YC Picnic Set for June 22 p 2

Day at the Ballpark: July 23 p 2

FIRSTHANDMILK INDUSTRY KNOWLEDGE

MILKLINEN E W S L E T T E R

June 2017

Dedicated to serving and representing you, our family farm members, FarmFirst Dairy Cooperative represents farms in Wisconsin, Minnesota, South Dakota, Michigan, Iowa, Illinois and Indiana through policy bargaining, dairy marketing services, laboratory testing opportunities and industry promotion.

HIGHLIGHTS: Trade Begins to Take Shape p 3

Regulatory Accountability Act p 3

New Truck Weight Law in MN p 4

Challenges in Shipping p 5

The Undeniable Goodness of Dairy.

As we welcome another June Dairy Month, the dairy industry is also ushering in a new campaign, known as ‘Undeniably Dairy.’ Launched this past May, the campaign will be a multi-year effort to remind Americans of all that is good about dairy, from a cold glass of milk or a scoop of ice cream, to even the most uncommon dairy spotlights, including the dollop of sour cream on a burrito and the cream in a latte.

Unlike campaigns in the recent past, this campaign’s focus is of that pure and simple enjoyment of consuming dairy products in its many forms, as well as spotlighting the undeniably positive role the dairy community plays in America today.

This campaign will highlight the fact that dairy takes on many other forms than the typical glass of milk, slice of

cheese or scoop of ice cream. What about the subtle role that dairy takes on in our favorite coffees and lattes, tacos and burritos, and--even fondues?! So many food favorites include dairy as a key yet subtle ingredient. They’re present at many of our life celebrations and are go-to, feel-good foods. This campaign reminds us all of that joy – and makes it feel trendy, real and guilt-free.

In fact, it takes that guilt-free to a whole new level. Taking a look beyond just our love of food, it examines the economics of what dairy means for our communities. For every $1 million of in-store U.S. milk sales, 17 new jobs are generated, according the Innovation Center for U.S. Dairy. For a state like Wisconsin, dairy is valued at more than $43 billion. That’s a lot of other jobs that rely on those dairy farmers and their cows.

Getting back to the cows, it focuses on how much care and attention cows receive when it comes to their diet and comfort.

Most importantly, the campaign brings it full circle by focusing on the faces behind dairy farms. The real people and the real passion they have for caring for these animals that make up their livelihood. That is part of their heritage. Essentially, a part of who they are.

Illustrating that being a dairy farmer is a humble career of managing a family business focused on being a steward of the land and of animals, perhaps continuing a family tradition, is no small feat for a marketing campaign. However, ‘Undeniably Dairy’ attemtps to bring consumers closer to the farm.

It’s the first of its kind as a campaign to bring so many elements together in one single platform for the dairy

industry: the love for good food, the unwavering passion of its farmers, the increasing safety and high quality of it, the attention to its environmental stewardship, the pursuit to use technology and science to improve the good work that they do.

It’s a lot of dairy goodness in one campaign. But when there’s so much good to talk about, why leave anything out of the conversation?

As a multiyear effort to reintroduce Americans to dairy, put forth in motion by checkoff dollars through the Innovation Center for U.S. Dairy, let’s hope it does more than just reintroduce consumers to the undeniable goodness of dairy. Let’s hope that they agree and simply can’t deny just how much they love dairy too.

“This campaign reminds us all of that joy –

and makes it feel trendy, real and guilt-free. .”

