this a step further, the once thriving small business ecosystems built around supporting agriculture in many rural communities have already disappeared, and, even in communities fortunate to have maintained these agricultural ecosystems, the pressure is significant. It works both ways. These businesses need a certain density of agricultural production to remain viable and their presence in a community can enhance the economic competitiveness of the farms.

Removing more land from agriculture means fewer total farms and less capacity to support the cows that support this business ecosystem. There are a number of rural communities on the tipping point for retaining enough farm activity to support these businesses, and the potential shock from rapid land development could be enough to tip the scale on their viability.

In today’s economic environment it should also be acknowledged that discussing economic impact in this way creates a bit of a cruel irony. The numbers show us that a farm can be operating at a deficit but still be creating significant economic activity in the local economy as every dollar made (plus some!) is spent to keep the animals healthy and the farm operating. So, while the farm’s contributions to the economy are significant, the business is only sustainable when the farm is profitable. This makes the discussion around this topic even more complicated.

There are perhaps no right answers to these questions; however, our best chance of successfully navigating these issues is to at least make sure we are having the discussion and heeding the warnings around under-planned development.

Joe Lawrence, MS, CCA is the dairy forage systems specialist with PRO-DAIRY at the College of Agriculture and Life Sciences at Cornell University.

T h e B u s in e s s Of D a ir y

The Debate on Dairy Versus Plant-based Alternatives

DFA Explains Its Decision to Offer Consumers the Best of Both

I

f you asked the dairy industry what kind of relationship it has with plant-based alternative dairy products, the answer would probably be “complicated.” Without a doubt, the dairy industry is firmly built on fluid cow’s milk and the delicious products like yogurt, cheese and butter that it produces. A glass of ice-cold cow’s milk has been equated with nutrition and wholesome goodness for ages, and you’d be hard pressed to find many in the dairy industry who would say anything to the contrary. But, for some time now, plant-based dairy alternatives have been elbowing their way into the dairy case, particularly when it comes to beverages. With the consumption of fluid cow’s milk continuing to decline, the dairy industry has had no choice but to take notice.

Not long ago, plant-based dairy alternatives seemed certain to be a passing phase, and some, in fact, have come and gone. Offerings of plant-based dairy alternatives have been derived from soy, cashews, coconut, rice and even peas. The almond, however, has proven to be the standout for plant-based

alternative beverages, and it doesn’t appear to be going away.

New to the scene is oat milk, which has quickly proven to be very popular, although its longevity has yet to be determined.

There’s no doubt about it: plant-based alternatives to dairy products are thriving.

So, what is the dairy industry to do? Of course, many in the dairy industry will hold firm that grinding up a bunch of nuts and adding water, sugar and thickeners does not a glass of milk make. But others have chosen to embrace these plant-based products as an opportunity to market products that consumers continue to demand.

Northeast Dairy magazine discussed this great debate with Dairy Farmers of America, as the cooperative has recently introduced an innovative milk-based product that takes direct aim at plant-based beverages with Dairy+Milk Blends, a lactose-free beverage featuring a 50/50 blend of cow’s milk with plant-based “milk” in two flavors: almond and oat. This new product has 6 to 8 grams of sugar, 5 grams of protein and fewer calories per NED Magazine | Third Quarter 2021 • 45

T h e B u s in e s s O f D a ir y serving than the 13 grams of sugar and 20 grams of protein found in the equivalent serving of cow’s milk.

Rachel Kyllo, senior vice president, marketing innovation for DFA Dairy Brands, answered some pertinent questions on why this leader in the dairy industry decided to make the bold move into plant-based dairy alternative beverages.

NED: Plant-based dairy alternative beverages have been around for a while now. Almond milk is so popular that it really has become a “must have” in many consumers’ shopping carts. Can you talk about how these products have gone from trendy to mainstream?

RK: There are a few reasons that plant-based milks have become mainstream, but the main reason is great marketing.

There’s been a really aggressive push by a number of brands to get these products —- particularly almond milk and oat milk —- in front of consumers. These brands are spending a lot of money marketing these products as healthy additions to a nutritious diet. Consumers keep hearing the message that plants are an important part of a healthy diet, and many Americans, particularly younger consumers, believe the narrative that plant-based milks are better for them than cow’s milk.

When we first started out with the idea of Dairy+Milk Blends, we weren’t looking to create something completely new. We know we have a great product in cow’s milk. But, we also acknowledge that many of today’s consumers really like the idea of a flexitarian diet — a way of eating that is mostly plant-based but does not completely eliminate animal products. Our decision to move forward was a way of delivering what we consider a new dairy product to consumers who data shows are shifting away from traditional dairy.

We’ve really been promoting our Dairy+Milk Blends through digital and social media channels, as well as retail shopper marketing programs, as a way to reach our younger target audience. We’re eager to see how well received this new product will be.

NED: Many in the dairy industry will argue that something called almond “milk” is, in fact, not milk at all. How do you respond to that, and did that impact DFA’s decision to introduce Dairy+Milk Blends?

RK: If you taste a glass of real cow’s milk side-by-side with a glass of almond milk, there’s no comparison from a sensory perception — cow’s milk wins every time. You just can’t duplicate the creaminess and viscosity of cow’s milk 46 • Northeast Dairy Foods Association, Inc.

T h e B u s in e s s Of D a ir y from something made out of plants. But, we didn’t create Dairy+Milk Blends to change anyone’s minds on that. What we did do is find more opportunities for dairy by leveraging the popularity of plant-based milks and came up with what we call “the best of both worlds.” Our real message here is “real dairy milk blended with plant goodness” with an emphasis on the dairy. Initial samplings were very wellreceived and that’s made us more interested in this space.

Taste and nutrition are the key drivers of this product, as our product delivers five times the protein of most plant-based dairy alternatives and is a winner with consumers for its delicious and refreshing taste.

Our data shows that 42% of consumers buy both dairy and plant-based products anyway. We wanted to continue to keep dairy strong and deliver a delicious and nutritious product to those that might be on the verge of switching over to plantbased beverages entirely. We look at Dairy+Milk Blends as a way to keep consumers in the dairy space, rather than risk that they will migrate completely to a plant-based diet.

Unfortunately, some of the nutritional value of plant-based products is only perceived by the consumer. Certainly, there is plenty of data to show that cow’s milk is much more nutritious and really packs the protein. But, sometimes, perception is everything, and that seems to be where the dairy industry is at right now when it comes to plant-based dairy alternatives.

Like it or not, our perspective is that consumer demand is changing. We hope the introduction of Dairy+Milk Blends makes dairy feel modern and contemporary while offering something different that consumers will really like.

NED: How has the roll-out of Dairy+Milk Blends been going so far?

RK: We only just introduced this product in the Northeast in the first quarter of 2021. Already, we’ve learned from a marketing perspective that it’s a hard story to tell. Consumers are used to buying either cow’s milk or almond or oat milk, not a combination of the two. It’s a communications challenge to tell consumers how to combine both, but we’re working on it, and we intend to succeed. What we do know is that our product delivers on taste, and we’re confident this will help us meet our objectives. I think we’ll be able to better determine how this product is doing three to six months from now.

NED: Do you anticipate DFA moving into other plant-based products?

RK: Dairy is and will always be at the core of what we do.

We’re open to exploring all the possibilities for dairy, and if and when opportunities arise to combine dairy with relevant consumer trends, we are going to look at product innovation to meet consumers where they are and keep dairy relevant.

NED: What do you see for the future of plant-based dairy alternatives? Do they have staying power?

RK: There is no doubt that the plant-based segment is going to continue to grow. Oat is the “darling of 2021” and showing dramatic growth that doesn’t seem to be slowing down, and almond milk has really become a staple of the American diet.

The popularity of plant-based products is just something that we believe the dairy industry can’t afford to ignore.

Study Shows No Connection Between Milk Consumption and High Cholesterol A study published recently by the International Journal of Obesity by a team at the University of Reading in the U.K. examined close to 2 million people and determined that those who drank milk regularly had lower levels of both good and bad cholesterol. Also, information from the study showed that those who regularly drank milk had a 14% lower risk of heart disease. Those who participated in the study did, however, have a higher BMI than non-milk drinkers. The researchers

took a genetic approach to consumption of milk by looking at a variation in the lactase gene associated with digestion of lactose.

