California Ag Network

Category: Dairy Industry

  • UC DAVIS AIR QUALITY EXPERT: AB 2959 MAY INCREASE GREENHOUSE GASES

    One of the state’s leading experts on the role of animal agriculture in climate change today urged legislators to oppose Assembly Bill 2959, legislation that would result in more food waste ending up in the state’s landfills.

    University of California, Davis Professor Dr. Frank Mitloehner, who has received awards from the United States Environmental Protection Agency (EPA) and the Distinguished Service Award for Outstanding Research – University of California Division of Agricultural and Natural Resources, says the legislation would have “devastating” impacts on farmers and the state’s goals to reduce greenhouse gas emissions.

    “If AB 2959 passes, the bill will take away a valuable opportunity to upcycle organic waste for animal feed and keep it out of the landfill, where it will release methane,” said Mitloehner, who is also director of the CLEAR Center at UC Davis. “We can’t throw blame at our farmers and producers for impacting warming, while taking away an opportunity for them to do their part.”

    According to Dr. Mitloehner, approximately 18 percent of materials that end up in landfills is wasted food. In the United States, about 30 to 40 percent of all food is wasted.

    Assembly Bill 2959 would allow municipalities to force restaurants, grocers and others with food waste to utilize large franchise haulers to dispose of their food waste. Currently, most of these establishments contract with smaller haulers that take food waste to farms for use as animal feed. The EPA’s food waste hierarchy cites this is a better use of food waste than turning it into compost or landfill disposal.

    The legislation is opposed by a broad coalition. It includes the California Restaurant Association, California Grocers Association, the California Retailers Association, the California Farm Bureau, Western United Dairies, the California Cattlemens Association and more than a dozen other groups.

    The bill is expected to be heard by the Senate Environmental Quality Committee, chaired by State Sen. Ben Allen (D-Santa Monica), within the next few weeks.

  • CDFA Qualifies Dairy Families’ QIP Sunset Plan Petition

    United Dairy Families of California —Today, the industry-generated petition to implement a sunset plan to the QIP was qualified by the California Department of Food and Agriculture (CDFA). The petition qualified with 28% of the number of Market Milk producers operating in California in May 2020.

    CDFA anticipates holding a Producer Review Board meeting in August followed by a public hearing to consider the petition.

    Dairy Families is grateful to the dairy producers that signed the petition and have supported the process thus far. We have taken a huge step together toward uniting the dairy industry!

    Dairy Families submitted a petition to reform California’s historic quota program to CDFA in June. The petition outlines a five-year sunset proposal, which was the result of a process that included input from hundreds of California dairy producers over several months of regional meetings. The Dairy Families’ petition calls for CDFA to bring the producer-generated idea to a referendum.

    You can find the announcement from CDFA below:

  • July 31 Quota
 Court Hearing
: 
FAQ with Western United Dairies

    As we approach the Stop QIP v CDFA court hearing date rescheduled for July 31, we received a lot of questions on the topic and if this proceeding is different than the Chapter 3.5 hearing we went through in June. Below you will find a list of commonly asked questions as well as a few others of interest regarding quota.

    If 
QIP 
is 
terminated 
via 
Stop
QIP’s 
Chapter
3.5 
referendum,
 will
 there 
be 
a 
payment 
to 
compensate
 quota
holders?

    No. The only question before the Secretary is whether to suspend Chapter 3.5 and thereby terminate the QIP immediately.

    • What
 has 
WUD’s 
role 
been 
through 
the 
Chapter
 3.5
 hearing?

    
WUD submitted historical, contextual and background information as testimony to the administrative law judge presiding over the hearing. It has been the board’s position that a vote on the QIP should happen the way it did to implement it, following the rules in Chapter 3.0.

    • What 
has 
WUD’s 
role 
been
 through 
the 
Stop
QIP 
v 
CDFA 
litigation?

    
WUD filed an amicus curiae brief to submit historical, contextual and background information in the matter. It has been the board’s position that dairy farmers have the right to decide whether quota stays or not. A law- suit to eliminate QIP without a referendum strips dairy farmers’ voting rights away.