Article by Julie Sweney,FarmFirst Dairy Cooperative

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Cooperative Happenings

BOARD OF DIRECTORS

President: John Rettler Neosho, Wis. 920-625-3237

Vice President: Peter Kleiman Wilson, Mich. 906-497-5350

Secretary: Kathy Bauer Faribault, Minn. 507-332-2870

Treasurer: Randy Geiger Reedsville, Wis. 920-772-4184

Kelly King – Edgar, Wis. 715-581-3850

Richard Meyer Unity, Wis. 715-223-2058

Brian Wozniak – Stanley, Wis. 715-703-0361

Ken Wunderlin - Livingston, Wis. 608-943-6496

FIELD STAFF

Amanda Bedtke - Altura, Minn. 507-251-3006

Bob Hodgson- Dyersville, Iowa. 608-642-2859

Dennis Pank - Bloomer, Wis. 608-516-4927

Dan Schaefer - Platteville, Wis. 608-330-1741

Rick Wolfe - Aniwa, Wis. 715-581-4321

Pat Yeagle - Winslow, Ill. 815-291-4581

Dan Zeleske- Fond du Lac, Wis. 920-323-7079

FDUSA FIELD STAFF

Norm Fleischman - Campbellsport, Wis. 920-948-1524

Jeff Bradley- Columbus, Wis. 608-516-3624

Bill Burri- Reedsville, Wis. 920-901-2173

MAILING ADDRESS P.O. Box 14380 Madison, WI 53708-0380

MADISON OFFICE 4001 Nakoosa Trail, Suite 100 Madison, WI 53714 (608) 244-3373

Plans Set for June Young Cooperator Picnic - Thursday, June 22 in Athens, Wis.

FarmFirst Young Cooperators are invited to attend the first 2017 Summer YC Picnic being hosted by Misty and Eric Vogel of Misty Hollow Farms in Athens, Wis.

Held on Thursday, June 22, members are encouraged to attend and can expect to meet other dairy farmers, from the area and across the state, and hear industry leaders share updates on the future market conditions, the latest on dairy promotion and what the cooperative is doing on your behalf!

This is a family-friendly event, and there will be picnic food, outdoor games. FarmFirst Young Cooperators are defined as producers between the ages of 18 and 50, interested in getting more involved in the cooperative and industry through educational, social and leadership events.

Interested Young Cooperators should contact Julie Sweney by calling 608-286-1909, email jsweney@farmfirstcoop.com or follow FarmFirst Dairy Cooperative on Facebook for more details leading up to the event.

Day at the Ballpark: Join FarmFirst Members at the Madison Mallard’s Game July 23

Join FarmFirst members in attending the a day at the Duckpond to see the Madison Mallard’s take on the Wisconsin Woodchucks at Warner Park in Madison on Sunday, July 23.

Attendees can chose from a handful of ticket packages, which can include a hat or tailgate food and beverages prior to the game!

To purchase tickets, members should go online by visiting www.mallardsbaseball.com, click on ‘Buy Tickets’ and enter one of the following promo codes for your desired ticket package.

Farm Hat for a ticket and Mallard’s baseball hat, Farm Soda for ticket and the tailgate food, or Farm Beer for tailgate food with beer. You can also learn more about this event at www.FarmFirstDairy-Cooperative.com!

This year’s YC Picnic hosts are Misty Hollow Farms, owned and operated by Eric & Misty Vogel of Athens, Wis.

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Government & Legislative Update

TRADE: Early Steps Begin to Take Shape

When FarmFirst Dairy Cooperative participated in a National Trade meeting in Washington, D.C. in early May, we stressed the importance of trade, the value of NAFTA and the improvements that were needed for the dairy industry going forward. There have been several positive steps that have taken place since that time that give us reason to believe that with time and perseverance, things will begin to improve. Here are some of the highlights of these recent announcements in Washington, D.C.

U.S. Trade Representative Robert Lighthizer was confirmed by the Senate on an 82-14 vote. One of his first orders of business will be addressing the NAFTA

agreement and that will begin by addressing Congress on the administration’s plans. He has also committed to more strictly enforcing existing trade rules, something that may result in bringing more actions that are justified to the WTO and bilateral dispute panels. In addition to NAFTA, other dairy trade policy issues include expanding market access channels in Asia and preventing the loss of common food names or geographical indicators.

U.S. Secretary of Agriculture Sonny Perdue creates a new position – USDA Trade Undersecretary. This position will oversee trade and foreign agriculture affairs. This position was approved in the 2014 Farm Bill, but the Obama administration never created the post.

China is set to open its borders to U.S. beef again which has been closed since 2003 after a case of mad-cow disease was found in the U.S. Since that time, the previous two administrations have tried to get the ban removed.

