November 8th, 2022
Today, November 8th, is Election Day! Please exercise your right to vote! As we all know, Georgia's election is one of the most-watched across the country, so every vote counts!
In this issue of Georgia Milk Producers E-News:
- Swisher-Sunbelt Expo Southeastern Farmer of the Year; State Winners include 2 Dairy Farmers
- FMMO Reform / Modernization: A Digest of Events & Insights following the American Farm Bureau FMMO Forum held in Kansas City in mid-October
- ** DCMA files Petition to Address Inter-Market Transportation Credits
- Potential Rail Strike: Status of Union Votes
- Gridiron Greatness: The Georgia Dawg Punter is an Australian Dairy Farmer!
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Georgia Dairy Conference at Savannah, GA, January 16-18, 2023 - Have you registered?!??
- Kreeger Jersey Production Sale
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Southeast Farmer of the Year
Swisher / Sunbelt Expo Southeastern Farmer of the Year - Overview, State Winners
2022 Overall Winner: Robert E. Saunders - Virginia Farmer of the Year - posted at Sunbelt Expo
Greenhouses, ornamentals, and nursery products are the focus of the Saunders operations, complemented by seasonal produce and an on-the-farm market. With several employees, and adding family employees as the operation grows, the farm offers a 40-week Apprentice Program so that new staff additions are made familiar with all aspects of the operation Read more here.
About the Announcement Luncheon & Event, listing some of the prizes for all: "Virginia's Saunders named Southeast Farmer of the Year" by Brad Haire, for Southeast Farm Press
2022 State Winners who are Dairy Farmers
John M. Harrison, Tennessee Farmer of the Year - posted at Sunbelt Expo
Jerry Dakin, Florida Dairy Farmer of the Year - posted at Sunbelt Expo
Please keep the Dakin Family and Dakin Dairy Farm in your prayers. Not only did Jerry and Dakin Dairy Farms incur significant loss from Hurricane Ian, Rodney Dakin, Jerry's brother, passed away earlier this week from complications following a vehicle accident. Jerry is a friend to many who receive this newsletter, and attends the Georgia Dairy Conference on a regular basis. Despite their losses, the farm stepped up to serve as a community hub in the aftermath of Hurricane recovery. To learn more, lots of information can be found at the Dakin Dairy's Facebook page.
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On the Pathway to FMMO Reform:
Farm Bureau FMMO Forum Follow-up
Federal Milk Marketing Order Forum Successfully Brings Sector Together
The much anticipated Federal Milk Marketing Order Forum, organized and hosted by American Farm Bureau, was held Oct. 14-16 (this past weekend) in Kansas City. The Forum had the purpose of bringing stakeholders whose livelihoods depend on opportunities for financial success at every level from farm to retail markets together to work to a consensus on what makes sense for milk pricing going forward.
Several dairy colleagues from the Southeast and eastern seaboard attended the Forum. A full list of those who registered can be found here.
Attendees participated in a series of working sessions at designated tables, with presentations from each table following. A list of panelists to open discussion on topics can be found at this link.
Several organizations have now published statements following the Forum:
Oct. 17, 2022: A Joint Statement from American Farm Bureau & National Milk Producers Federation
The statement contained this quote: “We anticipate the prospect of a hearing conducted by USDA in 2023 that could address FMMO price formulas, including all four Classes, as well as the Class I price surface. An amended pricing system should improve price discovery, improve the clarity of the program, continue to support timely payments to producers, and reduce price incentives to de-pool milk.''
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Oct. 16, 2022: ''Edge Dairy Farm Cooperative encouraged by Milk Pricing Reform Dialogue,'' by Travis Senn, for Edge Dairy Cooperative
'Edge is grateful for the opportunity to join other dairy groups in this collaborative forum to share ideas on the future of our milk pricing system. Discussion highlighted an interest in collaboration and laid a strong foundation for the dairy community to move towards the expectation of consensus laid forth by Agriculture Secretary Tom Vilsack.'
To read the complete Edge statement, click here.
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Oct, 17, 2022: ''Dairy Stakeholders Discuss Federal Milk Marketing Order Issues,'' by Larry Lee, for Brownfield. Lee actually attended the meeting. His report focuses on viewpoints from Lucas Sjostrom, of Minnesota Milk Producers, and includes some recorded interviews. Sjostrom noted it was beneficial to hear perspectives from different parts of the country, and how that might help in reaching collective policy beneficial for all.