    • What 
is 
the
 court 
hearing 
date 
for 
the 
Stop
QIP 
v 
CDFA 
litigation 
and
 how
 can 
I 
listen
 or 
participate?

    
The hearing will take place on July 31 at 10:00 a.m. You will be able to listen to the proceedings live HERE, but participation from individual producers will not be possible.  There could be a tentative decision announced as early as Monday. But be aware a tentative decision does not mean this is an official conclusion. The parties still have an opportunity to present argument to the court after a tentative ruling has been announced, and the court may reach a different conclusion or change other aspects of its ruling after the hearing.

    • When 
will 
the 
decision 
be 
made
 on 
Stop
QIP’s 
Chapter 
3.5
 petition?

    We are still waiting on the administrative law judge to announce his decision. There is no set date for a decision.

    What 
is 
the 
voting
 threshold
 for 
a
 referendum
 to 
suspend 
Chapter
 3.5?


    This referendum threshold is found in Section 62755 of Chapter 3.5: The secretary shall find that producers have assented to the continued operation of this chapter if the secretary finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state have voted in the referendum and that 51 percent or more of the total number of eligible producers who voted in the referendum and who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the continued operation of this chapter. In other words, in order to suspend Chapter 3.5, either (1) fewer than 51% of the eligible producers vote in the referendum, or (2) 49.1% of the voting producers or voting milk vote against continuing the chapter.

    • What 
was 
the 
referendum 
threshold 
used
 to 
vote 
QIP 
in?


    The referendum threshold is found in Section 62717 of Chapter 3: The director shall find that producers have assented to the plan if he finds on a statewide basis that not less than 51 percent of the total number of eligible producers in the state shall have voted in the referendum and finds one of the following:

    (a) Sixty–five percent or more of the total number of eligible producers who voted in the referendum who produced 51 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum approve the plan.

    (b) Fifty–one percent or more of the total number of eligible producers who voted in the referendum who produced 65 percent or more of the total amount of fluid milk produced in the state during the calendar month next preceding the month of the commencement of the referendum period by all producers who voted in the referendum, approve the plan.

    • If
 the 
administrative 
law
 judge 
concludes
 that 
a 
Chapter 
3.5 
referendum
 does
 not
 apply 
to 
a
 petition 
to 
terminate 
the
 QIP, 
can
 the
 Secretary 
use 
her 
discretion 
and
 still 
hold 
a 
referendum
 with
 the 
Chapter 
3 
threshold 
instead?

    No. The call of the hearing was dictated by Stop QIP’s Chapter 3.5 petition. The Stop QIP petition only requested a Chapter 3.5 referendum to suspend Chapter 3.5 and thereby terminate the QIP; it did not ask for a Chapter 3 referendum.

    • Can
 quota
 sales 
occur 
while 
we 
wait 
for 
decisions 
in 
these
 matters?


    Yes. A farmer can sell quota as long as it was acquired more than five years ago. Exceptions include family transfers or interstate succession. If a farmer sold quota, he has to wait 24 months before he can buy more (same exceptions apply).

    • What
 was 
the 
latest
 quota
 price?


    The latest reported sale was in June and the average was $150/lb. SNF.

  • Dairy’s Shrinking Water Footprint: A Key Piece of the SGMA Puzzle

    The implementation of the Sustainable Groundwater Management Act (SGMA) and and other anticipated water restrictions pose major challenges for California agriculture. Without effective solutions, economists have estimated that up to one million acres of farmland will be fallowed, resulting in a revenue loss of $7.2 billion per year. As the state’s top agricultural commodity, dairy farming is an important part of the SGMA challenge. Fortunately, dairy farmers have an excellent track record for water savings and are continuing to adopt innovative strategies to advance environmental sustainability and help meet the water conservation challenges ahead.

    According to researchers at University of California, Davis, the amount of water used per unit of milk produced in the state has decreased more than 88 percent over the past 50 years. This is primarily due to improved feed crop production and water use efficiency. A large portion of the water savings can be attributed to the use of byproducts as feed.

