GA Milk Weekly Enews

2020 | Jan 31 GMP E Newsletter

Georgia Milk Producers Weekly Enews

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Walker and Clark Honored at

2020 GA Dairy Conference in Savannah

The families of Bobby Walker and Dave Clark were recently honored at the 2020 Georgia Dairy Conference in Savannah for the impact that both dairymen had on the Georgia Dairy Industry.

In November, the Georgia Milk Producers Board of Directors voted to rename the "Friend of the Dairy Industry Award" to the "Bobby Walker Award". This change was made in honor of Bobby Walker's notable career, recognizing him as one of the most influential people of the Georgia dairy industry. Each year, Georgia Milk Producers presents the award to a dairy professional, farmer and/or company that is driving Georgia’s dairy industry toward a brighter future through leadership, advocacy and service.

The Georgia Milk Producers Board of Directors presented the first "Bobby Walker" Award to the family of Dave Clark to honor the life of Dave and his contribution to the Georgia Dairy Industry. Dave Clark grew up working on his grandparents’ dairy operation before he started his own in 1979. He began with 40 cows and no land. Through hard work and the drive to continually improve, Clark’s dairy farm grew to 1,000 cows and is currently known as one of the top dairy herds in Georgia. His investment in the well-being of his cows and employees is demonstrated each year when Godfrey Dairy Farm is named as a recipient for the Georgia Cream of the Crop and Milk Quality awards.

For the last 19 years, Clark served on the Board of Directors for Georgia Milk Producers, Inc., faithfully representing the dairy producers in his district. Clark also served on the Southeast DHIA and the American Dairy Association of Georgia Board of Directors. Dave and employees continually give back to the community by hosting several educational farm tours each year for school and producer groups. They also provide dairy heifers for many 4-H and FFA members in central Georgia. Through his generosity and kind spirit, he touched many lives in Georgia.

DISCUSSION SURROUNDING HOUSE BILL 545 CONTINUES

From GA Farm Bureau

The Senate Agriculture and Consumer Affairs Committee met this Tuesday, January 28, to discuss what is looking to once again be one of the most hotly contested bills of the legislative session, and Georgia Farm Bureau's top priority, House Bill 545 - The Right to Farm Bill . Georgia Farm Bureau (GFB) has continued to engage with legislators as well as the numerous cross-industry allied organizations that have come together to support this bill.

This week marked the first meeting of the Senate Ag Committee where HB 545 will begin its process this year. While this was a hearing only, numerous groups and ag partners gave testimony in support of the legislation, speaking to the importance and time-sensitive nature of these protections. The committee also heard from a poultry farmer, Jody Sullivan, who has had unfortunate, first-hand experience with ag-related nuisance lawsuits, serving as a prime example of why these protections are needed. Mr. Sullivan traveled to the Capitol from Gordon County to urge quick action on this legislation so that other producers will not have to go through the onslaught of unfounded nuisance lawsuits that his family has had to endure in recent years.

We have continued to work with legislators on perfecting a version of the bill to fully balance private property rights while providing the necessary protections for our farmers. Progress has continued this week and we look forward to seeing our collaborative efforts realized in next week's hearing. Special thanks to Rep. Tom McCall, Sen. John Wilkinson, and Sen. Larry Walker for their continued support as we work together to perfect the bill and move it forward in the coming weeks.

The 31st Annual Florida Ruminant Nutrition Symposium will be held at the Best Western Gateway Grand , Gainesville, Florida on February 3 to February 5, 2020.

Click here for information>>>

Talk of Milk Industry Merger Draws Justice Dept. Scrutiny

From By David Yaffe-Bellany , The New York Times

When the struggling milk giant Dean Foods filed for bankruptcy protection in November , it also announced a possible path forward — a takeover by Dairy Farmers of America, a marketing cooperative.

But the news that Dean Foods was in “advanced discussions” with the co-op did little to alleviate the concerns of dairy farmers. Many argued that a merger would reduce competition and suppress the price of raw milk , especially in regions where industry consolidation has made it difficult for farmers to stay in business.

Now, federal investigators are examining those concerns. Since at least December, antitrust officials at the Justice Department have been scrutinizing the potential Dean Foods merger, speaking with farmers and the lawyers who represent them about how a deal would affect milk pricing and competition, according to emails reviewed by The New York Times and interviews with people familiar with the inquiry. Read more here>>>

Milk Production Decreases in 2019. Is it enough?

By John Geuss, MilkPrice Blog

Data on milk production and cow numbers is now available for the full year of 2019. With the decrease in domestic consumption of milk, a corresponding decrease in the growth of milk production is needed. When there is too much milk produced, inventories swell, and producer milk prices drop. The good news is that milk production growth has decreased in 2019. Is it enough?

Here's the highlights:

POSITIVE CHANGES

The growth in milk production has slowed.
Cow numbers decreased in 2019.
With the slower growth in milk production, cheese inventories have decreased.

BUT

With higher producer milk prices in the fourth quarter of 2019, the slower growth in milk production is not quite as slow.
While Cow numbers decreased every month in 2019, the decreases were smaller in the final quarter.

OTHER POSITIVE SIGNS

Milk per cow has shown a one percent annual increase in 2019. More milk with fewer cows is a very positive parameter for a lower cost of milk production.
Component levels in milk have increased. Producer payments are mostly based on butterfat and protein, so higher levels of butterfat and protein are a positive trend toward lower costs of component production.

This post is primarily an update of the July 2019 post on the growth of the milk supply. Much of the data shown below is based on 12-month moving averages. Using 12-month averages eliminates seasonal variations and short-term fluctuations.