This study is significant in that it contradicts several others that demonstrated a link between higher consumption of dairy and diseases such as diabetes or obesity. The study identified that having the genetic variation where people can digest lactose was a good way for identifying those who consumed high amounts of milk.

NED Magazine | Third Quarter 2021 • 47

T h e B u s in e s s O f D a ir y Social Media Basics

Learn to Market Your Brand, Build Relationships with Your Audience

BY KELLY GAGGIN, PH.D.

S

ocial media is here to stay when it comes to marketing brands and even more so as a tool for building relationships with audiences. It’s important for organizations to have a presence in the digital space and to have that presence on the platforms that reach their audiences. There are so many options to communicate digitally it can be overwhelming — even for the experts! There are videos and photos and text and what the heck are these “stories,” and so many questions to be answered: Should I share other people’s content or does it have to be my own? How often do I post? What tone do I use when posting? The following breaks down the basics of social media to help take away some of the apprehension and ensure that your organization has a solid presence to create awareness, engagement and, of course, sales.

WHY SOCIAL? Social media has become a necessity because it is low cost and offers few barriers to entry while providing high returns for your brand through the ability to communicate in an authentic fashion that is engaging and a natural extension of your brand voice. In short, it builds relationships, and those relationships can lead to increased interest in your brand and sales or direct involvement.

WHICH PLATFORM IS RIGHT FOR ME? This question is often posed by brands as new social platforms arrive on the scene. The answer really depends on the audience or customer base a brand is trying to reach. For example, if your audience is 65-plus, it’s unlikely they are spending time on TikTok and highly probable they are scrolling through Facebook, keeping up with the children and grandchildren.

48 • Northeast Dairy Foods Association, Inc.

T h e B u s in e s s Of D a ir y That said, establishing your social presence on Facebook and Instagram, two of the most popular platforms, is an ideal starting point that provides a broad range of demographics and ample opportunity to develop your brand voice in the digital space.

GETTING STARTED

1. Register for the platforms. Be sure to use your brand name and be consistent across platforms. This will help your audience find you and build your brand. Be sure to sign up for the platform’s business profile options, as doing so provides more tools to help with online business strategy and often includes platform analytics.

2. Add social media share tools and your accounts to your brand’s website. Doing this helps your audience share your content and find you in the social sphere.

3. Find your digital voice! One of the greatest lessons of social media is that people engage with people, so the tone of your social media text and multimedia should reflect your brand. Whether your brand is buttoned-up and precise, or it’s about fun and even a bit witty, be sure that the content you are posting reflects that. You may even want to develop personality for your social media — “Susie or Sammy Social” can be the voice of your brand and help you remember that your audience is interacting with the human behind the scenes and not a robot.

4. Tell your story through varied content. Just because you are an expert doesn’t mean everyone is. Show them what they want to know. Use a mix of text and multimedia to engage your audience and to ensure you are leveraging the algorithms that decide who sees your posts. Photos, GIFs, videos and linked content are important ways to get in front of your audience. These same things are also a great tool to help your audience get to know you. Own a dairy farm? Believe it or not people want to meet your cows and understand the life of a dairy farmer! Post a video of Bessie getting a bath or being milked. It’s moments like these that draw people in. You humanize your brand and educate people with your posts, which translates to trust building, awareness and even sales.

5. Engage, engage, engage. Social media is not effective if the brand doesn’t engage: • Reply to comments and messages in a timely fashion.

This may include customer service concerns, which should be transitioned to private conversations.

• Encourage your audience to share photos of themselves interacting with your brand.

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T h e B u s in e s s O f D a ir y Fast Facts Break Out: Facebook

The most widely used platform with nearly 3 billion global users.

Great to reach age 18-plus, though focusing on age 25 to 54 is smart. Most people have a Facebook account, so this is an excellent one to cut your teeth on.

“About” information can be optimized for SEO to appear in searches.

Can post text, multimedia and share content through clickable links to increase engagement and vary content.

Allows the ability to create events and collect RSVPs. Platform analytics are strong and help you better identify your audiences and the content they want to see.

Instagram Majority of users are age 18-25.

Visual content with minimal text shared in a caption format (e.g., photos/videos) are required.

Stories allow you to post videos that live on the platform for 24 hours.

Use highlights as an opportunity to keep stories about a certain topic together and viewable until you delete them.

Hashtags allow your posts to be seen by people interested in your focus such as #icecreamtime, #milk, #cheeseplatters or #cowsofinstagram.

Platform analytics are strong and help you better identify your audiences and the content they want to see.

50 • Northeast Dairy Foods Association, Inc.

• Ask questions of your audience to encourage people to reply and engage.

• Like and share pages of partners or other businesses.

You can also mention them in your posts by placing “@” followed by their handle.

READY FOR THE NEXT STEPS? As your social media savvy increases, you may want to kick it up a notch by using a social media management tool, such as Hootsuite, that allows you to schedule posts, monitor activity/analytics and engage. Social media platforms allow brands to advertise, leveraging “sponsored” content that is at the most basic a paid advertisement posted for a targeted audience.

Another type of sponsored posting is “influencer marketing.”

This is when a brand leverages a well-known “influencer” in its space to post on its behalf.

At the end of the day, a quick internet search for “getting started with social media” will provide thousands of resources.

Some highly regarded websites include Hootsuite.com, Hubspot. com and Sprout.com. Hubspot even provides certifications and training at no cost! The most important takeaway from the social media revolution is that YES it can enhance your brand, and NO it doesn’t have to be difficult. Be authentic. Let the voice of your brand and your story shine through text and multimedia.

Most importantly, engage your audiences by giving them the attention and content they are asking for!

Kelly Gaggin, Ph.D., is an assistant teaching professor at the S.I. Newhouse School of Public Communications at Syracuse University.

T h e B u s in e s s Of D a ir y

Terms You Need to Know to Start Leveraging Your Business in the Digital Marketing World

BY MATTHEW FORD

W

ith almost 20 years in the digital marketing industry, we’ve seen and heard it all. Confusing digital marketing terminology has essentially been a barrier to entry for many. It seems fancy jargon and industry acronyms are intended to dissuade businesses from performing specific tasks internally while driving and supporting higher prices by unscrupulous practitioners. Actively participating in digital marketing today will help you leverage growth for your business tomorrow. Here are digital marketing terms that will lay a good foundation as you begin your digital marketing journey:

CONTENT

ALGORITHM

Conversion is the completion of an action or goal established by a marketer — or what actions you want a visitor to complete when visiting your website. Examples include online orders, newsletter subscriptions, form submissions, phone calls, content downloads videos watched, etc. You can have multiple conversions throughout your website as visitors may use different preferences to contact you.

Search engines (like Google) and social media platforms have a set of rules they create and follow in the performance of a task. Google, for example, has a complex algorithm to rank web pages it shows to searchers. Similarly, Facebook, LinkedIn and YouTube have algorithms to organize and rank their content.

Google reported making over 3,000 improvements to its search ranking algorithm in 2019 alone. It is essential to be aware of algorithm changes, so as marketers, we can make changes to improve ranking.

CALL TO ACTION A call to action or CTA is an instruction to your online audience meant to provoke a response. CTAs can be buttons, images or text on a webpage, digital ad, social post or video. Typical CTAs include phrases like “learn more,” “request a quote,” “speak to an expert,” “chat now,” and “contact us.” Think about your goal for a web visitor and what the CTA should be to accomplish that goal.

Content is any readable or viewable online media. Content refers to written material like articles, case studies, white papers, reviews, blog posts, images, videos and infographics.

Content is important for website visitors and search engines (Google). It is good to brainstorm content, thinking about what will keep visitors on your website, and drive repeat visitors.

CONVERSION

COST PER ACQUISITION (CPA) OR COST PER LEAD (CPL) CPA and CPL are metrics used in paid advertising to measure how much mon ey is sp ent acquiring a new customer or generating a lead. CPA and CPL are calculated by dividing spend by the number of conversions for a given period. Knowing the cost per acquisition can help determine how well the advertising is working.

