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December 2009 Patron Newsletter
To: FDA Members, Association Creamery Members, Employees, and Milk Haulers From: Clint Subject: FDA Update The First District Association annual meeting was held on Saturday, December 12. On behalf of the Board of Directors and staff, we express our gratitude for your attendance, commitment, and participation. We are pleased that your cooperative experienced a respectable year with positive net earnings of 5.77 million dollars. The cash portion of the earnings were 1.69 million dollars. In addition, FDA also distributed its second half equity payment in the amount of 1.99 million dollars. Fiscal year 2009 was undoubtedly very challenging for dairy producers which led our focus toward providing as much cash as reasonably possible to FDA members with significant emphasis on competitive milk prices. FDA paid members an unprecedented 7.65 million dollars in cash representing dairy patronage, dairy equity, and all remaining Ag. Service equity during FY 2009 in addition to being a competitively strong milk price leader. Congratulations to all FDA members! In the event you were not able to attend your annual meeting and would like a copy of FDA’s annual report, please contact FDA at 320-693-3236 or your field service representative. FDA processed a record volume of milk during FY 2009 and produced a record 140 million pounds of cheddar cheese. FDA also produced significant quantities of value added whey ingredients marketed globally to some of the most reputable food ingredient, seasoning, pharmaceutical, nutritional, infant formula, and confectionery companies. A top priority at FDA is to continue focusing on future strategic investments in an effort to assure long-term independence, enhanced operating efficiency, diversification, updated process technology, worn equipment replacement, and smart growth without sacrificing strong competitive milk prices and financial health. FDA’s current evaporator and milk processing building project is proceeding well with an estimated completion date in early summer 2010. The new facility is designed with the capability of handling larger quantities of milk and whey in the event cheese production is expanded further in the future. FDA’s success is largely attributed to its excellent reputation, commitment to quality, strong ethics, and high efficiency manufacturing operations. In addition, the strong commitment of our members, employees, and milk haulers is imperative for FDA to remain independent, financially strong, and sustainable long term. FDA continues to serve nearly 1100 dairy farm families. FDA has experienced steady milk production growth from member farms despite the declining farm numbers in the Upper Midwest. We continue to believe that the future of agriculture in the U.S. along with the future global need for wholesome food will undoubtedly grow in years to come offering excellent opportunities for well managed cooperatives and dairy farming operations. USDA announced the November Class III price at $14.08/cwt., up $1.26/cwt. from October. The average market for blocks and barrels during November was $1.58/lb. and $1.49/lb. respectively, representing an abnormal spread of 9 cents/lb. The normal spread between barrels and blocks is 3-4 cents. Unfortunately, the gap has increased to unprecedented levels of $0.24/lb as of this writing which is concerning. We believe the wide spread is partially a result of large inventories of barrel cheese purchased at low prices throughout 2009 and stored in freezers. The price disparity has become ridiculous and FDA staff is focused on this issue and special efforts are being pursued to maximize member returns during this burdensome period. In conclusion, 2010 should be a much improved year for dairy producers. Even though the future looks brighter, I do not expect the roller coaster ride of milk prices to disappear and therefore prudent management is essential. A number of factors including increased global demand, lower than expected milk production in Oceania, weak U.S. dollar, and likely weaker milk production in the U.S. will hopefully result in better than average farm milk prices next year. We continue to believe that FDA is a unique and dynamic cooperative utilizing its most valuable resources including "grass roots" member input, dedicated board of directors, and skilled employees. We sincerely thank each of you for your trust in First District Association. We would like to wish each of you a Blessed Christmas and a Healthy Prosperous New Year.