Canada’s new dairy pricing strategy in light of pre-exisiting trade agreements will be addressed. U.S. Senate Agriculture Committee Chairman Roberts and Ranking Member Stabenow have encouraged U.S. Agriculture Secretary Perdue and U.S. Trade Representative Lighthizer to continue the engagement with the Canadian government regarding Canada’s implementation of dairy pricing changes as part of a new Canadian National Ingredients Strategy.

When the Trump administration shared the ‘model’ trade agreement with members of Congress, there where old and new ideas shared. The old ideas will be familiar, either from past agreements or that of which might have been recently been incorporated in the recent Trans-Pacific Partnership model developed, and they will be fairly easy to work with. As for the new ideas, they could be met with excitement, resistance and for some congressional leaders, they could be non-starters. Finer details regarding these ‘model’ trade suggestions will be an important factor if they are to have congressional support. There are lots of moving parts and one action can easily impact another. Commerce Secretary Wilbur Ross noted, “Having a model trade agreement which contains certain principles that would have to be in any agreement is important.” He added, “the best negotiating tool is to be able to tell someone: ‘I can’t change this. This is official policy. You know it is. We’ve got it in 10 other deals.’”

While details are unclear at this time, the substance and purpose of some items within the ‘model trade agreement’ will be key priorities for dairy, including geographical indicators, tax rebates on exports, intelletual property protection, currency manipulation and loopholes.

Model Trade Agreement - A Reality or A Dream?

The Senate Homeland Security and Government Affairs Committee recently approved the Regulatory Accountability Act (RAA) on a vote of 9-5. Aimed at restricting the cost of new regulations on business, the RAA follows the passage of a similar bill in the House of Representatives, although the structure and content is different and is expected to take some time reconciling. The Senate bill’s fate is uncertain, since it would need 60 votes to overcome a Democratic filibuster. Additionally, some groups are concerned it would effectively force regulators to choose the cheapest solutions instead of the best and most effective ones. Congress hasn’t significantly reformed the regulatory process in 70 years.

The RAA would modernize the regulatory process and it would result in a more transparent regulatory process that would yield more effective regulatory outcomes for American businesses, their workers, and their families. Key Provisions in the RAA are Greater Transparency via early public outreach, better scientific & technical data and better use of guidance documents. Cost-Benefit Analysis via the most cost-effective option and cost-benefit analysis of each step in the rulemaking process and More Thorough Processes for High-Impact Rules via substantial evidence review of high-impact rules and hearings for high-impact rules ($1B+) to test the accuracy of the evidence and assumptions of the proposal. Lastly, a Retrospective Review, which would automatically review the rules to ensure they are meeting the objective.

Regulatory Accountability Act of 2017

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Industry Happenings

New Truck Weight Law a Success for Minnesota Dairy Farmers

Taking a Second Look at Cheese

While fluid milk consumption has been in a gradual decline over the past several decades, there is one dairy product that has found its place in the hearts of many Americans, taking on many taste palates and various menu entrees along the way. No matter what way you slice it, Americans love cheese.

Record Cheese Production:March 2017 was a record cheese production month for the United States. The month’s production in the United States of more than 1.062 billion pounds edged the previous record of 1.0615 billion pounds in December of 2016.

During 2016, Wisconsin accounted for 27 percent of the nation’s overall cheese production by producing 3.239 billion pounds.

Study finds eating cheese does not raise risk of heart attack or strokeConsuming cheese, milk and yogurt – even full-fat versions – does not increase the risk of a heart attack or stroke, according to research that challenges

the widely held belief that dairy products can damage health. The findings, from an international team of experts, contradict the view that dairy products can be harmful because of their high saturated fat content. The experts dismiss that fear as “a misconception [and] mistaken belief”.

Ian Givens, a professor of food chain nutrition at Reading University, who was one of the researchers, said: “There’s been a lot of publicity over the last five to 10 years about how saturated fats increase the risk of cardiovascular disease and a belief has grown up that they must increase the risk, but they don’t.” However, the government’s health advisers urged consumers to continue to exercise caution about eating too many products high in saturated fat and to stick to low-fat versions instead.

What dairy product is the largest user of milk fat? Butter? Ice Cream? Not by a long shot. Cheese absorbs more than twice as much fat as butter. It’s not

something you usually think about until you run the numbers, but if cheese is absorbing 50%+ of our milk, then it’s also absorbing about 50%+ of the fat too.