    More than 40 percent of feed ingredients used on California dairy farms are byproducts of other agricultural and food production processes, which are provided as dairy feed without any additional water needed for production. This includes materials such as almond hulls, tomato and citrus pulp, cotton seed, and brewer’s grain, which could otherwise be wasted. Dairy farmers work with nutritionists to incorporate these materials into well-balanced, nutritious rations for cows. In this way, dairy farms work in harmony with the state’s other agricultural and food production industries—making for efficient use of water resources.

    While dairies typically grow the majority of their non-byproduct feed ingredients using recycled water from the dairy, feed is also grown out-of-state, further reducing in-state water use by more than 30 percent. Over the past 50 years, California dairy farmers have also significantly increased the amount of feed crops they grow per acre of land, providing tremendous environmental benefits—reducing the amount of fertilizers, pesticides, and herbicides needed, while also reducing the energy to irrigate crops, and the amount of fuel used by tractors. Water use and feed production will remain an important topic moving forward, which is why California dairy farmers continue to implement new strategies and technologies to boost water use efficiency and promote overall sustainability.

    One example of these efforts was recently awarded a prestigious sustainability award from the Innovation Center for U.S. Dairy. Sustainable Conservation and Netafim partnered with De Jager Dairy and two other California dairies to develop and demonstrate a new way to grow dairy forage crops: a subsurface drip irrigation (SDI) system that uses manure effluent. The system delivers plant nutrients found in dairy manure beneath the soil surface, improving irrigation water use efficiency and nutrient use efficiency, while providing other environmental benefits. Thanks to this partnership effort and grant funding now being provided by the Natural Resource Conservation Service (NRCS), more dairy farms will soon be able to implement this approach.

    The manure SDI system will serve as an important tool in the implementation of SGMA for two reasons: the conservation of water (nearly 40 percent more crop produced per drop of water) and a more efficient use of manure nutrients as fertilizer. As acres of farmland will need to be fallowed to meet SGMA requirements, dairy farmers will need to ensure manure nutrients produced on their farms continue to be used in ways that best to protect water and air quality, while helping build healthy soils. The organic matter and nutrients found in dairy manure have potential to help improve the health and water-holding capacity of soils throughout the state.

    Dairies are an integral part of any sustainable food system. The state’s dairy farms play an important role—from providing nutritious dairy foods and180,000 year-round jobs, to utilizing thousands of tons of byproducts as feed, while offering a source of organic matter that can help promote healthy, more resilient soils. California dairy farms also continue to demonstrate a commitment to sustainability—reducing water use by adopting innovative practices. Likewise,

    Dairy farms continue using water efficiently, maximizing resources while supporting the economy.

    dairy farms will continue to be an important part of the conversation—as farmers, stakeholders, and officials at both the local and state level continue developing plans to achieve sustainability in groundwater use and protect the environment. — Article Courtesy of Dairy Cares

  • Dairy Supply Chains Will Need to Adjust as Consumer Behavior Changes

    COVID-19 is dramatically affecting consumer habits and dairy supply chains as food service demand plummets and grocery sales surge. Consumers struggling with job losses and economic uncertainty quickly returned to buying basic dairy products like fluid milk, commodity cheese and butter.

    A new report from CoBank’s Knowledge Exchange indicates that consumer behavior will be different for the next 12 to 18 months than it was pre-pandemic, and as that behavior takes root, dairy supply chains will need to adjust from farm to fork.

    “The dairy industry is coping with some new realities, largely driven by the decrease in food service demand and restaurant sales,” said Tanner Ehmke, manager of CoBank’s Knowledge Exchange. “The challenge for dairy supply chains will be adapting to focus on meeting demand trends based on evolving consumer behavior as we navigate through an uneven reopening.”

    As consumers heeded the stay-at-home advisories, they increased purchases of products that in recent years had fallen out of favor. Processed cheese sales increased by nearly 20% during the eight weeks ending May 31. White milk sales gained more than 10% during the same period. Cereal is also doing well with sales up almost 15%.

    Even as restrictions have begun lifting, polling has shown widespread reluctance among consumers about immediately returning to normal activities like restaurant dining and business travel. In late April, a Business Insider poll found just 9% of Americans believed they would resume their routine exactly as it was before the lockdowns, with only 16% saying they would resume “almost all” of their activities.