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NED Magazine | Third Quarter 2021 • 51

T h e B u s in e s s O f D a ir y DISPLAY ADS Display ads appea r on various websites and apps and include different formats, such as images, video and audio. Google’s display network delivers ads to over 2 million websites that reach more than 90% of people on the internet. Businesses can target consumers on the display network based on keywords/topics, areas of interest and remarketing based on other sites visited. Display ads are a great way to show your product.

GOOGLE ANALYTICS

and can positively impact Google rankings. Businesses are encouraged to manage their reviews, thanking customers for positive reviews and working through issues related to negative reviews.

LANDING PAGE A landing page is the webpage a user lands on after clicking on a link from a search engine, social media platform, advertisement or a different website. The term “landing page” is typically associated with the destination of a link contained in a digital advertising program but can refer to any traffic source.

Landing pages, particularly those used in a digital ad campaign, are carefully crafted to deliver a concise message related to the ad and drive additional engagement.

Google Analytics is Google’s free website analytics tool.

It is used by webmasters, marketing managers and virtually anyone interested in a website’s performance. Google Analytics provides important and far-reaching information about website traffic sources, quality and quantity. Understanding the performance of digital advertising, video, email marketing and social media campaigns is essential, as these sources of traffic all drive visitors to a business’s website. Google Analytics helps to track digital marketing effectiveness and calculate ROI.

CLICK ADS

GOOGLE MY BUSINESS

PAY-PER-CLICK

Google My Business is a free tool for businesses and organizations to promote and manage their digital presence across Google Search and Google Maps. Google My Business is important because businesses can list their locations on Google Maps and within Google Local search results. Information displayed includes opening/closing times, contact details, customer reviews and a link to a company’s website. With Google My Business, page owners can also post images, videos and updates to their profiles. Google My Business is essential for local companies. If you aren’t paying attention to your listing, start now!

Pay-per-click is an online advertising model where advertisers pay for each ad click. The PPC model is commonly associated with search engines like Google and social media advertising. Utilizing pay-per-click can drive targeted prospects to your website which can, in turn, create new business.

GOOGLE REVIEWS Customers can leave comments in a business review on your Google My Business page. Review scoring or star ratings range from one to five and include a brief message written by the reviewer. Reviews from existing or past customers are deemed influential to potential customers 52 • Northeast Dairy Foods Association, Inc.

REMARKETING Remarketing, also known as retargeting, is a digital ad targeting approach that delivers ads to online users who have previously visited an advertiser’s website. Cookies (a small piece of code identifying the website name and an ID number unique to the online user) are placed on the online users’ computers when they first visit a website. When a user later visits other sites, the cookie is read, allowing remarketing ads to be shown. Remarketing allows advertisers to “follow” users across the web with the goal of convincing them to return to the original site.

SEM SEM is an ambiguous term that can apply to either all forms of search engine marketing or exclusively to paid search engine marketing. Both definitions are technically correct.

T h e B u s in e s s Of D a ir y However, for most digital marketers, the latter term is more common. Keep search engine marketing in mind to drive traffic to your website.

SEO The digital marketing tactic of improving a website’s visibility (rank) organically on a search engine (Google) is referred to as SEO or search engine optimization. It includes a wide range of methodologies, including on-page (content production), off-page (incoming links from other sources) and technical or code improvement. There is a lot that can and should go into a website’s search engine optimization. It’s a best practice through SEO to ensure search engines such as Google know what your website is about and value the information on your site. This will help to push you to the top of the search results, which in turn will gain you more website visitors

SSL CERTIFICATE An SSL or Secure Sockets Layer certificate is code placed on a web server that allows a website to provide added security for online communications, protecting information being transmitted. SSLs became the industry standard after a Google Chrome update that displayed a warning message to users if the certificate was not present. If you do not have an SSL certificate for your website, get one. It is important!

UX (USER EXPERIENCE) UX is how users interact with a website or app. UX includes the page or app layout and considers navigation, menu structure and buttons, etc. UX layouts impact conversion rates, and variations are often tested to gain incremental conversion rate improvements. A good UX leads to better user engagement with the online property. Like good customer service when a person physically walks into your business, a good user experience is essential for people visiting your website.

SUMMARY Now that you have a better understanding of digital marketing terms, you can move forward with digital marketing with a higher level of understanding and confidence. Continue to read more about the field of digital marketing and, in the process, expand your knowledge.

One thing is certain, digital marketing is here to stay, but it is constantly changing, evolving and on the move. Companies that understand the basics and embrace digital marketing have a definite competitive advantage. Reach out if you would like to learn more or get a free website audit from our digital marketing experts.

Matthew Ford is the president of Site-Seeker, a leading digital marketing agency located in New Hartford, New York. Contact him at mattford@siteseeker.com

@northeastdairyfoods

TITLE TAG Title tags are HTML elements used to describe the content of a webpage. Title tags appear at the top of a listing on a search engine results page (Google), are crucial for good SEO and should contain the main keywords for that page. These title tags help users choose which sites to visit, so make sure they are informative and enticing.

&

Northeast Dairy Foods Association, Inc. Northeast Dairy Suppliers Association, Inc.

NED Magazine | Third Quarter 2021 • 53

MemberProfile

JEFFERSON BULK MILK CO-OP Overcomes Decades of Obstacles to Work Together, Stay Together

T

he Northeast Dairy Foods Association is pleased to welcome the Jefferson Bulk Milk Co-op as its most recent member. The northern New York state co-op has a long history in the dairy industry.

In the early part of January 1964, the milk market for Jefferson County (New York) farmers was economically threatened. Dealers in the Southern Tier of New York State had started charging 10 cents per cwt. For hauling bulk milk.

This act, along with pressure to build larger milk houses and put in larger bulk tanks by Jefferson County dealers, made 54 • Northeast Dairy Foods Association, Inc.

it the right time to organize an operating cooperative. A group of farmers was invited to sit down and discuss possibilities. From this meeting, 11 farmers committed to sell their milk as a unit and work together to organize a bulk milk cooperative in Jefferson County.

An organizational meeting was held that February, and the 11 farmers signed contracts. Mert Evans and Sid Langdon of the Metropolitan Bargaining Agency with Henry Hughes of the New York State Agriculture Department turned the documents and the expertise to formulate the by-laws and the incorporation papers.

The first 11 members served as the

interim board of directors with Charles Ellingsworth as interim president until the first annual meeting. Ellingsworth then served as manager, and J.W. Bedor was made the first president.

The first Jefferson Bulk office was located in the back of Ellingsworth’s home on Massey Street Road in Watertown, New York. Farm products such as milk filters, electric fencers and limited soap suppliers were sold out of a shed on the Ellingsworth property.

Orders were taken for fertilizer to be delivered directly to member farms.

Wholesale groceries could also be ordered and picked up at the office.

MemberProfile The first milk sales committee was comprised of Junior Bedor, Edward Cobbs, Harold Getman and Ellingsworth.

After many stormy sessions, the milk was sold to the United Milk Products Corporation plant in Adams Center. It was agreed that the first milk would be delivered on April 1, 1964. By that date, the co-op had grown to 27 members, mostly from the towns of Houndsfield, Brownville and Orleans.

The United Milk Products Corp. was of tremendous help in getting the co-op started — only to cause its demise 13 months later. The company was forced into bankruptcy when an office of the corporation embezzled $800,000 of its operating cash!

To save the co-op, it was necessary to operate the Adams Center plant for three months with some volunteer help from members. This set up the machinery, with the help of the staff of the Metropolitan Bargaining Agency, to recover most of the money that was owed to the Jefferson Bulk Milk members at the time of the bankruptcy. By a unique type of financing arranged with the Watertown National Bank, every farmer was paid for the milk, and, with that, the Jefferson Bulk Milk Co-op, a real force in the North Country milk marketing arena, was born.

