UDA Spring Magazine 2022

SPRING 2022

UDA MAGAZINE

Connecting your operation just got easier.

The UTT3S — Smooth. Simple. Safe.

We Help You Bring It All Together Allflex Digital ID tools increase the ease and accuracy of data collection, saving time and money while helping you streamline many breeding, management and milking processes. Connect cows to vital records using our fast, clean Allflex Tissue Sampling Units, our conveniently matched visual and EID tags and our powerful new wand readers. The Allflex Digital ID system helps your dairy march ahead with predictable consistency.

www.allflexusa.com

UDA MAGAZINE United Dairymen of Arizona Officers & Executive Commitee Craig Caballero President Jim Boyle Jr. Vice President Ben Gingg Secretary/Treasurer Robert Van Hofwegen Member at Large David Feenstra Member at Large Robert Chesler Asst. Secretary/Treasurer

Directors Ian Accomazzo Daniel Boschma Arie DeJong Ben Dickman Tom Dugan

Gila Bend Tonopah Maricopa Buckeye Stanfield

Dan Gladden Bill Kerr Tom Thompson Justin Stewart Paul Rovey Nick Vanderwey Casey Dugan

Palo Verde Buckeye Buckeye Mesa Glendale Buckeye Casa Grande

UNITED DAIRYMEN is published quarterly for the dairy cooperative members of the United Dairymen of Arizona, 2008 S. Hardy Dr., Tempe, AZ 85282. Additional distribution includes agencies, businesses and individuals associated with the production of milk. Paid subscriptions are not available.

Membership list is not available for public use. Acceptance of advertising does not assure that merchandise or services advertised have been approved by United Dairymen of Arizona, the health department or other regulatory agencies. Advertisers are solely responsible for the content of the written material or representations that appear in the advertisement.

S

ng i r p 20

22

From the CEO

Written by Robert Chesler, UDA

Stronger Together

UDA Celebrates 62nd Annual Meeting

Key Achievements July 21- March 22 Global Market Insights

Written by Stacey Nikolay, UDA

All You Wanted to Know About FMMO Written by Roxy Helman, UDA

Global Methane Pledge

Written by Juan Tricarico, Innovation Center for U.S. Dairy

Be DairyKind: Shining a Spotlight on Calves Written by Michele Schack, DVM

Miracle Milk: Love What Your Mama Gave You Written By Ashley Langland, Arizona DHIA Intern

Whipped Cream Cake Recipe From the UDA Archive Gulfoods Show Update

Written by Todd Wittlinger, UDA

Combat Labor Shortages Navigating Uncharted Waters

Written by Tony Rice, Trade Policy Manager, National Milk Prod.

Association

Arizona Milk Producers Update

From the CEO Robert Chesler UDA, United is what brought me here, and Uniting will carry us forward into the next successful generation of dairy farmers. That responsibility weighs heavy on the UDA team and me. We work hard every day to drive results; it is what gets us up out of bed early and often keeps us going into the odd hours of the night. But, the cows don’t stop, nor do we.

We are taking our already incredible coop into the upper echelons of the global dairy industry. Our incredible manufacturing facility (plant) can consistently run 8.5 million Lbs. of milk per day and, if needed, could press upward toward 11 million Lbs. in a day. Because of growth in our handler customer base, we want more milk to run our plant at maximum efficiency. Since we have the best-in-class Sales & Trading team, we will soon be marketing our dairy products more profitably than anyone else. Our team is so impressive that many other U.S. manufacturers are asking us to market products for them, and we will as part of a Sales & Trading fund we are initiating. This fund will unite Arizona and the mid-sized coops in America in a joint effort to maximize profitability back to the farms and the plants.

Industry support has been very high as we share our vision.

Our exposure will grow; we will grow from United Dairymen of Arizona into a conceptual United Dairies of America. We will have exposure to milk and manufacturing throughout the country in due course. With the right partners, we may very well find ourselves closer to the consumer as well. Value-add products and brands are a bright light twinkling in our not-so-distant future. These are the things that will differentiate our coop and increase our profit.

Our possibilities are endless because our Stakeholders have shown their confidence in the UDA leadership and team working hard every day. We have built and continue to enhance the best working team in the dairy world. We will not stop until the baton being passed has UDA positioned in the upper levels of the annual Rabobank top dairy companies list.

We are UNITED in vision, execution, and excellence.

