WEBVTT 00:00:10.529 --> 00:00:13.390 Welcome to the Bullvine Podcast, your source 00:00:13.390 --> 00:00:16.129 for cutting -edge dairy industry insights and 00:00:16.129 --> 00:00:20.329 analysis. I'm Bella. In our 196th episode, we're 00:00:20.329 --> 00:00:22.850 tackling what might be the most significant economic 00:00:22.850 --> 00:00:26.170 shift for American dairy farms in a generation. 00:00:26.329 --> 00:00:29.210 And I'm Douglas. Thanks for joining us, folks. 00:00:29.899 --> 00:00:32.179 We've got an urgent topic today, the federal 00:00:32.179 --> 00:00:34.799 milk marketing order reforms coming June 1st, 00:00:34.799 --> 00:00:38.060 just 81 days from now. These changes will fundamentally 00:00:38.060 --> 00:00:41.179 reshape how your milk is valued and who profits 00:00:41.179 --> 00:00:44.759 from it. Some regions will win big, others could 00:00:44.759 --> 00:00:47.000 face devastating losses. That's right, Douglas. 00:00:47.600 --> 00:00:50.500 Today we're breaking down exactly how these reforms 00:00:50.500 --> 00:00:53.420 will impact your operation, region by region, 00:00:53.560 --> 00:00:55.979 with specific strategies you need to implement 00:00:55.979 --> 00:00:59.789 before this June deadline hits. Let's dive in. 00:01:00.710 --> 00:01:03.890 So Douglas, let's start with the basics. When 00:01:03.890 --> 00:01:06.629 we talk about federal milk marketing order reforms, 00:01:06.890 --> 00:01:10.390 or FMMO reforms, we're essentially talking about 00:01:10.390 --> 00:01:12.989 the rules that determine how milk is priced across 00:01:12.989 --> 00:01:17.950 America, correct? Exactly right, Bella. The federal 00:01:17.950 --> 00:01:20.430 milk marketing orders are essentially the rulebook 00:01:20.430 --> 00:01:23.329 that determines who gets what slice of the dairy 00:01:23.329 --> 00:01:26.560 revenue pie. And that pie is about to be cut 00:01:26.560 --> 00:01:30.260 very differently starting June 1st, 2025. And 00:01:30.260 --> 00:01:32.859 we have some critical dates our listeners should 00:01:32.859 --> 00:01:37.760 be aware of, right? Absolutely. The USDA published 00:01:37.760 --> 00:01:40.780 the final rule on January 17th of this year, 00:01:40.879 --> 00:01:43.180 after the producer referendum passed with the 00:01:43.180 --> 00:01:46.120 required two -thirds majority on December 31st, 00:01:46.120 --> 00:01:50.560 2024. The main changes kick in June 1st. That's 00:01:50.560 --> 00:01:54.140 81 days from today. But one critical component. 00:01:54.680 --> 00:01:57.299 The milk composition factor updates won't take 00:01:57.299 --> 00:02:00.900 effect until December 1, 2025. That six -month 00:02:00.900 --> 00:02:03.239 delay has significant financial implications 00:02:03.239 --> 00:02:06.299 we'll discuss later. This is all happening very 00:02:06.299 --> 00:02:09.159 quickly. Why are these reforms so significant 00:02:09.159 --> 00:02:13.159 compared to previous FMMO changes? Two reasons, 00:02:13.300 --> 00:02:16.659 Bella. First, this is the most substantial milk 00:02:16.659 --> 00:02:20.699 pricing overhaul in 25 years. Second, and more 00:02:20.699 --> 00:02:23.919 importantly, while some aspects benefit farmers, 00:02:24.430 --> 00:02:26.490 Like returning to the higher -of, class -one 00:02:26.490 --> 00:02:29.569 pricing formula, processors have secured make 00:02:29.569 --> 00:02:31.590 -allowance increases that could cost a typical 00:02:31.590 --> 00:02:35.389 100 -cow dairy approximately $56 ,000 annually. 