Monday, January 9th Good links • Dedicated to Dairy: website with stats, facts, and figures of the dairy industry; SUDIA • Million Dollar Cow: sold for $1.2 million to be an egg donor • Dairy Carrie: social media advocate for the dairy industry • Dairy Farmers Care: video about dairy farmers and many stats about the dairy industry o 2050: world population estimated to be 9 billion History of the Dairy Cow • Name originates from the word chattel (pecuniary, money) • Latin word pecus, meaning “cattle”, is where we now derive the adjective pecuniary • First domesticated in Europe and Asia during New Stone Age • Were used for milk purposes as early as 9000 BC • Mosaic frieze from 3500 BC o Calf stimulation for milk letdown o Milk filtering Major Milestones • 1611: cows arrive in Jamestown Colony • 1841: first shipment of milk by rail: Orange County to NYC • 1856: Pasteur began pasteurization experiments o Food-borne illnesses (ex: diphtheria) • 1878: cream separator invented by De Laval • 1895: commercial pasteurizing machines invented • 1911: automatic rotary bottle filler and capper • 1914: tank trucks used to transport milk • 1938: bulk tanks began to replace milk cans • 1946: vacuum pasteurization method perfected • 1948: ultra-high temp pasteurization introduced o Much longer shelf-life until opened • 1974: nutrition labeling of fluid milk products • 1994: rBST approved for commercial use o Recombinant Bovine Somatotropin (growth hormone) o Still approved in dairy industry but not used very often • 2000: component pricing introduced o Components: butterfat & protein o Producers being paid in quality not just quantity Issues Facing Today’s Industry • Animal Rights (welfare) • Public image of “factory farming” o Factory farm has negative connotation o CAFO: Concentrated Animal Feeding Operation • Manure management • Dietary concerns with animal products o Heart health, cancer, hormones, antibiotics, general health o Fairlife: Fair Oaks Farm teamed up with Coca-Cola; filter milk to separate components and combine them back in quantities they want (no lactose) • Decreasing profitability and sustainability • Biotechnology o Clones & GMOs • Competition with non-dairy products • Consumer concerns with hormones and antibiotics • Eye witness footage Milk • Staple food item • A wide base of available products from a common source • Cheap; price point heavily regulated by government • Bought often • “Nature’s Most Perfect Food” o Proteins, vitamins, minerals, energy The Reality of Milk • Relatively bulky – makes transporting difficult o Trucking costs • Perishable o Refrigeration o Limited shipping possibilities that are feasible o Like milk to be produced in areas where it’ll be consumed (varied prices) • Multiple uses o Export cheese, dry products (powder) • Easily sampled and tested o Ex: antibiotics • Low profit margin • The average American consumed approximately 1.9 cups of dairy per day o Below MyPlate recommendations for 2-3 cups • Dairy Product Availability o Processed products are increasing dairy product consumption o Fluid milk drastically dropping o Cheese, yogurt helping industry ▪ Fast food: cheese burgers, pizza ▪ Health-conscious people Thursday, January 12th Ideal Dairy Cow Lactation Cycle • 3-4 lactations until culledUse of Pedometer • Heat detection: increased activity/walking • Sick: decreased activity • Can also include an electronic ID for identification in milk parlor • Also such thing as a rumination rate collar – important to know this rate Mechanization • Key with help of technology ???? lower amount of laborers needed Silage • Corn silage is better quality than wheat or sorghum • Silage is now kept in open air instead of in silos o In silos: risk spontaneous combustion due to silage using up oxygen (also lead to farmers passing out in silos) Visiting Farms • Start with calves then move to older cows due to non-advanced immune system of calves Facility • Higher ceilings: better lighting (want 16 hours of light) and better ventilation • Cows spend most time eating, lying down, ruminating o Importance of enough feed bunks and free stalls Factors Affecting Industry • Low milk • Reproduction • Feet & legs • Mastitis Friday, January 13th Dairy Product Availability • Fluid milk down 37% since 1970 o Lower-fat milk has slightly increased (“health-conscious”) • No major changes in frozen dairy products • Cheese consumption has drastically increased o Fast food and pizza The Reality of Dairy Cattle • Milk is easy to harvest • High protein contributor • Efficient conversion of feed to protein o Also conversion of low quality feeds • Foster Mothers of the Human Race How is the Industry Looking? • Number of animals? • How many lbs of milk our dairy cows produce? • Any current trends in the industry • Can you guess which state is the top milk-producing state? o California, Wisconsin (cheese), Pennsylvania • How about: where do you think GA ranks among all states in total milk production? o Pretty low, because of difficult environmental issues (heat, humidity) Top Producing States for 2015
2015 # Cows (1,000 head)
Change from 2014
2015 lbs of milk (billion lbs)
Change from 2014
• How about: where do you think GA ranks among all states in total milk production?
• How many lbs of milk our dairy cows produce?
How is the Industry Looking?
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• (don’t need to memorize numbers) • New Mexico & Arizona sometimes pop up in the top 5 too • Georgia: ranked 23; Florida: ranked 18 (usually in the top 15) o Don’t want to transport milk to Florida so it’s important to make it in the area where it will be consumed Reflecting on 2015 • Highest milk production/head? o Colorado at 25,685 (Michigan, Arizona) ▪ Used to be New Mexico • Lowest milk production/head? o Alaska at 11,667 (Alabama, Arkansas) • Georgia rankings? o Producing 21,665/head (19th ranking) ▪ Beat Florida in efficiency of cows o 23rd in total pounds of milk produced o Important for our fluid milk to stay fluid (why we use Holsteins) Monthly Milk Production • A lot of variation in milk production throughout a calendar year • Can almost see lactation curve Trends • Smaller operations (<200 cows) drastically decreased o Almost 30% in 6 years • Large increase in CAFOs o Over 100% increase • ***Farms are getting larger*** • ***Number of farms are declining but # of cows/farm is increasing*** • ***Milk cows in the US is staying relatively stable*** • ***Amount of milk produced per cow is rapidly increasing*** • ***Population of cows are moving west*** o Creating cow islands? Large pockets of growth in cow #s ???? bioterrorism, population density, environmental issues, monopolies/conglomerates Typical US Dairy Industry • Average dairy cow in the US: o Produces 22,588 lbs of milk/year o 8.6 lbs per gallon o ~2588 gallons per year • Typical American dairy farm: o Family Owned and Operated (97%) o Average farm has 187 milking cows • Is some of the family farm definition changing?o Milking 2,000+ cows Why Load Them Up and Move Them West? • Climate o Housing o Pollution • Quality and availability of feedstuffs o Most corn is raised in the Midwest • Population Shift o Transportation • Available land Why Stick to Your Guns in the East? • Milk deficit area ???? primary reason o Supply/demand = $$$ (profits may be greater due to higher milk price) • Access to large markets along eastern seaboard o Important for exports • Cheaper land prices in rural areas Milk Price • Federal government dictates how we get paid for us (set minimum, not cap) o Set based on supply and demand ▪ California has higher supply than demand ???? low pay price ▪ Georgia has lower supply than demand ???? high pay price o 10 milk marketing orders (US broken down into regions) • Most milk is shipped to milk co-ops, essentially brokers for milk o Can only increase price; can’t go below government’s minimum • January 2017: $21.75 per 100 lbs of milk • February 2016: $17.94 per 100 lbs of milk o Doesn’t seem like a large difference but it adds up to a monumental difference • August 2014: $28.17 per 100 lbs of milk • If paid for protein, rise in total price