    At a minimum, it will take some time for sit-down restaurant traffic to look anything like it did before the pandemic. Forecasts from Open Table suggest that the U.S. could lose up to 25% of its restaurants.

    Any structural reduction in restaurant sales has potential product mix implications for dairy processors and converters. For instance, firms that specialize in making or packaging products for food service accounts will need to retool, making different types of cheese or filling different-sized sour cream containers for at-home consumption.

    Much of the price volatility experienced over the past 90 days has more to do with massive supply chain disruptions than major changes to aggregate demand and supply. Perishability played a big role in the upheaval. As demand spun toward retail, food service operators disposed of fresh products that now have to be replenished for reopening. 

    Some buyers are asking if suppliers can develop and provide extended shelf life alternatives. Movement in that direction would presumably help on the supply side, giving manufacturers and dairy farmers more supply cushion.

    A world with more extended shelf life manufacturing options might mean less dumping of milk than took place in April. Business models may also be readjusted from just in time inventory practices to having more inventory stored in warehouses.

    Grocers are also cutting down on product selection to enhance operational efficiency. Published reports say that the popular Wegman’s supermarket chain, for example, has cut its offerings from about 52,000 products to 30,000 products.

    Data from Nielsen shows that for the four weeks ending June 13, supermarkets carried nearly 7% fewer dairy items than the year prior. For dairy companies and other food marketers, that could mean fewer line extensions, fewer opportunities to differentiate, fewer chances to test new concepts. 

    As the economy reopens, potential changes in consumer habits, the level of social distancing that remains in place, and the level of disposable income will again reshape dairy supply chains long term. 

    Read the report, “Dairy Supply Chains Adapt as Consumers React to COVID-19,” at cobank.com.  

    About CoBank

    CoBank is a $158 billion cooperative bank serving vital industries across rural America. The bank provides loans, leases, export financing and other financial services to agribusinesses and rural power, water and communications providers in all 50 states. The bank also provides wholesale loans and other financial services to affiliated Farm Credit associations serving more than 70,000 farmers, ranchers and other rural borrowers in 23 states around the country.

    CoBank is a member of the Farm Credit System, a nationwide network of banks and retail lending associations chartered to support the borrowing needs of U.S. agriculture, rural infrastructure and rural communities. Headquartered outside Denver, Colorado, CoBank serves customers from regional banking centers across the U.S. and also maintains an international representative office in Singapore.

  • Animal Agriculture Alliance launches Animal Ag Allies Development Program

    The Animal Agriculture Alliance is excited to announce the launch of the Animal Ag Allies program to empower farmers, ranchers and practicing veterinarians to be outspoken advocates for agriculture online and within their communities. The Alliance is currently seeking participants to enroll by August 7.

    The Animal Ag Allies program provides opportunities for networking, training, and continuous development of issue expertise and communication skills. Allies will be on the front lines of responding to emerging issues and sharing positive content about animal agriculture.

    “The Animal Ag Allies program was created to connect agriculture advocates and arm them with the issue expertise and communications skills they need to engage with influencers and consumers online and in their communities,” said Hannah Thompson-Weeman, Alliance vice president of communications. “Our goal for this program is to make sure the voices of farmers, ranchers and veterinarians are being heard when it comes to important issues related to animal agriculture.”

    The program consists of two phases: online training and a private forum to discuss engagement strategies and emerging issues. The training modules are available online and may be completed at the participant’s own pace. Modules include: overviews of each sector of animal agriculture, hot topics and emerging issues facing animal agriculture, how to address contentious issues, growing your social following and reaching outside the choir, and public outreach. Following the completion of the training modules, participants will be invited to a private online group where they will have the ability to interact with one another as well as industry professionals.

    “I am so thankful for this opportunity,” said Markie Hageman, a California beef advocate who completed the training modules during the program development process. “Everything was useful! I love learning new things and being able to recap things I have learned before, so all of the information was very valuable to me.”