After innumerable setbacks, directors meetings and sometimes sleepless nights, the co-op held its own. During the late ‘60s and early ‘70s, tremendous changes were taking place in the milk business, and the Jefferson Bulk Milk Co-op began selling milk in New York City. During this transition, the co-op built a reload station in Evans Mills and started marketing with other co-ops in the North Country. Other markets for milk were Hoffman and Dudo in New Breme, Crowley foods in Lafargeville and the Adams Cheese plant. The surplus milk during this period forced the co-op

into its own cheese manufacturing facility in Redfield with Frank Raiti as the cheesemaker who served the co-op for several years. Jefferson Bulk Milk owns the Redfield Brand Cheese name and franchise.

Milk haulers at the time were Max Murray, Leonard Bery and H. Houghtalking. Later, J.W. Bedor took over all of the hauling followed by Don Ferguson with the help from M&T Milk Hauling and Jim Stockwell. Up until 2004, the haulers owned their trucks, and the co-op owned the tanks on the trucks.

At this time, the truckers took over ownership of the tanks also. Lyden Berry was the first milk inspector, followed

by Richard Planty, Donald Ogborn and Mark Shelmidine from Dairylea.

Jefferson Bulk Milk, along with Mert Evens helped form other co-ops, such as Cape Vincent, Marble City in Governeur and Northern New York Bulk in Canton.

Jefferson Bulk Milk did all the paperwork for the other co-op’s members, including all state and federal reports. It also did the paperwork for Philadelphia

(NY) Co-op for a time.

Around 1968, a farm supply route truck was on the road visiting patrons to sell farm products. During this time, Jefferson Bulk Milk started selling Anchor medicines and its own cleaning supplies from Klenzade Company. The supply department grew so large that, in 1969, an empty building on NYS Route 12 was rented to serve as a warehouse for the farm products.

As an employee, Fred McIntosh, was a repairman that would travel to member farms and repair whatever was needed. The bill was then deducted off of their milk checks. Accounts were set up with many stores and businesses in Watertown, offering a discount and the ability for purchases to be charged to their milk checks.

In 1972, the co-op purchased property on Arsenal Street Road from Marion Faye. She operated a small grocery store out of a building in the center of the property and lived in the back of the store. Faye was allowed to put a house trailer in and live on the west side of the

NED Magazine | Third Quarter 2021 • 55

MemberProfile

lot. The grocery store became a cheese store, selling the co-op’s own cheese curd and 40-pound blocks of cheddar. Offices for the co-op were located upstairs. Gas pumps were located out front, and the co-op sold gas until the mid ‘80s. A new building was put up to not only serve as the Farm Supply Store but also to store and age the cheese made from surplus milk. The new huge walk-in cooler was twice the size of today’s coolers and was often full of cheese to be sold. The members could not be paid until the cheese was both aged and sold.

To cover this gap in payments, the co-op had to borrow money each month to pay its members.

By the mid ‘70s, Jefferson Bulk Milk was in debt for between $300,000 and $400,000, and the banks threatened to close the co-ops doors. After many meetings, the banks agreed to give it a second chance. Ellingsworth, who was the manager, went on the road selling every pound of cheese in storage, and the debt was finally paid off.

56 • Northeast Dairy Foods Association, Inc.

Jefferson Bulk Milk Co-op wanted to serve its members and be an asset in the dairy industry. Seasonal supplies, such as baler twine, were bought by the trailer load and sold to members at bargain prices. Each spring, a mountain of 1,500 to 2,000 fence posts would appear in the yard to be sold. Member volunteers would help unload these of supplies by hand.

Membership for the co-op peaked in 1974 at 104 members. Operating capital for the co-op came from dues of 10 cents per cwt with a certificate issues at the end of each year. These certificates were always paid in full on a ten-year revolving basis.

Annual meetings were held with live music and square dancing usually topping off the evening, Many years, a summer picnic would be organized at the beach with everyone bringing a dish to pass.

During the late ‘70s and early ‘80s, the co-op was a member of the Allied Federated Co-ops of Canton and

marketed their milk through them. In search of better marketing opportunities, Jefferson Bulk Milk left Allied in 1982 and became a member of NEDCO. In 1985, the co-op faced yet another setback when NEDCO filed for bankruptcy. Co-op farmers along with farmers across the state did not receive payments for 44 days of milk.

But, with some outside financial help and hard work by the board of directors and its dedicated members, Jefferson Bulk Milk was able to secure loans to cover the milk. This was to be paid back through milk check deductions over the next three years.

Known for the excellent quality of its milk, Jefferson Bulk Milk became an affiliate member of Dairylea and started delivering to the newly opened Great Lakes Cheese plant in Adams. This excellent marketing relationship lasted 34 years through 2018. During this time, co-op dues were reduced to 5 centers per cwt. and paid back on a five-year revolving basis.

MemberProfile With smaller farms slowly disappearing, the farm supply side of the business became increasingly harder to remain competitive. In 2001, the inventory was sold off to Lowville Farmers Co-op, and it operated a satellite store there until 2005. In 2006, the supply building was partitioned off, and the co-op moved to the back of the building. The front was leased to become the home of In Motion Dance Studio, LLC. 2018 ended along with a marketing agreement with Dairy Farmers of America. Beginning in 2019, Jefferson Bulk Milk was marketing its own milk.

In 2019, the co-op contracted all of its milk with Kraft Heinz in Lowville.

Unfortunately, the agreement with Kraft Heinz wasn’t continued into 2020, and, on Jan. 1, 2020, the co-op found itself with no contract for two-thirds

of its milk. The other third that was contracted was with Upstate Niagara for its North Country Dairy milk plant in North Lawrence.

Jefferson Bulk Milk thought that 2020 was going to be rough with two-thirds of its milk being sold on the spot market every day. Little did the co-op know that 2020 was going to take an even bigger turn for the worse when COVID-19 completely crashed the markets. From the end of March 2020 to end of April 2020, Jefferson Bulk Milk dumped two loads of milk every day into its farms manure pits — a total of 4,650,267 pounds of milk! Through that trying time, Jefferson Bulk Milk lost four member farms.

After the dumping was over in April, the co-op continued to sell milk on the spot market at a depressed price until

September 2020, when it was able to secure the remaining two loads per day with Upstate Niagara in a contract until the end of the year.

Beginning in 2021, the co-op continued its agreement with Upstate Niagara for all of its milk and breathed a sigh of relief to be able to provide some stability to its member owners again.

This piece was written with contributions from Charles Ellingsworth, Thelma Curtis Reardon and Dan Reed and Summer Zehr. *All locations mentioned in this article are in New York State unless otherwise noted.

NORTHEAST DAIRY SUPPLIERS ASSOCIATION BUYERS GUIDE IS NOW LIVE!

buyersguide.neastda.org

Showcasing all NDSA member companies by category, description and SEO-friendly search terms. This guide assists and encourages members doing business with members.

Find new products and services, industry events, deals and more!

Check it out today and share it with specifiers and purchasing agents at your company.

For more information about the NDSA Buyers Guide, contact Northeast Dairy Media 315-445-2347.

NED Magazine | Third Quarter 2021 • 57

MemberProfile

KROHNE Celebrating 100 Years of “The Spirit of Creativity

BY COURTNEY KLESS

K

ROHNE is marking 100 years in 2021. The theme for this year’s celebration is “The Spirit of Creativity,” a spirit that has been a key part of the company’s success for the past century.

“Not too many companies in our business have lasted 100 years as a privately-owned company, so it’s exciting,” said Joe Incontri, director of marketing for North America. “One of the things (our second-generation leader) concluded early on is if you want to have a successful company, you have to be creative, and you have to hunt for unusual solutions to problems. That still goes on right now. Innovation is very important to KROHNE.” Since its early days, the company’s core philosophy has remained the same — to provide the best possible measuring device for its customers. KROHNE was founded in Duisburg, Germany, by Ludwig KROHNE. He wanted to create a device that measured flow for fire engines. Twenty-eight years later, 58 • Northeast Dairy Foods Association, Inc.

following losses during World War II, Kristian Rademacher-Dubbic, the founder’s grandson and an artist, restarted the company.

KROHNE’s first success came in 1952 when it introduced the electromagnetic flowmeter. At the time, all flow measurement devices were mechanically based, and KROHNE’s device was the first to measure flow without any moving parts. Instead, it used a magnet that detected a change in voltage.