Governor Dayton announced on May 23 the signing of HF 1725 into law. This measure allows smaller, single-unit milk trucks a 10 percent increase in their weight capacity, assuming they follow bridge limits and recommended tire load weight.

A top legislative priority for the Minnesota Milk Producers Association, signing HF 1725 into law was vital for the continuation of milk transport from farms to processing plants. Rules limit the weight between front and back tires of short milk trucks, making trucks that are otherwise legal on a per-axle basis out of compliance.

“Working to fix issues like this one is exactly what Minnesota Milk does best on behalf of all dairy producers,” said Lucas Sjostrom, Minnesota Milk’s executive director. “We’re thankful to Representative Drazkowski and Senator Goggin for championing this measure and helping to keep Minnesota’s milk trucks running safely but efficiently.”

“Recognizing the challenges that exist in transporting milk is important for our legislative leaders,” says David Cooper, general manager of FarmFirst. “As the supply of milk fluctuates throughout the year, in addition to plant’s needs fluctuating, this type of legislation allows for greater flexibility and increased efficiencies, ultimately providing cost-savings for everyone involved, including consumers.”

As mentioned in last month’s newsletter, information regarding fiscal year 2016 patronage equity was sent to all eligible members prior to May 31st. In addition to 2016 patronage equity being paid, the equity from 2010 that remains is also being paid to those Family Dairies USA members.

FarmFirst Dairy Cooperative is required to ensure tax records are accurate and match each patron’s tax reporting information as part of making this patronage payment.

To receive patronage, cooperative members will need to confirm their current tax information via completion of a Form W-9, “Request for Tax Payer Identification and Certification” prior to July 1, 2017. The board designated the minimum amount to be $10, and patronage checks will be sent out in August 2017.

Members with questions are encouraged to call Amy Gallagher (608-286-1903) or David Cooper (608-286-1907).

Reminder! Equity Information Due July 1

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Industry HappeningsState Regulators to FDA: “Clarify Dairy Terms” MPP Tracker

MonthAll-Milk

PriceMPP

Feed CostMPP

MarginTwo-Month

Average

Nov 2016 $17.60 $7.6158 $9.9841$10.5424

Dec 2016 $18.80 $7.6992 $11.1007

Jan 2017 $18.90 $7.8438 $11.0561$10.8202

Feb 2017 $18.50 $7.9157 $10.5842

Mar 2017 $17.30 $7.9481 $9.3519$8.9489

Apr 2017 $16.50 $7.9539 $8.5460Numbers referenced are USDA’s Farm Service Agency national average prices and calculations used to determine indemnity payments under the Margin Protection Program for Dairy.

Export shipping containers may be the next worry for American farmers as the recent restructuring of the ocean shipping industry may make it more difficult and costly to deliver commodities abroad. Since last year, 11 large container shipping companies, including Denmark’s Maersk Line and Germany’s Hapag-Lloyd, have entered three new cooperative operating arrangements, or alliances, affecting 90% of shipments on global trade routes. The pacts aim to cut costs and reduce overcapacity, and commodity producers expect they will result in fewer and larger vessels calling on a smaller number of U.S. ports.

That disparity may grow worse as companies adopt larger and larger ships. Of the 30 biggest U.S. ports, fewer than a third currently have harbor channels deep enough to accommodate the biggest new vessels. The shift to larger vessels has put a lot of stress on ports; instead of having three ships handle a certain amount of cargo, you now may only have one. At present, the infrastructure isn’t in place for handling one huge ship, which can cause a cascading effect from backups in getting the ship unloaded and getting new shipments on board.

Container lines have a disincentive to serve farmers due to freight rates, which are based on cargo value and are typically much higher for imports of manufactured goods than for exported farm product. Thus, shipping companies prefer to route vessels to ports near major consumer markets. That leaves fewer ships and fewer containers within reach of more sparsely populated areas where commodities are produce.

Things to Watch: Will Products Continue to Easily Ship Offshore?

