Navigating the Future of Dairy: Insights from the 2023 Milk Business Conference

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What is the Biggest Challenge in Animal Agriculture? The Answer Might Surprise You!

Dr. Robert Hagevoort from New Mexico State University sheds light on the complex challenges and opportunities facing the dairy industry today. From sustainability efforts and animal welfare to technological advancements and labor management, the 2023 Milk Business Conference in Las Vegas revealed key insights.

Despite hurdles like regulatory issues, labor shortages, and consumer preferences, there’s optimism. The industry is making strides in sustainability, embracing technological innovations, and improving dairy cow welfare. Moreover, addressing labor challenges through talent management and development is crucial for future success.

A Changing Workforce

The journey from cow manager to people leader is not without its trials. However, Hagevoort’s message is clear: embracing leadership and focusing on people management is crucial for the dairy industry’s success. As the industry adapts to these internal and external challenges, the path forward is marked by resilience, innovation, and an unwavering commitment to both the animals and the people who care for them.

Check out Karen Bohnert’s article in Dairy Herd Management for more information. 

Contact us today and let’s discuss how we can apply these insights to your operation for growth and resilience.

Proposal elevates USDA organic dairy programs, data collection

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In a significant development for the U.S. dairy industry, a bill was introduced aimed at enhancing USDA organic dairy programs and data collection. Known as the Organic Dairy Assistance, Investment, and Reporting Yields Act, this legislation proposes improved data collection methods, the establishment of safety net programs, and increased investment in organic dairy infrastructure. Meanwhile, September marked a 15-month low in U.S. dairy cull cow marketing, but the year-to-date numbers remain the highest nine-month total since 1986.

Fluid milk sales saw a decline of 1.8% in August 2023, although there were positive gains in whole and flavored whole milk categories. Organic milk sales also increased by 2.5% compared to the same month last year. In addition, the USDA’s Farm Service Agency (FSA) has stopped accepting cash payments over $100, transitioning to digital payment methods for many programs. Stay tuned for more industry updates.

To learn more: Read the full article by Dave Natzke with Progressive Dairy

Keeping 2023’s Drought in Perspective

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Widmar said the drought of 2012 remains unique in the crushing effects delivered by continued, extreme heat and lack of rainfall as summer marched on. In contrast, 2023 netted out to be considerably less severe than 2012. “While drought conditions were widespread and persistent this year, they didn’t get worse as the corn and soybean crops entered their reproductive stages,” the economist stated.

And while conditions were definitely spotty, he said as a whole, 2023’s drought indicators did not approach the extremes of 2012, noting it’s a good reminder that “the worst since 2012” can still be a long way from 2012-like conditions.

To learn more: Read the full article by Maureen Hanson with Dairy Herd Management

Springers Strong Amidst Mixed Bag for Dairy

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Amidst a fluctuating dairy landscape, Springers appear to be holding their ground! Maureen Hanson from Dairy Herd gives us a look into how these key players are shaping the industry’s future.

“Dairy cow culling is at near-record levels and scorching August heat has docked milk production throughout most of the country. USDA estimates indicate about 21,000 head of dairy cows were culled from May to June 2023, and that pace has continued through much of the summer.

Except for data generated during the dairy buyout program in 1986, dairy slaughter rates hit record highs in four separate weeks during June and July. But the news isn’t all grim. Healthy beef slaughter prices have made those cull cows quite valuable, and feed costs have tempered a bit through the summer. Milk prices also are gaining ground since the abysmal lows of July, and springer values were stronger in most reported markets over the past month, climbing an especially impressive $200-400/head in California.”

To learn more: Read the full article by Maureen Hanson with Dairy Herd Management

All Eyes on the Milk Price

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“Within dairy specifically, all eyes are on the milk price into the coming months, with values falling slowly but steadily recently. This price pressure, coupled with still high cost of production, will mean that some dairy farmers might struggle to achieve profitability this year. Data shows that cows’ numbers began to contract in November and December, and if margins remain tight, Rabobank expects additional declines in the herd size.”