“That was really a hallmark for KROHNE,” said Incontri. “Since then, the innovations kept coming fairly rapidly, like ultrasonic flowmeters. That was something that had been done, but not very well. KROHNE took that and ruggedized it for use in industrial applications for liquids and then, ultimately, for gas. One of the more recent major innovations was the development of a Coriolis mass flowmeter that, at the time, was unlike anything on the market.

It was a straight-tube Coriolis meter that was not affected by things that effected every other mass flowmeter on the market, mainly vibration in pipes. That

made it more accessible to a lot more applications. There is an emphasis on being different and applying new twists on available technology and principles.”

Innovation and creativity are still important to the company today. Now home to more than 4,000 employees and with production facilities in 11 different countries (including the United States, China, and France), KROHNE has become a world leader in filling machine applications, providing a variety of flowmeters, analysis products and devices that measure level, pressure and temperature. It also offers entrained gas management, a “unique solution” for food and beverage customers that are loading and unloading milk using KROHNE’s Coriolis mass flowmeter.

“That feature is very attractive because it gives you an accurate measurement, even with the presence of air in the lines,” said Incontri. “When you’re unloading or loading a truck, the hoses are basically empty. When you start flowing, there is a whole bunch of air that goes through the meter, and some

MemberProfile meters can’t handle it very well. So, we have an application for that.”

Incontri said that there are two things that set KROHNE’s products apart from its competitors. The first is the company’s dedication to quality. “Our products are built to last a long time in difficult applications,” he said. The other thing is calibration, or performance, of the instruments. “If you’re going to measure something, you want to make sure it’s traceably accurate that it measures to the best of its ability against a known standard,” he added. “That really is our core competence: the calibration and traceability of our instruments.”

KROHNE is also proud of its unique culture. All ideas are valued, and there is no rigid structure or hierarchy like many other German companies. “It really is a comfortable environment,” said Incontri. And because KROHNE is independently owned, it doesn’t face the same constraints as some of its competitors — for example, the company offers several resources on its website, including the online KROHNE Academy, many of which are free of charge.

“A lot of companies are basically quarter by quarter,” said Incontri. “We’re not bound by those same pressures, which allows us to make decisions on behalf of the customer that other companies may not be able to make, such as giving away services or spending more time with a small customer. There are many other bigger companies out there that would want to get paid for training materials or for software. I think that’s a reflection of the culture we have; we’re not just driven by the bottom line.”

Courtney Kless is a writer/editor for Northeast Dairy Media.

NED Magazine | Third Quarter 2021 • 59

Member News

Member and Industry News While there are many signs indicating a return to normalcy, food insecurity continues to be an ongoing issue plaguing many families. Summer is generally a difficult time for food insecure families when more than 18 million children nationwide lose access to free or reduced-price meals at schools, including the nourishment of milk. The American Dairy Association North East joined forces with Price Chopper/Market 32 in support of “Fill a Glass with Hope” to provide fresh milk to local food banks. During June, National Dairy Month, shoppers at the grocery stores across New York, Connecticut, Massachusetts, New Hampshire, Pennsylvania and Vermont had the opportunity to “round up” their change at checkout to donate and help make milk available to families in their local communities. “Price Chopper/Market 32 recognizes that due to its perishable nature, milk remains the most requested but least donated item to food banks,” said Mona Golub, vice president, public relations & consumer services for The American Dairy Association North East. “Our year-round commitment to fighting food insecurity also helps us to recognize the importance of taking a different tact during the summertime, given that kids are out of school but still playing, learning, and growing and needing the essential, protein-rich nutrients that milk provides.” According to The American Dairy Association North East, 100% of all donations will remain local and help deliver milk and essential nutrition to families with children in need.

Construction has begun on a $16 million expansion at the Agri-Mark location in Chateaugay, New York, part of a $30 60 • Northeast Dairy Foods Association, Inc.

million planned modernization project that started in 2016. This expansion will help the dairy cooperative retain more than 100 full-time employees and support an addition 514 agricultural jobs in the region. The expansion and restoration of Agri-Mark’s Franklin County facility involves rebuilding the cooperative’s 110,641-square-foot manufacturing center, reengineering the layout of the facility and purchasing new machinery and other equipment. This phase of the project dedicates $16 million to building a new state-of-the-art cheese production room to improve plant efficiency and further Agri-Mark’s high quality standards. The plant will continue to operate during its modernization effort.

Blueox Corporation recently announced the sale of its Blueox Neighborhood market convenience store chain to Stewart’s Shops, based in Saratoga Springs, New York. At its peak, Blueox built a chain of 11 local convenience stores, the most recognizable of which being its Nice-N-Easy franchise locations. Blueox Corporation President Jared Bartle said, “…As the industry shifts away from the mid-sized chains, we wanted to find a company with dedication to its employees and the communities they serve. The decision to sell did not come easily. Our stores, and especially the people in our stores, are deeply embedded into our corporate culture and it’s for that reason we sought a buyer whose priorities most closely aligned with ours. We believe most of our employees will not only continue employment with Stewart’s Shops, but

Member News

they will also be provided additional growth opportunities and ownership. This was very important to Blueox. As we realign our long-term goals and continue to reinvest in the delivery and service divisions of our company, I’m excited at the opportunities to come.“ Chobani, headquartered in Norwich, New York, announced that all of its 32-ounce containers of Greek yogurt are now Fair Trade USA, meaning that the milk-making process is best in class for both sustainability and worker safety from start to finish. This is the first Fair Trade-Certified dairy product in the U.S. The company also announced that it will launch a certification program for U.S. dairy farms and cooperatives.

In other innovative news, Chobani has taken the sugar out of milk to create the groundbreaking Chobani Zero Sugar with only natural ingredients. To create this product, Chobani starts with a milk that’s been filtered to reduce naturally occurring sugar. Then, cutting-edge natural fermentation methods are used that allow the yogurt cultures to consume the remaining sugar.

Natural, non-GMO sweeteners with tastes of monk fruit and allulose are then added. Chobani Zero Sugar is the first nationally distributed product in the U.S. yogurt aisle that contains no sugar. “Chobani Zero Sugar” is a revolutionary innovation,” said Peter McGuinness, president and COO. “Our team developed a brand-new product that is as delicious as it is healthy.”

Joseph Heim, CPA, CFE, a partner at Dopkins & Company, LLP, participated in A Year of Pandemic, a virtual discussion for Buffalo’s Business First’s Executive Forum, along with three other business executives, to look back over the past year and renew the Buffalo, New York, region’s progress moving forward. “I’m very pleased and surprised how the economy has rebounded in the past 12 months and the businesses that have restructured,” Heim said during the panel discussion.

Enel Green Power North America, Inc. and HP Hood LLC recently announced an agreement for Hood to purchase 90 GWh of wind energy each year, making it one of the only dairy companies in the U.S. to execute such a contract. Through the 12-year virtual power purchase agreement, Hood will purchase the electricity delivered to the grid by a 25 MW portion of Enel

Green Power’s Azure Sky Wind project in Texas. The agreement is Hood’s first renewable energy VPPA and comes as the company celebrates its 175th year with continued innovation, growth and a renewed commitment to sustainability.

Maryland & Virginia Milk Producers Cooperative, in partnership with The Alliance for the Chesapeake Bay and Turkey Hill Dairy, was recently awarded $4 million to continue supporting its dairy farmers in South Central Pennsylvania with on-the-ground conservation practices through the Turkey Hill Clean Water Partnership.

During its 2020 Sustainability Awards, Perry’s recognized two groups of team members who worked together in non-traditional ways on a sustainability project. The first group, the MOD Palletizing Crew, played a key role in coordinating and preparing pallets for retailers to help keep their stores stocked with Perry’s during the pandemic. The other, Perry’s Inventory/ Sales/Operations Team, worked together to support the needs of customers throughout the pandemic.

As pandemic restrictions ease, Stewart’s Shops is celebrating the transition with a dedicated ice cream flavor suitably named Sweet Return to Normal. The company rolled out the new flavor on May 31 at its cone counters. The fully loaded vanilla flavor features chewy brownie bites, soft cookie dough pieces and a rich fudge swirl. It will be available for a limited time. Stewart’s Shops President Gary Dake said, “I think we can all agree, Covid-19 has taken a toll on everyone in some way.

