WEBVTT

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Welcome to another hard -hitting episode of the

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Bullvine Podcast. Grab your coffee or that ice

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-cold glass of milk because we're diving deep

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into the trends, technologies, and trade battles

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that are reshaping your operations future. From

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farm consolidation that's cutting the industry

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in half to military deployments against foot

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and mouth disease, this week's headlines demand

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your attention. Let's jump right in. Today's

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lineup is absolutely packed with game -changing

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stories that touch every aspect of your business,

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from your bottom line to your breeding program,

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from political battles to protein revolutions.

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We're tracking six major developments this week

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that smart producers are already responding to.

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Let's kick things off with the brutal math of

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consolidation that's reshaping America's dairy

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landscape. All right, you folks in the dairy

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world, let's get straight to it. You're on the

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front lines. You know the score. Things aren't

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exactly standing still out there in dairy country.

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That's putting it mildly. Yeah, the constant

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pressure to adapt, to evolve. It's something

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every producer, every industry player is feeling

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intensely. And that pressure cooker. Well. It's

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led to a pretty dramatic shakeup. We're looking

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at a jaw -dropping statistic. Half. Half of all

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U .S. dairy farms have disappeared since 2013.

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Half. Wow. Think about the operations you knew

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just a decade ago. Maybe neighbors that are no

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longer around. It really makes you wonder, will

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your farm not just weather this storm, but actually

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find a way to thrive in the next 10 years? That's

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the big question we're wrestling with today.

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That's a million -dollar question, right? Or

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maybe. The million pound of milk question. And

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that's exactly what we're going to dissect in

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this deep dive. We're not pulling any punches

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here. We're laying out the critical information,

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hoping to help you understand what it all means

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for the future of, well, your operation. Consider

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this your rapid fire briefing. We've sifted through

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the data, the trends, the expert analysis, basically

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trying to bring you the core insights you need

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without getting lost in endless reports. Yeah,

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cutting through the clutter, focusing on what

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truly matters for your bottom line and, well,

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your future. Our mission today is clear. Get

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a firm grip on the brutal reality of this ongoing

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consolidation. We're talking the U .S. dairy

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sector. And pinpoint the potential pathways to

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success. And let's be frank, identify the potential

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dead ends in this rapidly changing environment.

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We're zeroing in on the key forces driving this

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transformation and what proactive steps you might

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actually be able to take. Okay, so let's jump

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into this first critical area, the accelerating

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pace of consolidation. This isn't your grandpa's

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slow and steady decline in farm numbers. This

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is like happening fast. You're absolutely right.

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The rate, the speed at which we're seeing farms

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disappear is actually picking up. The article

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highlights that the half -life of the industry,

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you know, the time it takes for another 50 %

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reduction in farm numbers, it's shrunk from 12

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years down to just 10 years. 10 years for another

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half to vanish. Let that sink in. At this pace,

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projections indicate we could see only around

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12 ,000 dairy farms remaining in the U .S. by

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2035. 12 ,000. That's a number that really makes

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you sit up and take notice, doesn't it? For sure.

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It puts a real timeline on the challenges we're

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facing. This isn't some problem for, like, a

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distant generation. It was right around the corner.

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So when we talk about this accelerating pace,

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it's like the industry shifted into a higher

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gear. Are folks out there truly considering if

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their current strategies are keeping pace with

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this rate of change, not just the fact that change

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is happening? That's the crucial point to ponder,

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yeah. The data suggests an average annual closure

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rate of about 4%. Now, for everyone listening,

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take a hard look at your operation's current

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trajectory, your plans for the next few years.

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Are you on a path that significantly outpaces

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this 4 % decline, or is your current course potentially

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aligning you with that trend? It's a tough question,

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but a vital one for strategic planning, no doubt.

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Now, let's dive into the numbers behind this

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great dairy shakeout. This is where the rubber

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really meets the road and the, well, the stark

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realities become crystal clear. Indeed. We see

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this kind of paradoxical situation where total

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milk production has actually ballooned by a massive

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25 .3 billion pounds since 2013. 25 billion more

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pounds of milk. It's a staggering increase. Yet

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over that same period, an astonishing 48 out

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of 50 states experienced a net loss of dairy

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farms. 48 out of 50. That paints a powerful picture.

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It's not like the demand for milk vanished. It's

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just being produced by a significantly smaller

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pool of operations. And then you look at where

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the growth is concentrated geographically. Texas,

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for instance, added a whopping 195 ,000 cows.

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That's a major reshuffling of the dairy map.

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Huge shift. Meanwhile... Traditional dairy strongholds,

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states like California, they saw a contraction

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in their number of operating farms. So it isn't

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just about an overall decrease nationwide. It's

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about a significant shift in where milk production

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is happening. If you're operating in a region

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seeing a decline in farm numbers, the pressures

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you're feeling are very much tied to this larger

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trend, this geographic redistribution. And here's

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another statistic that really jumps out. 80 %

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of dairy farms in the U .S. Milk, fewer than

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500 cows. That's the vast majority of operations,

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right? The vast majority. But get this. Those

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farms collectively account for only about 30

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% of the total milk produced in the country.

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Flip that around. And you find that a mere 20

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% of farms, the mega -dairies, the ones with

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1 ,000 cows or more, are now responsible for

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a staggering 70 % of all the milk being produced.

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70 % from just 20 % of the farms. Yeah. This

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dramatic disparity really highlights the overwhelming

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impact of scale in today's dairy landscape. It

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compels every operator to seriously evaluate,

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you know, where does my operation fit within

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this spectrum? Are you among that 80 % majority?

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And if so, what are the long -term implications

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for your farm's viability when the lion's share

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of production is concentrated elsewhere? This

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segues perfectly into the perspective offered

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by Dennis Rodenbaugh, CEO of Dairy Farmers of

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America, DFA. Yeah. He has a pretty blunt quote

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here. Anticipating disruption isn't optional.

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You build bridges to the future or get washed

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away. It really captures the make or break nature

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of the current environment, doesn't it? It sure

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does. It's a very apt analogy. He's essentially

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saying that complacency is, well, it's just not

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an option anymore. You have to be actively engaged

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in strategizing, preparing for the future, or

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the powerful forces of change will inevitably

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sweep you aside. It's a core principle to keep

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in mind as we delve further. All right, so let's

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get into the nitty -gritty of this scale or fail

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idea. It sounds a bit extreme, but the data seems

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to be, well, shouting it from the rooftops. This

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1000 cal threshold keeps popping up. It's not

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just a random number, apparently. Not at all.

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The research clearly demonstrates the significant

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economic advantages that come into play when

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an operation reaches that scale. USDA data indicates

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that dairy herds with 1 ,000 cows or more typically

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have production costs that are, on average, 18

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% lower than those with fewer than 500 cows.

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18 % lower costs. In a business where margins

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can be incredibly tight, an 18 % cost advantage

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is a massive competitive edge. So the core insight

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here for our listeners is that scale isn't just

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about having more cows. It's about unlocking

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significant efficiencies, areas like purchasing,

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technology. It makes it tough for smaller operations

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to compete on pure cost, right? 18%. That's not

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just a little bit better. That's a fundamentally

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different ballgame in terms of profitability.

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What are the key drivers behind this significant

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cost difference? Is it just buying feed cheaper?

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That's a big part of it, yeah. Bulk purchasing

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power is major. Larger operations can negotiate

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much more favorable prices on feed, fertilizers,

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fuel, you name it, simply because they're buying

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in such large volumes. Makes sense. Then you

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have the increased efficiency from adopting advanced

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tech. Automated feeding systems, robotics, like

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we'll discuss later. They often have a better

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return on investment at a larger scale. And finally,

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there's the greater negotiative leverage they

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tend to have in the marketplace when it comes

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to selling their milk. Right. They have more

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clout across the board. And Rodenbaugh's warning

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reinforces this. Get disciplined or get out.

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The storm separating winters from casualties

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is accelerating. He's not pulling any punches.

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No, he's painting a picture of an increasingly

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cutthroat environment. where meticulous operational

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efficiency and stringent cost management are

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absolutely paramount for survival. The example

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of established Midwest family farms selling out

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to these massive panhandle conglomerates, some

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with herds over 25 ,000 cows. 25 ,000 cows. It

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starkly illustrates this trend. These colossal

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operations can simply produce milk at a significantly

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lower cost per unit, putting immense downward

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pressure on the profitability of smaller farms.

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It's a tough reality to face when you're competing

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against those kinds of economies of scale. So

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let's talk about the flip side. What's the price

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of essentially standing still in this rapidly

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evolving landscape? What happens if an operation

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decides, nah, we'll just maintain the status

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quo, keep doing what we're doing? Well, the article

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lays out some pretty sobering financial realities.

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Feed costs a huge chunk of any dairy's expenses

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have surged by a staggering 34 % since 2020.

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34 % in just a few years. It's a massive increase,

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significantly squeezing margins. Then you have

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the cost of heifer replacements basically doubled

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during that same period. And to add another layer

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of financial pressure, milk price volatility.

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It's become extreme. Swinging by as much as plus

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or minus 25 % annually. Whoa. That level of unpredictability

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makes any kind of long -term financial planning

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incredibly challenging. Those are the kinds of

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cost increases and price swings that can just

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decimate profitability in a hurry. It's like

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trying to run a business on a financial roller

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coaster. And the quote from that fourth generation

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Wisconsin dairyman. It really brings the human

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element home. His decision to triple his herd

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to 900 cows wasn't some desire for empire building.

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No, it was sheer necessity. He stated quite plainly,

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my kids won't survive on 300 head nostalgia.

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Oof, that's powerful. It truly is. It underscores

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the harsh reality that what might have been a

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viable, sustainable farm size for previous generations,

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it simply isn't sufficient to provide a decent

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living and a future for the next generation in

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today's economic climate. The minimum scale required

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for long -term viability has fundamentally shifted

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upwards. Now, the good news, or maybe the more

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accurately described nuanced news, is that achieving

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mega -dairy status isn't presented as the only

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viable path forward. For those operations with

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sub -500 cow herds, the article explores the

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concept of niching down. What exactly does that

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strategy entail for a dairy farm? It's essentially

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about identifying alternative routes to profitability,

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to long -term sustainability, that don't necessarily

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involve chasing massive herd expansion. It involves

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strategically focusing on specific, often higher

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-value market segments where you can establish

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a unique value proposition, and potentially capture

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premium pricing that offsets the disadvantages

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of scale. Okay, finding your niche. The article

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highlights several key niching strategies smaller

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farms can consider. Let's start with the organic

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premium play. Given the significant price difference

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mentioned, that certainly sounds like an appealing

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option for some producers, right? It can indeed

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be attractive. That significant price premium

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organic milk currently commands around $32 .69

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per hundredweight compared to conventional at

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maybe $21 .50 based on the figures cited. That's

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a substantial price advantage. Big difference.

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However, transitioning to organic isn't straightforward.

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or quick the article rightly points out the considerable

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challenges a mandatory three -year transition

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period where you follow the rules but don't get

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the press three years with no premium that's

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tough and potentially substantial certification

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costs could easily exceed 150 000 or more for

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a struggling farm is that realistic could those

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costs potentially outweigh the benefits at least

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in the short term that's a critical question

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Definitely. While the long -term premium is there,

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that upfront investment and the time lag, it's

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a major barrier. Farms considering this need

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a very solid financial plan and a clear understanding

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of the market demand in their region. What about

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the grass -fed gorilla tactics? That sounds a

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bit more unconventional. It does have a certain

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rebellious flair to it. This strategy revolves

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around direct -to -consumer sales of raw milk,

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so effectively bypassing the traditional processing

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and distribution channels. Go straight to the

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customer. Yeah, and the article mentions the

00:12:53.480 --> 00:12:55.840
potential for a significant markup, possibly

00:12:55.840 --> 00:12:59.019
as high as 300%. That kind of direct market access

00:12:59.019 --> 00:13:01.580
could certainly boost profitability for smaller

00:13:01.580 --> 00:13:04.340
producers. That direct connection, 300 % markup,

00:13:04.379 --> 00:13:06.980
sounds appealing. But guerrilla tactics still

00:13:06.980 --> 00:13:08.600
makes me a little nervous. What are the potential

00:13:08.600 --> 00:13:10.919
pitfalls here? The biggest hurdle, as the article

00:13:10.919 --> 00:13:13.600
rightly points out, is the significant regulatory

00:13:13.600 --> 00:13:16.559
landmines that exist in a majority of states.

00:13:17.449 --> 00:13:20.850
38 states, to be exact. 38 states have tricky

00:13:20.850 --> 00:13:24.009
rules. Exactly. The legal framework around producing

00:13:24.009 --> 00:13:26.909
and selling raw milk is complex. It varies wildly

00:13:26.909 --> 00:13:29.429
state to state, and it's often quite restrictive

00:13:29.429 --> 00:13:32.389
due to, you know, food safety concerns. Anyone

00:13:32.389 --> 00:13:34.590
considering this path needs to conduct thorough

00:13:34.590 --> 00:13:37.360
due diligence. Ensure full compliance with all

00:13:37.360 --> 00:13:39.840
local and state regulations. Failure to do so

00:13:39.840 --> 00:13:42.279
can result in severe penalties, potential legal

00:13:42.279 --> 00:13:44.700
trouble. It's definitely not a strategy to jump

00:13:44.700 --> 00:13:47.259
into without careful consideration and expert

00:13:47.259 --> 00:13:49.279
guidance. Understood. High potential reward,

00:13:49.559 --> 00:13:52.360
but also potentially very high regulatory risk.