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Oct. 19, 2022: ''Dairy Leader [Marin Bozic] says Congress Can Help the Industry with a Few Sentences in the Farm Bill,'' by Larry Lee for Brownfield. A follow-up to the article above, Lee gets insight from Marin Bozic, of the University of MN, and an industry leader as this Farm Bill is approached. Bozic believes some things may need addressed in a hearing, but Farm Bill language must allow that to happen.
Statement from the article: ''Bozic says the 2023 Farm Bill and the Packers and Stockyards Act present opportunities for the industry. “What we would like to see in the farm bill is language that allows a hearing on a new way of federal order, and also maybe in the Packers and Stockyards Act, ten new principles on what constitutes fairness in contracting between milk buyers and dairy farmers.”
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*** (Highly Suggested !!!) Broad Ranging Summary Article of several activities of dairy groups broadening the context to the discussion leading to FMMO Hearing ***
Oct. 17, 2022: ''Potential FMMO Hearing Not Likely to Address Depooling, PPDs,'' by Dave Natzke, for Progressive Dairy. The road to milk pricin reform is has many moving parts and multiple targets. This article is an overview of all at play. It was written on a deadline concurrent with the AFBF Pricing Forum, so includes little of events at that meeting. In the article:
- A summary of NMPF positions following an early October Board meeting
- World Dairy Expo Panel
- Depooling and PPDs defined as regional issues
- Consensus difficult
- Senators call for Evaluation / Requests from the AO
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October 18, 2022: ''September FMMO Uniform Prices Down, Class IV Pooling Remains Low,'' by Dave Natzke, for Progressive Dairy. Orders with high Class I Utilization saw the steepest declines in milk prices. Prices were down 96 cents in FMMO 5 (Appalachian), $1 in FMM0 7 (Southeast), and $1.16 in FMMO 6 (FL).
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Farmshine's Sherry Bunting, who attended the Forum, penned two in-depth articles:
October 21, 2022: ''AFBF Milk Pricing Forum Draws 200 to KC; High Priority to Return 'Higher of' as Class I Mover,'' by Sherry Bunting, for Farmshine. Bunting, who deeply delves into any issue for her conveyance of information, was encouraged that some consensus was reached in returning the Class i mover to the 'higher of' Class III or IV, instead of any average, or adjusted average. In this article, she also describes the thoughts of Georgia's own Zippy Duvall, President of American Farm Bureau.
October 28, 2022: ''Fluid Milk's Precarious Future Can't Be Ignored" (Highly recommended reading)
The Southeast and East sections of the country are fluid-heavy markets as pricing go. In the past few years, there has been an exponential exit of dairy farms, leading to more milk seeping into the area from the midwest and west.
In this thought-provoking article, Bunting captures the following keys:
- Joe Wright's thoughts on 'Empty Shelf Syndrome,' where we are seeing empty dairy cases with increasing frequency. This problem, anecdotally, occurs far more often with 'dollar' stores, and milk desserts are forming.
- Calvin Covington, of the Dixie Dairy Report, and whom has a long-term footprint in the industry, discussed how plants and their roles is something to be considered moving forward.
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Mike Brown, Milk Procurement for Kroger relayed that ESL/Aseptic Milk is their fastest growing category of milk products. Bunting closes with a haunting statement: ''Aseptically-packaged and warehoused milk is not fresh enough — and may not be local enough — to be the product that helps extend the viability of the federal orders.''
Producers and industry stakeholders are reminded that, should you have any questions, the AMS staff in DC is available to discuss and answer questions - UNTIL a request for a hearing is filed. It has been reported on numerous occasions that a FMMO hearing request is expected to be filed before the end of 2022 or early in 2023. NOW is the time to be asking questions.