Stronger Together UDA Celebrates 62nd Annual Meeting The 62nd annual meeting was called to order on a beautiful afternoon in late January. UDA members, staff, guests, and sponsors filled the main meeting room of the FABRIC Events Center in Tempe.

Board Chairman, Craig Caballero, spoke of the importance of building a solid foundation with the new direction of UDA and introducing Robert Chesler as the new CEO. Robert Chesler shared his inspiring vision for the future of UDA. Including the newly created Sales and Trading team, new ideas for the future, and how we plan to seize the opportunities.

Newly appointed Chief Business Operations Officer, Ashley Ellixson, gave an overview of UDA's new Sustainability Targets. The targets covering carbon, energy, water, and waste will be important goals for UDA to work towards as the world demands more sustainably produced goods.

2022 Board of Directors Left to Right Front Row: David Feenstra, Tom Dugan, Robert Chesler, Justin Stewart, Mark Hocking Second Row: Casey Dugan, Arie de Jong, Ian Accomazzo, Third Row: Bill Kerr, Ben Dickman, Dan Boschma Fourth Row: Robert Van Hofwegen, Paul Rovey, Nick Vanderwey, Craig Caballero, Dan Gladden Top: Tom Thompson

Scenes from the 62nd Annual Meeting

Dianne Spruit accepts the award for Quality Producer of the year on behalf of Creamline Dairy!

62nd Annual Meeting Thank you to our sponsors!

Platinum Sponsor

Gold Sponsor

Silver Sponsors

Bronze Sponsors

KEY ACHIEVEMENTS JULY 21 - MARCH 22 Food Safety and Quality Assurance Product Specifications Modernization of all product specifications to include upload into the UDA website Launched UDA 2022 Customer Packet SQF & AIB Audits SQF score- 91% AIB score- 91.5%

Blending Renegotiated rates with expected increases New MPC70 Customers Lactose Totes Contracts Clearing stocks while markets are strong New Identity- UDA Custom Solutions

Partnerships Partnered with DMI, Dairy West, & Dairy Mgt West Exits DairyAmerica ADG AMP Mexico

Export Operations Established UDA direct customer service process and system Officially Exporter of Record Combat global supply chain issues

Establish Export Operations Relationship Development Routing and Rates Develop Export Documentation Government & Industry account set up International banking & insurance

KEY ACHIEVEMENTS JULY 21 - MARCH 22 Sales and Trading Approvals Nestle, Perrigo, MARS, Gehl's, Abbott, Ferrero, have either approved or are in various approval stages of UDA plant and products Establishing approvals for lactose in Southeast Asia, Oceania Hedging Implemented 10-year interest rate hedge at LIBOR 1.55% Risk Management DRP will be up and running before July 1, 2022 Sales Sold 20.6 mil lbs. of product Oct 2021 to Jan 2022 Super koshers sales

Contracts Renegotiations Handler Contracts Cream Contracts Waste Management switch at Plant

Dairy Services Restructured Doug Hubby named Director of Dairy Service Transportation New Hauler Contracts with expanded insurance coverage DairyKind Completed rollout Audit

Information Technology Launched Milk Moovement New Data Integration Partnerships Building efficiencies with iOT New software infrastructure with quality dept.

Migrated most of the infrastructure for IT into the cloud Increases cyber security and collaboration among teams

Global Market Insights Stacey Nikolay, Manager of Global Market Insights, UDA The Dairy markets have had an exceptional start to 2022. While the market fundamentals will vary for each ingredient, most commodity prices are trending significantly higher than one year ago.

Demand has been strong, but the key factor influencing the markets today is limited supplies caused by lower-than-expected global milk production. Production amongst the top exporting countries has continued to track below expectations with most of the regions on a steady decline since last June due to unfavorable weather, environmental restrictions, and tightening on-farm margins.

Volume difference YOY (1,000 MT)

% Change YOY of top 5

Global Milk Production from Top 5 Major Exporters

U.S.

Europe

Argentina

New Zealand

Australia

Total % change

New Zealand has faced significant declines through the peak of their season (OctDec) and optimism for a stronger finish is dwindling. Similarly, European production has been lower as farmers not only react to margin pressures but also environmental constraints and weather situations. Dairy ingredients from these two regions were extremely tight coming into the new year. This has provided some opportunities for US suppliers to fill this demand gap, but shipping delays and constraints have been a limiting factor.