00:02:35.990 --> 00:02:38.449 That's potentially devastating for many operations. 00:02:39.150 --> 00:02:42.069 Let's talk about that higher -of formula first. 00:02:42.770 --> 00:02:45.349 I know many producers consider this a victory, 00:02:45.509 --> 00:02:47.969 but what exactly does it mean for dairy farmers? 00:02:48.909 --> 00:02:51.629 The higher of formula determines how Class 1 00:02:51.629 --> 00:02:54.150 milk, that's fluid milk sold as a beverage, is 00:02:54.150 --> 00:02:57.669 priced. Back in the 2018 Farm Bill, they changed 00:02:57.669 --> 00:03:00.430 from using the higher of Class 3 or Class 4 prices 00:03:00.430 --> 00:03:04.969 to an average plus 74 cents formula. That experimental 00:03:04.969 --> 00:03:08.169 change backfired spectacularly during the pandemic. 00:03:08.810 --> 00:03:12.909 How badly did it backfire? Catastrophically. 00:03:13.389 --> 00:03:15.729 During market upheavals like we saw in 2020, 00:03:16.669 --> 00:03:19.069 That flawed formula transferred an estimated 00:03:19.069 --> 00:03:23.189 $725 million from farmers' pockets to processors' 00:03:23.509 --> 00:03:26.289 profit margins. That's money that should have 00:03:26.289 --> 00:03:28.389 gone to producers but didn't because of this 00:03:28.389 --> 00:03:31.610 formula change. So the return to the higher -of 00:03:31.610 --> 00:03:33.990 formula isn't really giving farmers something 00:03:33.990 --> 00:03:37.530 new. It's restoring what was taken away in 2018. 00:03:39.490 --> 00:03:43.110 Exactly. It's like if someone took $725 from 00:03:43.110 --> 00:03:47.159 your wallet, then handed you back $700, and expected 00:03:47.159 --> 00:03:50.599 you to thank them for their generosity. The return 00:03:50.599 --> 00:03:53.180 to the higher -up formula isn't some grand gift 00:03:53.180 --> 00:03:56.599 to dairy farmers. It's merely returning what 00:03:56.599 --> 00:03:59.500 was taken through that disastrous 2018 change. 00:04:00.800 --> 00:04:05.240 Did the USDA acknowledge this problem? Yes. Dana 00:04:05.240 --> 00:04:08.389 Cole. Deputy Administrator of the AMS Dairy Program 00:04:08.389 --> 00:04:11.389 actually admitted that the 2018 Farm Bill formula 00:04:11.389 --> 00:04:14.050 resulted in steep reductions in producer income 00:04:14.050 --> 00:04:16.389 as a result of market disruptions during the 00:04:16.389 --> 00:04:19.829 COVID -19 pandemic. The new order, according 00:04:19.829 --> 00:04:22.430 to Cole, gives you certainty as to what lies 00:04:22.430 --> 00:04:26.889 ahead. You know what's coming. Now let's talk 00:04:26.889 --> 00:04:29.329 about these make allowance increases that will 00:04:29.329 --> 00:04:33.480 impact producers negatively. What exactly are 00:04:33.480 --> 00:04:37.019 make allowances and why are they changing? Make 00:04:37.019 --> 00:04:39.540 allowances are essentially the margin built into 00:04:39.540 --> 00:04:42.319 pricing formulas to cover manufacturing costs. 00:04:42.899 --> 00:04:45.779 They're based on estimates of what it costs processors 00:04:45.779 --> 00:04:48.740 to make a pound of butter, cheese, whey, or dry 00:04:48.740 --> 00:04:52.199 milk powder. The bigger the make allowance, the 00:04:52.199 --> 00:04:54.540 lower the price the formula gives to producers. 