Progressive Dairyman

Jim Collins on ideas and movements

dairyeditor@gmail.com (dairyeditor) — Wed, 08 Jul 2009 15:22:00 +0000

Jim Collins has a new book out – How the Mighty Fall. I can't wait to read it. He has also hinted he has some interesting ideas he's researching related to entrepreneurs, or opportunity capturers as I tend to think of them. In his most recent Time magazine interview, Collins says "entrepreneurship is about an idea more than just an organization." It is "creating a movement."

He said similar things in a recent Inc. magazine article.

Sure a great movement needs organization and structure, but it first needs a great idea and others with the same ideas. What great ideas could help transform the dairy industry? I'll be asking for more of those ideas from you in the coming days.

Do Facebookers love milk and cheese?

dairyeditor@gmail.com (dairyeditor) — Mon, 12 Jan 2009 22:09:00 +0000

By Progressive Dairyman Managing Editor Walt Cooley

Over the weekend I used Facebook Lexicon to do some interesting social networking research about dairy and dairy products. The most significant reason we as an industry are in a low-price slump is demand for dairy products has decreased. What is interesting is that at the same time demand has decreased chatter on Facebook about dairy, milk, cheese, ice cream and yogurt have too. See how much it has decreased from last year in the graphs below.

Milk

Cheese

This is one of the major components of our diving dairy markets. If cheese were not in oversupply, dairy farm-gate prices would be different.

Ice cream

Yogurt

If dairy products were mentioned more frequently would their demand also increase? Perhaps we could all do a little bit to help the situation by asking everyone we meet, "Have you had milk, cheese or yogurt today?"

I've had two of my three servings of dairy today. Off to get one more.

I won’t be a pessimist

dairyeditor@gmail.com (dairyeditor) — Fri, 09 Jan 2009 20:55:00 +0000

By Progressive Dairyman Managing Editor Walt Cooley

No one need say more about how bad the dairy industry’s situation has nose-dived in the last two months. The graphs to the right tell the story. Since the U.S. economic fallouts began in October, dairy markets have underperformed seasonal averages for the holidays, and in mid-December they unraveled and then absolutely fell apart by the first of the year. Our well-tuned, world demand-minded U.S. milk production system is now producing much more supply than is necessary to meet demand. That means milk is plentiful and its value is cheap. Cheap enough that it sells for less than it costs to make. Sounding familiar, right?

That forces you to make some tough decisions. How will you survive this low-price era? You are probably hearing that it might be worse than ever before, and it might. Yet I’m determined to be optimistic. Why? In my opinion, optimism will see the opportunities in supply and demand imbalances. Yet realism is also required. A realistic attitude will translate into survival.

So since most dairymen won’t be selling assets to come up with more revenue, how can you cut costs or borrow enough to survive? And where are the opportunities in this downslide?

Progressive Dairyman is committed to providing answers to these questions in the months ahead. As we prepare our coverage, I’d like to hear from you. What are your greatest cost-cutting challenges? What are your greatest obstacles? E-mail or fax your situations. We’ll include those scenarios, without using names, in our coverage.

As we monitor the situation, I don’t want to tell you the things you already know. The situation is bad. While there is comfort in reporting just how bad it is for everyone else too, dwelling on the negative will hide the opportunities. Capture the opportunities while surviving. That’s our theme.

We’ll continue to tell you how long experts think this will last. That’s meant to provide hope, not discouragement. Consider our coverage like listening to the radio during severe weather. We’ll cover what’s going on around you, but more importantly we want you to know how much longer to endure in ‘survival mode’ and when the sun will shine again.

Dairy goes green?

dairyeditor@gmail.com (dairyeditor) — Wed, 23 Apr 2008 02:36:00 +0000

Since it's Earth Day, why not lead with such a headline. And yet just last week the dairy industry announced that is the direction it is going.

Below is the text of a press release from Dairy Management Inc. (DMI), which I haven't seen appearing in too many places. Yet, in my opinion, I think the release should have received more headlines. The future of the dairy industry in the U.S. may require producers be more conscious of the carbon footprint of the input costs required to produce their milk. In the release, DMI says it hopes to position dairy as a "sustainable" product that will be favorable to environment-concious consumers. I'd recommend the entire piece for your reading. (I didn't link to anywhere because I haven't seen the release popping up on any other major dairy-related websites.)