00:13:52.460 --> 00:13:54.840
Got it. Now let's shift gears and talk about

00:13:54.840 --> 00:13:57.220
the tech -enabled microdairies. This sounds like

00:13:57.220 --> 00:13:59.860
a promising avenue for smaller operations to...

00:14:00.110 --> 00:14:02.289
maybe enhance their competitiveness. This is

00:14:02.289 --> 00:14:04.529
where strategic tech adoption can really help

00:14:04.529 --> 00:14:06.690
level the playing field for smaller dairy farms.

00:14:06.909 --> 00:14:09.870
The article gives a compelling example. A 150

00:14:09.870 --> 00:14:12.929
cow operation in Vermont achieved a remarkable

00:14:12.929 --> 00:14:15.970
40 % reduction in labor costs by investing in

00:14:15.970 --> 00:14:19.350
robotic milking systems. 40 % labor savings on

00:14:19.350 --> 00:14:23.409
150 cows. That's significant. Huge. Given that

00:14:23.409 --> 00:14:26.110
labor is often one of the biggest expenses, that

00:14:26.110 --> 00:14:28.289
kind of saving has a dramatic impact on profitability.

00:14:29.019 --> 00:14:31.480
They also highlight using AI -powered breeding

00:14:31.480 --> 00:14:35.059
algorithms. These can significantly improve conception

00:14:35.059 --> 00:14:38.139
rates, citing a substantial 22 % increase in

00:14:38.139 --> 00:14:41.720
one instance. Wow, AI for breeding. These technologies

00:14:41.720 --> 00:14:44.580
show how even smaller farms can leverage innovation

00:14:44.580 --> 00:14:47.500
to become more efficient, more competitive, without

00:14:47.500 --> 00:14:50.039
necessarily needing to drastically increase herd

00:14:50.039 --> 00:14:52.139
size. That's a tangible benefit right there.

00:14:52.259 --> 00:14:54.460
It shows how targeted tech investments can allow

00:14:54.460 --> 00:14:56.559
smaller operations to operate more efficiently,

00:14:56.779 --> 00:14:59.019
potentially achieve similar productivity per

00:14:59.019 --> 00:15:01.779
cow as larger farms. It's about being smart,

00:15:01.899 --> 00:15:04.679
strategic with technology. Exactly. And Sarah

00:15:04.679 --> 00:15:07.519
Lloyd, a Wisconsin dairy advocate, offers a really

00:15:07.519 --> 00:15:10.220
insightful quote that kind of sums this up. We've

00:15:10.220 --> 00:15:12.759
romanticized get big or get out. Smart, small

00:15:12.759 --> 00:15:15.259
dairies leveraging tech and margins can outmaneuver

00:15:15.259 --> 00:15:17.720
dinosaurs. I like that analogy, outmaneuver dinosaurs.

00:15:18.139 --> 00:15:20.039
Yeah. It really highlights the potential for

00:15:20.039 --> 00:15:23.019
agility, for strategic thinking, to overcome

00:15:23.019 --> 00:15:26.919
sheer size disadvantages. So let's delve a bit

00:15:26.919 --> 00:15:29.220
deeper into these tech titans reshaping dairy.

00:15:29.759 --> 00:15:32.059
What are some of the specific technologies having

00:15:32.059 --> 00:15:34.840
the biggest impact? The article provides a helpful

00:15:34.840 --> 00:15:37.879
structured overview. Key technologies, approximate

00:15:37.879 --> 00:15:41.480
costs, typical ROI timelines, and the herd sizes

00:15:41.480 --> 00:15:44.279
they're generally most suitable for. First up,

00:15:44.399 --> 00:15:47.480
automated feed systems. Okay, automated feeding.

00:15:47.659 --> 00:15:50.820
Costs can range from around $50 ,000 to $200

00:15:50.820 --> 00:15:54.179
,000. Potential ROIs may be two to four years.

00:15:54.539 --> 00:15:57.000
These systems are generally most cost -effective

00:15:57.000 --> 00:16:00.259
for herds of 500 cows or more. They streamline

00:16:00.259 --> 00:16:02.720
feeding, can significantly cut labor and feed

00:16:02.720 --> 00:16:04.779
waste. So better for the larger end of the scale.

00:16:04.980 --> 00:16:08.019
Generally, yes. Then there are methane digesters,

00:16:08.120 --> 00:16:10.379
a much more substantial investment, like $1 million

00:16:10.379 --> 00:16:12.820
to $5 million range. Whoa, that's serious capital.

00:16:13.039 --> 00:16:15.399
Yeah, with a longer ROI, maybe 5 to 7 years.

00:16:15.600 --> 00:16:17.960
These are typically most viable for very large

00:16:17.960 --> 00:16:21.259
operations, 1 ,000 cows plus. They need a significant

00:16:21.259 --> 00:16:23.600
volume of manure to generate meaningful energy

00:16:23.600 --> 00:16:26.279
or other byproducts. Okay, so those first two,

00:16:26.419 --> 00:16:29.539
automated feed and digesters, seem more geared

00:16:29.539 --> 00:16:32.120
towards larger operations due to that big upfront

00:16:32.120 --> 00:16:34.799
investment. Precisely. However, there are other

00:16:34.799 --> 00:16:37.120
technologies that are more accessible, more beneficial

00:16:37.120 --> 00:16:40.000
for farms of all sizes. Genomics testing, for

00:16:40.000 --> 00:16:42.340
example. Ah yes, genomics. Typically costs around

00:16:42.340 --> 00:16:46.110
$25 per head. offers a relatively immediate return

00:16:46.110 --> 00:16:48.429
on investment by giving valuable insights into

00:16:48.429 --> 00:16:51.070
the genetic potential of your herd. This info

00:16:51.070 --> 00:16:52.909
allows for more informed breeding decisions,

00:16:53.149 --> 00:16:55.710
leading to faster genetic progress, milk production

00:16:55.710 --> 00:16:59.330
components, disease resistance. So low cost,

00:16:59.389 --> 00:17:02.190
potentially big long term gains, regardless of

00:17:02.190 --> 00:17:04.730
herd size. Exactly. A good strategic bet for

00:17:04.730 --> 00:17:07.069
almost anyone. Yeah. And then, of course, robotic

00:17:07.069 --> 00:17:09.210
milking systems, which we touched on. Yes, the

00:17:09.210 --> 00:17:12.009
robots. They seem to be gaining traction. Particularly

00:17:12.009 --> 00:17:14.849
for smaller to midsize operations, right? That's

00:17:14.849 --> 00:17:17.630
right. Cost per unit typically ranging $150 ,000

00:17:17.630 --> 00:17:21.569
to $250 ,000. ROI timeline, maybe three to five

00:17:21.569 --> 00:17:24.690
years. Robotic milkers tend to be most suitable

00:17:24.690 --> 00:17:27.890
for herds in the 100 to 500 cow range. They directly

00:17:27.890 --> 00:17:30.089
address the critical issue of labor availability

00:17:30.089 --> 00:17:33.109
and cost. Plus, they can lead to improvements

00:17:33.109 --> 00:17:36.210
in milk quality, cow health, cow well -beating

00:17:36.210 --> 00:17:38.769
through more frequent, consistent milkings. Makes

00:17:38.769 --> 00:17:40.809
sense. The article also provides some really

00:17:40.809 --> 00:17:43.230
interesting real -world examples of how these

00:17:43.230 --> 00:17:45.049
technologies are being used on different types

00:17:45.049 --> 00:17:47.849
of farms. Absolutely. The example of the 5 ,000

00:17:47.849 --> 00:17:50.430
cow operation in Texas using drones. Drones.

00:17:50.589 --> 00:17:53.069
Yeah, for herd health monitoring. they achieved

00:17:53.069 --> 00:17:56.589
a remarkable 60 % reduction in labor costs. That's

00:17:56.589 --> 00:17:58.990
a powerful illustration of how large -scale farms

00:17:58.990 --> 00:18:01.230
are leveraging cutting -edge tech to drive efficiency.

00:18:01.630 --> 00:18:04.009
60 % labor cut with drones. Yeah. Impressive.

00:18:04.250 --> 00:18:06.130
Then on the other end of the spectrum, the story

00:18:06.130 --> 00:18:09.170
of the 120 -cow boutique dairy in Idaho. They're

00:18:09.170 --> 00:18:11.130
using blockchain technology for traceability.

00:18:11.369 --> 00:18:13.390
Blockchain for butter. Yeah, and commanding a

00:18:13.390 --> 00:18:16.890
premium price, a stunning $12 per pound for their

00:18:16.890 --> 00:18:20.049
grass -fed butter. It demonstrates how even small

00:18:20.049 --> 00:18:23.009
niche producers can use technology to differentiate

00:18:23.009 --> 00:18:25.410
their product, connect directly with consumers,

00:18:25.670 --> 00:18:28.650
and capture added value. Those examples really

00:18:28.650 --> 00:18:30.829
bring the potential of these technologies to

00:18:30.829 --> 00:18:33.269
life. Shows how they can be applied in really

00:18:33.269 --> 00:18:35.990
diverse contexts to achieve specific strategic

00:18:35.990 --> 00:18:39.259
goals. whether it's massive cost reduction on

00:18:39.259 --> 00:18:42.240
a huge scale or premium branding and direct -to

00:18:42.240 --> 00:18:44.359
-consumer marketing for a smaller operation.

00:18:44.680 --> 00:18:47.740
Exactly. It's not just about acquiring the latest

00:18:47.740 --> 00:18:49.880
gadgets. It's about strategically evaluating

00:18:49.880 --> 00:18:52.519
which technologies best align with your specific

00:18:52.519 --> 00:18:55.319
farm's goals, resources, and market opportunities.

00:18:55.740 --> 00:18:58.160
So let's synthesize all of this. Let's get to

00:18:58.160 --> 00:19:00.539
the core takeaways. What's the fundamental bottom

00:19:00.539 --> 00:19:03.359
line here for our listeners beyond all the stats

00:19:03.359 --> 00:19:06.210
and examples we've covered? The overarching undeniable

00:19:06.210 --> 00:19:08.470
message is that the dairy industry is undergoing

00:19:08.470 --> 00:19:11.549
a period of profound, relentless transformation.

00:19:11.970 --> 00:19:14.609
Just relying on tradition or past practices,

00:19:14.930 --> 00:19:17.690
it's no longer a viable strategy for long -term

00:19:17.690 --> 00:19:21.200
survival. That stark reality of a 4 % annual

00:19:21.200 --> 00:19:24.500
decline in farm numbers, it underscores the intense

00:19:24.500 --> 00:19:27.119
competitive pressures shaping the industry. And

00:19:27.119 --> 00:19:30.079
the article provides a very direct survival checklist

00:19:30.079 --> 00:19:32.619
with some actionable steps producers should be

00:19:32.619 --> 00:19:34.920
considering. Let's break down those key recommendations.

00:19:35.240 --> 00:19:38.099
What's first? First point is to crunch your half

00:19:38.099 --> 00:19:40.700
-life math. This is basically a call to take

00:19:40.700 --> 00:19:43.279
a very hard, realistic look at your current operation.

00:19:43.640 --> 00:19:45.940
Honestly, assess your potential for significant

00:19:45.940 --> 00:19:49.259
scaling. If reaching that 1000 plus cal threshold

00:19:49.259 --> 00:19:51.740
seems unattainable, or maybe it just doesn't

00:19:51.740 --> 00:19:54.119
align with your long term goals and values, then

00:19:54.119 --> 00:19:57.029
the advice is to proactively pivot. Pivot towards

00:19:57.029 --> 00:19:59.450
hyper -specialization, towards niche markets,

00:19:59.690 --> 00:20:01.730
sooner rather than later. Don't wait until you're

00:20:01.730 --> 00:20:03.950
forced. Exactly. Don't wait until the market

00:20:03.950 --> 00:20:06.269
forces you to make a change under duress. That

00:20:06.269 --> 00:20:08.910
proactive, forward -thinking approach seems absolutely

00:20:08.910 --> 00:20:11.509
critical. Okay, makes sense. The second recommendation

00:20:11.509 --> 00:20:14.890
is to embrace coopetition. I like that term,

00:20:14.930 --> 00:20:17.069
collaboration within competition. Right. It's

00:20:17.069 --> 00:20:19.470
about actively seeking opportunities to collaborate

00:20:19.470 --> 00:20:22.130
with neighboring farms. Maybe it's collective

00:20:22.130 --> 00:20:25.309
purchasing of bulk inputs to lower costs. Maybe

00:20:25.309 --> 00:20:27.849
sharing expensive technology to improve efficiency.