Global Market Insights Looking to the Northern Hemisphere, production will begin to improve seasonally through the spring flush in both the US and Europe, which should ease some of the supply tightness moving through Q2.

However, production trends are expected to remain lower from a year-on-year comparison due to several limitations (reduced herd size, low replacement heifer inventories, environmental constraints, on-farm margins, feed costs, labor costs, building costs, etc.). While higher milk prices would generally lead to a prompt supply response at the farm level, the complications that have arisen, after 3 years with this global pandemic, across the supply chain complex will make it difficult to expand in a timely manner. We expect production will remain constrained through the better part of the year.

When we look at the overall demand picture it appears to be supportive in the near term driven by solid offtakes from the global markets. However, supply chain disruptions are a common theme around the world. These constraints have encouraged end-users to buy and hold higher buffer stocks than in the past. As prices move higher, this will allow some buyers to step back from the market. It will also cause some demand to burn off, as end users will eventually pursue cheaper alternatives……..the question is when?

All You Wanted to Know About FMMO Introduced in the 1930's the Federal Milk Marketing Order (FMMO) was established by the federal government to set minimum prices that farmers receive for their milk. This was an attempt to level the playing field in a time when handlers had more control over the price and give some market power 1 back to producers.

The U.S. Dept of Agriculture (USDA) oversees the FMMO, which includes 11 milk marketing orders and covers about 75% of total U.S. milk production. Regulatory provisions of the orders apply to handlers, not dairy farmers, and specify how dairy farmers supplying the area share the money from their raw milk sales. 2

What is a Marketing Area?

FMMO regulations and area-specific provisions in each marketing area are administered by a regional “Market Administrator.” Arizona's Market Administrator is Lisa Wyatt.

1. www.everycrsreport.com- Federal Milk Marketing Orders, An Overview 2. USDA AMS- An Overview of the Federal Milk Marketing Order Program

What is a Handler?

Processor of raw milk.

There are two types of handlers: Fluid Manufacturing

All You Wanted to Know About FMMO What does an FMMO Program do?

1. Establishes Minimum Uniform Prices a. Collect dairy commodity market prices b. Determine handler prices based on end-use c. Establish minimum uniform prices through pooling

Classes of milk are determined by end use: Class I: fluid milk Class II: milk used to make soft products (ice cream, cottage cheese, yogurt, etc.)

Class III: milk used to make hard cheese products Class IV: milk used to make butter and powdered dry milk products

2. Ensures Proper Payments a. Through auditing, each FMMO ensures payments to farmers are accurate and timely. b. Milk components are also tested to ensure farmers are paid accordingly.

3. Provides Market Information a. The weekly, monthly and annual publication of FMMO program data is a comprehensive and timely source of dairy information currently not reported by any other entity.

All You Wanted to Know About FMMO How Does Pooling Work?

Once the milk is classified by its end-use, the FMMO then pools the value of that milk and shares that value among the farmers in that marketing order.

Example

Farmer A sells milk to bottling plant Bottling plant buys milk for $18/CWT the Class I milk price.

$17/CWT pays Farmer A for milk.

$1/CWT goes into pool.

POOLING allows farmers to receive the weighted average price, in this case $17/CWT.

Cheese plant buys milk for $16/CWT the Class III milk price.

$1/CWT from pool goes to cheese plant.

$17/CWT pays Farmer B for milk.

Farmer B sells milk to cheese plant

HEAT STRESS NUTRITION’S ROLE IN MITIGATING THE EFFECTS THREE VALUES OF MITIGATING HEAT STRESS:

Animal Welfare

T

Reproductive Performance

Productivity

REAL PROBLE E M H LOSS OF APPETITE leading to lower dry matter intake due to heat-induced discomfort

WEAKENED IMMUNE DEFENSE 2 with increased risk of mastitis

INCREASED RESPIRATION RATES AND RECTAL TEMPERATURES3,4 under heat stress

264/COW/YR

$

HELPS PREVENT MILK LOSS from heat stress6 HELPS SUPPORT INTAKE of dry matter during heat stress period5

TH

HELPS SUPPORT HEALTHY IMMUNE FUNCTION as shown by elevated expression of IL-8R mRNA gene indicating immune system responsiveness5

E EO G TA MN IGEN® ADVAN

Contact Me For More Information Sarah Radachy

Phone: 623.693.3052 Email: Sarah.Radachy@pahc.com

OmniGen nutritional specialty products offer immune support to help your cows handle the effects of heat stress. Learn more about the benefits of OmniGen at TheOmniGenDifference.com.