00:04:54.879 --> 00:04:58.420 And how significant are these increases? They're 00:04:58.420 --> 00:05:02.370 substantial. Since 2008, Cheesemake allowances 00:05:02.370 --> 00:05:06.709 are increasing 25 .8%, from 20 .03 cents per 00:05:06.709 --> 00:05:11.009 pound to 25 .19 cents. Butter allowances increased 00:05:11.009 --> 00:05:18.790 32 .5%, from 17 .15 cents to 22 .72 cents. Nonfat 00:05:18.790 --> 00:05:22.870 dry milk sees the biggest jump, 42 .6%, going 00:05:22.870 --> 00:05:29.029 from 16 .78 cents to 23 .93 cents. And dry whey 00:05:29.029 --> 00:05:35.279 increases 34%, from 19 .91 cents to 26 .68 cents 00:05:35.279 --> 00:05:39.399 per pound. CERN, those are huge increases. What's 00:05:39.399 --> 00:05:42.000 the processor industry saying about this? Michael 00:05:42.000 --> 00:05:44.379 Dykes, president and CEO of the International 00:05:44.379 --> 00:05:47.319 Dairy Foods Association, called these important 00:05:47.319 --> 00:05:50.720 updates to elements of the FMMO system, including 00:05:50.720 --> 00:05:54.019 much -needed changes to make allowances. He also 00:05:54.019 --> 00:05:56.939 noted that, while the USDA process did not address 00:05:56.939 --> 00:05:59.439 all issues within the supply chain, particularly 00:05:59.439 --> 00:06:03.180 for Class I and organic milk processors, IDFA 00:06:03.180 --> 00:06:05.639 is optimistic that this process has laid the 00:06:05.639 --> 00:06:08.040 groundwork for a unified and forward -looking 00:06:08.040 --> 00:06:12.000 dairy industry. But farm organizations don't 00:06:12.000 --> 00:06:14.899 see it that way, do they? Serious, not at all. 00:06:15.579 --> 00:06:18.240 Zippy Duvall, president of the American Farm 00:06:18.240 --> 00:06:21.379 Bureau Federation, strongly criticized the process. 00:06:21.949 --> 00:06:25.110 stating that USDA instead bases make allowances 00:06:25.110 --> 00:06:28.269 on an unscientific voluntary survey that allows 00:06:28.269 --> 00:06:31.290 processors to opt out, skewing the results in 00:06:31.290 --> 00:06:33.310 a direction that results in lower milk prices 00:06:33.310 --> 00:06:36.990 for farmers. Farm Bureau analysis suggests that 00:06:36.990 --> 00:06:39.170 changing the make allowance without a mandatory 00:06:39.170 --> 00:06:41.769 audited survey could lead to unjust penalties 00:06:41.769 --> 00:06:44.430 for dairy farmers, which directly defies the 00:06:44.430 --> 00:06:47.410 intended purpose of the FMMO system. You know, 00:06:47.410 --> 00:06:49.910 what would these make allowance increases have 00:06:49.910 --> 00:06:52.410 meant? if they had been implemented earlier. 00:06:53.250 --> 00:06:56.129 According to USDA analysis, if these changes 00:06:56.129 --> 00:06:59.790 had been implemented between 2019 and 2023, they 00:06:59.790 --> 00:07:01.949 would have reduced Class III prices by $0 .90 00:07:01.949 --> 00:07:04.970 per hundredweight and Class IV prices by $0 .85 00:07:04.970 --> 00:07:08.449 per hundredweight. Those reductions directly 00:07:08.449 --> 00:07:11.550 impact producer payments, particularly in regions 00:07:11.550 --> 00:07:15.449 with high manufacturing utilization. To the strength. 00:07:16.050 --> 00:07:18.689 This brings us to what might be the most important 00:07:18.689 --> 00:07:21.819 aspect for our listeners. how these changes will 00:07:21.819 --> 00:07:24.759 impact different regions. It sounds like there 00:07:24.759 --> 00:07:27.259 will be clear winners and losers based on geography. 