00:20:28.230 --> 00:20:30.910
Or even exploring collective bargaining power

00:20:30.910 --> 00:20:33.289
to enhance your market position. Strength in

00:20:33.289 --> 00:20:35.710
numbers. In an industry consolidating like this,

00:20:35.829 --> 00:20:39.049
finding strategic alliances, leveraging the collective

00:20:39.049 --> 00:20:41.869
strength of a group, it can be a vital strategy

00:20:41.869 --> 00:20:43.980
to mitigate some of the disadvantages disadvantages

00:20:43.980 --> 00:20:47.059
of being a smaller independent operator. That

00:20:47.059 --> 00:20:48.880
makes perfect sense, finding strength in numbers,

00:20:49.000 --> 00:20:51.660
even among peers. And the final point on the

00:20:51.660 --> 00:20:55.079
survival checklist, bet on genomics. We touched

00:20:55.079 --> 00:20:57.079
on this, but it's clearly key for future success.

00:20:57.339 --> 00:20:59.819
Yes. The potential to significantly increase

00:20:59.819 --> 00:21:02.099
milk yields, the article suggests, upwards of

00:21:02.099 --> 00:21:05.160
2 ,000 pounds or more per cow annually just by

00:21:05.160 --> 00:21:07.220
strategically focusing on breeding with the top

00:21:07.220 --> 00:21:10.299
1 % of available genetics. That represents a

00:21:10.299 --> 00:21:12.940
substantial opportunity. Improve overall productivity,

00:21:13.220 --> 00:21:15.900
profitability, regardless of herd size. It's

00:21:15.900 --> 00:21:17.599
an investment in the future potential of your

00:21:17.599 --> 00:21:20.220
animals. An investment that can deliver significant

00:21:20.220 --> 00:21:22.859
returns. And that concluding thought from Dennis

00:21:22.859 --> 00:21:25.279
Rodenbaugh really brings everything full circle.

00:21:25.680 --> 00:21:29.619
The dairy game isn't dying, it's evolving. Future

00:21:29.619 --> 00:21:33.799
winners think in decades, not seasons. That long

00:21:33.799 --> 00:21:36.440
-term strategic perspective seems absolutely

00:21:36.440 --> 00:21:39.549
essential. It is indeed. It's about looking beyond

00:21:39.549 --> 00:21:42.250
the immediate challenges, making deliberate strategic

00:21:42.250 --> 00:21:45.390
decisions today that will position your operation

00:21:45.390 --> 00:21:48.710
for resilience and success in the long run. It's

00:21:48.710 --> 00:21:51.390
not simply about reacting to current market conditions.

00:21:51.569 --> 00:21:54.849
It's about anticipating future trends and proactively

00:21:54.849 --> 00:21:57.609
adapting your business model. So here we are,

00:21:57.650 --> 00:22:00.109
back to that initial, rather stark question that's

00:22:00.109 --> 00:22:01.829
likely on the minds of many of you listening.

00:22:02.009 --> 00:22:04.279
Your move. You've heard the sobering statistics,

00:22:04.660 --> 00:22:06.779
the relentless pace of consolidation, the potential

00:22:06.779 --> 00:22:09.440
pathways forward scale, niching tech collaboration.

00:22:10.000 --> 00:22:12.799
Will your operation be among the projected 12

00:22:12.799 --> 00:22:16.880
,000 dairy farms left standing in 2035? Or will

00:22:16.880 --> 00:22:19.180
it become, as the article so bluntly puts it,

00:22:19.220 --> 00:22:21.880
a statistic in the bull vines following the obituary

00:22:21.880 --> 00:22:24.900
for America's heartland? It's a sobering thought.

00:22:25.259 --> 00:22:28.220
But our hope is that this deep dive has provided

00:22:28.220 --> 00:22:31.259
you with some crucial clarity, maybe some actionable

00:22:31.259 --> 00:22:33.920
insights to help you navigate the challenging

00:22:33.920 --> 00:22:37.339
but still vital world of dairy farming. The strategic

00:22:37.339 --> 00:22:39.460
choices you make in the coming years, they're

00:22:39.460 --> 00:22:41.660
going to be absolutely critical. We strongly

00:22:41.660 --> 00:22:44.039
encourage you to further explore the technologies,

00:22:44.140 --> 00:22:46.140
the niche market opportunities we've discussed,

00:22:46.339 --> 00:22:49.180
and to engage in those tough but necessary conversations

00:22:49.180 --> 00:22:51.829
about... the long -term viability and strategic

00:22:51.829 --> 00:22:54.549
direction of your farm, the future success of

00:22:54.549 --> 00:22:57.170
your operation really depends on it. Those consolidation

00:22:57.170 --> 00:23:00.910
numbers are jaw -dropping, aren't they? But here's

00:23:00.910 --> 00:23:03.970
the thing. Market forces within our borders are

00:23:03.970 --> 00:23:06.609
just one piece of the puzzle. The other massive

00:23:06.609 --> 00:23:08.849
factor shaping your milk check? International

00:23:08.849 --> 00:23:12.089
trade politics. And boy, are things heating up

00:23:12.089 --> 00:23:15.150
on the Canadian border. Trump's threatening 25

00:23:15.150 --> 00:23:18.569
% retaliatory tariffs next month against our

00:23:18.569 --> 00:23:20.900
northern neighbors. But does he actually have

00:23:20.900 --> 00:23:23.400
the leverage to crack open Canada's fortress

00:23:23.400 --> 00:23:26.660
-like dairy system? Let's break down this high

00:23:26.660 --> 00:23:29.680
-stakes poker game where American producers have

00:23:29.680 --> 00:23:32.480
billions on the line. All right, welcome back

00:23:32.480 --> 00:23:34.920
to the Deep Dive, where we pull back the curtain

00:23:34.920 --> 00:23:36.480
on the dairy world to see what's really going

00:23:36.480 --> 00:23:38.660
on. And, you know, it feels like we're in one

00:23:38.660 --> 00:23:41.039
of those funhouse mirror situations right now,

00:23:41.079 --> 00:23:44.019
doesn't it? We're seeing these global dairy trade

00:23:44.019 --> 00:23:48.099
prices nudging upwards, a little flicker of good

00:23:48.099 --> 00:23:51.059
news, maybe. But then you talk to folks actually

00:23:51.059 --> 00:23:55.559
milking cows, and there's still that furrowed

00:23:55.559 --> 00:24:00.039
brow about making ends meet in early 2025. So

00:24:00.039 --> 00:24:03.440
what's the deal? It's a bit of a head scratcher

00:24:03.440 --> 00:24:05.599
for you, I'm sure. It is the central puzzle we're

00:24:05.599 --> 00:24:07.740
tackling today. You've pinpointed the apparent

00:24:07.740 --> 00:24:10.480
contradiction perfectly. The global market is

00:24:10.480 --> 00:24:12.720
showing tentative signs of recovery, with the

00:24:12.720 --> 00:24:16.390
GDT index creeping up by 1 .1%. Right. But as

00:24:16.390 --> 00:24:18.109
we always find, that headline figure doesn't

00:24:18.109 --> 00:24:20.009
tell the whole story for you on the ground. Exactly.

00:24:20.130 --> 00:24:21.930
It's not like someone flipped a switch and suddenly

00:24:21.930 --> 00:24:25.069
everything's rosy, right? We saw skim milk powder

00:24:25.069 --> 00:24:28.539
take a decent jump. up by 5 .9%, which sounds

00:24:28.539 --> 00:24:30.799
promising if you're geared that way. A big jump.

00:24:30.980 --> 00:24:33.140
But then butter and some of the other big hitters

00:24:33.140 --> 00:24:35.000
actually took a step back. It's a real mixed

00:24:35.000 --> 00:24:37.220
bag, leaving you wondering which way the wind

00:24:37.220 --> 00:24:40.059
is blowing. And all this is happening while behind

00:24:40.059 --> 00:24:44.319
the scenes, the boffins in white coats are making

00:24:44.319 --> 00:24:46.920
incredible leaps with dairy genetics. It feels

00:24:46.920 --> 00:24:48.460
like two completely different movies playing

00:24:48.460 --> 00:24:51.200
at the same time. Precisely. And our mission

00:24:51.200 --> 00:24:53.700
in this deep dive is to connect those seemingly

00:24:53.700 --> 00:24:57.000
separate narratives for you. How do these market

00:24:57.000 --> 00:24:59.380
wobbles, these ups and downs, and what your milk

00:24:59.380 --> 00:25:02.299
gets turned into actually tie into the long -term

00:25:02.299 --> 00:25:04.380
progress we're seeing in breeding better cows?

00:25:04.619 --> 00:25:07.079
What does it all boil down to for your farm's

00:25:07.079 --> 00:25:09.359
profitability, whether you're overseeing a large

00:25:09.359 --> 00:25:12.279
operation or running the family place? We've

00:25:12.279 --> 00:25:14.720
been buried in the latest GDT auction results,

00:25:14.960 --> 00:25:17.119
analyzing just how much difference selecting

00:25:17.119 --> 00:25:20.420
for specific milk components is making, and even

00:25:20.420 --> 00:25:22.480
looking at the contrasting playbooks different

00:25:22.480 --> 00:25:24.759
parts of the world are using to navigate this

00:25:24.759 --> 00:25:26.519
environment. Yeah, we've been wading through

00:25:26.519 --> 00:25:29.099
the numbers. From New Zealand's kind of collective

00:25:29.099 --> 00:25:31.839
huddle with their cooperative model to the more

00:25:31.839 --> 00:25:34.180
individualistic vertical moves down in Australia.

00:25:34.680 --> 00:25:36.440
Right, quite different approaches. This isn't

00:25:36.440 --> 00:25:38.720
just a casual glance at the news. We're digging

00:25:38.720 --> 00:25:41.160
down to the core shifts that are fundamentally

00:25:41.160 --> 00:25:43.480
changing the economics of dairy for you right

00:25:43.480 --> 00:25:46.539
now. Okay, so let's get into the nitty gritty,

00:25:46.579 --> 00:25:49.980
shall we? That global dairy trade auction in

00:25:49.980 --> 00:25:53.599
the first quarter of this year, a 1 .1 % rise.

00:25:54.160 --> 00:25:56.420
Is that enough to write home about? Well, after

00:25:56.420 --> 00:25:58.299
the market taking a bit of a tumble for several

00:25:58.299 --> 00:26:00.640
months, any upward tick is certainly a welcome

00:26:00.640 --> 00:26:02.700
sign. It suggests we might be seeing the market

00:26:02.700 --> 00:26:05.220
finding its footing again, maybe even the start

00:26:05.220 --> 00:26:09.180
of a more sustained recovery. The crucial thing

00:26:09.180 --> 00:26:11.880
for you to note is the uneven performance across

00:26:11.880 --> 00:26:14.920
the different dairy commodities. That significant

00:26:14.920 --> 00:26:19.039
5 .9 % jump in skim milk powder is particularly

00:26:19.039 --> 00:26:21.579
interesting. Very interesting. It could be pointing

00:26:21.579 --> 00:26:23.680
towards a change in what the world wants, perhaps

00:26:23.680 --> 00:26:26.619
a stronger appetite for protein sources. So if

00:26:26.619 --> 00:26:28.640
your milk is naturally high in protein, that's

00:26:28.640 --> 00:26:30.380
something for you to keep an eye on. Right, that

00:26:30.380 --> 00:26:32.400
whole protein power trend we keep hearing about.

00:26:32.700 --> 00:26:36.000
But then, as we said, other key products are

00:26:36.000 --> 00:26:39.430
taking a hit. What should you... as a dairy producer

00:26:39.430 --> 00:26:42.089
or someone in the processing game be thinking

00:26:42.089 --> 00:26:45.210
about with this kind of split performance it

00:26:45.210 --> 00:26:48.109
creates more segmented market processors who

00:26:48.109 --> 00:26:50.690
are heavily invested in turning milk into skim

00:26:50.690 --> 00:26:52.890
milk powder might be feeling a bit more optimistic

00:26:52.890 --> 00:26:55.430
than those focused on butter or whole milk powder

00:26:55.430 --> 00:26:59.430
similarly for you as a farmer if your herd's

00:26:59.430 --> 00:27:02.109
milk naturally leans towards higher protein content

00:27:02.109 --> 00:27:04.450
you might be in a slightly better position in

00:27:04.450 --> 00:27:07.059
the short term It's a good reminder that dairy

00:27:07.059 --> 00:27:09.720
isn't just one big blob. The different things

00:27:09.720 --> 00:27:11.960
your milk gets made into have their own supply

00:27:11.960 --> 00:27:14.559
and demand stories. And it wasn't all sunshine

00:27:14.559 --> 00:27:16.319
and rainbows in those first few months of the

00:27:16.319 --> 00:27:18.700
year, was it? If we think back to January, the

00:27:18.700 --> 00:27:21.480
overall index actually dipped by 1 .4%. Yeah,

00:27:21.480 --> 00:27:24.119
it did. Although, in a bit of a quirky twist,

00:27:24.480 --> 00:27:27.359
mozzarella cheese saw a bit of a jump, up by

00:27:27.359 --> 00:27:30.779
3 .6%, and butter kind of held steady. It's like

00:27:30.779 --> 00:27:32.750
trying to predict the weather sometimes. It really

00:27:32.750 --> 00:27:35.410
is. And that January auction highlighted just

00:27:35.410 --> 00:27:38.210
how specific the market can be. That little boost

00:27:38.210 --> 00:27:40.490
for mozzarella, for instance, could reflect particular

00:27:40.490 --> 00:27:42.829
regional demands or even just, you know, what

00:27:42.829 --> 00:27:44.490
people felt like eating at that time of year.