As we carefully reopen, summer plans now include more travel, events, and, of course — ice cream. We all crave a return to normal, and this ice cream flavor is dedicated to just that.”

Tremcar USA announced Keven Adams as regional sales manager for the states of California, Colorado, New Mexico, Nevada and Arizona. Adams has an impressive work experience in the automotive industry developing skills in automotive restoration, metal fabrication and finishes. Specializing in municipal fleet contracts and speciality market logistics sectors, Adams also holds a Class A CDK with Tanker and Hazmat Endorsement and the Federal DOT Hazardous Materials Security Clearance.

NED Magazine | Third Quarter 2021 • 61

Member News

NEW MEMBERS The following new member recently joined Northeast Dairy Foods Association, Inc., or the The Northeast Dairy Suppliers Association, Inc. For more information about the benefits and services available from both the Northeast Dairy Suppliers Association, Inc., and the Northeast Dairy Foods Association, Inc., contact Alex Walsh, associate vice president of regulatory affairs, at 315-452-MILK (6455) or aw@nedairyfoods.org.

MAC LTT, INC.

BIOMERIEUX

MEMBRANE SYSTEM SPECIALISTS

CITRUS ARGENTINA CORP.

TRACEY ROAD EQUIPMENT

1121 N. Main St. Lombard, IL 60148 860-916-9904 Kimberly Pathammavong Account Manager Kimberly.pathammavong@biomerieux.com

1400 Fairchild Ave. Kent, Ohio 44240 330-958-0025 Jim Maiorana President jmaiorana@macltt.com

7474 Integrity Way Wisconsin Rapids, WI 54494 612-791-7013 RJ Twiford Director of Sales rjtwiford@mssincorporated.com

6803 Manlius Center Road E. Syracuse, NY 13057 315-437-1471 Scott Collins Vice President of Sales scollins@traceyroad.com

245 Park Ave.—39th Floor New York, NY 10167 646-242-0474 Maria Martinez President mcmartinez@citrusargentina.com

SUSTAINABILITY

FRONT DESK

Meet the Board

SUSTAINABILITY

What’s in the Bag?

Third Quarter 2020

RESPONSE TO COVID

Purchasing by Race, Generation

BUSINESS

Addressing Mental Health

nedairyfoods.org

Catch up on the previous issues of Northeast Dairy Magazine.

Visit issuu.com⁄nedmagazine

62 • Northeast Dairy Foods Association, Inc.

Member News

NDFA Co-Sponsors Virtual Dairy Day Celebration

A

gricultural organizations and New York State lawmakers gathered virtually on May 27 to celebrate Dairy Day in New York State as a lead into National Dairy Month in June.

The virtual Dairy Day was co-sponsored by NYS Sen. Michelle Hinchey, chair of the Senate Agriculture Committee; NYS Assemblywoman Donna Lupardo, chair of the Assembly Agriculture Committee; the Northeast Dairy Foods Association, the Northeast Dairy Producers Association and the New York Farm Bureau.

For many years, members of the legislature, their staffs, agricultural organizations and dairy processing and manufacturing companies gather in the Well of the New York State Legislative Office Building in Albany, New York, to recognize and highlight the significance and impact the dairy industry has on New York State. Due to COVID-19 restrictions, this year’s event was held via Zoom with members of the legislature’s respective agriculture committees, along with representatives from the Northeast Dairy Foods Association, the Northeast Dairy Producers Association and the New York Farm Bureau.

“Dairy Day serves as an excellent opportunity for the Northeast Dairy Foods Association and our industry partners to engage with state representatives on issues the dairy industry is facing,” said Daniel Lausch, president of the board of directors of the Northeast Dairy Foods Association. “Additionally, it is a way we can showcase the impact dairy has on New York, as it is one of the top economic sectors in the state. It also provides our association and members a chance to hear directly from legislators about issues that are on the horizon that the Northeast Dairy Foods Association can actively participate in and provide our resources and assistance.”

“As the state’s largest agriculture sector, our dairy industry is the cornerstone of New York’s ag economy,” said Hinchey.

“Dairy is more than a product. It’s part of our state’s heritage.

Dairy Day in New York is an important opportunity for us to honor the hard work, innovation and stewardship stemming from our small, local dairies, while putting the unique challenges facing our farming families front and center so that we can work with current and future generations to keep this leading industry strong in New York.”

“Dairy Day at the Capitol is our annual opportunity to recognize the important role dairy plays in New York’s food economy,” said Lupardo. “In spite of ongoing restrictions, I’m glad that members of the legislature were able to meet with dairy farmers and processors virtually. We all know that dairy is vital to our food supply chain and played an especially important role during the past year. The Nourish NY program alone moved thousands of pounds of milk, yogurt and other products to families in need across the state. Understanding the challenges facing those within the dairy industry will improve our ability to assist them.”

National Dairy Month began as National Milk Month in 1937 as a way to promote drinking milk. Since then, National Dairy Month has evolved into a means to promote consumption of all dairy products, as well as recognize the contributions and efforts the dairy industry makes. The virtual Dairy Day is a celebration of all facets of the dairy industry — from producers, processors, manufacturers and distributors — and their role of ensuring that consumers have safe, healthy and high quality dairy products.

With nearly 4,000 dairy farms in the state, New York ranks third in the country in milk production. As a result, the state records over $2 billion annually in fluid milk sales, is a national leader in cottage cheese, yogurt and sour cream production and provides thousands of jobs across the state.

NED Magazine | Third Quarter 2021 • 63

Member News

I Get By With A Little Help From My Friends NDFA, NDSA Hold First Events of 2021

BY ALEX WALSH

O

n June 9, 2021, the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association held their first in-person event of 2021 — and the first since the 2019 Northeast Dairy Convention 18 months ago. As we emerge from the pandemic, the dairy industry continues to show its resiliency and enthusiasm to participate in events and opportunities to network with others.

The afternoon began with the Northeast Dairy Suppliers’ annual plant tour at Byrne Hollow Farm in Cortland, New York. Historically, the plant tour is held at a dairy processing or manufacturing plant in the fall. However, as the fall and holiday time can be very busy for these companies, and because of the eagerness to resume association events, it was moved to the spring. There was a tremendous amount of interest to get inside this culture product facility that is part of Byrne Dairy.

Due to Covid-19 restrictions, it was limited to 40 Northeast Dairy Supplier members who received a bird’s eye view of what goes on inside this plant.

The Byrne Hollow Farm plant was designed and built with agri-tourism in mind and has a mezzanine with glass windows for guests to view the operations — from milk intake to packaging storage. Visitors can overlook the entire manufacturing sector of the facility. Byrne Hollow Farm produces Extended Shelf Life milk and yogurt under its name and also has co-packing capabilities with locally sourced milk from Central New York dairy farmers. The Northeast Dairy Suppliers Association members were guided through the stages and areas of the plant

by Byrne Dairy employees who had knowledge and expertise of the production processes, as well as other employees and 64 • Northeast Dairy Foods Association, Inc.

managers from areas like human resources, operations, engineering and distribution.

Following the tour, the first ever Dairy Blender networking event was held at the Double Tree Hotel in E. Syracuse, New York, where over 100 people gathered to see old friends, make new connections, enjoy great food and drinks and enjoy a live performance by Studio Two, a Beatles tribute band. This was a fantastic precursor to the associations’ traditional summer events and a great way to really kick off the ability to socialize once again. The Dairy Blender saw members from the Northeast Dairy Foods Association, the Northeast Dairy Suppliers Association, the New York State Cheese Manufacturers Association and the Pennsylvania Association of Milk Dealers. While this event was a light and social gathering, it also provided an opportunity for members to network and casually discuss business.

It is because of the support of the members of the Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association that the Byrne Hollow Farm tour, Dairy Blender and all of the associations’ events are always a huge success.

As John Lennon and Paul McCartney famously sang, “I get by with a little help from my friends.” Well, so do the associations.