00:07:28.139 --> 00:07:31.199 That's absolutely right, Bella. The nationwide 00:07:31.199 --> 00:07:33.879 referendum that approved these changes masked 00:07:33.879 --> 00:07:36.939 profound regional disparities in how these reforms 00:07:36.939 --> 00:07:40.540 will impact farm -level profitability. Let's 00:07:40.540 --> 00:07:43.560 break it down region by region. Let's start with 00:07:43.560 --> 00:07:46.879 the Northeast. I understand they might actually 00:07:46.879 --> 00:07:50.990 benefit from these changes. Correct. Northeast 00:07:50.990 --> 00:07:53.730 dairy producers face what industry analysts describe 00:07:53.730 --> 00:07:56.069 as a period of potential competitive advantage 00:07:56.069 --> 00:07:59.949 after years of challenging margins. The key factor 00:07:59.949 --> 00:08:02.790 is their higher Class I utilization, meaning 00:08:02.790 --> 00:08:04.750 more of their milk goes into fluid products. 00:08:05.170 --> 00:08:07.850 This makes them less vulnerable to the make allowance 00:08:07.850 --> 00:08:10.810 increases, which primarily affect manufacturing 00:08:10.810 --> 00:08:14.910 classes. According to Farm Bureau analysis, Northeast 00:08:14.910 --> 00:08:17.350 producers stand to benefit significantly from 00:08:17.350 --> 00:08:20.529 the reforms. There's also new processing capacity 00:08:20.529 --> 00:08:25.129 coming online in that region, right? Yes, and 00:08:25.129 --> 00:08:28.449 that timing couldn't be better. New processing 00:08:28.449 --> 00:08:30.649 investments in New York and Pennsylvania create 00:08:30.649 --> 00:08:34.129 a unique window of opportunity. Before Northeast 00:08:34.129 --> 00:08:36.549 producers break ground on expansion plans, though, 00:08:36.649 --> 00:08:39.129 they should ensure they're extracting maximum 00:08:39.129 --> 00:08:41.990 value from their existing herds through optimized 00:08:41.990 --> 00:08:45.090 nutrition, genetics, and management practices 00:08:45.090 --> 00:08:49.120 focused on component production efficiency. What 00:08:49.120 --> 00:08:52.740 about upper Midwest producers? I imagine Wisconsin 00:08:52.740 --> 00:08:55.899 and Minnesota operations are viewing these changes 00:08:55.899 --> 00:08:58.899 differently. The outlook is much more concerning 00:08:58.899 --> 00:09:02.460 there. Edge Dairy Farmer Cooperative directly 00:09:02.460 --> 00:09:05.279 acknowledges that the reforms would slightly 00:09:05.279 --> 00:09:08.159 decrease the minimum regulated price private 00:09:08.159 --> 00:09:10.860 milk buyers have to pay to pooled milk producers 00:09:10.860 --> 00:09:14.929 in the upper Midwest order. This regional disadvantage 00:09:14.929 --> 00:09:17.830 stems from several technical aspects of the reform 00:09:17.830 --> 00:09:20.570 package, particularly how components are valued. 00:09:22.629 --> 00:09:28.009 The decision to update skim milk composition 00:09:28.009 --> 00:09:31.129 factors without corresponding increases in butterfat 00:09:31.129 --> 00:09:34.230 factors creates particular complications for 00:09:34.230 --> 00:09:36.629 upper Midwest producers who typically emphasize 00:09:36.629 --> 00:09:40.269 butterfat production. According to industry analysis, 00:09:40.919 --> 00:09:42.980 These adjustments could significantly impact 00:09:42.980 --> 00:09:46.379 the upper Midwest pool value. It threatens the 00:09:46.379 --> 00:09:48.960 region's competitive position and demands immediate 00:09:48.960 --> 00:09:51.980 adaptive strategies. And what's happening with 00:09:51.980 --> 00:09:55.120 Western operations? California, the