00:27:44.549 --> 00:27:47.109
Right. It just reinforces that while the overall

00:27:47.109 --> 00:27:48.990
index gives you a general sense of direction,

00:27:49.329 --> 00:27:51.910
it's the individual product movements that really

00:27:51.910 --> 00:27:54.450
impact specific parts of the industry and ultimately

00:27:54.450 --> 00:27:57.309
what you get paid. Now let's put some meat on

00:27:57.309 --> 00:27:59.910
the bones of these numbers. In that January auction,

00:28:00.029 --> 00:28:04.369
we're talking about 17 ,643 tons of product changing

00:28:04.369 --> 00:28:08.829
hands with 143 successful bidders. Does that

00:28:08.829 --> 00:28:10.630
kind of volume tell you anything significant

00:28:10.630 --> 00:28:13.180
about the state of play? Absolutely. The volume

00:28:13.180 --> 00:28:15.759
of trade gives us a sense of how much activity

00:28:15.759 --> 00:28:18.019
there is in the market and how confident buyers

00:28:18.019 --> 00:28:20.759
are feeling. A decent volume suggests there's

00:28:20.759 --> 00:28:22.619
real demand out there and that people are willing

00:28:22.619 --> 00:28:25.359
to buy at the current prices. The number of successful

00:28:25.359 --> 00:28:27.940
bidders also gives you an idea of how broad the

00:28:27.940 --> 00:28:30.220
participation is. Are lots of different players

00:28:30.220 --> 00:28:32.980
involved or just a few big ones? You mentioned

00:28:32.980 --> 00:28:35.859
this potential protein power shift based on the

00:28:35.859 --> 00:28:38.640
skim milk powder rise and the cheese gains. What

00:28:38.640 --> 00:28:40.799
could be fueling that for you, our listeners?

00:28:41.369 --> 00:28:43.789
It's likely a combination of things. Globally,

00:28:43.789 --> 00:28:46.210
there's a growing trend towards consumers wanting

00:28:46.210 --> 00:28:48.769
more protein in their diets for health and fitness

00:28:48.769 --> 00:28:51.250
reasons. Yeah, you see it everywhere. Exactly.

00:28:51.690 --> 00:28:54.730
This naturally leads to higher demand for ingredients

00:28:54.730 --> 00:28:57.269
like skim milk powder, which ends up in protein

00:28:57.269 --> 00:28:59.970
powders, energy bars, and other fortified foods

00:28:59.970 --> 00:29:02.900
you see on the shelves. On the flip side, demand

00:29:02.900 --> 00:29:05.819
for other dairy staples might be affected by

00:29:05.819 --> 00:29:08.839
things like seasonal eating habits or how much

00:29:08.839 --> 00:29:11.920
inventory big buyers already have in their warehouses.

00:29:12.180 --> 00:29:14.319
And then there's this constant gnawing issue,

00:29:14.500 --> 00:29:17.980
the geopolitical drag, the unpredictable impact

00:29:17.980 --> 00:29:20.559
of China's sometimes shaky recovery and those

00:29:20.559 --> 00:29:22.720
all over the place import numbers from Southeast

00:29:22.720 --> 00:29:25.059
Asia. That must be a real headache for anyone

00:29:25.059 --> 00:29:27.440
trying to plan ahead in the global dairy game.

00:29:27.559 --> 00:29:29.599
It's a significant source of uncertainty, no

00:29:29.599 --> 00:29:32.400
doubt. China is such a massive buyer of dairy

00:29:32.400 --> 00:29:34.960
products that any hiccups or changes in their

00:29:34.960 --> 00:29:37.940
demand send ripples across the entire global

00:29:37.940 --> 00:29:41.240
market. Huge ripples. Similarly, Southeast Asia

00:29:41.240 --> 00:29:43.920
is a collection of diverse countries, each with

00:29:43.920 --> 00:29:46.519
its own economic and political quirks, leading

00:29:46.519 --> 00:29:49.000
to unpredictable swings in how much dairy they

00:29:49.000 --> 00:29:52.099
import. This makes it much harder for exporters

00:29:52.099 --> 00:29:54.339
to make solid plans and manage their supply chains

00:29:54.339 --> 00:29:56.839
efficiently, which can ultimately affect prices

00:29:56.839 --> 00:29:59.380
you see. Now, the folks at Rabobank chimed in,

00:29:59.440 --> 00:30:03.099
calling the market balanced but brittle. That

00:30:03.099 --> 00:30:05.240
sounds a bit like walking on eggshells. Yeah.

00:30:05.339 --> 00:30:07.579
What do they mean by that for you, and what are

00:30:07.579 --> 00:30:10.380
the implications for potential shakeups in the

00:30:10.380 --> 00:30:12.400
supply chain, this processor calculus you mentioned?

00:30:12.740 --> 00:30:15.079
Balanced but brittle suggests that while supply

00:30:15.079 --> 00:30:17.460
and demand might be roughly in sync right now,

00:30:17.599 --> 00:30:20.059
that balance is fragile and could easily be upset

00:30:20.059 --> 00:30:22.859
by unexpected events. Like what? Think about

00:30:22.859 --> 00:30:25.920
sudden changes in import rules. crazy weather

00:30:25.920 --> 00:30:28.559
affecting milk production somewhere major, or

00:30:28.559 --> 00:30:31.039
shifts in government policies, that underlying

00:30:31.039 --> 00:30:33.960
fragility forces processors to constantly rethink

00:30:33.960 --> 00:30:35.779
how they get their milk and how they distribute

00:30:35.779 --> 00:30:38.279
their products. They might be looking at diversifying

00:30:38.279 --> 00:30:40.680
where they get their milk from or exploring different

00:30:40.680 --> 00:30:43.500
ways to process it to be more adaptable if the

00:30:43.500 --> 00:30:46.319
market shifts suddenly. It's all about trying

00:30:46.319 --> 00:30:49.079
to build a more resilient system in an unpredictable

00:30:49.079 --> 00:30:51.519
world. So we've got this picture of a global

00:30:51.519 --> 00:30:54.309
market that's showing a few green shoots. But

00:30:54.309 --> 00:30:56.769
it's still pretty wobbly. But you said the real

00:30:56.769 --> 00:30:58.950
story for you is this disconnect between those

00:30:58.950 --> 00:31:01.690
market prices and what's actually happening on

00:31:01.690 --> 00:31:04.210
your farm with your profitability. Let's dig

00:31:04.210 --> 00:31:07.299
deeper into that mismatch. Absolutely. While

00:31:07.299 --> 00:31:09.960
we might see these small increases in some commodity

00:31:09.960 --> 00:31:12.799
prices, many of you are still facing significant

00:31:12.799 --> 00:31:15.559
pressure from your input costs, especially what

00:31:15.559 --> 00:31:17.720
you're paying for feed. Yeah, feed costs are

00:31:17.720 --> 00:31:19.700
always a big one. And this is where the incredible

00:31:19.700 --> 00:31:22.339
progress in genetics really comes into play in

00:31:22.339 --> 00:31:25.500
a big way for your bottom line. Okay, let's pivot

00:31:25.500 --> 00:31:27.400
that and talk about this genetic revolution.

00:31:27.920 --> 00:31:30.799
You mentioned U .S. herds hitting these absolutely

00:31:30.799 --> 00:31:34.599
stunning component averages, 4 .23 % butterfat.

00:31:35.210 --> 00:31:38.309
and 3 .29 % protein. That's not the milk our

00:31:38.309 --> 00:31:40.430
grandfathers were producing. Not at all. And

00:31:40.430 --> 00:31:43.029
you said genetics is responsible for a massive

00:31:43.029 --> 00:31:46.509
70 % of those recent gains. That's a game changer

00:31:46.509 --> 00:31:48.869
for you, isn't it? It truly is a transformation.

00:31:49.230 --> 00:31:52.150
For decades, the main goal was simply to get

00:31:52.150 --> 00:31:54.250
more liters or pounds of milk out of each cow.

00:31:54.960 --> 00:31:57.859
But now, thanks to really sophisticated tools

00:31:57.859 --> 00:32:00.119
for selecting the right genetics, we're seeing

00:32:00.119 --> 00:32:02.160
a rapid increase in the concentration of those

00:32:02.160 --> 00:32:04.759
valuable components, butterfat and protein. Right.

00:32:04.819 --> 00:32:07.039
This fundamentally changes the economics for

00:32:07.039 --> 00:32:09.980
you because in many markets, you're paid based

00:32:09.980 --> 00:32:12.140
on the kilograms or pounds of these components

00:32:12.140 --> 00:32:15.339
in your milk, not just the total volume. So higher

00:32:15.339 --> 00:32:17.579
components directly translate to a bigger paycheck.

00:32:17.920 --> 00:32:20.480
So this requires a whole new way of crunching

00:32:20.480 --> 00:32:22.640
the numbers when it comes to dairy, the new milk

00:32:22.640 --> 00:32:24.650
math, as you put it. And at the heart of that

00:32:24.650 --> 00:32:28.549
is this net merit 2025 formula. Can you break

00:32:28.549 --> 00:32:30.250
that down in plain English for us? What are the

00:32:30.250 --> 00:32:31.789
key things you should be paying attention to

00:32:31.789 --> 00:32:33.170
when you're looking at those genetic reports?

00:32:33.650 --> 00:32:36.269
Certainly. The Net Merit Index is basically a

00:32:36.269 --> 00:32:38.829
tool to help rank dairy cattle based on how much

00:32:38.829 --> 00:32:40.730
profit they're expected to generate over their

00:32:40.730 --> 00:32:43.970
lifetime. The updated 2025 version puts a much

00:32:43.970 --> 00:32:46.769
bigger emphasis on how efficiently a cow converts

00:32:46.769 --> 00:32:49.650
feed into milk and on the actual amount of fat

00:32:49.650 --> 00:32:52.069
and protein she produces. Okay, efficiency and

00:32:52.069 --> 00:32:54.730
components. Exactly. Specifically, the formula

00:32:54.730 --> 00:32:57.410
gives a weighting of 0 .41 to feed efficiency,

00:32:57.789 --> 00:33:02.750
a whopping 3 .20 to fat yield, and 1 .38 to protein

00:33:02.750 --> 00:33:05.299
yield. What really jumps out there is just how

00:33:05.299 --> 00:33:07.339
much weight is given to fat yield compared to

00:33:07.339 --> 00:33:09.779
protein. Yeah, the 3 .2 area for fat yield is

00:33:09.779 --> 00:33:12.579
significantly higher than the 1 .38 for protein.

00:33:12.990 --> 00:33:15.190
What's the underlying economic reason for that

00:33:15.190 --> 00:33:16.990
difference that you should be aware of? Put simply,

00:33:17.109 --> 00:33:19.930
in today's market, a pound or kilogram of butterfat

00:33:19.930 --> 00:33:22.470
often fetches a much higher price than the same

00:33:22.470 --> 00:33:25.470
amount of protein. The net merit formula reflects

00:33:25.470 --> 00:33:28.630
this economic reality, indicating that if you

00:33:28.630 --> 00:33:30.950
genetically select for cows that produce higher

00:33:30.950 --> 00:33:33.670
levels of butterfat, it's likely to have a bigger

00:33:33.670 --> 00:33:36.940
impact on your overall profitability. Our sources

00:33:36.940 --> 00:33:39.980
even highlighted that in many situations, one

00:33:39.980 --> 00:33:42.660
unit of fat is now worth more than twice the

00:33:42.660 --> 00:33:45.619
value of a unit of protein. Wow, more than double.

00:33:45.740 --> 00:33:48.740
Yeah, that's a significant shift in how you should

00:33:48.740 --> 00:33:51.240
be valuing your cow's potential. So it's not

00:33:51.240 --> 00:33:53.420
just about filling the tank anymore. It's about

00:33:53.420 --> 00:33:56.500
producing richer milk and doing it without...

00:33:56.799 --> 00:33:59.180
breaking the bank on feed. And you mentioned

00:33:59.180 --> 00:34:01.140
that whether you're running a massive western

00:34:01.140 --> 00:34:03.960
megadairy or a more traditional Midwest family

00:34:03.960 --> 00:34:06.500
farm, there's some similar strategies emerging

00:34:06.500 --> 00:34:08.559
to really capitalize on this genetic potential.

00:34:08.920 --> 00:34:10.900
What are the key approaches you're seeing across

00:34:10.900 --> 00:34:13.559
different farm sizes? We're seeing a common thread,

00:34:13.639 --> 00:34:16.159
a focus on accelerating genetic progress within

00:34:16.159 --> 00:34:18.320
the herd and really tightening up those feed

00:34:18.320 --> 00:34:20.980
costs. One key strategy is what we call sexed

00:34:20.980 --> 00:34:23.420
semen stratification. Okay, tell me more. The

00:34:23.420 --> 00:34:26.360
fact that a majority of U .S. herds, 61%, are

00:34:26.360 --> 00:34:29.800
now using elite genetics, often sexed even, to

00:34:29.800 --> 00:34:32.639
get more heifer calves from their very best cows

00:34:32.639 --> 00:34:35.940
on the top 30 % of their herd is a big deal for

00:34:35.940 --> 00:34:39.099
you. This allows you to rapidly improve the genetic

00:34:39.099 --> 00:34:41.659
quality of your future milking herd by focusing

00:34:41.659 --> 00:34:44.320
on your best performers. That makes perfect sense.