Key, N. et al., 2014. Climate Change, Heat Stress, and U.S. Dairy Production, Rep. No. 175. 2Nickerson, S. 2014. UGA Extension Bulletin 1426. 3Fabris et al., 2017. J. Dairy Sci. 100:6733-6742. 4Hall et al., 2018. J. Dairy Sci. 101:7095-7105. 5Hall, L. W. et al., 2014. PAHC Reference OG020414. 6Fabris, T. F. et al., 2016. PAHC Reference OG010916.

OG550921USA ©2021 Phibro Animal Health Corporation. Phibro, Phibro logo design and OmniGen are trademarks owned by or licensed to Phibro Animal Health Corporation or its affiliates.

1

Global Methane Pledge Dr. Juan Tricarico, VP, Sustainability Research Innovation Center for U.S. Dairy

It’s important that the dairy industry continues to reduce its on-farm greenhouse gas (GHG) footprint with a growing dialogue and expectations placed on animal agriculture and food production.

The United Nations has established climate-focused priorities and the U.S. and other partners launched the Global Methane Pledge last November that focuses on methane reductions in sectors, including agriculture, energy and waste.

While dairy farmers always have been excellent stewards of their animals and land, enteric methane is the largest source of direct GHG emissions in the dairy and beef sectors. Enteric fermentation – part of a ruminant’s normal digestive process – is the second-largest source of methane emissions in the U.S. after natural gas and petroleum systems.

Developing enteric methane mitigation solutions requires research in areas including nutrition, rumen microbiome, genetics and data technology for measurement and prediction.

A research announcement made last fall is a major step toward unlocking solutions for dairy farmers. The Foundation for Food & Agriculture Research (FFAR) and the Innovation Center for U.S. Dairy spearheaded the Greener Cattle Initiative, an industry-wide consortium that will award approximately $5 million over the next five years to fund research that provides beef and cattle producers with solutions for enteric methane emission mitigation.

Global Methane Pledge This is not a new field of research, but many challenges remain to identify, develop and validate effective options that will meet farmer and broad socioeconomic needs.

This is why the Greener Cattle Initiative is so critical. The effort will bring together stakeholders from across the dairy and beef value chains to leverage investments in the research and development of practices and technologies that reduce emissions.

Farmers along with animal health, genetic, feed, and nutrition research organizations and companies will offer input into the processes.

The Greener Cattle Initiative supports research in these areas: Feed additives and supplements that inhibit enteric methane emissions Feed ingredients that alter metabolic pathways to reduce enter methane emissions Genetic selection of cattle that emit less methane Increased understanding of microbiome composition and activity in cattle Technologies such as sensors, robots, and artificial intelligence to monitor enteric methane emissions or related physiological indicators Socioeconomic analysis of enteric methane mitigation practices and technologies This initiative represents an exciting opportunity for participants across the dairy sector to collaborate toward a common goal of building a brighter future for dairy.

Be DairyKind: Shining a Spotlight on Calves

Michelle Schack, DVM

Calves are the future of the dairy. Every DairyKind dairy owner wants their replacement heifers to be raised with kindness and kept in top health. The DairyKind Newborn Calf Care course is a two part course. As dairies enter their second year enrolled in the program, we encourage anyone working in maternity or with calves to complete the Newborn Calf Care course.

The FARM version 4.0 has updated much of the calf care standards. This article shines a spotlight on one of the new standards in FARM 4.0 that is explained clearly in the DairyKind UDA Newborn Calf Care course.

While handling calves with care has always been a part of the FARM program, the new version outlines just exactly what that means. Calves must be moved from the maternity area to the calf area by lifting, walking, or the use of clean, properly designed mechanical transport. Transporting calves, especially newborn calves, is a critical area on the farm. It is an area commonly targeted by activists, and it is an area that, due to the size and nature of calves and high demands of the job, mistakes can happen.

The goal of DairyKind is to educate everyone working with these animals to prevent these mistakes from happening. The expectations should be clear. Not only does the course show how to stand up a calf, walk a calf, pick up a calf, and set down a calf, but it shows what NOT to do. The course clearly states not to use objects or force to move calves. It also states not to lift calves by their extremities. The entire weight of the calf should be supported at all times.