At the recent National Conference of Interstate Milk Shippers (NCIMS) conference held in mid-May in Grand Rapids, Mich., a number of regulatory issues and procedures were discussed. The NCIMS is a non-profit organization dedicated to a safe supply of Grade A milk products that works with the FDA – and comprises of people involved in the dairy industry, from the dairy farmer, to processing plant personnel, to those involved in inspecting the dairy farmer’s operation and/or the processing plant, to those who make the laws concerning the inspections, to those who enforce the laws, to the academic researcher and adviser, to the consumer of the dairy products. The work done by NCIMS is significant because of the nature of those involved and the fact that they work closely with FDA on policy.

FarmFirst Dairy Cooperative has realized the importance of not only this group, but also of this conference, bringing together various experts across every corner of the dairy industry on a federal level. A cooperative staff member was present representing FarmFirst Dairy Cooperative to provide industry experience as well as serve as a voice for dairy farmers.

For those reasons, a recent resolution unanimously passed by all the State delegates certainly increases pressure on FDA to step up its work on the dairy labeling front and follows the introduction of the dairy-industry-backed Dairy Pride Act (which urges the FDA to prohibit terms such as ‘almond milk,’ and ‘vegan cheese’), and should prompt the FDA to work with state agencies in defending standards of identity for dairy products. The resolution read as follows:

WHEREAS: The federal standards of identity for milk and milk products referenced in Section 1 of the Grade ‘A’ Pasteurized Milk Ordinance have been established to promote honesty and fair dealing in the interest of consumers and the marketplace; and

Imitation products using the names of federally standardized Grade “A” milk and milk products in their product labeling have the potential to foster consumer confusion about the relationship of these products to the Grade ‘A’ program; and

The collaborative partnership between the FDA and state regulatory agencies is critical with respect to the enforcement of Grade ‘A’ labeling and the standards of the Pasteurized Milk Ordinance;

THEREFORE, BE IT RESOLVED: That the voting delegates of the 2017 National Conference on Interstate Milk Shipments request that the FDA clarify the role of State Milk Regulatory Programs in assuring the proper use of the standardized names of, and applicability.

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APRIL 2017UPPER MIDWEST CENTRAL MIDEAST

Order Name and Number Order 30 Order 32 Order 33Producer Milk (lbs.) 3,080,219,398 1,460,935,919 1,842,610,235Producer Price Differential @ base zone $ 0.15 $ 0.20 $ 0.39Statistical Uniform Price/cwt @ 3.5% BF* $ 15.37 $ 15.42 $ 15.61Class I Price/cwt $ 17.85 $ 18.05 $ 18.05Class II Price/cwt $ 14.81 $ 14.81 $ 14.81Class III Price/cwt $ 15.22 $ 15.22 $ 15.22Class IV Price/cwt $ 14.01 $ 14.01 $ 14.01Component Prices & Test Avg. % avesButterfat/lb. $ 2.3548 3.84% 3.81% 3.76%Protein/lb. $ 1.6955 3.10% 3.15% 3.11%Other Solids/lb. $ 0.33500 5.76% 5.77% 5.75%SCC Adjust Rate/1000 $ 0.00075Producer Milk Classified %Class I 8.40% 26.37% 27.30%Class II 6.00% 11.44% 19.80%

Class III 80.40% 43.22% 35.00%

Class IV 5.20% 18.97% 17.90%100.00% 100.00% 100.00%

PRESORTED STDUS POSTAGE

PAIDMADISON, WIPERMIT NO. 1

We would like to welcome these individuals and farms that have joined FarmFirst Dairy Cooperative recently.

We look forward to your participation and involvement in the programs and services of your cooperative where we put members first.

Welcome New Members

Have you heard about‘Undeniably Dairy’ yet?

Tyler Rochleau

Tracy Gallun

Knollwood Dairy LLC

Shelly Zettler

Kielpinski Farms LLC

Eric Gille

Christopher Hargot

Kurszewski Farm LLC

Adam Lattimer

Nelson Miller

Mindi Symbal

Dale Smith

Jeffrey Yonke

Randy Zick

Time to Celebrate June Dairy MonthVisit our website for ways to promote dairy all month long!

Like and follow ‘FarmFirst Dairy Cooperative’ on Facebook too for more updates!