00:34:44.340 --> 00:34:46.639
Breeding the best to get even better replacements

00:34:46.639 --> 00:34:48.519
coming through. And then there's this embryo

00:34:48.519 --> 00:34:51.480
acceleration using IVF technology. You mentioned

00:34:51.480 --> 00:34:54.059
that the top 5 % of females are now contributing

00:34:54.059 --> 00:34:57.159
a staggering 40 % of the genetic improvement

00:34:57.159 --> 00:34:59.360
through these programs. That's like putting your

00:34:59.360 --> 00:35:01.659
genetic improvement into hyperdrive. Exactly.

00:35:02.019 --> 00:35:05.260
Embryo transfer and increasingly in vitro fertilization

00:35:05.260 --> 00:35:07.599
give you the ability to get multiple offspring

00:35:07.599 --> 00:35:10.340
from your very top tier females in a much shorter

00:35:10.340 --> 00:35:13.019
time frame. This really concentrates the genetic

00:35:13.019 --> 00:35:15.000
progress within your most promising animals,

00:35:15.219 --> 00:35:17.699
leading to much faster gains in those desirable

00:35:17.699 --> 00:35:20.380
traits like higher component yields. It's a to

00:35:20.380 --> 00:35:22.940
really leverage your best genetics. And finally,

00:35:22.960 --> 00:35:26.380
this idea of feed cost hedging by investing in

00:35:26.380 --> 00:35:29.280
premium forage. How does that make economic sense

00:35:29.280 --> 00:35:31.300
when you're focusing on milk components? It sounds

00:35:31.300 --> 00:35:33.239
like you're spending more up front. Well, when

00:35:33.239 --> 00:35:35.860
butterfat is fetching a premium like that $3

00:35:35.860 --> 00:35:38.980
.20 per pound figure we talked about, it becomes

00:35:38.980 --> 00:35:41.579
economically justifiable for you to invest in

00:35:41.579 --> 00:35:44.239
higher quality forages. Ah, okay. The return

00:35:44.239 --> 00:35:46.639
justifies it. Precisely. These better feeds help

00:35:46.639 --> 00:35:48.780
your cows express their full genetic potential

00:35:48.780 --> 00:35:51.500
for producing those valuable components. Think

00:35:51.500 --> 00:35:54.170
of it this way. Better forage leads to a healthier

00:35:54.170 --> 00:35:56.610
rumen and a more efficient conversion of feed

00:35:56.610 --> 00:36:00.369
into valuable butterfat and protein. It's a strategic

00:36:00.369 --> 00:36:02.510
investment that allows you to maximize the return

00:36:02.510 --> 00:36:04.769
you get from those genetically superior animals.

00:36:05.230 --> 00:36:07.150
You might spend a bit more on the feed, but you'll

00:36:07.150 --> 00:36:09.610
get more high -value components in return. Okay,

00:36:09.670 --> 00:36:11.510
so we're seeing how genetics is really shaking

00:36:11.510 --> 00:36:13.940
things up at the farm level. But what about the

00:36:13.940 --> 00:36:16.360
bigger picture? You talked about a global local

00:36:16.360 --> 00:36:18.880
collision with different countries taking different

00:36:18.880 --> 00:36:21.699
paths in this dairy landscape. Let's start with

00:36:21.699 --> 00:36:25.260
New Zealand's cooperative calculus and the giant

00:36:25.260 --> 00:36:28.420
that is Fonterra. What's their overall approach

00:36:28.420 --> 00:36:30.960
that you should understand? New Zealand, with

00:36:30.960 --> 00:36:33.139
its strong cooperative structure built around

00:36:33.139 --> 00:36:35.460
Fonterra, operates on a model where the risks

00:36:35.460 --> 00:36:37.900
and rewards are shared amongst the farmer owner.

00:36:38.119 --> 00:36:40.400
Right, the co -op model. Their milk price manual

00:36:40.400 --> 00:36:42.760
is pretty transparent, showing that a significant

00:36:42.760 --> 00:36:46.099
chunk of the money, around 73%, that comes from

00:36:46.099 --> 00:36:48.280
selling dairy commodities on the global market

00:36:48.280 --> 00:36:50.679
flows directly back to the farmers who own the

00:36:50.679 --> 00:36:54.829
cooperative. 73%, that's high. It is. When global

00:36:54.829 --> 00:36:57.889
prices are strong, the farmers directly benefit.

00:36:58.050 --> 00:37:00.090
It's a very direct connection for you to global

00:37:00.090 --> 00:37:02.789
market signals, even if you're not directly selling

00:37:02.789 --> 00:37:05.110
internationally. So it's a much more immediate

00:37:05.110 --> 00:37:07.369
link between what's happening on the global stage

00:37:07.369 --> 00:37:11.460
and the price you receive at the farm gate. And

00:37:11.460 --> 00:37:14.239
you mentioned that the processors, in this case

00:37:14.239 --> 00:37:17.039
Fonterra, kind of act as a buffer, absorbing

00:37:17.039 --> 00:37:19.659
some of the ups and downs related to currency

00:37:19.659 --> 00:37:22.079
exchange rates and shipping costs. That must

00:37:22.079 --> 00:37:23.940
provide a bit more stability for the farmers

00:37:23.940 --> 00:37:26.719
there. It does provide a degree of insulation.

00:37:27.449 --> 00:37:30.130
By pooling their resources and operating at a

00:37:30.130 --> 00:37:33.369
massive scale, Fonterra can manage those international

00:37:33.369 --> 00:37:35.989
risks more effectively than individual farmers

00:37:35.989 --> 00:37:39.230
could on their own. Plus, their system has built

00:37:39.230 --> 00:37:41.690
-in mechanisms for automatically renegotiating

00:37:41.690 --> 00:37:44.150
milk prices if there are significant long -term

00:37:44.150 --> 00:37:46.269
shifts in the global supply and demand situation,

00:37:46.730 --> 00:37:49.510
what they call permanent supply shocks. This

00:37:49.510 --> 00:37:51.730
is designed to protect farmers if there are fundamental

00:37:51.730 --> 00:37:53.849
changes in the market. That sounds like a system

00:37:53.849 --> 00:37:55.829
that's really geared towards providing stability

00:37:55.829 --> 00:37:58.210
and sharing both the good times and the bad.

00:37:58.429 --> 00:38:01.070
Now, let's contrast that with what's going on

00:38:01.070 --> 00:38:03.710
in Australia with this vertical experiment involving

00:38:03.710 --> 00:38:07.389
Saputo and the supermarket giant coals. That's

00:38:07.389 --> 00:38:09.010
not like a completely different ballgame for

00:38:09.010 --> 00:38:10.909
you down there. It's a really different approach.

00:38:11.150 --> 00:38:13.670
The deal where Saputo sold a couple of their

00:38:13.670 --> 00:38:15.550
processing plants to Kohl's for a substantial

00:38:15.550 --> 00:38:19.650
sum, $70 million, represents a move towards what

00:38:19.650 --> 00:38:22.349
we call greater vertical integration in the Australian

00:38:22.349 --> 00:38:24.949
dairy industry. Vertical integration. Basically,

00:38:24.949 --> 00:38:27.889
a major retailer like Kohl's is now taking on

00:38:27.889 --> 00:38:30.409
more direct control of the milk processing stage.

00:38:31.400 --> 00:38:33.920
And you mentioned that this deal gives retailers

00:38:33.920 --> 00:38:36.920
a significantly larger slice of the processing

00:38:36.920 --> 00:38:41.019
pie, up to 22 % in key dairy regions like New

00:38:41.019 --> 00:38:43.460
South Wales and Victoria. That's a big shift

00:38:43.460 --> 00:38:45.780
in power. It is. How does this vertical integration

00:38:45.780 --> 00:38:48.539
model typically work, and what are the potential

00:38:48.539 --> 00:38:51.019
implications for you as an Australian dairy farmer?

00:38:51.239 --> 00:38:53.579
This kind of model often involves long -term

00:38:53.579 --> 00:38:55.860
supply agreements in this case, five -year tolling

00:38:55.860 --> 00:38:57.820
agreements that essentially lock in the supply

00:38:57.820 --> 00:39:01.010
chains. Five years is a long time. It is. So

00:39:01.010 --> 00:39:02.909
instead of selling your milk on the open market,

00:39:03.090 --> 00:39:05.489
some Australian farmers will now have a more

00:39:05.489 --> 00:39:08.690
direct, longer -term relationship with a processor

00:39:08.690 --> 00:39:12.269
who is very closely tied to a major supermarket

00:39:12.269 --> 00:39:15.539
chain. While this can offer some security in

00:39:15.539 --> 00:39:18.179
terms of having a guaranteed buyer for your milk,

00:39:18.280 --> 00:39:21.599
it also potentially reduces your ability to negotiate

00:39:21.599 --> 00:39:24.360
prices with other processors and exposes you

00:39:24.360 --> 00:39:26.519
more directly to the strategies and priorities

00:39:26.519 --> 00:39:29.579
of the retail sector. And this deal actually

00:39:29.579 --> 00:39:31.559
got the go -ahead from the Australian Competition

00:39:31.559 --> 00:39:34.800
and Consumer Commission, ACCC, even though it

00:39:34.800 --> 00:39:37.019
means there are fewer potential buyers for raw

00:39:37.019 --> 00:39:40.480
milk, a 14 % reduction. That seems a bit counterintuitive

00:39:40.480 --> 00:39:43.260
at first glance for you farmers. The ACCC likely

00:39:43.260 --> 00:39:45.139
weighed the potential benefits of the deal in

00:39:45.139 --> 00:39:46.920
terms of making the supply chain more efficient

00:39:46.920 --> 00:39:49.480
and ensuring a stable supply of milk for consumers.

00:39:49.880 --> 00:39:52.420
However, the fact that there are fewer buyers

00:39:52.420 --> 00:39:54.460
for your raw milk does raise some legitimate

00:39:54.460 --> 00:39:56.559
concerns about the level of competition in the

00:39:56.559 --> 00:39:58.659
market and the potential impact on the prices

00:39:58.659 --> 00:40:00.960
you receive for your milk in the long run. It's

00:40:00.960 --> 00:40:02.940
something you Australian farmers will definitely

00:40:02.940 --> 00:40:06.260
be keeping a close eye on. So, New Zealand...

00:40:06.480 --> 00:40:09.219
With its cooperative sharing the ups and downs,

00:40:09.380 --> 00:40:11.780
and Australia with this move towards the retailers

00:40:11.780 --> 00:40:14.239
having more control, you're calling these the

00:40:14.239 --> 00:40:17.900
global crossroads for the dairy industry. Why

00:40:17.900 --> 00:40:20.500
are these two models so significant for you no

00:40:20.500 --> 00:40:22.630
matter where you are? Because these two models

00:40:22.630 --> 00:40:25.590
represent fundamentally different ways of organizing

00:40:25.590 --> 00:40:27.989
the dairy supply chain and dealing with the inherent

00:40:27.989 --> 00:40:30.349
risks in the market. Totally different philosophies.

00:40:30.369 --> 00:40:33.230
Right. New Zealand's approach prioritizes farmer

00:40:33.230 --> 00:40:35.610
ownership and a very direct connection to global

00:40:35.610 --> 00:40:38.329
commodity prices, while Australia is seeing a

00:40:38.329 --> 00:40:40.389
move towards greater control by the retailers

00:40:40.389 --> 00:40:44.070
and a more tightly integrated supply chain. How

00:40:44.070 --> 00:40:46.469
these two contrasting models fare will likely

00:40:46.469 --> 00:40:48.750
offer important lessons for dairy -producing

00:40:48.750 --> 00:40:50.750
regions around the world as they grapple with

00:40:50.750 --> 00:40:52.909
market volatility and change in consumer demands.

00:40:53.349 --> 00:40:55.449
It's like two different strategies being tested

00:40:55.449 --> 00:40:57.750
on a global scale, and the outcomes will be important

00:40:57.750 --> 00:40:59.869
for you to watch. Okay, so we've looked at the

00:40:59.869 --> 00:41:02.130
market, we've looked at genetics, and we've looked

00:41:02.130 --> 00:41:05.210
at these big global models. Now, let's get to

00:41:05.210 --> 00:41:07.639
what you call the controversy corner. This apparent

00:41:07.639 --> 00:41:11.239
disconnect between auction prices going up and

00:41:11.239 --> 00:41:13.980
the actual profitability on your farm. This really

00:41:13.980 --> 00:41:16.559
gets to the heart of that initial puzzle we were

00:41:16.559 --> 00:41:19.559
trying to solve, doesn't it? It does. The common

00:41:19.559 --> 00:41:22.119
assumption might be that when those GDT auction

00:41:22.119 --> 00:41:24.360
results look a bit brighter, that automatically

00:41:24.360 --> 00:41:26.639
translates into healthier profit margins for

00:41:26.639 --> 00:41:29.199
you. You hope so. But the reality, especially

00:41:29.199 --> 00:41:31.480
for those of you who have invested in high genetic,

00:41:31.579 --> 00:41:35.019
high component herds, can be a bit more complicated.