Other updates to the calf care portion of the FARM program 4.0 include ensuring all calves should receive volume and quality of colostrum or replacer in a timely manner, and that all calves should receive grain and water in the first 3 days of life.

The Newborn Calf Care Module takes approximately 9 minutes to complete. There are two modules, with quizzes after each module reinforcing the main points. The first module is about 2.5 minutes and reviews how to stand up, walk, pick up, and set down a newborn calf. The second module is about 3.5 minutes and reviews the importance of colostrum, and how to use an esophageal feeder. The health and well-being of the calf are very closely tied, and anyone working with calves should be moving the calves gently and performing any necessary health procedures with the animal’s well-being in mind.

Cattle should be handled gently and with patience. There is no excuse for mistreating any animal on the dairy. All animals should have their physical and mental needs met, and be treated with respect throughout their lives. Being DairyKind is ensuring animal well-being in every aspect of the dairy.

Vanguard Renewables:

Leading the Organic Waste to Renewable Energy Movement Every day, Vanguard Renewables sets out to change the way the world views waste and how each of us powers our lives.

We are committed to reducing on-farm and food-generated greenhouse gas emissions from waste by as much as 95 percent and recycling organic waste into a powerful source of renewable energy and low-carbon fertilizer. We work alongside farms to manage manure, enhance regenerative agriculture practices, improve soil health, protect watersheds, and support herd wellness. Our Farm Powered Strategic Alliance with major food manufacturers and retailers, dairy organizations, and farms provide a path to decarbonization for our partners and a measurable impact in combating climate change.

To learn more about Vanguard Renewables visit https://vanguardrenewables.com/.

How Does Farm Powered Anaerobic Digestion Work?

Vanguard Renewables’ anaerobic codigestion program converts food and farm waste to renewable energy. The process begins with the collection of feedstock consisting of inedible or unusable food and beverage waste. Once the feedstock arrives at one of our Farm Powered anaerobic digesters, the waste is combined with manure collected at the farm in a sealed biodigester tank where microorganisms that naturally occur in manure digest the feedstock, converting sugars, fats and other compounds into biogas. This biogas is captured and converted into clean renewable energy and lowcarbon fertilizer along with other valuable byproducts. Our current portfolio processes more than 200,000 tons per year of combined onfarm and off-farm organics.

Vanguard Ad

Miracle Milk: Love What Your Mama Gave You

Ashley Langland, Arizona DHIA Intern

For all the species on planet Earth, offspring define future generations of the world. Have you ever wondered if giving birth to a certain gender may benefit a species?

Many studies demonstrate that among animal populations, mothers naturally tend to favor female offspring. Milk components that the mothers produce vary between gender.

Mothers produce higher milk density for sons that are born leading to sons receiving higher fat content. For daughters, mothers produce milk with lower fat content, but the volume of milk is significantly greater.

A specific study in cows found that “the milk yield received was 0.33-1.1% greater for 1 female offspring,” compared to male offspring. This situation is also seen in humans.

Male offspring tend to induce a lower milk yield with a “higher energy content of 2.8% fat” from their mother, whereas female offspring induced a higher milk yield but “lower energy content with 1.7% fat”.2 Since most of the dairy industry employs sexed semen leading to heifer offspring, even a modest increase in milk production has a strong economic impact. The United States has an estimated 9 million dairy cows. The increase in milk production related to a cow having exclusively heifer offspring, “leads to around a $200 million increase in milk production per year”.2 The fat content of milk in the U.S. tends to be around 3.4% and the influence of the offspring's gender is considered minor due to years of breeding and selection.3 Whether a cow or human, we should all appreciate the miracle of our mother’s milk; providing the precise nutrients and volume to be healthy and grow. . Give your mom a hug to thank her for helping you become the person you are today.

1.Hess, M. K., Hess, A. S., & Garrick, D. J. (2016, March 14). The effect of calf gender on milk production in seasonal calving cows and its impact on genetic evaluations. PloS one. Retrieved February 18, 2022, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4790931/ 2.Breast milk custom formulated for Baby's gender. Psych Lab. (n.d.). Retrieved February 18, 2022, from https://www.psychlab.net/thinking1/breast-milk-custom-formulated-for-babys-gender 3.Educator, A. S. E. (2022, February 8). The fat in different dairy products. Penn State Extension.

Retrieved February 18, 2022, from https://extension.psu.edu/the-fat-in-different-dairy-products

From the Archive Spring is here! Arizona is warming up and blooming.