    Farmers, ranchers, practicing veterinarians, and industry professionals who want to make a difference in public understanding and perception of animal agriculture are encouraged to indicate their interest in enrolling in the program. The ideal participant has already demonstrated their commitment to engaging on relevant issues and is ready to take their efforts to the next level. For more information on the program and participant guidelines, visit https://animalagalliance.org/initiatives/animal-ag-allies/.

    The deadline to indicate your interest in enrolling in the next round of the program is August 7. Interested individuals are encouraged to complete the program interest form available at https://animalagalliance.org/initiatives/animal-ag-allies/.

    The Animal Ag Allies program would not be possible without the generous support of our founding sponsor, Zoetis, and program sponsors Animal Health Institute, Seaboard Foods, National Turkey Federation, Merck Animal Health, Institute for Feed Education and Research (IFEEDER), and Professional Dairy Producers Foundation.

    “Zoetis is proud to be the founding sponsor of the Animal Ag Allies program, helping to equip people who care for animals with communications resources,” said Christina Lood, Zoetis senior director of external communications. “We look forward to seeing the growth and development of each Ally as they continue to share their personal stories and engage with their communities in conversations about livestock’s role in our sustainable food supply.”

    To become a sponsor of the program, contact Casey Kinler, director of membership and marketing, at ckinler@animalagalliance.org

    About the Alliance:

    The Animal Agriculture Alliance is an industry-united, nonprofit organization that helps bridge the communication gap between farm and fork. We connect key food industry stakeholders to arm them with responses to emerging issues. Weengage food chain influencers and promote consumer choice by helping them better understand modern animal agriculture. We protect by exposing those who threaten our nation’s food security with damaging misinformation. Find the Alliance on Facebook, Twitter, and Instagram.

  • USDA Dairy Safety-Net Program Signup to Begin October 12

    The U.S. Department of Agriculture’s Farm Service Agency (FSA) announces that Dairy Margin Coverage (DMC) safety-net signup for 2021 coverage will begin October 12 and will run through December 11, 2020. DMC has already triggered payments for two months for producers who signed up for 2020 coverage.

    “If we’ve learned anything in the past six months, it’s to expect the unexpected,” said FSA Administrator Richard Fordyce. “Nobody would have imagined the significant impact that current, unforeseen circumstances have had on an already fragile dairy market. It’s during unprecedented times like these that the importance of offering agricultural producers support through the delivery of Farm Bill safety-net programs such as DMC becomes indisputably apparent.”

    The April 2020 income over feed cost margin was $6.03 per hundredweight (cwt.), triggering the second payment of 2020 for dairy producers who purchased the appropriate level of coverage under the Dairy Margin Coverage (DMC) program. The April margin reflects a more than a $3 drop from the March $9.15 cwt. income over feed cost margin.

    As of June 15, FSA has issued more than $100 million in much-needed program benefits to dairy producers who purchased DMC coverage for 2020.

    Authorized by the 2018 Farm Bill, DMC is a voluntary risk management program that offers protection to dairy producers when the difference between the all-milk price and the average feed price (the margin) falls below a certain dollar amount selected by the producer. Over 13,000 operations enrolled in the program for the 2020 calendar year.

    All USDA Service Centers are open for business, including some that are open to visitors to conduct business in person by appointment only. All Service Center visitors wishing to conduct business with the Farm Service Agency, Natural Resources Conservation Service, or any other Service Center agency should call ahead and schedule an appointment. Service Centers that are open for appointments will pre-screen visitors based on health concerns or recent travel and visitors must adhere to social distancing guidelines. Visitors may also be required to wear a face covering during their appointment. Field work will continue with appropriate social distancing. Our program delivery staff will be in the office, and they will be working with our producers in office, by phone, and using online tools. More information can be found at farmers.gov/coronavirus.

    For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-center-locator.

  • New Virtual Offerings for Women in Agribusiness Event Series

    In a pivotal move to ensure event excellence during the changing business climate, the Women in Agribusiness (WIA) Summit series has announced virtual attendance options for its 2020 U.S. and international conferences.