00:41:35.480 --> 00:41:37.360
You used the example of that little bounce we

00:41:37.360 --> 00:41:40.579
saw in mozzarella prices on the GDT. It made

00:41:40.579 --> 00:41:42.880
some positive headlines. But you pointed out

00:41:42.880 --> 00:41:45.139
that feed costs have actually eaten up a whopping

00:41:45.139 --> 00:41:49.260
63 % of those gains for herds that are specifically

00:41:49.260 --> 00:41:51.739
bred to produce those high -value components

00:41:51.739 --> 00:41:55.119
needed for mozzarella. That's a pretty sobering

00:41:55.119 --> 00:41:57.579
statistic for you, isn't it? It is a stark reminder.

00:41:58.230 --> 00:42:00.750
Because producing milk with high levels of butterfat

00:42:00.750 --> 00:42:03.449
and protein often requires a higher level of

00:42:03.449 --> 00:42:05.650
nutrition for your cows. And that inevitably

00:42:05.650 --> 00:42:08.550
means higher feed costs. Right. Got to feed the

00:42:08.550 --> 00:42:11.190
machine. Exactly. So while the price of mozzarella

00:42:11.190 --> 00:42:14.130
might go up, if the cost of feeding your cows

00:42:14.130 --> 00:42:16.769
to produce that kind of milk increases even faster,

00:42:17.110 --> 00:42:20.550
the actual financial benefit for you can be significantly

00:42:20.550 --> 00:42:23.989
reduced or even disappear entirely. It highlights

00:42:23.989 --> 00:42:26.590
the importance of looking beyond just the headline

00:42:26.590 --> 00:42:29.190
commodity prices. And this is where your margin

00:42:29.190 --> 00:42:32.269
pressure equation comes into play. Yeah. Commodity

00:42:32.269 --> 00:42:36.670
price minus feed cost to the power of 1 .8 multiplied

00:42:36.670 --> 00:42:40.369
by component yield. Now that looks a little like

00:42:40.369 --> 00:42:42.090
something we might have avoided in high school

00:42:42.090 --> 00:42:44.750
math class. Can you break down what this equation

00:42:44.750 --> 00:42:46.469
is really telling us in a way that makes sense

00:42:46.469 --> 00:42:48.489
for our listeners? Don't worry, we're not expecting

00:42:48.489 --> 00:42:50.369
you to whip out your calculators in the milking

00:42:50.369 --> 00:42:52.750
parlor. This equation is just a simplified way

00:42:52.750 --> 00:42:55.309
to illustrate the really complex relationship

00:42:55.309 --> 00:42:57.809
between what your milk gets sold for, what we're

00:42:57.809 --> 00:43:00.230
spending on feed, and how much of those valuable

00:43:00.230 --> 00:43:02.750
components, fat and protein, your cows are producing.

00:43:03.010 --> 00:43:07.369
That exponent of 1 .8 on the feed cost part is

00:43:07.369 --> 00:43:10.050
there to show that feed costs often have a bigger

00:43:10.050 --> 00:43:12.409
impact on your profitability than you might initially

00:43:12.409 --> 00:43:15.500
think. And the component yield is factored in

00:43:15.500 --> 00:43:18.039
because, as we've discussed, higher yields often

00:43:18.039 --> 00:43:20.980
come with a higher feed bill. Ultimately, this

00:43:20.980 --> 00:43:23.539
equation helps us see just how sensitive your

00:43:23.539 --> 00:43:25.639
farm's profitability is to finding the right

00:43:25.639 --> 00:43:27.940
balance between what you're getting paid and

00:43:27.940 --> 00:43:30.159
what it's costing you to produce that milk, especially

00:43:30.159 --> 00:43:31.940
when you're focused on those high -value components.

00:43:32.420 --> 00:43:34.360
But then you also pointed out that even though

00:43:34.360 --> 00:43:37.820
the overall GDT index had that little dip in

00:43:37.820 --> 00:43:41.179
the first quarter. A surprising 41 % of these

00:43:41.179 --> 00:43:43.699
high genetic herds still managed to maintain

00:43:43.699 --> 00:43:46.380
their profits. How is that possible when they're

00:43:46.380 --> 00:43:48.599
facing this margin pressure? It seems counterintuitive.

00:43:48.820 --> 00:43:50.920
That's the crucial insight for you. The reason

00:43:50.920 --> 00:43:52.699
those high genetic herds were able to stay in

00:43:52.699 --> 00:43:54.880
the black is precisely because of their higher

00:43:54.880 --> 00:43:57.400
component yields. Ah, the components saved them.

00:43:57.679 --> 00:44:00.300
Exactly. Even if the base commodity prices weren't

00:44:00.300 --> 00:44:02.360
setting any records or even dipped a little,

00:44:02.500 --> 00:44:05.579
the increased pounds or kilograms of butterfat

00:44:05.579 --> 00:44:07.960
and protein they were producing and getting paid

00:44:07.960 --> 00:44:10.820
a premium for helped to offset the squeeze from

00:44:10.820 --> 00:44:13.739
those higher feed costs. It really drives home

00:44:13.739 --> 00:44:15.619
the value of investing in genetics that deliver

00:44:15.619 --> 00:44:17.699
those high quality components. It's like they've

00:44:17.699 --> 00:44:19.800
built a bit of a buffer into their business model.

00:44:19.960 --> 00:44:22.900
So for our producers tuning in. What are the

00:44:22.900 --> 00:44:25.320
concrete steps they should be considering? What's

00:44:25.320 --> 00:44:27.599
their profit playbook in this ever -changing

00:44:27.599 --> 00:44:30.199
landscape of market ups and downs and genetic

00:44:30.199 --> 00:44:32.960
progress? Let's start with this genetic audit.

00:44:33.119 --> 00:44:34.900
What should they be doing when they look at their

00:44:34.900 --> 00:44:37.639
breeding decisions? The first thing is to really

00:44:37.639 --> 00:44:39.739
take a fresh look at your breeding goals in light

00:44:39.739 --> 00:44:43.239
of that net merit 2025 formula. Pay particular

00:44:43.239 --> 00:44:46.219
attention to the feed efficiency trait, as that's

00:44:46.219 --> 00:44:48.400
becoming increasingly crucial for keeping your

00:44:48.400 --> 00:44:51.400
costs under control. Efficiency first. And given

00:44:51.400 --> 00:44:53.699
just how valuable butterfat is in the current

00:44:53.699 --> 00:44:56.219
market, consider setting a target maybe around

00:44:56.219 --> 00:45:00.000
that 4 .5 % mark and using genomic testing to

00:45:00.000 --> 00:45:02.760
identify and potentially cull cows that are unlikely

00:45:02.760 --> 00:45:05.320
to reach that level. It's about making informed

00:45:05.320 --> 00:45:07.920
decisions based on the current economic realities.

00:45:08.179 --> 00:45:11.320
Okay, so... a more strategic look at the genetics

00:45:11.320 --> 00:45:14.320
with a real focus on getting the most valuable

00:45:14.320 --> 00:45:16.760
components efficiently. What about their milk

00:45:16.760 --> 00:45:19.460
contracts, the contract calculus? How should

00:45:19.460 --> 00:45:21.000
they be thinking about the deals they're making

00:45:21.000 --> 00:45:22.960
in this kind of environment? With these really

00:45:22.960 --> 00:45:24.940
different global models, we've discussed the

00:45:24.940 --> 00:45:26.980
risk sharing approach of Fonterra versus the

00:45:26.980 --> 00:45:29.099
more integrated offers you might see in a market

00:45:29.099 --> 00:45:31.360
like Australia. You need to carefully weigh the

00:45:31.360 --> 00:45:33.579
pros and cons of each. No easy answer there.

00:45:33.699 --> 00:45:36.099
Not really. Think about the level of price stability

00:45:36.099 --> 00:45:40.050
that's being offered versus any potential limitations

00:45:40.050 --> 00:45:42.789
on how much you could benefit if prices really

00:45:42.789 --> 00:45:45.909
spike. It's also really important to try and

00:45:45.909 --> 00:45:48.130
model out different scenarios for your feed costs

00:45:48.130 --> 00:45:50.469
over the next five years and see how those might

00:45:50.469 --> 00:45:53.250
impact your profitability based on your herd's

00:45:53.250 --> 00:45:55.829
potential for component production. Don't just

00:45:55.829 --> 00:45:57.489
look at the headline price per hundredweight.

00:45:57.769 --> 00:46:00.449
Really dig into the details of the payment structure

00:46:00.449 --> 00:46:03.110
and the potential risks and rewards. That makes

00:46:03.110 --> 00:46:05.090
a lot of sense. It's not just about the sticker

00:46:05.090 --> 00:46:08.030
price of the milk anymore. And finally, you mentioned

00:46:08.030 --> 00:46:12.099
a market hedge, some strategies for maybe diversifying

00:46:12.099 --> 00:46:14.420
what your farm is producing. What could that

00:46:14.420 --> 00:46:17.199
look like for a typical dairy farmer? Given the

00:46:17.199 --> 00:46:18.840
relative strength we're seeing in cheese markets

00:46:18.840 --> 00:46:21.679
and the ongoing high value of butterfat, it might

00:46:21.679 --> 00:46:23.840
be a smart move to think about allocating around

00:46:23.840 --> 00:46:26.500
30 % of your production towards those components

00:46:26.500 --> 00:46:28.920
that are particularly desirable for cheesemaking,

00:46:28.960 --> 00:46:31.579
which often means higher protein. Focusing a

00:46:31.579 --> 00:46:34.840
bit more on cheese potential? Exactly. Additionally,

00:46:34.940 --> 00:46:37.039
you could explore opportunities to capture those

00:46:37.039 --> 00:46:39.619
premium prices for specialty fats by looking

00:46:39.619 --> 00:46:41.900
into partnerships that process milk into products

00:46:41.900 --> 00:46:45.400
like anhydrous milk fat, AMF. These more niche

00:46:45.400 --> 00:46:47.860
markets can sometimes offer significantly better

00:46:47.860 --> 00:46:50.239
returns compared to just selling into the general

00:46:50.239 --> 00:46:52.559
commodity pool. It's about looking for those

00:46:52.559 --> 00:46:55.420
value -added opportunities. So some really practical

00:46:55.420 --> 00:46:57.840
and concrete steps there for our producers to

00:46:57.840 --> 00:46:59.719
consider. Now let's bring it all together with

00:46:59.719 --> 00:47:02.280
the bullvine bottom line. You've called 2025

00:47:02.280 --> 00:47:05.440
a real inflection point for the dairy industry.

00:47:05.800 --> 00:47:09.380
Why is this particular year so critical for everyone

00:47:09.380 --> 00:47:11.320
involved? It's a critical time because we're

00:47:11.320 --> 00:47:13.780
seeing these two really powerful forces, the

00:47:13.780 --> 00:47:15.760
short -term ups and downs of the global market

00:47:15.760 --> 00:47:18.940
and the long -term transformative trends in dairy

00:47:18.940 --> 00:47:21.480
genetics colliding in a way that demands a completely

00:47:21.480 --> 00:47:24.119
new way of thinking about farm management. A

00:47:24.119 --> 00:47:26.320
collision, yeah. You can't just focus on what

00:47:26.320 --> 00:47:29.079
the quarterly auction results are. You also need

00:47:29.079 --> 00:47:31.099
to be thinking strategically about the genetic

00:47:31.099 --> 00:47:33.619
makeup of your herd and its potential over the

00:47:33.619 --> 00:47:36.420
next decade. It's about balancing the immediate

00:47:36.420 --> 00:47:38.460
market pressures with your long -term genetic

00:47:38.460 --> 00:47:40.579
strategy. And the key message that you should

00:47:40.579 --> 00:47:43.059
really take away is this fundamental shift in

00:47:43.059 --> 00:47:46.300
what the market is truly rewarding. It's the

00:47:46.300 --> 00:47:48.860
component density of your milk, not just the

00:47:48.860 --> 00:47:50.699
total amount of liquid you're shipping. Precisely.

00:47:51.070 --> 00:47:53.289
In the long run, the dairy farms that are going

00:47:53.289 --> 00:47:55.949
to be the most successful and profitable are

00:47:55.949 --> 00:47:57.789
those that can efficiently produce milk with

00:47:57.789 --> 00:47:59.869
a high concentration of those valuable components.

00:48:00.230 --> 00:48:02.289
That's where the real sustainable profitability

00:48:02.289 --> 00:48:05.110
lies. And you ended with a really thought -provoking

00:48:05.110 --> 00:48:08.309
analogy, treating every heifer you raise as a

00:48:08.309 --> 00:48:11.329
futures contract and every straw of semen you

00:48:11.329 --> 00:48:14.510
use as a strategic asset. Can you elaborate on

00:48:14.510 --> 00:48:16.539
what you mean by that for our listeners? It's

00:48:16.539 --> 00:48:18.559
about really recognizing the long -term investment

00:48:18.559 --> 00:48:21.159
you're making with every breeding decision. A

00:48:21.159 --> 00:48:23.260
heifer calf born today will be contributing to

00:48:23.260 --> 00:48:25.679
your milk production for several years down the

00:48:25.679 --> 00:48:28.699
line, so she represents a future stream of revenue

00:48:28.699 --> 00:48:31.480
like a futures contract. Thinking long -term.