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October 25, 2022: ''NMPF Unanimously Endorses Marketing Order Modernization Plan in Annual Meeting,"
News release posted at NMPF.org describes a significant vote which took place at the National Milk Annual Meeting at Denver during the last week of October. NMPF has had a Task Force working on issues related to FMMO Modernization for over a year. The committee has determined several points to seek in an FMMO hearing, and those collective points were unanimously approved by the NMPF Board. The multi-faceted proposal include the following:
- Returns to the “higher of” Class I mover;
- Discontinues including barrel cheese in the protein component price formula;
- Extends the current 30-day reporting limit to 45 days on forward priced sales on Nonfat Dry Milk and dry whey to capture more exports sales in the USDA product price reporting;
- Updates milk component factors for protein, other solids and nonfat solids in the Class III and Class IV skim milk price formulas;
- Develops a process to ensure make-allowances are reviewed more frequently through legislation directing USDA to conduct mandatory plant-cost studies every two years; and
- Updates dairy product manufacturing allowances contained in the USDA milk price formulas
Nov 1, 2022: "WCMA (Wisconsin Cheesemakers) Board of Directors Approve Reform Concepts for Federal Milk Orders," by Grace Atherton, in WCMA News. The Wisconsin Cheesemakers Marketing Association has published a statement outlining their thoughts on FMMO reform. Their points go into more detail about the make allowances, and the factors related to barrel cheese pricing which may affect any modernization process.
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Follow-up: WCMA Notes: "Consensus on Key Issues Can Get the Federal Order Reform Party Started," a perspective from John Umhoefer, Executive Director of the WCMA.
- Umhoefer opens a detailed view by calling a Federal Order Reform Hearing "the dairy industry equivalent of a birthday party for Great Grandpa," and proceeds to outline factors the organization wishes to see addressed. The article is a good read.
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Nov. 4, 2022: DCMA (Dairy Cooperative Marketing Agency) Proposes Changes to Inter-market Transportation Credits on October 27, 2022
Jason Nierman, Market Administrator for FMMOs 5 (Appalachian), 6 (Florida), and 7 (Southeast), distributed the following statement:
"USDA has received a proposal from the Dairy Cooperative Marketing Agency to amend the inter-market Transportation Credit Balancing Fund provisions of the Appalachian and Southeast orders and adopt new distributing plant delivery credit provisions for the Appalachian, Florida, and Southeast orders. Per regulation, USDA has 30-days from receipt of proposal to deny the proposal, request more information, or issue an Action Plan. USDA’s response will be posted online."
To read the 35 pg. petition, link here.
General Page, along with supporting letters from members of DCMA: Link Here.
The proposal was originally submitted on October 27, 2022, so responses should be forthcoming on or before November 27. This petition is a separate matter from any future Hearing Request for FMMO Reform.
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Are you prepared if a rail strike occurs?
November 1, 2022: "Rail Labor Negotiations; Tracking the Path to Ratification," by Sarah Zimmerman for Supply Chain Dive. At this time, it is not certain that a Rail Strike has indeed been averted.
Several unions are in the process of voting to ratify the agreement brokered by the Biden Administration in September. Some have ratified, while others have not. Most of the votes will be completed by November 21.
To keep up with the process, clink here.
In the meantime, does your farm or business have a contingency plan if a strike does indeed take place?
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A Georgia Football International Dairy Connection!
No doubt many of us are SEC fans, and last weekend's GA-TN game was one of the most anticipated contests in years. Although having an unexpected great year under Coach Josh Heupel, Tennessee's Volunteers couldn't overcome the talent and skills of the Dawgs last Saturday.
One reason - a jaw-dropping punt by Brett Thorson, an Australian dairy farmer who has already become an integral tool for Georgia! Read more at "Aussie Star Brett Thorson Shocks 93,000 Football Fans with 'Greatest Punt Ever' for Georgia,' published at the NY Daily Paper.
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Additional Resources:
October Georgia Milk Review: includes info on nominating worthy individuals for the Bobby Walker Service Award, as well as Bryce Trotter's perspective on the Farm Bureau FMMO Forum and related events. If you haven't already, please be sure to read!
Advertisements being renewed: This issue of the Georgia Milk E-News includes an ad from Kreeger Jersey Farms of WI. In future issues, we will be figuring out how to incorporate several types of ads, so please watch for information regarding rates and specs. It may take a few weeks to get this implemented, but in the meantime, if you are interested in an ad, please let us know!
In the Spirit of the Season: As we enter the Thanksgiving and Christmas Seasons, may each of you stay safe, and enjoy the holidays in the way that fills your souls and hearts.
Please be sure to include milk and dairy products as much as possible in your holiday dining and parties, and be sure to post those pics on social media! Nothing sells a product like seeing someone you know use it!
And take it a step further, be sure to use a visible carton or package from where your milk goes to - that's a direct marketing connection to your farm!
Dairy On!
Julie Walker, for Georgia Milk Producers
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