    Its WIA Summit Europe, July 2-3, originally scheduled to take place in Paris, will now be held completely virtual, and its flagship Women in Agribusiness Summit U.S. has added a remote attendance choice for the September 16-18 event in Nashville, Tenn. Planning is now underway to ensure these virtual experiences mirror the benefits of networking, intelligence gathering and interactivity that have come to be the hallmarks of WIA events.

    “Our robust virtual platform will supercharge attendees’ experience,” said Joy O’Shaughnessy, WIA event director and COO at HighQuest, parent company of WIA. “Speaker presentations will be brought to life with embedded live-streaming video, interactive Q&A sessions and engaging polling options, not to mention networking that includes instant messaging and real-time chat, and connecting with attendees via private group video discussions as well access to a multi-tiered database of information about fellow delegates.”

    Not to miss speakers and topics for WIA Summit Europe, July 2-3, include:

    • Keynote: Minette Batters, president of the National Farmers’ Union of England and Wales, who will speak on “Building Back Better” after COVID-19.
    • Panel: Experts from Matador Ventures Lt, Syngenta, CapAgro and AgriSat will talk to “Farming 4.0: Ushering in the Digital Age in Agriculture” and address: How are those that collect this data using it? Who actually owns the data? Who is benefitting from this and how?
    • Presentation: Carol Heil, associate at Ernst & Young, will speak to “Agricultural Trade After COVID-19”.
    • Short Pitch Series: From biotechnology advances in ag to upcycling and eco-extraction, and robots in the poultry sector, these ingenious women will provide a glimpse into the future of ag during this always lively Ag Innovation Hour.

    The Women in Agribusiness Summit U.S., now in its ninth year, is heading to Nashville for the first time (COVID-19 restrictions permitting), offering in-person and virtual attendance. During this interactive, engaging conference – which brought together nearly 900 attendees last year – delegates will be immersed in discussions that will help them know their business better, through session titles such as: “Fortifying Agriculture’s Resiliency”, “Reducing Litigation Exposure for Ag Companies”, and “Leveraging Liquidity to Thrive in Business”. Learn more at womeninageurope.com or womeninag.com or follow us at @Womeninagri, on Facebook and LinkedIn.

    About Women in Agribusiness

    Women in Agribusiness (WIA) is a business unit of HighQuest Group, a global agribusiness consulting, events and media firm, based north of Boston, Mass., USA. The first Women in Agribusiness Summit was held in 2012 in Minneapolis, Minn. Since that time, WIA initiatives have grown to include the WIA Membership, WIA Demeter Award of Excellence, Student Scholarships, and the WIA Today blog. Learn more at womeninag.com

  • Western United Dairies Provides Recap on 
Stop 
QIP
 Quota 
Hearing

    Quota has been a real sensitive topic of contention over the past year for California dairy producers, and things seemed to really escalate right up to the World Ag Expo, when the United Dairy Families of California presented a five year plan to potentially terminate the California Quota Implementation Plan (QIP).  Things slowed down with the onset of the global COVID-19 pandemic, and the industry turned their attention to adapting all the changes that accompanied it.  However, following multiple attempts and petitions to order an immediate termination of QIP by a certain group of dairy producers, a quota hearing with CDFA finally occurred June 9-10th.

    Of this two-day virtual meeting, Western United Dairies’ Economist Annie AcMoody reported the following:

    The number of attendees fluctuated throughout the days, with a peak around 190 participants at one time. The total number of people who logged in at least for a little while is likely higher as people came and went during the proceeding. An Administrative Law Judge (ALJ) presided over the hearing and only he and a representative of the Attorney General’s Office were allowed to ask questions of presenters. Technical issues and background noises ranging from side conversations to lunch orders were an issue throughout the process, causing interruptions through many presentations.