Dairy industry addresses environmental stewardship

Rosemont, IL - From farm to consumer, dairy industry leaders have joined together to launch a comprehensive sustainability initiative that will encourage industry innovations, improve environmental performance and position the industry for future marketplace demands.

Three national dairy organizations – Dairy Management Inc., National Milk Producers Federation and the International Dairy Foods Association – said the new initiative will bring together producers, processors, manufacturers, distributors, retailers and others in the dairy supply chain to address sustainability.

“The dairy industry recognizes the growing number of people who care about the health and environmental impact of the products they buy,” said Tom Gallagher, chief executive officer of DMI, which manages the national dairy producer checkoff program. “We must do all we can to ensure that consumers know that the dairy industry is committed to improving their lives, both nutritionally and environmentally.”

The initiative will identify key supply-chain innovations that, as part of a comprehensive sustainability effort, can help position dairy as a preferred product among the rapidly increasing number of socially-conscious consumers. Among the focus areas of the effort will be identifying opportunities to reduce energy consumption and costs in milk production and processing, as well as boost on-farm income opportunities in emerging “green” energy markets.

“We want to be sure that our industry is well-positioned to take advantage of future opportunities – both in terms of credits for reductions in greenhouse gas emissions, as well as developing new products and markets for milk,” said Jerry Kozak, NMPF’s chief executive officer. “Importantly, this initiative will help identify opportunities for dairy farmers to generate additional revenue from emerging energy markets through methane capture and other innovations. We also recognize that sustainability needs to be defined in a comprehensive way that acknowledges the socioeconomic benefits that dairy farms can provide,” Kozak said.

“This is a key dairy industry value chain partnership that will allow us to cut energy costs, meet consumer needs and further develop our relationships with dairy buyers,” said Connie Tipton, IDFA’s chief executive officer. “By working together, dairy producers and processors can further demonstrate our industry’s commitment to healthy people and a healthy planet.”

The DMI-coordinated sustainability initiative is initially focused on the twin goals of reducing greenhouse gas emissions and growing the dairy business by meeting unmet consumer demand. Through this effort, DMI, NMPF and IDFA will identify best practices and opportunities for innovation in production, processing and marketing of milk and milk products.

Currently, about 30 percent of U.S. consumers buy products based on health and sustainability attributes, according to the Natural Marketing Institute. This rapidly-growing consumer segment today accounts for some $227 billion in purchasing power. Recent surveys indicate that 85 percent of consumer product companies have sustainability policies in place (GMA/Deloitte).

“We are at the dawn of a new era in the food retailing industry,” Gallagher said. “This ground-breaking, checkoff-supported effort will help us tap the ingenuity of our industry and guarantee that we can continue to produce a highly nutritious and sustainable product for American consumers.”

According to Gallagher, the sustainability initiative is designed to “increase dairy sales through innovation opportunities that will promote health and wellness, and preserve natural resources. Our focus will be on identifying sustainable practices that can help the dairy industry meet unmet consumer demand by driving innovation and efficiency in a way that sustains the industry economically, environmentally, and socially.”

As part of the initiative, the three dairy organizations have begun efforts to analyze the carbon footprint of milk, from production on the farm, through processing and retail distribution, to consumption. This analysis will help identify potential innovation opportunities and possible best practices that can reduce energy use and increase sales in the dairy supply chain.

After calculating milk’s carbon footprint, this life cycle analysis will be subject to a peer review process to develop a manuscript for publication in a scientific journal. This process will help ensure that the life cycle analysis accurately and adequately addresses milk’s true carbon footprint in a manner that is credible and transparent. According to Gallagher, this will help produce realistic, real-world opportunities for dairy to increase its sustainable practices.

“The dairy industry’s commitment to sustainability is a win-win-win,” according to Gallagher. “By working together, we can identify opportunities to cut energy costs, produce ‘green’ energy and develop a deeper connection with consumers and retailers.”

What is a mega-dairy?

dairyeditor@gmail.com (dairyeditor) — Tue, 22 Apr 2008 01:23:00 +0000

I recently reviewed my AP stylebook and was struck by the literal definition of the prefix "mega." Quoting from the stylebook:

"A prefix denoting 1 million units of a measure."