Enjoy a light and fluffy cake recipe to celebrate the season.

This recipe was found in the UDA "Dairy Dessert Recipes" booklet, circa 1970s?

Whipped Cream Cake Submitted by Margaret Elizabeth Goldman, Tempe (Mrs. Milton Goldman)

Ingredients 1 cup sweet cream (heavy cream) 2 eggs 1 cup sugar 1 tsp vanilla 1/2 tsp salt 2 tsp baking powder 1 1/2 cups flour

Directions Whip cream until stiff Add eggs, whip until very light Add sugar and continue mixing Add vanilla Fold in dry ingredients Pour into 8-inch layer cake tins Bake at 375 until done (10-12 minutes) Frost with icing of your choice.

UDA Participates in World's Largest Food & Beverage Show Gulfood is the largest Food and Beverage sourcing event in the world. UDA's Todd Wittlinger and David Brewer exhibited as part of the US Dairy Export Council’s pavilion, which showcases the quality dairy ingredients available from several US suppliers.

With visitors from around the world in attendance, UDA identified new sales opportunities.

Products like Low Heat Nonfat Dry Milk, Skim Milk Powder, Milk Protein Concentrate 70, and butter are all demanded in the region.

UDA has established business and recognition for its quality and consistency by key manufacturers.

Specifically, in the Middle East and North African regions the demand for dairy ingredients is exceptionally strong (with cheese and dairy product consumption growing) and a limited volume of dairy ingredient exports available currently from Europe and Oceania- the US dairy manufacturers have an opportunity to be a key supplier to this region.

The topic of conversation on everyone’s agenda this year was the supply chain.

Every supplier and buyer is concerned with a broken system putting timely shipments of needed ingredients in serious jeopardy, and from a US perspective, the challenge was building a sustainable business in these regions given the current status of shipping costs and unpredictability.

Overall, Gulfoods provided a fantastic stage in which to advertise the UDA story while allowing us to meet with customers, prospects, and other dairy suppliers both domestically and internationally.

Gulfood

by the numbers

120+ Participating Countries

4,000 Participating Companies

100,000 Attendees

Combat Labor Shortage Challenges As we head into spring the national labor shortage continues to be felt across hundreds of industries, including dairy farming, making it challenging to find people to work. Employees are needed on the farm 24/7 to milk the cows, care for them and keep operations running smoothly, which means now more than ever competitive employee benefits and good training programs are key in finding and retaining employees.

Here are a few areas to consider as you move forward with hiring in 2022.

Bonus offers around recruitment – incentives may generally be focused on milking, cow care and other farm operations but look to offers that will motivate current employees to help in the recruitment process.

For example, if an employee recommends someone and they stay for six months, offer them a cash bonus for their referral.

Communication and positive feedback – research shows the lack of feedback in the workplace can be interpreted by the employee as negative feedback.

Take as many opportunities as you can to provide training, voice expectations for cow and facility management and share positive feedback for a job well done.

Revisit HR policies – labor shortages have created an extremely competitive environment with multiple farms trying to hire from a small pool of workers.

Spend time evaluating your current employee benefits and see whether any changes need to be made to medical insurance, time off and wage.

As we continue to navigate the challenges labor shortages bring to our industry, visit the National Dairy FARM Program for employee resources and employee benefit and training guidance.

Navigating Uncharted Waters: Export Supply Chain Crisis Tony Rice, Trade Policy Manager National Milk Producers Federation & U.S. Dairy Export Council

Last year was record-breaking for U.S. dairy exporters. Over $7.75 billion of American dairy products were exported in 2021, accounting for an all-time high of 17% of total milk solids production.

However, this landmark international demand is being overshadowed by a less desirable record – unprecedented export supply chain challenges.

The National Milk Producers Federation (NMPF) and the U.S. Dairy Export Council (USDEC) gathered a working group of members in July 2021 to identify solutions to the port congestion, prolonged delays, and high fees – most of which has been driven by ocean carriers. Following a dramatic shift in consumer purchasing behavior toward online shopping during the pandemic, ocean carriers have opted to ignore contracts and load empty containers instead of U.S. containerized exports to return quickly to the more lucrative Asian market.

NMPF and USDEC’s first step to address the issue was to help educate Congress and work with agricultural partners to shape language for the bipartisan Ocean Shipping Reform Act, which passed the House of Representatives in December and has companion legislation currently moving through the Senate. If enacted into law, the bill would require carriers to certify that fees are not being levied for delays outside of a U.S. exporters’ control, limit the carriers’ ability to unfairly refuse to load contracted exports, and require increased transparency.