    The hearing started with a presentation from Chip English (Stop QIP’s attorney) focusing on why there should be a producer referendum under Chapter 3.5. A presentation from an economist that prepared a report for them, Dr. Sundig, followed. Dr. Sundig focused on his analysis of why he thinks dairy farmers anticipated quota to go away (even before the petitions and the FMMO). The second team to take the virtual floor was Save QIP. Their attorney, Niall McCarthy, discussed the importance of quota and why a petition on Chapter 3.5 shouldn’t have any effect on the QIP. The economic consequences of eliminating quota were discussed further by an economist hired by the team, Lon Hatamiya. The third and last registered organization was United Dairy Families of California (UDFC). The group’s attorney, Megan Oliver Thompson, highlighted why a petition based on Chapter 3.5 is not the appropriate vehicle to get to an elimination of the QIP via referendum. Dino Giacomazzi, a representative of UDFC, spoke next to explain the process his organization went through, with the objective of arriving at a broad industry consensus. Most of you may recall the many meetings and surveys held last summer through early 2020 as part of this process. The three largest coops (CDI, DFA and LOL) as well as the three state trade associations (CDC, MPC and WUD) and Stop QIP actively participated in the process. As a result of the analysis and surveys, Dr. Bozic unveiled the survey–favored concept (a 5–year sunset) at the Farm Show in Tulare. Following that, UDFC sought signatures for a petition, which they delivered to the Secretary just days before the StopQIP hearing (read the announcement from the UDFC below for more details). CDFA has 90 days to verify whether the petition vas valid.

    Once organizations were done, individual commenters were allowed a maximum of 5 minutes each, which is not a very long time for such a complicated issue and when there are interruptions due to attendee muting issues. Passion and conviction were key features of dairy farmers’ testimony from both sides of the aisle. There is a lot at stake and the ten- sion was palpable during the full two–day process

    We added much information relevant to the proceedings at this link: westernuniteddairies.com/quota/ , including written statements submitted to CDFA. Now that the ALJ has heard all interested parties during the hearing and received all written statements, there is a ten–day period to file post–hearing briefs for those who requested it. After that, the ALJ will have to come to a decision on whether this should move to a producer referendum.

    California
 Dairy
 Organization
 Submits
 Quota
 Reform 
Petition
 to
 CDFA


    Dr. Marin Bozic

    The United Dairy Families of California (Dairy Families) submitted a petition to reform California’s historic quota program to the California Department of Food and Agriculture (CDFA). The petition outlines a five–year sunset proposal, which was the result of a process that included input from hundreds of California dairy producers over several months of regional meetings. The organization facilitated an inclusive and transparent three–phase process led by Dr. Marin Bozic and Matt Gould that narrowed 11 initial reform proposals down to one. The Dairy Families’ petition calls for CDFA to bring the producer–generated idea to a referendum. “Dairy Families has worked diligently over the last year to gather input and elicit ideas from the entire producer community. We believe this petition represents the will of the dairy industry and the proper course of action would be to bring it to a vote of California Dairy Producers,” said Dairy Families Executive Committee Member Travis Kamper of Riverdale, CA. The plan would phase out the quota program over five years. The sunset plan proposes: 

    ● A Quota Implementation Plan sunset with the termination date of March 1, 2025

    ● Equalized regional quota adjusters of $1.43/cwt for all counties 

    ● A recommendation that the plan be implemented by a producer referendum.

    Dairy Families announced the sunset plan on February 11 at the Phase 4 meeting held during the World Ag Expo in Tulare, CA. The Dairy Families’ process was supported by the state’s three major dairy co–ops, California Dairies, Inc., Dairy Farmers of America, and Land O’Lakes, Inc., as well as the three trade groups, California Dairy Campaign, Milk Producers Council, and Western United Dairies. Stop QIP also participated in the process. UDFC formed in early 2019 in an effort to bring unity to an increasingly divided dairy community.

  • Getting the Facts Straight About Dairy’s Global Carbon Footprint

    The following article was written in response to a recent report released by the Institute for Agriculture & Trade Policy — The dairy sector is committed to producing nutritious foods in environmentally sound and responsible ways.  As such, we welcome any opportunity to further the dialogue about solutions to climate change and creating a sustainable future for everyone. However, this report, while interesting, contains several inaccuracies and as such does not reflect the reality of the dairy sector.