00:48:32.159 --> 00:48:35.219
Similarly, the semen you choose today is a strategic

00:48:35.219 --> 00:48:38.039
asset that will significantly influence the genetic

00:48:38.039 --> 00:48:40.880
potential and therefore the profitability of

00:48:40.880 --> 00:48:43.610
your herd for years to come. Thinking about your

00:48:43.610 --> 00:48:45.190
breeding decisions in these terms encourages

00:48:45.190 --> 00:48:47.829
a much more forward -looking and strategic approach

00:48:47.829 --> 00:48:50.110
to how you manage your herd. It's not just a

00:48:50.110 --> 00:48:53.210
routine task, it's a key business decision. Some

00:48:53.210 --> 00:48:54.969
incredibly valuable insights there that you can

00:48:54.969 --> 00:48:57.809
really take to the bank. And for those of you

00:48:57.809 --> 00:48:59.409
who want to dig even deeper into some of these

00:48:59.409 --> 00:49:01.409
areas, we've flagged a few interesting articles

00:49:01.409 --> 00:49:03.570
that have appeared on The Bullvine. First up,

00:49:03.750 --> 00:49:07.190
LIC's profit surge signals strong demand for

00:49:07.190 --> 00:49:09.630
dairy tech and genetics. What's the connection

00:49:09.630 --> 00:49:12.800
there for you? LIC or Livestock Improvement Corporation

00:49:12.800 --> 00:49:16.300
is a major player in providing dairy genetics

00:49:16.300 --> 00:49:18.920
and technology to the industry. Their strong

00:49:18.920 --> 00:49:21.480
financial performance is a really clear indicator

00:49:21.480 --> 00:49:23.960
that there's a robust demand from farmers like

00:49:23.960 --> 00:49:26.960
you for tools and resources that can help improve

00:49:26.960 --> 00:49:29.719
your herd's efficiency and genetic merit. So

00:49:29.719 --> 00:49:32.719
people are buying this tech. They are. It reinforces

00:49:32.719 --> 00:49:35.059
the idea that investing in these areas is becoming

00:49:35.059 --> 00:49:37.199
increasingly important for staying competitive

00:49:37.199 --> 00:49:40.199
and profitable in this evolving landscape. When

00:49:40.199 --> 00:49:43.039
a big player like LIC is thriving, it means many

00:49:43.039 --> 00:49:46.099
of you are recognizing the value of these technologies.

00:49:46.460 --> 00:49:48.280
And then there's the interesting question post.

00:49:48.599 --> 00:49:51.599
Are dairy genetics a commodity? That's a bit

00:49:51.599 --> 00:49:53.280
of head scratcher, isn't it? What's the underlying

00:49:53.280 --> 00:50:12.590
issue there for producers to consider? Cheap

00:50:12.590 --> 00:50:15.760
vs. Value Exactly. It encourages you to really

00:50:15.760 --> 00:50:17.500
think critically about your long -term breeding

00:50:17.500 --> 00:50:20.179
goals and whether a purely cost -driven approach

00:50:20.179 --> 00:50:22.480
aligns with your overall profitability objectives.

00:50:23.059 --> 00:50:25.440
Sometimes the cheapest auction isn't the most

00:50:25.440 --> 00:50:27.880
profitable in the long run. Finally, there's

00:50:27.880 --> 00:50:32.179
the intriguing title, How Beef Semen is Revolutionizing

00:50:32.179 --> 00:50:35.690
Dairy Farming. That sounds like a bit of a surprising

00:50:35.690 --> 00:50:37.750
twist for you dairy folks. What's that all about?

00:50:37.909 --> 00:50:40.389
This article likely explores the growing trend

00:50:40.389 --> 00:50:43.309
among dairy farmers of using beef semen on their

00:50:43.309 --> 00:50:46.389
lower producing dairy cows. Beef on dairy. Yeah.

00:50:46.550 --> 00:50:49.389
The goal here isn't to produce more dairy heifers,

00:50:49.389 --> 00:50:51.630
but rather to produce calves that are more valuable

00:50:51.630 --> 00:50:54.210
for meat production. It's a strategy that can

00:50:54.210 --> 00:50:56.250
help you diversify your farm's revenue streams

00:50:56.250 --> 00:50:59.010
and improve the overall profitability of your

00:50:59.010 --> 00:51:01.610
operation by creating an additional income from

00:51:01.610 --> 00:51:03.610
animals that might not be the best candidates

00:51:03.610 --> 00:51:05.690
for becoming replacements in your milking herd.

00:51:05.849 --> 00:51:08.090
It's a way to make the most of all your animals.

00:51:08.429 --> 00:51:10.789
Fascinating stuff all around. So the real key

00:51:10.789 --> 00:51:13.409
message for you, our listeners, really boils

00:51:13.409 --> 00:51:15.789
down to understanding this constant interplay

00:51:15.789 --> 00:51:18.070
between the short -term swings of the market

00:51:18.070 --> 00:51:21.050
and the long -term powerful trends in genetics.

00:51:21.579 --> 00:51:23.559
It's not enough to just keep an eye on those

00:51:23.559 --> 00:51:26.039
GDT numbers. You've also got to be thinking deeply

00:51:26.039 --> 00:51:28.940
about the DNA of your herd and how that translates

00:51:28.940 --> 00:51:31.900
to your bottom line. Exactly. The dairy landscape

00:51:31.900 --> 00:51:34.199
is being fundamentally reshaped by this dynamic

00:51:34.199 --> 00:51:37.119
duo. Those of you who take the time to understand

00:51:37.119 --> 00:51:39.179
these forces and adapt your strategies accordingly

00:51:39.179 --> 00:51:41.599
will be the ones best positioned for continued

00:51:41.599 --> 00:51:44.139
success. And on that note, a final thought to

00:51:44.139 --> 00:51:46.559
chew on for you all. Consider how this increasing

00:51:46.559 --> 00:51:49.159
emphasis on the specific components in Milk the

00:51:49.159 --> 00:51:51.880
Fat And the protein will fundamentally change

00:51:51.880 --> 00:51:55.260
how we even measure and evaluate dairy farm performance

00:51:55.260 --> 00:51:58.380
in the years to come. Will traditional metrics

00:51:58.380 --> 00:52:00.920
like just the liters or pounds of milk per cow

00:52:00.920 --> 00:52:03.460
still be the most important? Or will we see a

00:52:03.460 --> 00:52:05.760
greater focus on the kilograms or pounds of components

00:52:05.760 --> 00:52:08.519
produced and the overall efficiency of that production?

00:52:09.179 --> 00:52:11.099
It's definitely something to ponder as you head

00:52:11.099 --> 00:52:14.050
out to the barn. Thanks for diving deep with

00:52:14.050 --> 00:52:16.150
us today. We really hope this has given you some

00:52:16.150 --> 00:52:18.570
valuable insights to help you navigate this complex

00:52:18.570 --> 00:52:21.510
and ever evolving dairy sector. While trade wars

00:52:21.510 --> 00:52:23.889
and tariffs dominate the political landscape,

00:52:24.309 --> 00:52:27.449
the elite genetics market is telling a completely

00:52:27.449 --> 00:52:31.389
different story about dairy's value. If you needed

00:52:31.389 --> 00:52:34.030
proof that top tier dairy animals still command

00:52:34.030 --> 00:52:37.070
premium dollars, look no further than what happened

00:52:37.070 --> 00:52:39.920
in New Zealand last weekend. The party at the

00:52:39.920 --> 00:52:43.059
polo sale just shattered expectations with prices

00:52:43.059 --> 00:52:45.380
that'll make you rethink what the ceiling might

00:52:45.380 --> 00:52:48.360
be for exceptional genetics in today's market.

00:52:48.960 --> 00:52:51.460
Let's head down under for the details. All right,

00:52:51.460 --> 00:52:57.039
so this deep dive, we're going kind of upscale

00:52:57.039 --> 00:52:59.159
a little bit fancy, I think. Sounds like it.

00:52:59.420 --> 00:53:01.480
You sent us some details about the party of the

00:53:01.480 --> 00:53:04.239
polo sale at the Hora Farms over in Canterbury,

00:53:04.340 --> 00:53:06.760
New Zealand. And honestly, it seems less like

00:53:06.760 --> 00:53:08.800
your typical livestock auction and more like

00:53:08.800 --> 00:53:12.179
a high society gala or something. Absolutely.

00:53:12.219 --> 00:53:16.300
It's a really interesting combination of, well,

00:53:16.400 --> 00:53:18.800
obviously the high -end dairy cattle, but also,

00:53:18.800 --> 00:53:21.400
you know, a polo match, which is not something

00:53:21.400 --> 00:53:23.960
you see at every cattle auction. Definitely not.

00:53:24.099 --> 00:53:26.860
Our sources tell us almost 500 people turned

00:53:26.860 --> 00:53:30.119
out for it. Wow. So clearly there's an interest

00:53:30.119 --> 00:53:32.480
in this type of event. Yeah. I mean, it's just

00:53:32.480 --> 00:53:34.579
trying to picture it. You've got this polo match

00:53:34.579 --> 00:53:36.820
happening and then, you know, they're parading

00:53:36.820 --> 00:53:38.639
some of the best dairy cattle around. And then

00:53:38.639 --> 00:53:40.480
on top of that, you've got the food situation.

00:53:40.599 --> 00:53:44.539
Oh, yeah. It's like fresh seafood, BBQ lamb,

00:53:44.900 --> 00:53:48.159
cucumber sandwiches. Cucumber sandwiches. Not

00:53:48.159 --> 00:53:49.900
your typical auction fair. No, it's definitely

00:53:49.900 --> 00:53:53.179
a step above, you know, your usual hot dogs and

00:53:53.179 --> 00:53:56.610
chips. Exactly. What do you think is the thought

00:53:56.610 --> 00:53:59.789
process behind putting together such an unusual

00:53:59.789 --> 00:54:02.349
event like this? Well, I think it's the deliberate

00:54:02.349 --> 00:54:04.730
attempt to kind of elevate the whole experience.

00:54:04.969 --> 00:54:06.489
Okay. You know, instead of it just being a sale,

00:54:06.650 --> 00:54:09.170
it's a social occasion. Makes sense. It's a party.

00:54:09.349 --> 00:54:12.230
And by doing that, they probably attract a wider

00:54:12.230 --> 00:54:14.769
range of people. Right. people who have maybe

00:54:14.769 --> 00:54:17.230
a bit more disposable income and are really looking

00:54:17.230 --> 00:54:20.929
for something special, whether it's a top -performing

00:54:20.929 --> 00:54:24.269
horse or an elite dairy cow. Well, and speaking

00:54:24.269 --> 00:54:26.829
of top -performing horses, they actually had

00:54:26.829 --> 00:54:30.449
a polo pony named Ricky that sold for a whopping

00:54:30.449 --> 00:54:35.530
$77 ,000 to an Australian buyer. Yeah, that's

00:54:35.530 --> 00:54:37.530
a serious price tag for a horse. No kidding.

00:54:37.710 --> 00:54:40.269
So how does this horse sale tie into our deep

00:54:40.269 --> 00:54:42.449
dive on dairy? Well, even though we're focusing

00:54:42.449 --> 00:54:45.760
on the cows. That sale price for Ricky is significant.

00:54:46.179 --> 00:54:48.519
Okay. It shows you the kind of people who were

00:54:48.519 --> 00:54:51.800
at this event and their willingness to spend

00:54:51.800 --> 00:54:54.019
money on high quality animals. Yeah. It really

00:54:54.019 --> 00:54:56.800
highlights that party atmosphere and the clientele

00:54:56.800 --> 00:54:58.559
they were targeting. So now let's move on to

00:54:58.559 --> 00:55:00.900
the real stars of this show. The dairy cattle.

00:55:01.079 --> 00:55:05.480
All right. Or a sidekick legacy too. A VG89 Holstein.

00:55:06.059 --> 00:55:10.000
and the 2025 New Zealand Dairy Event Grand Champion.

00:55:10.280 --> 00:55:13.760
A half share in her sold for $30 ,000. Yeah,

00:55:13.860 --> 00:55:16.019
she's a really impressive animal. But for those

00:55:16.019 --> 00:55:17.760
of us who aren't as familiar with dairy terminology,

00:55:18.179 --> 00:55:22.340
what does that VG89 actually mean? So VG89 stands

00:55:22.340 --> 00:55:26.539
for very good 89 out of 100. That's basically

00:55:26.539 --> 00:55:28.599
like a professional assessment of her physical

00:55:28.599 --> 00:55:31.260
structure and how well she conforms to the breed

00:55:31.260 --> 00:55:34.280
standard. Interesting. And 89 is really high,

00:55:34.340 --> 00:55:37.519
just one step below the top grade, which is excellent.

