CoOps

Coming Soon: Podcast Launching With Focus on Co-Op Boards

Thu, 31 Oct 2024 14:02:43 GMT

A new podcast is on the way with a mission to help improve co-op boards.

The Build Better Boards podcast will be hosted by Keri Jacobs, professor at the University of Missouri-Columbia, and Richard Fagerlin, co-founder of Build Better Boards. It launches Monday, Nov. 4.

With the goal of elevating board member leadership, the podcast will provide:

expert insights
practical tools
impactful conversations

“Whether you’re a seasoned board member or just starting out, our episodes provide the tools and inspiration you need to strengthen your board and make a greater impact in your organization,” Build Better Boards shares on LinkedIn.

The podcast will have bi-monthly episodes and feature industry-leading guests and questions from the greater co-op community.

To listen, search for “Build Better Boards” wherever you find your podcasts.

Midwest Dairy Producers Forced to Dump Milk

Fri, 04 Oct 2024 20:19:15 GMT

With much of the Upper Midwest processing capacity maxed out in terms of milk production, finding a new home for milk is not an easy task. Lucas Sjostrom, the executive director of Minnesota Milk shared that Hastings Creamery ability to discharge is shut down for 30 days, as they need to take their waste elsewhere. Sjostrom shares they are continuing operations and are accepting and diverting milk from the same farmers as needed.

“We’ve been working over the past few weeks with the farmers to find alternative markets while government officials have been looking to find a solution to keep the plant open,” he says. “We believe every milk buyer across the Upper Midwest is aware of the situation. Plants are already voluntarily dumping milk on-farm on certain days and even though we have transportation available, most plants cannot currently take the milk even for free.”

Hastings Creamery processes 150,000 lbs. of raw milk each day and purchases it from dairy farmers located in both Minnesota and Wisconsin. A variety of dairy products are under Hastings Creamery label, as well as some private labels for other companies and grocery store chains.

Justin Malone, one of the creamery’s owners, shared that it is a tough time in the dairy industry and some farmers are forced to dump milk because they can’t find any processing plants with the capacity to accept additional milk.

Other Farms Forced to Dump Milk, Too

The reality is that not only Hastings Creamery is impacted by an oversupply of milk on the market. Mitch Thompson owns and operates Thompson Family Dairy in Lewiston, Minn., and is a member-owner of Associated Milk Producers Inc. (AMPI). He shared that he had to dump milk from his herd on June 2.

“The milk hauler picked our milk up and said, ‘Well, I’m taking it to another farm’s field that just chopped rye to dump the milk in the field,’” he says, noting that he still will get paid for that dump milk, but shares the whole cooperative suffers when milk isn’t sold.

Thompson is uncertain on how long dumping milk will continue but shares that he is concerned about the current state of the dairy industry.

“We’re shipping around 70,000 lbs. of milk a day, so I worry where’s all that milk going to go,” he questions. “If they keep dumping the milk, how bad is our [milk] price going to get?”

At the time of the interview, Thompson shared that his farm’s milk was picked up and taken to the plant on June 5.

“It sounded like they were going to get a couple of other different farms and dump their milk like everybody’s taking their turn,” he shared.

Meanwhile, it’s normal business at Thompson Dairy, as cows must be milked every day. Even when the milk is then dumped into a nearby field.

“This is a real kick in the shorts. How long can you keep doing this when the milk price is so low already,” Thompson notes, sharing that he is concerned about the current situation of milk being dumped, as well as low milk prices.

“I just wonder when will things turn around,” he asks.

Flooded Milk Market

Sarah Schmidt, vice president of marketing with AMPI, says the reason producers are having to dump milk is simply because there is currently a flooded milk market.

“There is more milk on the market and fluid milk sales have declined dramatically, especially with schools closing for the summer,” she says. “Those fluid milk sales were there for the past several months and simply are not there now.”

Schmidt comments that milk from outside the Upper Midwest is pushing into the region and displacing typical, seasonal sales. She also notes all AMPI milk receiving plants are running at full capacity.