Southwest, 00:09:55.539 --> 00:09:58.620 and Pacific Northwest? They face the most significant 00:09:58.620 --> 00:10:01.720 challenges. According to Farm Bureau analysis, 00:10:02.539 --> 00:10:05.539 California would experience a $94 million reduction 00:10:05.539 --> 00:10:08.700 in pool value, while the Southwest would see 00:10:08.700 --> 00:10:13.240 a $72 million decrease. These regional disadvantages 00:10:13.240 --> 00:10:16.039 stem from the higher proportion of milk utilized 00:10:16.039 --> 00:10:18.700 in Class III and IV manufacturing in these areas. 00:10:19.620 --> 00:10:22.320 With make allowance increases directly reducing 00:10:22.320 --> 00:10:25.120 the value of milk used in these classes, Western 00:10:25.120 --> 00:10:27.779 producers face the most dramatic negative impacts. 00:10:28.409 --> 00:10:31.230 That's a staggering regional disparity. What 00:10:31.230 --> 00:10:34.649 about central and midiest regions? They're actually 00:10:34.649 --> 00:10:36.990 positioned to see modest price improvements. 00:10:37.870 --> 00:10:41.110 According to industry analysis, the reforms would 00:10:41.110 --> 00:10:43.590 slightly increase the price to producers in the 00:10:43.590 --> 00:10:47.450 central and midiest orders. This advantage stems 00:10:47.450 --> 00:10:50.149 from their geographic proximity to major population 00:10:50.149 --> 00:10:53.450 centers and fluid milk markets, giving them a 00:10:53.450 --> 00:10:56.009 competitive advantage under the reformed pricing 00:10:56.009 --> 00:10:59.980 structure. Let's shift gears to what producers 00:10:59.980 --> 00:11:03.740 can do right now. With implementation just 81 00:11:03.740 --> 00:11:07.120 days away, what strategies should forward -thinking 00:11:07.120 --> 00:11:10.179 dairy farmers be implementing? The strategies 00:11:10.179 --> 00:11:13.460 vary dramatically by region, Bella. Northeast 00:11:13.460 --> 00:11:16.039 producers should focus on maximizing component 00:11:16.039 --> 00:11:19.059 production while potentially exploring strategic 00:11:19.059 --> 00:11:21.519 expansion due to their favorable positioning. 00:11:22.759 --> 00:11:24.600 They should be thinking about how to capitalize 00:11:24.600 --> 00:11:27.700 on what industry analysts call a period of potential 00:11:27.700 --> 00:11:30.860 competitive advantage. What about upper Midwest 00:11:30.860 --> 00:11:33.480 producers facing decreased regulated minimum 00:11:33.480 --> 00:11:37.039 prices? They need to pursue enhanced over -order 00:11:37.039 --> 00:11:40.059 premium negotiations immediately. With concerns 00:11:40.059 --> 00:11:42.960 about potential pool value losses, these producers 00:11:42.960 --> 00:11:46.679 must identify alternate revenue streams. According 00:11:46.679 --> 00:11:49.379 to Mark Stevenson, a noted dairy policy expert, 00:11:50.200 --> 00:11:52.360 To the extent that co -ops are not losing money 00:11:52.360 --> 00:11:55.159 at these higher make allowances, that wouldn't 00:11:55.159 --> 00:11:58.779 be coming off as a deduction, potentially. And 00:11:58.779 --> 00:12:00.360 to the extent that you have more proprietary 00:12:00.360 --> 00:12:03.179 firms covering their make allowances, they may 00:12:03.179 --> 00:12:05.399 be able to put some of those overorder premiums 00:12:05.399 --> 00:12:12.970 back into place. They face the most significant 00:12:12.970 --> 00:12:15.509 challenges and need to evaluate whether their 00:12:15.509 --> 00:12:18.309 current scale and efficiency can overcome these 00:12:18.309 --> 00:12:22.330 regulatory disadvantages. Some may need to consider 00:12:22.330 --> 00:12:25.690 more dramatic business model adjustments. Cost 00:12:25.690 --> 00:12:28.330 containment will be absolutely critical, as will 00:12:28.330 --> 00:12:30.350 exploring alternative marketing arrangements. 