2009 MMPA Producer of the Year Carlson Dairy, LLP was named MMPA Producer of the Year at the recent Midwest Dairy Expo in St. Cloud, MN. This award is given out every year by Minnesota Milk Producers Association (MMPA) to a producer who has a proven commitment to quality, excellent management practices, enthusiasm toward promoting dairy, and being active leaders in their local community. Carlson Dairy is a century farm from Pennock, MN that is owned and operated by Curtney and Louise Carlson with their two sons, Chad and Carl, and their families. Carlson Dairy currently milks 900 dairy cows in a double 14 parallel milking parlor. They understand that part of their business mission requires them to be engaged and involved at a local and statewide level. They operate a high-producing, well-managed, innovative and sustainable family owned dairy. "Carlson Dairy is an excellent example of today’s family dairy farm. Three families pooling their resources together to produce wholesome, quality milk," stated Bob Lefebvre, Executive Director with the MMPA. "While the farm size may be larger than in the past, the same values that began their family farm with Curtney’s grandparents, still hold true today. Care for their cows. Care for the land and water and care for their neighbors. " First District Association would like to congratulate Carlson Dairy for being selected by fellow dairy farmers for their achievement! Young Cooperator Update Mark your calendars for February 5, 6 & 7 for the annual Young Cooperator’s weekend conference which will be held at the Holiday Inn in Alexandria. There will be a variety of excellent speakers throughout the weekend and great fellowship for everyone. All FDA members are invited and encouraged to attend the Saturday sessions including lunch. Cost for rooms is $60.00/per night. To register contact Chad Thorsten at 320-221-3739 or e-mail at chadt@hutchtel.net. Entertainment will be provided Friday and Saturday nights by Gig Noonan. 2010 Scholarships Each year FDA awards six $500.00 scholarships to students pursuing further education and career goals in agriculture. If you are interested in applying for this scholarship, please contact your FDA field service representative at 320-693-3236. These scholarships are available to association creamery members and direct FDA members. April 6 is the deadline for receiving all applications. Thank You to FDA Milk Haulers FDA milk haulers are a vital link in the success of our cooperative. Our milk haulers continue to perform above and beyond in meeting the needs of our members regardless of weather, operational challenges and run away energy expenses. Please take the opportunity to thank your milk hauler for his/her commitment and hard work. FDA is grateful and pleased to work with such excellent haulers. Attention All FDA Members FDA would like to take this opportunity to remind our members of FDA’s policy in regard to picking up milk in poor driving conditions. FDA policy states that if the state highway or county road leading to your farm is impassable and the milk truck cannot get to your farm yard, FDA is responsible and FDA will pay for any milk loss. However, if the milk truck can get to the farm yard but is unable to access due to an impassable driveway, the producer will be responsible for any milk loss. Please feel free to contact Chuck Nelson at FDA (320)593-4223 or cell (320)894-5558, your field service representative, or your milk hauler regarding any questions or concerns you might have. U.S. Food and Drug Administration Antibiotic Testing Mandate By: FDA Quality Department The USDA, along with state agencies randomly test cattle for drugs that are taken to slaughter. In addition to random testing, all animals that appear sick are tested for drug residues as well. If the results of the testing show that an animal has more antibiotics in its system than is allowable, the Food and Drug Administration is promptly notified. The owner of that animal is then sent a warning letter and depending upon the severity of the incident further action may be imminent. All of the information associated with the violation then becomes public and is available on the World Wide Web. Groups such as PETA (People for the Ethical Treatment of Animals) and HSUS (The Humane Society of America) seem to search for negative information to publicize potentially damaging to the dairy and livestock industry. No one wants to send cattle to slaughter that have illegal levels of drug residues in their system. For individuals who are allergic to antibiotics, such mishaps may be deadly. It is extremely important at the time animals are treated for illnesses that the person responsible for the welfare of the animal is working with a qualified veterinarian who will advise them on proper drug selection, dosage, and withholding times. (A hand out entitled "Milk and Dairy Beef Residue Prevention" is enclosed with this newsletter as a resource for your operation.) Proper treatment management is essential for the well being of your animals, public safety, your reputation and the collective reputation of the dairy industry. It is essential that everyone work together by following the practices and procedures necessary to prevent the mistreatment of animals and mishaps identified through random drug sampling to maintain our wholesome image and reputation. If you have any questions or need more information on this topic, please do not hesitate to contact your field representative, Lisa Hensel or Dawn Raymond in the FDA Quality Department. FUTURES MARKET First District Association will forward contract milk based on Class III futures for FDA members and customers who desire to lock in base values for milk. First District Association also provides a valuable option for interested and qualified members to "Average Price" a portion of their deliveries. This process allows for a smooth cash flow with level prices. Market information can be obtained by accessing the FDA Internet web page at www.firstdistrict.com, calling our voice mail system toll-free at 1-866-593-4235 or locally dial 593-4235, phoning Blimling and Associates at 1-800-726-9928, or contact Glenn Kaping at (320) 593-4239.
YOUR WANT ADS Individual or team available for relief milking. Call 320-221-0597 Willing to help with relief milking or field work. Nights or weekends. Call Steve Plamann (Hutchinson) 320-583-2850. For Sale: Crossbred Dairy Cows. Newborn to adult. Mark Blowers 320-834-5029 For Sale: 25 Registered Holstein cows, 11 bred heifers, 11 heifer calves between the ages of 0-4 months. Plus milking equipment. Call Mark at 507-227-5836 or 507-723-6672. For Sale: Meadow hay - 200 round bales, net wrapped. 320-363-8819 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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