“The milk produced on member farms is exceeding our processing and marketing capacity,” she says. “The team is working hard to keep milk moving into processing facilities.”

Schmidt says unfortunately they do not see any specific signs as to when the tides are going to turn.

“What we do know is that dairy farmers produce a fantastic product and there is good demand for cheese and butter. I’m hopeful low cheese market prices make their way into the grocery stores, spurring increased sales,” she says.

Walmart Announces Plans to Build $350 Million Milk Processing Plant in Southern Georgia

Fri, 27 Sep 2024 14:15:20 GMT

America’s largest retail store has announced its plans to build a $350 million milk processing plant in Valdosta, Ga. With more than 4,600 stores located throughout the U.S., the Arkansas-based company says the new plant will provide milk to more than 750 Walmart and Sam’s Club stores in Georgia along with neighboring states.

Bruce Heckman, Walmart’s vice president of manufacturing, said in a statement that the company wants to do more to ensure its milk supply, saying the company wants to provide “high-quality milk for our customers that we can offer at the everyday low prices they rely on.”

In the past, Walmart has purchased its great-value branded milk from other dairy cooperatives. However, over the last decade, the retail giant has built a series of milk processing plants to control production of one of the most price-sensitive grocery commodities. Walmart opened its first fluid milk processing facility in 2018 in Fort Wayne, Ind.

According to the Associated Press, the retail giant is following the lead of other large grocers such as Kroger, which has long run its own dairy processing facilities. But some critics have warned Walmart buys milk from only a handful of large farms, putting smaller farms under further pressure.

Georgia Milk Producers, a dairy farmer trade group, reports Georgia currently has 89 dairy farms, with 92,000 dairy cows, more than 1,000 cows per farm. Georgia produced 235 million gallons of milk in 2022, the largest of any southern state. Currently, the peach state only has two commercial milk processing plants located in Atlanta and Lawrenceville.

The new fluid milk processing facility is scheduled to begin operations in Valdosta in late 2025 and could employ up to 400 people. In a statement made by the retailer, the facility will create milk products using ingredients sourced from local farmers throughout the Southeast region under Walmart’s Great Value and Members Mark brands.

For more industry news, read:

Walmart Makes Plans to Build Third New Milk Processing Plant, This Time in Texas

Thu, 07 Mar 2024 19:38:05 GMT

Walmart, America’s largest retail store, has announced its plans to build its third milk processing plant – this time in Robinson, Texas, which is just south of Waco. The $350 million facility is slated to open in 2026, with Walmart saying the new facility will source its milk primarily from Texas dairy farmers.

This news comes off the heels of the company’s announcement in October last year to build a second processing plant in Valdosta, Ga. The Georgia facility is expected to open in 2025.

In the past, Walmart has purchased its great-value branded milk from other dairy cooperatives. However, over the last decade, the retail giant has built a series of milk processing plants to control the production of one of the most price-sensitive grocery commodities. Walmart opened its first fluid milk processing facility in 2018 in Fort Wayne, Ind.

Bruce Heckman, vice president of Manufacturing at Walmart, shared his thoughts.

“We’re excited to be able to provide Texas and its surrounding states with high-quality milk sourced primarily from Texas dairy farmers,” Heckman says. “This new facility continues our commitment to building a more resilient and transparent supply chain and ensuring our customers’ needs are met for this everyday staple.”

Leaders across Texas also voiced their opinions on the retailer’s announcement.

Greg Abbott – Texas Governor: “Walmart’s new processing facility in Robinson is exciting news for Texas, creating millions in investment for the local economy and hundreds of new, good-paying jobs for hardworking Texans in Central Texas. World-renowned companies like Walmart continue to choose Texas because of our unmatched business climate, lower business operating costs, and highly skilled, diverse and growing workforce. This major investment is a testament to the promise of economic success in Texas, and I thank Walmart for choosing McLennan County as the location for its important new facility.”