Read more here>>>

FCC pours $20b into rural broadband efforts

From Feedstuffs

The Federal Communications Commission (FCC) took its single biggest step to date to close the digital divide by establishing the new Rural Digital Opportunity Fund to efficiently fund the deployment of high-speed broadband networks in rural America through action approved on Jan. 30. Through a two-phase reverse auction mechanism, FCC will direct up to $20.4 billion over 10 years to finance up to gigabit-speed broadband networks in unserved rural areas, connecting millions more American homes and businesses to digital opportunity.

Without access to broadband, rural Americans cannot participate in the digital economy or take advantage of the opportunities broadband brings for better education, health care and civic and social engagement. In recent years, the commission said it has made tremendous strides toward increasing the availability of broadband in rural America, but more work remains to be done, and the Rural Digital Opportunity Fund is a key part of FCC’s continuing efforts. Read more here>>>

Will $20 milk derail federal orders reform?

By C.W. "Bill" Herndon, Hoard's Dairyman

Much attention has been given to improving milk prices witnessed during the final months of 2019, along with the forecast for sustaining these much welcomed higher dairy prices into 2020. In fact, the USDA updated its average annual All-Milk price outlook for 2020 to $19.40 per hundredweight (cwt.) compared to the 2018 price of $16.26 and the $18.40 predicted price for 2019.If this price forecast holds true, then 2020 will see the highest average milk price recorded since 2014. Of course, that year had a record-high All-Milk price of $23.98. If these $20-plus per cwt. milk prices are to be realized this year, milk production needs to be restrained and domestic dairy product demand must remain strong.

A topic resurfaces

After four years of depressed prices, dairy producers began seeking ways to improve their farm incomes. That brought Federal Milk Marketing Order (FMMO) reform to the forefront. The general consensus is that FMMOs are much too complicated, with the joke being that there are only two people in the world who understand how federal orders work and these people never should get on an airplane together. Everyone laughs but then realizes there is a lot of truth to this jest.

How to accomplish this reform is the $64,000 question, and there are significant differences in the specifications of the 11 federal orders. Personal interaction with dairy farmers across the country found that many knowledgeable industry leaders were surprised to learn about several of these features. This article will focus on two provisions unique to FMMOs located in the Southeast. Read more here>>>

Trump takes victory lap with USMCA signing

From The Hill

President Trump on Wednesday signed the United States-Mexico-Canada Agreement (USMCA) in a ceremony on the South Lawn of the White House, celebrating a signature legislative accomplishment on trade.

“Today, we are finally ending the NAFTA nightmare and signing into law the brand new U.S.-Mexico-Canada Agreement,” Trump said in remarks Wednesday morning.

“The USMCA is the largest, fairest, most balanced and modern trade agreement ever achieved. There’s never been anything like it.”

With the signing of the legislation, Trump has followed through on a campaign promise of replacing the North American Free Trade Agreement (NAFTA), which he ridiculed as the “worst” trade deal throughout his 2016 campaign for the White House.

Read more here>>>

From GA Farm Bureau

Georgia Farm Bureau Day at the Capitol will be held on Tuesday, February 11, 2020 at the Georgia Freight Depot in Atlanta, Georgia, featuring keynote speaker Governor Brian Kemp. Year after year, Farm Bureau Day is one of the largest events held under the Gold Dome. This free event provides members an opportunity to visit with their legislators, exercise our grassroots structure, and contribute to the voice of Georgia farmers.

Orientation will begin at 9:30 am in the Blue Room of the Georgia Freight Depot located on Martin Luther King, Jr. Drive, one block northwest of the Capitol, at Underground Atlanta. After orientation, GFB members will have the opportunity to visit with their legislators in the Capitol and return to the Freight Depot for a noon lunch program.

This year, we have changed hotels and parking locations. A limited number of rooms are available at the Sheraton Atlanta Hotel. In addition, free security parking will be available at the Sheraton Atlanta Hotel parking deck, located at 165 Courtland Street NE. A shuttle bus service will run from 8:00 a.m. until 3:00 p.m. on the day of the event.

This event is complimentary and all GFB members are encouraged to attend. Involvement of our local members and county leaders is the backbone of Georgia Farm Bureau. You are the key to legislative success under the Gold Dome, so please come join us!

To register for the event, please click here . The deadline to register is TODAY, January 31. For questions regarding the event, please feel free to contact the GFB Public Policy Department.

Despite growth in dairy, industry execs strike a cautious tone

From Christopher Doering Food Dive

Executives from North America's top dairy companies struck a surprising sense of urgency Wednesday that the industry isn't doing enough to promote the work it's doing to help farmers and the environment or to tout the nutritional benefits of its products as consumers abandon milk or shift to plant-based alternatives.

"What is our response? What are we doing about it?" Lino Saputo, Jr., CEO of Saputo, a maker of cheese and other dairy products, said on a panel at the International Dairy Foods Association's annual forum. "Leaders have to stand up and make a difference for the survival of the industry."

Michael Dykes, president and CEO of IDFA, whose organization represents 550 companies in the industry, said its members need to take a bold course of action that may rattle those who are used to doing things a certain way. He noted that transparency and details about the industry's efforts to protect the environment and improve animal welfare are "going to come under greater and greater scrutiny." Read more here>>>

IDFA zeroes in on next-gen, and ‘making what we can sell’

From Beth Newhart, Dairyreporter.com

At the International Dairy Foods Association’s (IDFA) Dairy Forum this week, president and CEO Michael Dykes spoke of the challenges facing US dairy, including product innovation, milk bankruptcies and setting the industry up for a sustainable future.