To my knowledge, no dairy in the U.S. has 1 million cows. If one did, they would own and milk 10 percent of the cows cared for in the nation. No wonder activists choose this prefix when affixing a label to dairy and other animal production. Caring for this many cows on one facility would be difficult. That's why none of these dairies exist. Dairy producers today have dairy sizes that permit efficient and safe care for their cows – regardless of size. That also can mean that not all family farms are small and that not all large dairies are factories.

rBST in the Midwest

dairyeditor@gmail.com (dairyeditor) — Sat, 12 Apr 2008 03:45:00 +0000

I recently returned from a trip to the Midwest. Dairy producers there are fighting against processors who want to go "rBST-free" with their dairy products. I've heard more commotion about this fight over the use of rBST from producers there than we ever heard from producers here in the West.

Here's the link to a producer who doesn't use the product but is trying to help consumers see why they should want milk produced with rBST.

http://northviewdiary.blogspot.com/

Obviously, the fact that milk produced without the use of rBST requires the consumption of more fossil fuels and grain in order to produce the same amount of milk has not been widely publicized. Like it or not, rBST is actually more "green" than many think.

How can women contribute to dairying?

dairyeditor@gmail.com (dairyeditor) — Thu, 07 Feb 2008 20:12:00 +0000

I believe that in addition to helping out with production-related responsibilities, women can and should also be contributing to the promotion of our industry. They can have the most impact when advocating the goodness of our dairy products to consumers.

For example, consider the following:

More than 80 percent of women seek out health and nutrition information for themselves and their families online, and there is a more than 9 in 10 chance that their search will begin with a search engine. Depending on the search terms they use to find information, their point of view regarding dairy consumption may be swayed considerably.

If one searches the Internet with the keyword “milk,” among the first results are two industry-sponsored webpages about milk with positive messages and two negative websites with antagonistic opinions about milk and dairy product consumption. Results are even more discouraging when using any negative keyword search term that consumers may have heard used in connection with our products, such as rBST or antibiotics.

Women can help dispel the misconceptions that have or may be circulated about the health or safety of dairy. Sharing their positive experiences related to dairy consumption and its production with those beyond their local peer group, even online, is just one way women can get more involved. Here's a list of milk sites with positive messages to refer your friends to:

Got Milk?

MyPyramid.gov

Milkdelivers.org

National Dairy Council

Dairy Council of California

United Dairymen of Idaho

National Institutes of Health

Mid-Atlantic Dairy Association

National Dairy Council

—dairyeditor

Win $180

dairyeditor@gmail.com (dairyeditor) — Tue, 01 Jan 2008 12:56:00 +0000

Here it is: The first post of 2008. It's a link to a rich text file of the questions you'll find in our current issue of Progressive Dairyman. Find the answers to my questions in the magazine and send them to me (walt@progressivedairy.com) to enter. You could win $180. Hurry the first 18 entries are eligible.

http://www.progressivedairy.com/blog/files/0108/18_questions.rtf

Happy New Year!

—dairyeditor

Rush on organics

dairyeditor@gmail.com (dairyeditor) — Wed, 19 Dec 2007 23:43:00 +0000

I've emerged from producing our first issue of 2008. It's going to be a good one. Watch for it in your mail box on Jan. 2. We'll be doing 18 issues for our readers this year. In my editorial this issue, I give readers 18 reasons why they should read Issue 1. If you know the 18 reasons, you may be able to win $180. Watch for more details to be forthcoming.

Last week one of our readers told me about a conversation she heard while listening to Rush Limbaugh's radio program. Limbaugh's topic of the hour was food sold under the USDA-certified organic label.

Here's a link to the radio program transcript:
http://www.rushlimbaugh.com/home/daily/site_121207/content/01125109.guest.html

Here's what Rush had to say about organic milk:

Rush Limbaugh: "I've never done a side-by-side taste test of organic broccoli versus nonorganic broccoli. I've done side-by-side taste tests of organic milk, and I cannot taste the difference. I can not."

Limbaugh later says that in his opinion it's OK for consumers to buy products labeled as USDA-certified organic as long as they know that there's no safety or nutritional difference between organic and non-organic foods.

It's a middle-ground philosophy that all dairy producers could benefit from talking about.