Bert Echterling – Mayor of Robinson: “As the proud mayor of Robinson, I am thrilled to announce a groundbreaking addition to our beloved city’s industrial sector. Today marks a momentous occasion as we welcome Walmart, a pioneering industry leader, to our community. This monumental investment is the first of its kind in both size and value, signaling a transformative era for Robinson. The decision of Walmart to establish its roots here is a testament to the strength of our local economy, the dedication of our workforce and the strategic advantages that our city offers. This landmark development not only promises job creation and economic growth but also underscores Robinson’s position as a hub for innovation and progress.”

Scott M. Felton – Judge of McLennan County: “We are proud to welcome a company, which tops the Fortune 500, to McLennan County.Great appreciation goes to the Robinson City Council, its city manager, Craig Lemin, and McLennan County Commissioner Jim Smith for working hand-in-hand with Walmart to ensure the necessary needs were met. This project is another example of how cities throughout McLennan County can participate in economic development. McLennan County is excited that our region has been named one of the top regions for food and beverage manufacturing businesses and this project reinforces our strength in this area.”

In a statement made by the retailer, the facility will process and bottle a variety of milk options, including Gallon, Half Gallon, Whole, 2%, 1%, Skim, and 1% Chocolate Milk for Walmart’s Great Value and Sam’s Club’s Member’s Mark brands. The products from the facility will serve more than 750 Walmart stores and Sam’s Clubs throughout the South including Texas, Oklahoma, Louisiana and parts of Arkansas and Mississippi.

For more industry news, read:

Almost Half of the Largest 100 Cooperatives Are Focused in Agriculture

Thu, 26 Oct 2023 21:08:38 GMT

For more than 30 years, the National Cooperative Bank (NCB) has published its list of top 100 cooperatives across the U.S. For the latest list—based on 2022 data—47 of the 100 cooperatives are in agriculture. In all, 59% of the $319 billion in generated revenues of co-operatives are from those ag-focused co-ops: $187.6 billion.

NCB estimates one in three Americans are a member of a co-op, and NCB provides comprehensive banking products and services to cooperatives and other member-owned organizations in the U.S.

The agricultural cooperatives range from farm supply, grain, dairy, livestock marketing, crop production/processing and more.

Here’s a list of the agriculture-focused cooperatives, with their top 100 ranking.

1 CHS Inc. Inver Grove Heights MN
2 Dairy Farmers of America Kansas City KS
3 Land O’Lakes, Inc. Arden Hills MN
4 GROWMARK, Inc. Bloomington IL
11 Ag Processing Inc. Omaha NE
14 California Dairies, Inc. Visalia CA
15 Prairie Farms Dairy Inc. Edwardsville IL
18 Agtegra Cooperative, Inc. Aberdeen SD
19 Central Valley Ag Cooperative York NE
20 Darigold Seattle WA
22 Select Milk Producers, Inc. Artesia NM
23 New Cooperative, Inc. Fort Dodge IA
25 Landus Cooperative Ames IA
26 Foremost Farms USA Cooperative Baraboo WI
27 Countrymark Cooperative Holding Corporation Indianapolis IN
30 Associated Milk Producers, Inc New Ulm MN
31 MFA Incorporated Columbia MO
33 Ocean Spray Middleboro MA
34 Heartland Co-op West Des Moines IA
37 GreenPoint Ag Decatur AL
39 American Crystal Sugar Co. Moorhead MN
40 Aurora Cooperative Elevator Company Aurora NE
42 United Cooperative Beaver Dam WI
43 Plains Cotton Co-op Association Lubbock TX
44 Producers Livestock Marketing Association Omaha NE
45 Blue Diamond Growers Sacramento CA
47 MFA Oil Company Columbia MO
50 Farmers Cooperative Dorchester NE
51 Upstate-Niagara cooperative, Inc. Buffalo NY
54 Michigan Milk Producers Association Novi MI
55 MD & VA Milk Producers Cooperative Association Herndon VA
56 Cooperative Producers, Inc. Hastings NE
59 Agri-Mark Inc./Cabot Creamery Methuen MA
62 Riceland Foods, Inc. Stuttgart AR
63 Organic Valley (CROPP) La Farge WI
65 Staple Cotton Cooperative Association Greenwood MS
67 Heritage Cooperative Delaware OH
68 First District Association Litchfield MN
69 Amalgamated Sugar Company Boise ID
71 United Producers, Inc Columbus OH
76 Ceres Solutions Cooperative Crawfordsville IN
77 Innovative Ag Services Co. Monticello IA
79 Bongards’ Creameries Chanhassen MN
80 Pacific Coast Producers Lodi CA
84 National Farmers Ames IA
93 Florida’s Natural Growers, Inc. Lake Wales FL