00:12:31.450 --> 00:12:35.409 You mentioned component production earlier. There 00:12:35.409 --> 00:12:37.809 are some significant changes to milk composition 00:12:37.809 --> 00:12:42.210 factors coming in December, right? Yes, but not 00:12:42.210 --> 00:12:46.009 until December 1st, 2025, six months after the 00:12:46.009 --> 00:12:49.370 main implementation date. True protein will be 00:12:49.370 --> 00:12:54.330 updated from 3 .1 % to 3 .3%, other solids from 00:12:54.330 --> 00:13:00.230 5 .9 % to 6 .0%, and nonfat solids from 9 .0 00:13:00.230 --> 00:13:04.509 % to 9 .3%. What's the impact of these changes? 00:13:05.389 --> 00:13:07.929 These adjustments will slightly increase revenue 00:13:07.929 --> 00:13:11.129 from beverage, class 1, milk sales to pooled 00:13:11.129 --> 00:13:13.970 producers, creating incentives to optimize component 00:13:13.970 --> 00:13:17.470 production. The six -month delay in implementation 00:13:17.470 --> 00:13:19.990 means producers won't see this benefit until 00:13:19.990 --> 00:13:23.929 December. Industry analysis suggests this delay 00:13:23.929 --> 00:13:26.690 could cost dairy farmers more than $100 million 00:13:26.690 --> 00:13:31.230 during the first six months alone. Helia, but 00:13:31.230 --> 00:13:34.159 there's no change to butterfat standards. That's 00:13:34.159 --> 00:13:37.480 one of the most problematic aspects. USDA decided 00:13:37.480 --> 00:13:40.379 against updating butterfat solids factors despite 00:13:40.379 --> 00:13:43.080 growth in milk butterfat content in recent years. 00:13:43.899 --> 00:13:46.700 This imbalanced approach creates new strategic 00:13:46.700 --> 00:13:49.120 considerations for feeding and breeding programs, 00:13:49.399 --> 00:13:52.340 particularly for operations that have historically 00:13:52.340 --> 00:13:56.460 emphasized butterfat production. Let's talk about 00:13:56.460 --> 00:13:59.320 risk management. How will these changes impact 00:13:59.320 --> 00:14:03.000 producers' hedging programs? The structural changes 00:14:03.000 --> 00:14:05.220 to pricing formulas necessitate an immediate 00:14:05.220 --> 00:14:08.279 review of risk management strategies. Industry 00:14:08.279 --> 00:14:10.860 experts have specifically cautioned about complications 00:14:10.860 --> 00:14:14.340 for dairy producers' hedging programs. Producers 00:14:14.340 --> 00:14:16.860 utilizing Class III milk futures or equivalent 00:14:16.860 --> 00:14:20.399 USDA insurance products may face increased exposure 00:14:20.399 --> 00:14:23.179 to butterfat price risk under the new system. 00:14:23.519 --> 00:14:26.320 What should producers be doing right now to prepare? 00:14:27.629 --> 00:14:30.129 Progressive operations are already consulting 00:14:30.129 --> 00:14:33.309 with risk management specialists to recalibrate 00:14:33.309 --> 00:14:36.149 their hedging programs, particularly regarding 00:14:36.149 --> 00:14:39.110 the alignment between component production, forward 00:14:39.110 --> 00:14:41.470 contracting practices, and futures positions. 