—dairyeditor

Pro-activity

dairyeditor@gmail.com (dairyeditor) — Wed, 05 Dec 2007 23:36:00 +0000

I recently received the following letter from Jon Wheeler, a producer here in the Northwest. Today I've posted excerpts of his letter to the editor. I believe the following letter was also submitted to newspapers and other media outlets. These topics are ones I think all dairy producers need to be talking to their neighbors, friends and community members about.

"All milk is produced naturally by cows. Milk is produced by animals as part of a natural biological process. All milk has hormones. It is an undisputed fact that all milk contains scores of hormones, the natural consequence of being produced by a mammal. Be an intelligent consumer and protect your right to make choices based on facts rather than emotions triggered by marketing campaigns. There are a few simple things to remember when you are standing in front of the dairy case.

"All milk is subjected to the same rigorous testing before it can be sold. The tests ensure that all milk is pesticide and antibiotic free. All milk is rbST-free, as cows supplemented with rbST produce milk without rbST in it. In the United States of America:

"ALL MILK IS MILK.
"ALL MILK IS SAFE.
"ALL MILK IS NUTRITIOUS."

Thank you, Jon, for your pro-activity.

—dairyeditor

To contact Jon Wheeler, e-mail him at wheelrjb@aol.com

Hungry for milk shakes?

dairyeditor@gmail.com (dairyeditor) — Tue, 04 Dec 2007 14:40:00 +0000

The rage in the young teenage crowd is a website known as Miniclip.com. The site allows kids and teens to play free Flash-based video games online. Here's one of the games my younger brother-in-law showed me.

http://www.miniclip.com/games/milk-shake/en/

The game allows you to be the driver for a milk home delivery service. The goal is to deliver as many unbroken bottles of milk to customers while weaving in and out of busy traffic. After playing it once, I'd have to say it's addictive.

Examples like this show that dairy has a lot of "good will" built into its image. Producers in the past have built that good will. We're all grateful for that gift. However, we can't ride the enthusiasm of the past alone. Young producers must help share the benefits of dairy with today's consumers.

Share this link with your children, friends and colleagues, especially any adolescents you know. They're the group that will influence how much milk is purchased in the upcoming decades. Playing games like this one will put them in front of milk's image, and hopefully give them a positive (fun) experience with our industry's primary product – milk.

-dairyeditor

Positive young producers in SLC

dairyeditor@gmail.com (dairyeditor) — Sat, 01 Dec 2007 06:03:00 +0000

I'm back from Salt Lake City and the DFA Mountain Area Young Cooperator's annual meeting. This group of young producers who are between the ages of 25-45 were impressive. The conference attendees had so much enthusiasm. They were open to new ideas and shared many of their questions and opinions.

Thursday night I had dinner with a young producer from central Utah. During our conversation, this dairyman said he had a business degree but probably wouldn't get to use it because he was a dairy farmer. The other guests at our table couldn't have disagreed more. Eventually we convinced him that one day he'll be able to use his business training to help improve his dairy. The producers I met with were bright and positive about their future in the dairy industry. It was an honor to be amongst them.

Although the group had some bold and creative ideas, they were also pious. They respected the legacy of dairying their parents had left them or the lessons they were still learning from them. Any industry analyst or commentator who has met this group would feel comfortable predicting that for the next 40 years U.S. dairy cows will be well cared for and more efficient.

-dairyeditor

Don't let them take that away

dairyeditor@gmail.com (dairyeditor) — Thu, 29 Nov 2007 17:43:00 +0000

In June 2006, I wrote an editorial in Progressive Dairyman touting what I thought could never be taken away from the dairy industry – its iconic image of black and white Holsteins and wholesome dairy products. The title of the editorial was "No, they can't take that away." However, unless the dairy industry, and most importantly dairy families, don't stand up to defend dairy products and more importantly their livelihoods as caretakers for the cows that produce the milk to make those products, I might just be proved wrong. Has dairy's Doomsday arrived? No. But to think that it never will is ignorant. There are plenty of other sites on this World Wide Web that would try to convince others milk is not safe to drink, that dairy producers don't care about their cows and that dairy production harms the environment. These arguments are false.

One of this blog's purposes is to dispel such rumors. All of us have something we can do to help. If you're interested in joining in, leave a post saying, "We’re proud to dairy."

This week I'm talking to a group of young dairy producers and their spouses about how to make others just as proud of dairy as we are. I'm sure, like you, they'll have lots to share.

-dairyeditor