“Even if cow numbers contract, Rabobank still expects stronger milk supplies this year versus 2022, likely climbing around 1% during this calendar year. This additional volume, coupled with a return to stronger production in the EU as well, means that demand will need to keep pace to avoid further milk price declines.” –

Read the full article by Lucas Fuess with Dairy Herd Management

Could More Soybean Processing Plants Spell Cheaper Feed for Dairy Farmers?

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“The soybean processing industry is entering a new era driven by the demand for low-carbon fuels like renewable diesel, which can be made with tallow, recaptured vegetable oil, canola oil, and of course, soybean oil. This push for more sustainable fuel is helping drive the rapid expansion of new soybean crushing facilities across the U.S.

According to the American Soybean Association (ASA), 23 soybean processing plant expansions and new builds have been announced, adding nearly 750 million bushels per year in crush capacity. Many of the crush plant announcements are being driven by the growth in renewable diesel. Of the 23 crush plant announcements, 13 are for new plants and 10 are for expansion of current plants, at least two of which have been completed. If projections are on target, the extra demand for soybeans could push prices an estimated 13% higher in the coming years.”

Read the full article by Taylor Leach with Dairy Herd Management

The Cows Even Have Their Own Nutritionist?!

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Learn about the cows’ diet and how important it is on a dairy farm. Special guest appearances from Tom VanderWall and Harrison Hobart. Watch Harrison use the Penn State Shaker Box and also catch Tom’s biweekly checkup here at Five Star Dairy

The Challenges and Rewards of Feeding ByProducts

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Feeding by-products from production, postharvest, and processing of foods and other agro-industrial products to dairy cows has been routine practice for decades. Byproducts streamline diet formulation and constitute, on average, 30% of Midwestern dairy diets.

But this practice has been of utmost importance to dairy operations these last couple of years. Besides providing options to adjust dietary nutrients, feeding byproducts reduce feed costs and aid in navigating through low forage inventories.

Read the full article by Luiz Ferraretto with Wisconsin State Farmer

U.S. Senate hearing focused on return to previous Class I dairy pricing formula

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The 2018 Farm Bill dairy pricing formula change has been costly for dairy producers with more than $750 million in losses under the new averaging method with 74-cent adjuster compared to the previous use of the higher of Class III or IV to set Class I prices.

The “Farm Bureau Federal Milk Marketing Order Working Group” recommendations were released in October 2019 with several key recommendations, including:

  • Give every dairy farmer a voice by eliminating the ability of coops to vote on behalf of member-producers on changes to federal milk marketing orders (bloc voting);
  • Improve risk sharing across the supply chain in the product pricing formulas by adjusting the “make allowance” (a fixed deduction or credit for processing milk into finished dairy products) to be variable on a commodity-by-commodity basis;
  • Collect more robust pricing information by significantly expanding the Agriculture Department’s mandatory price reporting survey; and
  • Simplify milk pricing rules in the Southeast by aligning the qualifying criteria for pooling and eliminating transportation subsidies.

Read the full article by Michigan Farm News

Evaluating wet feedstuffs for dairy cows

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Wet feedstuffs derived from the food and ethanol industries are valuable additions to cattle diets, when available within a reasonable distance from the farm. They not only provide required nutrients, but their moisture content helps condition total mixed rations (TMRs), increases their palatability and reduces feed sorting by livestock. Depending on their water content and price, however, their purchase can turn into a questionable economic decision.

Where your farm is in the U.S. determines which wet feeds are readily available close enough to justify their hauling to the farm. This article addresses the wet form of beet pulp, brewers grains, distillers grains, gluten feed, and grape pomace (also known as grape marc). We will discuss their composition and what factors to consider when evaluating their incorporation into dairy cattle diets.

Read the full article by Progressive Dairy here.

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