Navigating Uncharted Waters: Export Supply Chain Crisis Due in part to the organizations’ parallel push with the Administration to address the crisis, USDA announced a partnership in January with the Port of Oakland to establish a pop-up staging area and a $125/container fee offset specifically for agricultural exports. While just the start of a larger effort to incentive and facilitate agricultural exports, NMPF and USDEC continue to push for additional solutions to ensure that U.S. dairy exports’ record growth remains on the upward trajectory.

Lawmakers want to hear from you on this issue!

Click here or scan the QR code to send a message supporting the Ocean Shipping Reform Act to your elected officials.

Scan to send a message to your elected officials

RETAIL A QR code was placed on dairy cooler clings in Albertsons, stanchion signs in Fry's, and delivered as digital ads to shoppers during the month of November. When scanned, customers were taken to a virtual advisor that prompted users through a series of five essential tips to achieve mashed potato magic. Scan the code in the ad to the left and give it a try!

Sour cream purchases increased 10.1% year over year (YOY) Total impressions 2.6M+ Engagements 114.5K

A smoothie promotion leveraging Raiders NFL player Hunter Renfrow was launched in Nevada Smith's stores. Advertised through in-store signage, Catalina coupons, social media, and an email blast, consumers were prompted to visit nevadamilk.com for Renfrow's favorite smoothie recipe. Visitors were also invited to submit a photo with their favorite dairy products and Raiders gear for a chance to win prizes including a Fuel Up to Play 60 (FUTP60) smoothie kit for the school of their choice, Raiders swag, and a tour of Allegiant Stadium.

Yogurt purchases increased 4% YOY Total impressions: 4.5M Total engagements: 10.8K

YOUTH WELLNESS Smoothie bike taste tests and nutrition education lessons were provided for 600 students at Pomeroy Elementary School in Chandler.

Dairy Council of Nevada (DCNV) partnered with culinary instructors from Southern Nevada high schools for a series of Flavors for Life cooking competitions. Recipes were required to include at least one dairy ingredient.

3 chefs; 600 students

A video featuring Raider Rusher, Daisy, and Clark County School District mascot, Sporky, was shared with 374 schools and aired on PBS during NSLW. 750K audience reach.

To celebrate National School Lunch Week (NSLW), events were held at Rose Warren and Tate Elementary Schools in Southern Nevada. Students were invited to try out the smoothie bike with Daisy the Cow, and they learned how including dairy in smoothies provides a nutritious and tasty boost. 1,489 student in attendance

Working with Hubert, five Tempe School District high schools were provided bunkers and barrels wrapped with MilkPEP graphics to properly store and serve cold milk during meal times. Previously, many of the schools only option was to serve milk in trays with ice.

35% increase in milk purchases after equipment use and addition of strawberry milk offerings.

Monthly newsletters are sent to school professionals with information on nutrition, educational materials, and opportunities related to dairy . average # of recipients AZ: 1,684; NV: 340 *fluctuations due to subscriber status

YOUTH WELLNESS The national Adopt a Cow program is back for another year with Jen Millican of Stotz Dairy participating as a host!

Registered classrooms will receive virtual visits from the farm to check in on their cow and learn about dairy farming practices. check out Jen Millican on 12News!

34K+ broadcast impressions

Nutrition education materials on competitive beverages and the benefits of dairy were provided for the 1400 parents and kids in attendance at the Las Vegas Healthy Kids Festival.

Dairy and fruit smoothies were offered to booth visitors.

AZ & NV Adopt a Cow registrations 1495 teachers; 55,841 students 35.7K impressions 3336 engagements

July-Sept 79K+ impressions As part of our partnership, AZ Cardinals continue 1352 with development of delicious dairy snacks to engagements share out monthly on their social channels.

75K+ views on TikTok

Billboard ads were placed in 10 locations throughout southern Nevada that displayed positive dairy nutrition messaging to fuel kids for back to school.

251K+ impressions Monthly newsletters are sent to school professionals with information on nutrition, educational materials, and opportunities related to dairy - 25K+ recipients

The AZ and NV teams worked with Custom Ed to deliver an engaging and energetic experience for FUTP60 program advisors at this year's trainings, held at the Cardinals' and Raiders' stadiums.. The agenda was developed to create meaningful connections to the FUTP60 program, farmers and dairy, and provide opportunities for advisors to learn more about tools available to support students and activate the program at their schools.