The Northeast Dairy Foods Association and the Northeast Dairy Suppliers Association would like to again thank Byrne Dairy for opening their doors and being a gracious host for this year’s plant tour. Special thanks also goes out to the Dairy Blender sponsors that helped make the evening possible — Gold Sponsors: Custom Fabricating, Hydrite Chemical; Silver Sponsors: Eurofins, Evergreen Packaging, Tracey Road Equipment, Mac LTT; Bronze Sponsors: Sitzman Supply, Earl T. Wadhams; Cup Sponsor: Klockner Pentaplast; and Napkin Sponsor: Equitable Advisors.

Member News

NED Magazine | Third Quarter 2021 • 65

Leanne’s Kitchen

Comfort Food Made with Delicious Dairy

Many of our members may know Leanne Ziemba as

the business operations manager for the Northeast Dairy Foods Association, Inc., and the Northeast

Dairy Food Suppliers, Inc., in our N. Syracuse, New York, office. But we’ve discovered she also is queen

of the kitchen, as she has some delicious recipes that include fresh, wholesome dairy products.

Watermelon Salad From the Kitchen of Leanne Ziemba

INGREDIENTS: • 3 cups cubed watermelon • 6 or 8 ounce package crumbled feta cheese • 1 large seedless cucumber chopped • Chopped fresh mint • ¼ cup honey • white vinegar

66 • Northeast Dairy Foods Association, Inc.

INSTRUCTIONS: 1. Mix together all ingredientds except honey 2. Pour ¼ cup honey over salad 3. Add 1-2 tbsp. white vinegar (to taste).

4. Enjoy!

FoodSafety

FDA Issues Final Ruling to Modernize Identity Standard for Yogurt

T

he U.S. Food and Drug Administration is issuing a final rule to amend and modernize the standard of identity for yogurt by allowing for greater flexibilities and technological advances in yogurt production, according to its Center for Food Safety and Applied Nutrition Constituent Update released June 9, 2021.

This initiative is part of the FDA’s Nutrition Innovation Strategy. Standards of identity set requirements related to the content and production of certain food products. One of the goals of the Nutrition Innovation Strategy is to modernize food standards to maintain the basic nature and nutritional integrity of products, while allowing industry flexibility for innovation to produce more healthy foods. The FDA began establishing standards of identity around 1938 to

promote honesty and fair dealing in the interest of consumers and since this time has established more than 280 standards for a wide variety of food products.

Currently, the FDA has separate standards of identity for yogurt, low-fat yogurt, and nonfat yogurt. Under the final rule, low-fat yogurt and non-fat yogurt will be covered under FDA’s general definition and standard of identity, which allows nutritionally modified versions of traditional standardized foods.

The final rule expands the allowable ingredients in yogurt, including sweeteners, such as agave, and reconstituted forms of basic dairy ingredients. It establishes a minimum amount of live and active cultures that yogurt must contain to bear the optional labeling statement “contains live and active cultures” or similar statements. For yogurt treated to inactivate viable microorganisms,

the statement “does not contain live and active cultures” is required on the label. Additionally, the final rule supports the many innovations that have already been made in the yogurt marketplace, including continuing to allow manufacturers to fortify yogurts, such as by adding vitamins A and D, as long as they meet fortification requirements.

The rule also allows various styles or textures of yogurt, as long as they meet requirements in the standard of identity.

The action responds, in part, to a citizen petition submitted by the National Yogurt Association, which is now part of the International Dairy Foods Association. The FDA issued a proposed rule on Jan. 15, 2009.

The compliance date of this final rule is January 1, 2024, which is the uniform compliance date for final food labeling regulations issued in 2021 and 2022.

NED Magazine | Third Quarter 2021 • 67

OSHA UPDATES Keeping Employees Safe in the Heat

A

s summer heats up and temperatures and humidity start to climb, you are required under OSHA’s general duty clause to advise your employees of heat hazards and train them on methods to avoid heat illness. (Note: Check your local and state regulations for additional requirements.) Under OSHA law, employers are responsible for providing workplaces free of known safety hazards. This includes protecting workers from extreme heat. An employer with workers exposed to high temperatures should establish a complete heat illness prevention program.

Here are some tips to keep employees safe and cool: • Provide workers with water, rest and shade.

• Allow new or returning workers to gradually increase workloads and take more frequent breaks as they acclimate or build a tolerance for working in the heat • Plan for emergencies and train workers on prevention • Monitor workers for signs of illness (Source: Marilyn Dempsey, OSHA safety consultant)

68 • Northeast Dairy Foods Association, Inc.

What are the Signs of Heat Exhaustion and Heatstroke?

When working in an environment where temperatures may soar, it’s important to know the signs and symptoms of heat exhaustion and heatstroke.

According to the CDC, heat-related illnesses are preventable if you are aware of the signs and know what to do if you or a co-worker experience any of them.

Heat related illnesses happen when the body is not able to properly cool itself. While the body normally cools itself by sweating, during extreme heat, this might not be enough. In these cases, a person’s body temperature rises faster than it can cool itself down. This can cause damage to the brain and other vital organs.

Some factors that might increase the risk of developing a heat-related illness are high levels of humidity, obesity, fever, dehydration, prescription drug use, heart disease, mental illness, poor circulation, sunburn and alcohol use.

Everyone is at risk for heat-related illness, but the most vulnerable groups

tend to be older adults, very young children, those with mental illness and those with chronic diseases.

Heat stroke is the most serious heat-related illness. It occurs when the body becomes unable to control its temperature. The body’s temperature rises rapidly, the sweating mechanism fails, and the body is unable to cool down. Body temperature may rise to 106 F. or higher within 10 to 15 minutes.

Heat stroke can cause death or permanent disability if emergency treatment is not provided.

What to Look for: • High body temperature (103 F. or higher) • Hot, red, dry or damp skin (no sweating) • Fast, strong pulse • Headache • Dizziness • Nausea • Confusion • Losing consciousness/passing out

OSHAUpdates What to do: • Call 911 right away. Heat stroke is a medical emergency.

• Move the affected person to a cooler location • Help lower the person’s temperature with cool cloths or a cool bath • Do not give the person anything to drink Heat exhaustion is a milder form of heat-related illness that can develop after several days of exposure to high temperatures and inadequate or unbalanced replacement of fluids. Those most prone to heat exhaustion are elderly people, those with high blood pressure and those working or exercising in a hot environment. If heat exhaustion is not treated, it can lead to heat stroke. Seek medical attention if symptoms worsen or last longer than one hour.

What to look for: • Heavy sweating • Cold, pale and clammy skin • Fast, weak pulse • Nausea or vomiting • Muscle cramps • Tiredness or weakness • Dizziness • Headache • Fainting or passing out What to do: • Move to a cool place • Loosen clothes • Put cool, wet cloths on your body or take a cool bath • Sip water Get medical help right away if: • You are vomiting • Your symptoms get worse • Your symptoms last longer than one hour

HOW TO STAY SAFE IF YOU HAVE TO WORK OUTDOORS IN THE HEAT

If you must work in the extreme heat, follow these tips: • Prevent heat illness with acclimatization. If possible, slowly increase your workload in a hot setting over a period of several days or weeks.

• Drink plenty of water, and don’t wait until you are thirsty to drink something.

• Avoid alcohol or liquids containing a large amount of sugar. Also avoid very cold drinks, as they may cause stomach cramps.

• Replace salt and minerals that can be lost through sweating. Sports drinks are often a good way to replace the salt and minerals your body loses.

• Avoid hot and heavy meals, as they add heat to your body.

• Wear and reapply sunscreen; sunburn can prevent the body from cooling down properly.

• Ask if certain tasks can be scheduled for earlier or later in the day to avoid midday heat.

• Wear a brimmed hat and loose, lightweight, light-colored clothing, if possible.

• Spend some time in air-conditioning during breaks or after work.

Note: Electric fans may provide comfort, but in extreme heat, they will not prevent heat-related illness.

• Encourage co-workers to take breaks to cool off and remind them to drink water.

(Source: CDC)

NED Magazine | Third Quarter 2021 • 69

OSHAUpdates

OSHA: Fire Safety Is Vital in the Workplace

F

ire safety is important in the home and in the workplace. According to the Bureau of Labor Statistics, every year approximately 3% of all workplace fatalities are due to fires/explosions.

Practicing evacuation of your facility will help ensure everyone is able to evacuate safety in the event of a fire emergency.