    Environmental Impact

    Globally, all of agriculture accounts for 24% of greenhouse gas (GHG) emissions, and within that dairy is responsible for 2.7%.  While the dairy sector is committed to sustainable development and decreasing our rate of emissions even further, this 2.7%  emissions rate must be put into the context of emissions from other sectors, such as energy – 25%, business – 21% and transport – 14%. Especially when considering the positive impact dairy has on livelihoods and nutrition.

    One of the key claims in this report is that the top 13 global dairy companies saw an 11% increase in GHG emissions between 2015 and 2017. This is misleading, as much of the increase can be accounted for by mergers and acquisitions by those companies. Annex 1 in the report even confirms this is simply an accounting change, and these are not new emissions.

    The United Nations (UN) Food and Agriculture Organization’s (FAO) 2019 report, “Climate Change and the Global Dairy Sector,” was referenced. Key information about that report was left out, including the fact that it was multi-stakeholder study written by FAO. FAO found that between 2005-2015, milk production increased 30% globally in order to meet growing consumer demand. Absolute emissions rose 18% and emissions per unit of product declined by 11%. Without improvements made by the sector, FAO noted that total emissions from dairy would have increased by nearly 38% globally over this period to deliver the same amount of product.

    The global dairy sector takes its environmental responsibilities seriously and has a number of programs in place including the Declaration of Rotterdam and the Dairy Sustainability Framework  to support increased knowledge, implementation of practices and progress measurement against  sustainability challenges.

    Sustainability

    In using terms like sustainability, a clear definition is essential. The UN determines sustainability must be based on three pillars: economic, social and environmental.

    The dairy sector helps to feed the world delivering vital nutrition in the form of high-quality protein and essential vitamins and minerals. Globally, dairy provides 5% of energy, 10% of protein and 9% of fat in the diet, as well as providing vital nutrients like calcium, iodine, B vitamins, zinc and phosphorus.

    This rich nutrition helps populations, particularly in developing nations, avoid malnutrition and poor health outcomes. Any food system which fails to deliver high-quality nutrition is one which is itself, unsustainable.

    Dairy provides for the livelihoods of 1 billion people worldwide: 600 million people living on dairy farms and a further 400 million relying on the full-time jobs created in support of the sector. There are 133 million dairy farms around the world, and 37 million of them are led by women. A sustainable dairy industry must also be one which provides a livelihood to farmers, processors and all others along the supply chain. If farmers were always paid below the cost of production as implied in this report, put simply – the industry would not exist, and production would not be increasing.

    Dairy Economics 

    Globally, the dairy sector is incredibly diverse, with only 0.3% of all farms having more than 100 cows. In fact, the average herd size for a dairy farm is 3 cows. It’s also important to note that the majority of milk globally is processed through co-operatives, which are owned by and run in the interests of farmers.

    A one-size-fits-all farming system cannot be implemented worldwide. Each type of farming system has its place and irrespective of size, if managed well can be efficient and drive sustainability. It cannot be assumed that smaller scale farming is more efficient and is somehow better at delivering sustainability improvements or economic returns. There is no correlation between scale of production unit, either at the farm or processor level, and environmental impact assessed per unit of production. This is determined by the quality of the equipment used and the management.

    Larger businesses achieve economies of scale in many ways including on GHG emissions, as there is greater use of technology.

    This report seems to argue against international trade in dairy products. However, international trade ensures consumers in countries that are not self-sufficient can access the nutrition they need. The alternative would be either higher food prices or lower nutrient intake.

    The dumping of milk in response to COVID-19 in some regions was a temporary phenomenon in response to extraordinary market disruption caused by the pandemic, the likes of which the world has not seen in a century. This can’t be used to provide any valuable insight into how the industry should operate long term and does a disservice to the dairy sector which continued in extremely difficult circumstances to provide highly nutritious food for the global population.

    It’s very easy to put out a report that criticizes and tries to paint a simple picture of a sector which doesn’t contain all of the nuances or realities of how the global dairy sector nourishes the world with nutrient-rich, safe foods and does so in a manner that strives for continued environmental improvements while providing livelihoods to a large percentage of the world’s population. —Dr. Judith Bryans, President of the International Dairy Federation, and Donald Moore, Executive Director, Global Dairy Platform