120 total attendees ~94K extended reach to students

COMMUNITY MARKETING Milk and butter donations were supplied to the Chandler Chuck Wagon Cook-Off, an annual culinary experience of Western history. Chuck wagon competitors prepared food using methods from 1880's cattle drives.

It is an homage to the Old West, outdoor cooking, and the original food truck.

AZMP was back as the Hot Cocoa sponsor at the Phoenix Zoo's Wildlights for Wildlife drive-thru Zoolights premier. Guests received a cup of hot cocoa in a branded mug along with hot chocolate recipes to make at home. Daisy was onsite to greet guests and take pictures.

536 attendees

360 tickets sold, 1622 online views

Chocolate milk and re-fuel with chocolate milk postworkout nutrition information was provided at the Las Vegas Girls on the Run 5K and a Nevada Interscholastic Activities Association (NIAA) volleyball event.

1,800 athletes & family members

In celebration of Hispanic Heritage Month, and to promote chocolate milk as the preferred recovery beverage of the Phoenix Rising soccer team, AZMP sponsored a post-game concert with with A.B. Quintanilla and Kumbia Kingz.

4K+ attendees at concert 400 Fairlife Corepower samples distributed 300K+ social media impressions scan to view the commercial and video message from A.B. Quintanilla!

Photos ops and chocolate milk, provided by Meadow Gold, were available to families celebrating at Las Vegas' Noon Year's Eve Twitter mention from Hunter Renfrow event . ~3,000 in attendance 15.9K video views; 655 engagements

Fiesta Bowl Partnership

Youth Football Clinic

200+ participants received Shamrock milk. AZMP logo on shirts and signage

Parade - Half Pint Judges

Ballon, banner & milk truck entry; dairy messaging during broadcast; TV spot with Half Pint judge winners

Arizona State Fair saw a record breaking total attendance of 1,589,951 this year! Daisy was on site for photo ops and a trip on the skyride. Dairy farming sustainability, local dairy products, and milk nutrition comparison to alternative products messaging was displayed throughout the barn.

Fiesta Bowl - jumbotron commercial & on-field presentation to scholarship winners Guaranteed Rate Bowl Dairy Hero Race on-field activation

38.M+ digital impressions

CONSUMER COMMUNICATION Monthly digital display ads featuring nutrition and recipe information were delivered on apps and websites visited most by chosen targeted audiences. Each ad linked back to the AZMP website to learn more.

Total impressions for all Q1 digital ads: 4.6M+

FEATURED CAMPAIGN

scan to view ASU page

scan to view UofA page

AZMP partnered with KEZ for another year promoting dairy based holiday cocktails with Beth and Friends, and cookie recipes on SJ's Cookies and Milk Break.

Five recipes from the Go Bold With Butter were featured.

1.3M+ impressions total from social media, broadcast, streaming and digital dispaly ads

Four recipe videos were developed, TikTok style, based on air fryer and protein trends with college students.

The videos were delivered as digital ads through geofencing to Arizona State University and University of Arizona campuses. The ads were then re-targeted to those devices at a later time.

Two custom landing pages were created for each school and housed all four recipes as well as information on dairy farming sustainability, local products, and farm families.

AZ and NV social platforms and websites deliver messaging to: general consumers; health, nutrition, and school professionals; and youth audiences. Back to school, holiday, nutrition, and sustainability content, with special call outs to National School Lunch Week, Farm to School Month, and National Farmers Day were featured this quarter.

Instagram

617K+ impressions

Twitter

9K+ impressions

Pinterest

245K+ impressions

Facebook

142K+ reach

Website

50K+ pageviews

Q1 Social Media Analytics AZ & NV

Save the Date!

Udder Milk Golf Tournament Arizona Grand Golf Course

May 6, 2022 Tee off time: 7:30 am | Shotgun start – 4 person scramble Fee includes: Carts, Range balls, food, and coffee.

Door prizes, raffles, and more prizes!

Hole Sponsorship- $250.00 Hole Sponsorship + 4 Golfers Fees- $750.00 Individual Player Fees- $125 All sponsorship proceeds will be donated to the Boys and Girls Club of the East Valley.

For registration info contact Travis Solomon: TSolomon@udaz.org Registration forms need to be turned in by April 25, 2022