U.S. Milk Production and Cow Numbers Both Rise

Tue, 21 Mar 2023 20:38:56 GMT

The February 2023 USDA Milk Production report showed an 0.8% increase in year-over-year milk production with a total of 17.7 billion lbs. of milk. Five of the top six states illustrated production growth except for California, which declined.

Also following suit, U.S. cow numbers documented growth, up 37,000 head from last February and up an additional 12,000 cows from last month. In fact, five of the top six states illustrated positive growth except for Wisconsin, which lost 3,000 cows.

Dan Basse, president of AgResources Company, told the PDPW audience last week at their business meeting in Wisconsin Dells, Wis., that the reason for a decline in cow numbers in the Badger State stems mostly from environmental pressures.

State	Production	% Change	Cows
California	3.282 billion lbs.	-0.9%	+3,000
Wisconsin	2.445 billion lbs.	+0.3%	-3,000
Texas	1.326 billion lbs.	+5.5%	+22,000
Idaho	1.284 billion lbs.	+3.4%	+15,000
New York	1.222 billion lbs.	+2.9%	+10,000
Michigan	927 million lbs.	+3.1%	+7,000

These top six U.S. cow number states account for more than half of total U.S. production. Production per cow in the U.S. averaged 7 lbs. more than in February 2022.

Phil Plourd, president of Ever.Ag, says tailwinds from generally strong 2022 profitability continue to propel modest growth in our national herd size as well as milk output.

“That could continue for a bit, but we see headwinds on the horizon as lower milk prices cut into margins,” he says. “We doubt that milk production will be robust by the time the fourth quarter rolls around.”

Tanner Ehmke with Co-Bank says the new cheese processing capacity coming online in the Texas Panhandle also adds a tailwind to the herd growth in states like Texas and Idaho. The driver behind this is feed availability.

“Herd growth areas, like Texas and Idaho, are going to continue to get bigger,” he states.

Land O’ Lakes Pilots Autonomous Trucking, Delivers 20 Tons of Butter

Wed, 11 Nov 2020 06:21:31 GMT

In a recent blog post, Land O’ Lakes details how they worked with Plus.ai, a Silicon Valley startup, to address “peak” butter demand for holiday cooking and baking.

This collaboration resulted in the first coast-to-coast freight trip by a self-driving truck . The 2,800 mile route was from Tulare, Calif., to Quakerstown, Penn., and the payload was 40,000 lb. of butter.

“We are thrilled to collaborate with technology leaders like Plus.ai to pilot autonomous trucks for our shipping needs,” said Yone Dewberry, chief supply chain officer for Land O’Lakes in the blog post.

The trip was three days, and there was a “safety driver” in the cab at all times. The companies report the truck successfully navigated through a variety of weather and road conditions.

The technology making this demo successful includes: cutting-edge sensors, deep learning algorithms and simultaneous location and mapping (SLAM) technologies.

“This cross-country freight run with Land O’Lakes shows the safety, efficiency and maturity of our autonomous trucks,” said Shawn Kerrigan, COO and co-founder of Plus.ai. in a news release.

And Land O’ Lakes says there is more to come in how it uses technology to transform its logistics, such as Uber Freight. Here’s video of a case study from Uber Freight highlighting Land O’ Lakes: