Within our office we have a standing company policy for all returning from an industry trade show. It is: Staff must write up their show experience, including leads found, contacts made and underdeveloped opportunities. So, to be as fair to readers as I am to my colleagues, I share with you a few of my most recent discoveries from World Ag Expo.
Fewer Looky Lou’s
A prevalent theme during World Ag Expo was the current state of the dairy economy. I met with many exhibitors with a variety of product offerings. They noticed that producer traffic at the show was a bit lighter than it has been in the past. While it did seem like there were fewer bodies in the Dairy Center, producers were in attendance. They were just more selective about which booths they stopped at. Usually they had a specific purpose in mind if they did stop. As one of my colleagues said, “There were fewer Looky Lou’s.”
Where do we go from here?
Each dairy producer I spoke with had a different perspective on the dairy industry’s current situation. One from California was convinced the downturn wasn’t his fault. He said he is milking the same number of cows this month that he did two years ago, so it’s the guys that have expanded that should cut back and fix the oversupply problem. Another group was asking why milk in the store in California was still selling for more than $4.50 a gallon. That seemed wrong to them. I also spoke with a younger producer who is also a veterinarian by training. He said things were rough, but he smiled for nearly three-fourths of our conversation. He said he intended to try to ride through it. He joked that if he just couldn’t make it work he could go back to being a vet, if there are any dairies left for clientele.
‘Don’t cut me’
Of course, I asked exhibitors the same question I’ve been asking producers, “How do dairymen cut costs to make it out of the current situation?” Not surprisingly the usual response was that producers should analyze the use of some other product or service before considering a cutback in the respondent’s offerings. One of these responses did seem to make sense, however. Before switching from 3x to 2x milking, cull heavily, one milking parlor expert told me. In some cases, a switch in milking frequency may be required. But why do it without seeing if you can milk fewer low-producing cows first? It made sense to me, even though I know of dairy producers that have made this switch already without considering the suggestion.
Recent expansions scare me
One expert I spoke with said out of all the producer situations out there the one that he fears for the most is a recently expanded producer – one who leveraged equity in order to expand. Many of these producers are among the younger demographic. Losing too many of them would challenge our industry for the future. Hang in there!
The view from above
I took a private pre-show helicopter ride over the show grounds and Tulare County. With me were the marketing account executives for a U.S. company. Even the skies aren’t without branding. Several outdoor exhibitors made sure to label the top of their tents with company logos. As we circled the show grounds, my companions commented on which booths would be most attractive to dairy producers. Their assessment was that the booths with a tight configuration and alignment of products would get the most visitors. From the best I can tell, they were right.
As we flew over some of the calf ranches and rows upon rows of calf hutches, I couldn’t help but imagine how Prop 2 will change California dairying and how producers raise or procure their replacements. I asked several calf experts what they think of the new legal requirements and how they anticipate raisers will respond. They noted the vagueness of the language in the proposition. (A person shall not tether or confine any covered animal, on a farm, for all or the majority of any day, in a manner that prevents such animal from lying down, standing up, and fully extending his or her limbs; and turning around freely.) Their consensus was that some poor dairyman or raiser will be sued in 2012 when the proposition goes into full effect and that a judge will decide what is legal. That’s a high-stakes bet brewing with a less-than-favorable dairy decision likely. What was most surprising to me was that our pilot had no idea what Prop 2 was or what a majority of the residents of California had to say about it. I was amazed again at the HSUS marketing, lobbying and spin machine.
NIR on corn choppers?
Real-time near-infrared nutrient analysis for commercial silage choppers is here, according to one forage expert I spoke with in California. Imagine the flexibility and possibilities for producers. Know which sections of the field are more nutrient-dense and even segregate out the best forage sections, not just fields, into their own bunker for high-cow diets. It’s mind-boggling, really.
Methane-powered milk truck unveiled
Dairyman Rob Hilarides showcased his new diesel truck running on compressed biomethane. Hilarides’ truck is the result of a public-private partnership to replace diesel engines with renewable fuel engines in California’s Central Valley. The dairy owns the first two trucks to be built, which each haul at least one load per day from Hilarides’ Dairy in Lindsay, California, to Hilmar Cheese in Hilmar, California, about a 280-mile one-way trip. The project took four years to complete from start to finish. Hilarides said that if instructing dairy producers who wanted to do something similar, he would suggest they do lots of homework. The initial mechanical design of the engine and regulations were the most challenging hurdles to the project.
Hilarides’ biomethane engine gets 6 miles to the gallon fuel efficiency which is comparable to most diesel engines. But that’s where the comparison ended for me. When he fired up the engine, I expected to hear the roar of a diesel engine but heard only a muted grumble with a consistent clicking sound. (The clicking was normal. I’m not sure if it was from the fan belt cooling the engine or another part of the relatively small engine.)
During the press announcement, the most flattering words spoken came from Sustainable Conservation’s Director of Sustainable Agriculture, Allen Dusault. He said: “Farmers that are doing the right thing are the true environmentalists.” He labeled Hilarides as one of them. I only hope that sound bite made it onto the 6 p.m. evening news.
Maybe it’s not sexed semen
I enjoyed hearing producers’ and exhibitors’ theories on why our industry has recently experienced one of its toughest crises in recent memory. The responses I received were predictable, except one. A visitor I talked to at World Ag Expo showed me some interesting figures to support his theory of why we are currently in oversupply for both milk and heifers. It has to do with breeding, but he wasn’t primarily blaming sexed semen. I’m checking out the figures and may report them in an upcoming article. PD