00:14:42.049 --> 00:14:45.110 The transition period between now and full implementation 00:14:45.110 --> 00:14:48.210 presents a critical window for adjusting these 00:14:48.210 --> 00:14:59.370 strategies. Absolutely. Removing 500 -pound barrel 00:14:59.370 --> 00:15:01.909 cheddar cheese from pricing calculations means 00:15:01.909 --> 00:15:05.049 Class III pricing will be based solely on 40 00:15:05.049 --> 00:15:08.409 -pound block prices. According to industry analysis, 00:15:08.830 --> 00:15:11.649 industry advocates of this removal believe relying 00:15:11.649 --> 00:15:14.509 solely on 40 -pound block cheddar cheese to set 00:15:14.509 --> 00:15:16.769 the monthly announced cheese price will reduce 00:15:16.769 --> 00:15:20.330 the volatility of cheese prices. However, this 00:15:20.330 --> 00:15:23.049 change requires careful reconsideration of existing 00:15:23.049 --> 00:15:26.269 risk management approaches. We've covered a lot 00:15:26.269 --> 00:15:29.470 of ground today, Douglas. As we wrap up, what 00:15:29.470 --> 00:15:31.730 are the key takeaways dairy producers should 00:15:31.730 --> 00:15:36.009 remember about these FMMO reforms? Four critical 00:15:36.009 --> 00:15:40.009 points, Bella. First, processor advantage. Make 00:15:40.009 --> 00:15:43.669 allowances are surging 25 to 42 percent, potentially 00:15:43.669 --> 00:15:47.309 costing farmers $56 ,000 annually per 100 cows. 00:15:48.009 --> 00:15:52.090 Second, regional impacts vary dramatically. Northeast 00:15:52.090 --> 00:15:54.549 operations gain from high Class I utilization. 00:15:55.179 --> 00:15:57.600 while Midwest and California operations face 00:15:57.600 --> 00:16:01.580 potential losses exceeding $94 million. Third, 00:16:01.799 --> 00:16:04.600 the restored higher -of formula recovers what 00:16:04.600 --> 00:16:07.019 was essentially stolen from farmers by that flawed 00:16:07.019 --> 00:16:10.960 2018 policy change. And fourth, the implementation 00:16:10.960 --> 00:16:14.700 countdown. Just 81 days remain to renegotiate 00:16:14.700 --> 00:16:17.559 premiums, adjust hedging strategies, and optimize 00:16:17.559 --> 00:16:20.679 component production. It sounds like the coming 00:16:20.679 --> 00:16:23.450 months. will be critical for dairy operations 00:16:23.450 --> 00:16:27.230 across America. What's your final advice to our 00:16:27.230 --> 00:16:30.250 listeners? Your competitors aren't waiting for 00:16:30.250 --> 00:16:33.350 perfect reforms. They're adapting to what's coming. 00:16:33.950 --> 00:16:36.789 The question is whether your operation is similarly 00:16:36.789 --> 00:16:39.269 prepared for dairy's new economic landscape. 00:16:39.669 --> 00:16:42.250 While these changes will create market stability, 00:16:42.669 --> 00:16:45.289 that stability will benefit some regions far 00:16:45.289 --> 00:16:48.230 more than others. Make your adaptation strategy 00:16:48.230 --> 00:16:52.169 a top priority today. not 80 days from now when 00:16:52.169 --> 00:16:54.649 it's too late. Thank you, Douglas, for that expert 00:16:54.649 --> 00:16:56.870 analysis. And thank you to our listeners for 00:16:56.870 --> 00:16:59.210 joining us for this critical discussion. For 00:16:59.210 --> 00:17:02.269 more dairy industry insights and analysis, visit 00:17:02.269 --> 00:17:06.970 www .thebullvine .com. Until next time, I'm Bella. 00:17:07.829 --> 00:17:10.410 And I'm Douglas. Thanks for listening to The 00:17:10.410 --> 00:17:11.069 Bullvine Podcast.