OSHA requires an Emergency Action Plan that includes procedures to report and respond to fires and other emergencies (29CFR1910.38). OSHA requirements for a fire emergency are: • How to report • How to respond, including an emergency evacuation route • Procedures to be followed by employees who remain to operate critical plant operations before they evacuate • Procedures to account for all employees after evacuations • Procedures to be followed by employees performing rescue or medical duties • The name or job title of every employee who may be contacted by employees who need more information about the plan or an explanation of their duties under the plan • Employee alarm systems • Training. An employer must designate and train employees to assist in a safe and orderly evacuation of other employees.

• Review of emergency action plan. An employer must review the emergency action plan with each employee covered by the plan

DO YOU WANT OR HAVE TO TRAIN YOUR EMPLOYEES ON FIRE EXTINGUISHER USE?

Option 1: Total evacuation of employees from the workplace immediately when an alarm sounds. No one is authorized to use available portable fire extinguishers.

Requirement: Establish an emergency action plan/fire prevention plan and train employees accordingly. Extinguishers are not existing and not required. (29 CFR 1910-157(b)(1)) 70 • Northeast Dairy Foods Association, Inc.

Option 2: Designated employees are authorized to use portable fire extinguishers to fight fires. All other employees must evacuate the workplace immediately when alarm sounds.

Requirement: Establish an emergency action plan and train employees accordingly. Meet all general fire extinguisher requirements, plus annually train designated employees to use fire extinguishers. Fire extinguishers in the workplace must be inspected, tested and maintained.

(29 CFR 1910.157(b)(2)) Option 3: All employees are authorized to use portable fire extinguishers to fight fires.

Requirements: If any employees will be evacuating, establish an emergency action plan and train employees accordingly. Meet all general fire extinguisher requirements, plus annually train all employees to use fire extinguishers. Fire extinguishers in the workplace must be inspected, tested and maintained. (29 CFR 1910.157(b)(2))

OSHAUpdates Option 4: Extinguishers are provided but not intended for employee use.

Requirement: Establish an emergency action plan, fire prevention plan and train employees accordingly. If fire extinguishers are left in the workplace they must be inspected, tested and maintained. Extinguishers are provided but not intended for employee use. (29 CFR 1910.157(a)) Here are some suggestions for practicing fire emergency preparedness as part of your company’s emergency action plan: • Check all alarm equipment and evacuation maps for accuracy.

• Practice fi re evaluation drills twice annually, one announced and the other unannounced.

• Remember to have everyone sign a record of training and remind them that in a real fire emergency, they will

still need to physically sign a paper acknowledging their safe evacuation prior to leaving the site.

HOW TO USE A FIRE EXTINGUISHER?

When a fire breaks out, you must act fast. So, here’s a way to remember the four steps on how to use a fire extinguisher using the acronym PASS. P ull the pin. Hold the extinguisher with the nozzle pointing away from you and release the locking mechanism A im low, and point the extinguisher at the base of the fire.

S queeze the lever slowly and evenly.

S weep the nozzle from side-to-side.

This all sounds quite simple, but to avoid panic in a fire, acquaint yourself with a fire extinguisher before an emergency happens.

(Source: Marilyn Dempsey GAWDA DHS, EPA, OSHA Consultant)

REACHING FOR A GLASS OF CHOCOLATE MILK? SURVEY SAYS MOST AMERICANS INDULGE IN CHOCOLATE DAILY

Reaffirming chocolate’s near universal appeal, a new survey from Cargill finds most Americans indulge in a chocolate-flavored treat every day. Viewed as a reward, mood lifter, energy booster and the secret to surviving a tough day, the company’s ChocoLogic™ research reveals consumers’ preferences, motivations and attitudes toward the decadent ingredient.

Cargill fielded a proprietary survey to track chocolate’s appeal on its own, and also when incorporated into other items like ice cream, beverages, candy, salty snacks and snack/nutrition bars.

Fielded in February 2021, the survey gathered responses from more than 600 primary U.S. grocery shoppers.

For most of these consumers, chocolate flavors are their go-to choice.

Across the food and beverage categories included in the survey, respondents admit they choose chocolate-flavored options at least half the time.

“The adage that ‘everyone loves chocolate’ really is true — less than 3% of consumers report avoiding chocolate,” said Gretchen Hadden, marketing lead for Cargill’s North American cocoa and chocolate business. “However, while chocolate may be the world’s most beloved ingredient, our research suggests consumers have strong opinions on what they like — and don’t like — about this timeless indulgence.”

Given that most consumers enjoy a daily chocolate treat, it’s no surprise that 3 in 4 view chocolate as a way to reward oneself. Other motivations for indulging are less obvious. Seven in ten (72%) agree that chocolate lifts their mood, while 59% say it boosts their energy.

While consumers admit they’ve boosted their chocolate consumption, few register remorse for their indulgence. In fact, consumer perceptions around chocolate suggest it may have

an authentic role to play in better-foryou food choices. Nearly 7 in 10 associate chocolate with health benefits, a characterization even more prominent among consumers of dark chocolate.

Perhaps not surprisingly, the survey found this perception is a key purchase driver for dark chocolate, with 52% of consumers choosing it because they believe “it’s healthier.”

NED Magazine | Third Quarter 2021 • 71

ADVERTISERS’ INDEX Agri-Mark ����������������������������������������������������������������������������������������������������������������������� 19 Agri-Services ������������������������������������������������������������������������������������������������������������������ 17 Altium Packaging ����������������������������������������������������������������������������������������������������������� 21 Atlas Automation ����������������������������������������������������������������������������������������������������������� 39 Comairco ������������������������������������������������������������������������������������������������������������������������ 41 DeLaval �������������������������������������������������������������������������������������������������������������������������� 17 Evergreen ������������������������������������������������������������������������������������������������������������������������ 7 Farm Credit East. ������������������������������������������������������������������������������������������������������������ 9 H.S. Crocker ������������������������������������������������������������������������������������������������������������������� 11 Klockner Pentaplast �������������������������������������������������������������������������������������������������������� 15 Nelson-Jameson ����������������������������������������������������������������������������������������������������������� 37 The Probst Group ���������������������������������������������������������������������������������������������������������� 17 Tremcar ����������������������������������������������������������������������������������������������������������������������� BC Westrock �������������������������������������������������������������������������������������������������������������������� IFC

Join the Dairy Industry Associations A full service trade association representing dairy processors, manufacturers and distributors since 1928.

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WINTER

A supplier and vendor member association dedicated to the growth and Magazi ne of No rtheast Dair y Pr oc essors, Manufac advancement of The the dairy food industry in the northeast. Established in 1932.

neastda.org 72 • Northeast Dairy Foods Association, Inc.

E D I T I O N 20 16

turers and Distribu to rs Since 1928

BENEFITS OF ASSOCIATION MEMBERSHIP EXECUTIVE DIRECTOR AND INDUSTRY CONSULTANT SUPPORT

NDFA

NDSA

Legislative Representation Through Executive Lobbying and Networking Safety and Environmental Information Economic Analysis and Forecasting Continuing Education and Certification Opportunities Industry Spokesperson Emergency Preparedness

PROFESSIONAL COST-SAVING PROGRAMS Dedicated Industry-Specialized Insurance Programs Employee Benefits, Including 401(k) Retirement Program Energy Supply and Consulting Services

NETWORKING AND MEETING EVENTS Annual Northeast Dairy Convention Contact Booth at the Annual Convention Annual Dairy Industry Clambake Hospitality and Sponsorship Opportunities Industry Plant Tours Annual Charity Golf Outing Fundraiser

COMMUNICATIONS AND PUBLIC RELATIONS Quarterly copy of Northeast Dairy Magazine Direct Customer Advertising Opportunities Industry Scholarship Program Membership Directory with Key Contacts in the Dairy Industry Digital Buyers Guide Weekly Diary Newsletter

ADVOCACY An association represents your interests before your government leaders, industry and business community. If your business/industry faces major threats or needs support, our association is right there on the front line fighting for you.

NETWORKING Association events, meetings and member directories make networking a reality for you and your peers. Thisis the one advantage many view as the most important reason to join!

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