00:55:37.719 --> 00:55:39.639
Wow. So she's basically like the runner up in

00:55:39.639 --> 00:55:41.519
terms of confirmation. Exactly. And on top of

00:55:41.519 --> 00:55:43.579
that, she was the grand champion at the New Zealand

00:55:43.579 --> 00:55:45.780
dairy event. So, you know, she's definitely a

00:55:45.780 --> 00:55:48.460
top tier animal. And $30 ,000 for just a half

00:55:48.460 --> 00:55:51.420
share? That's a lot of money. It is, but it reflects

00:55:51.420 --> 00:55:53.780
the demand for genetics from such a well -regarded

00:55:53.780 --> 00:55:56.880
cow. Okay. People are basically investing in

00:55:56.880 --> 00:55:59.880
her potential to produce exceptional offspring.

00:56:00.179 --> 00:56:02.260
So she's not just a pretty face. She's got the

00:56:02.260 --> 00:56:05.519
genes to back it up. Exactly. And Legacy 2 wasn't

00:56:05.519 --> 00:56:07.519
the only one that brought in big bucks. No, there

00:56:07.519 --> 00:56:10.320
were several other high sellers. We had DeHorafaro

00:56:10.320 --> 00:56:13.840
Abriana. Right. And E .X. Holstein. Yes. Now

00:56:13.840 --> 00:56:16.119
that E .X. rating, what does that mean? So E

00:56:16.119 --> 00:56:19.179
.X. stands for excellent. And that's the highest

00:56:19.179 --> 00:56:22.039
possible classification a dairy cow can get.

00:56:22.159 --> 00:56:24.639
Okay. Based on her physical traits. So she's

00:56:24.639 --> 00:56:26.719
top of the line. Absolutely top of the line.

00:56:26.739 --> 00:56:31.179
And she brought in $26 ,000. Yep. We also saw

00:56:31.179 --> 00:56:36.179
Tahor Alligator Flores fetch $18 ,500. Uh -huh.

00:56:36.579 --> 00:56:40.139
Glenal Reynolds, Dahlia. Yeah. And Ayrshire.

00:56:40.340 --> 00:56:43.059
That's right. She also went for $18 ,000. Yep.

00:56:43.539 --> 00:56:46.500
Snowfed Chief Jessica for $16 ,000. Uh -huh.

00:56:46.599 --> 00:56:49.800
And Tahora Tututori for $14 ,000. It was a really

00:56:49.800 --> 00:56:51.619
good showing across the board. Yeah, it seems

00:56:51.619 --> 00:56:53.420
like there's a strong market for these premium

00:56:53.420 --> 00:56:55.719
dairy cattle across different breeds. Absolutely.

00:56:55.719 --> 00:56:58.099
And the fact that multiple animals commanded

00:56:58.099 --> 00:57:00.619
such high prices. Right. Really shows there's

00:57:00.619 --> 00:57:03.199
a strong appetite for top -tier genetics. Let's

00:57:03.199 --> 00:57:06.619
talk about the average sale prices across all

00:57:06.619 --> 00:57:13.139
75 cattle sold. The average was $7 ,453. Okay.

00:57:13.380 --> 00:57:15.719
Breaking that down a bit further, the average

00:57:15.719 --> 00:57:20.500
for the Holsteins was $7 ,796. Right. While the

00:57:20.500 --> 00:57:25.699
Jerseys averaged $5 ,882. Interesting. That single

00:57:25.699 --> 00:57:28.679
Ayrshire, she stood out at $18 ,000. Yeah, she

00:57:28.679 --> 00:57:32.519
did. And the single brown Swiss sold for $4 ,500.

00:57:33.019 --> 00:57:35.579
So what can we learn from these averages? That's

00:57:35.579 --> 00:57:37.260
what I'm wondering. What do you think? Well,

00:57:37.280 --> 00:57:39.559
I think the higher average for Holsteins likely

00:57:39.559 --> 00:57:42.420
reflects their dominance in the New Zealand dairy

00:57:42.420 --> 00:57:45.019
sector. Okay. And maybe there is just a larger

00:57:45.019 --> 00:57:48.460
pool of elite Holsteins available at this sale.

00:57:48.639 --> 00:57:50.599
That makes sense. The lower jersey average could

00:57:50.599 --> 00:57:52.440
mean a few things. Like what? Maybe there's a

00:57:52.440 --> 00:57:54.639
different market dynamic for jerseys, or maybe

00:57:54.639 --> 00:57:56.619
they're just worn as many top tier jerseys on

00:57:56.619 --> 00:57:59.280
offer at the specific sale. Okay. But that Air

00:57:59.280 --> 00:58:01.639
Assure selling for $18 ,000, that really stands

00:58:01.639 --> 00:58:05.289
out. It suggests there's strong demand for exceptional

00:58:05.289 --> 00:58:07.329
Ayrshire genetics, even though they're not as

00:58:07.329 --> 00:58:10.130
common as Holsteins. So it seems like there are

00:58:10.130 --> 00:58:12.570
a lot of factors at play when it comes to pricing

00:58:12.570 --> 00:58:14.510
these animals. Absolutely. It's not just about

00:58:14.510 --> 00:58:17.170
breed. There's also the individual animal's genetics,

00:58:17.449 --> 00:58:20.570
its conformation, and then, of course, market

00:58:20.570 --> 00:58:23.050
demand. Right. So let's shift gears a bit and

00:58:23.050 --> 00:58:25.510
talk about the people behind these incredible

00:58:25.510 --> 00:58:28.849
animals. Okay. The breeders who have worked so

00:58:28.849 --> 00:58:31.599
hard to develop these bloodlines. Right. We have

00:58:31.599 --> 00:58:34.840
the Geddes family's Tahora Holstein stud. Yes.

00:58:35.059 --> 00:58:37.079
They've been around for over a century. Wow.

00:58:37.320 --> 00:58:39.760
And they're known for their excellence in Holsteins.

00:58:39.800 --> 00:58:41.659
Uh -huh. And then we have the Gilbert family

00:58:41.659 --> 00:58:44.699
with their Glenalla and Snowfed operations. Right.

00:58:44.780 --> 00:58:46.940
And they're focused on producing high -quality

00:58:46.940 --> 00:58:49.139
animals across multiple breeds. That's right.

00:58:49.219 --> 00:58:51.719
They have Holsteins jerseys, Ayrshires, and Brown

00:58:51.719 --> 00:58:54.840
Swiss. It's amazing to think about the dedication

00:58:54.840 --> 00:58:57.960
and expertise that goes into building a successful

00:58:57.960 --> 00:59:00.679
breeding program like that. It really is. And

00:59:00.679 --> 00:59:02.880
I think that history and reputation adds a lot

00:59:02.880 --> 00:59:05.179
of value for buyers. Well, when you're buying

00:59:05.179 --> 00:59:07.519
an animal from family like the Gettys or the

00:59:07.519 --> 00:59:10.500
Gilberts, you're not just buying an animal. Right.

00:59:10.539 --> 00:59:12.960
You're buying into a legacy of success. That

00:59:12.960 --> 00:59:14.760
makes sense. You know, they've proven themselves

00:59:14.760 --> 00:59:17.500
over generations so buyers can have confidence

00:59:17.500 --> 00:59:19.559
in the genetic potential of their animals. So

00:59:19.559 --> 00:59:21.800
it's like a guarantee of quality in a way. Exactly.

00:59:22.079 --> 00:59:24.059
Now, of course, we can't forget about... the

00:59:24.059 --> 00:59:26.000
people who made this whole party at the polo

00:59:26.000 --> 00:59:28.579
sale happen. Right, the auctioneer and the agents.

00:59:28.639 --> 00:59:31.219
Auctioneer Brian Leslie, he was in charge of

00:59:31.219 --> 00:59:34.460
the bidding. And we had agents from Rural Livestock

00:59:34.460 --> 00:59:37.460
and Carfields who were involved in organizing

00:59:37.460 --> 00:59:40.320
the event and facilitating the sales. Their expertise

00:59:40.320 --> 00:59:42.860
is crucial in a high -spakes event like this.

00:59:43.099 --> 00:59:45.239
Yeah, you need someone who knows how to run an

00:59:45.239 --> 00:59:47.460
auction smoothly. Right, and you need agents

00:59:47.460 --> 00:59:49.940
who can connect buyers and sellers and make sure

00:59:49.940 --> 00:59:52.570
everything goes according to plan. So when we

00:59:52.570 --> 00:59:54.530
take a step back and look at the big picture,

00:59:54.670 --> 00:59:57.730
what does this party at the polo sale tell us

00:59:57.730 --> 01:00:01.550
about New Zealand's place in the global dairy

01:00:01.550 --> 01:00:04.349
genetics market? Well, I think it really solidifies

01:00:04.349 --> 01:00:07.090
New Zealand's position as a major player. The

01:00:07.090 --> 01:00:09.590
fact that international buyers were willing to

01:00:09.590 --> 01:00:12.809
pay top dollar for these New Zealand animals

01:00:12.809 --> 01:00:16.230
shows that there's a global recognition of the

01:00:16.230 --> 01:00:19.130
quality of their breeding programs. So these

01:00:19.130 --> 01:00:21.340
high prices aren't just a fluke? No. I think

01:00:21.340 --> 01:00:23.539
it's a sign of a strong and growing market for

01:00:23.539 --> 01:00:26.159
New Zealand dairy genetics. All right. So for

01:00:26.159 --> 01:00:28.440
our listeners out there who are involved in the

01:00:28.440 --> 01:00:30.880
dairy industry. Yeah. What are the key takeaways

01:00:30.880 --> 01:00:34.920
from this unique party at the Polo Sale? I think

01:00:34.920 --> 01:00:37.519
the biggest takeaway is the continuing strong

01:00:37.519 --> 01:00:41.239
demand for elite dairy genetics and the willingness

01:00:41.239 --> 01:00:43.980
of buyers to invest significant amounts of money

01:00:43.980 --> 01:00:46.139
to get those genetics. Yeah. I mean, those prices

01:00:46.139 --> 01:00:48.659
were impressive. They were. And it also highlights

01:00:48.659 --> 01:00:51.119
the innovative ways the industry is showcasing

01:00:51.119 --> 01:00:53.320
its best. Right. I mean, combining a polo match

01:00:53.320 --> 01:00:55.059
with a cattle auction, that's pretty creative.

01:00:55.239 --> 01:00:57.219
It is. And it clearly attracted the right kind

01:00:57.219 --> 01:00:59.800
of audience. So beyond the impressive figures

01:00:59.800 --> 01:01:02.480
and the unique setting. What does this tell you

01:01:02.480 --> 01:01:04.500
about the future of the premium dairy market?

01:01:04.719 --> 01:01:07.519
Well, I think it suggests that the demand for

01:01:07.519 --> 01:01:10.239
high quality genetics is only going to increase.

01:01:10.519 --> 01:01:13.599
And as the global dairy industry continues to

01:01:13.599 --> 01:01:15.760
grow, I think we're going to see more events

01:01:15.760 --> 01:01:17.739
like this that cater to that premium market.

01:01:18.599 --> 01:01:22.280
So for you, our listener, what does this make

01:01:22.280 --> 01:01:24.280
you think about the future of the premium dairy

01:01:24.280 --> 01:01:27.889
market? Yeah. Are you considering investing in

01:01:27.889 --> 01:01:30.230
top tier genetics or maybe trying some innovative

01:01:30.230 --> 01:01:32.130
marketing strategies for your own operation?

01:01:32.389 --> 01:01:34.050
We'd love to hear your thoughts. Those auction

01:01:34.050 --> 01:01:36.349
prices show there's still big money in dairy

01:01:36.349 --> 01:01:38.489
genetics. But here's what's really fascinating.

01:01:38.949 --> 01:01:41.909
While traditional dairy operations face consolidation

01:01:41.909 --> 01:01:45.030
pressure, the dairy protein market is absolutely

01:01:45.030 --> 01:01:48.010
exploding. And it's coming from a completely

01:01:48.010 --> 01:01:52.050
unexpected source. Weight loss drugs. That's

01:01:52.050 --> 01:01:55.760
right. ozempic wigavy and other glp -1 medications

01:01:55.760 --> 01:01:58.880
are literally reshaping consumer eating habits

01:01:58.880 --> 01:02:01.639
and dairy proteins are emerging as the perfect

01:02:01.639 --> 01:02:03.860
nutrition complement this could be the market

01:02:03.860 --> 01:02:06.679
disruption that creates massive new opportunities

01:02:06.679 --> 01:02:09.980
for forward -thinking producers welcome back

01:02:09.980 --> 01:02:12.780
everyone to the bullvine newsroom today we're

01:02:12.780 --> 01:02:14.699
going to do a deep dive into something uh yeah

01:02:14.699 --> 01:02:16.239
pretty interesting you know this whole weight

01:02:16.239 --> 01:02:19.880
loss drug thing yeah and the focus on real food

01:02:19.880 --> 01:02:23.630
and what it all means for us in the dairy industry

01:02:23.630 --> 01:02:26.269
it is you know we've got the glp1 medications

01:02:26.269 --> 01:02:29.269
making a splash yeah that whole maha initiative

01:02:29.269 --> 01:02:33.050
make america healthy again it sounds like it

01:02:33.050 --> 01:02:34.710
sounds like a comic book or something yeah it

01:02:34.710 --> 01:02:37.610
does but you know and then of course all the

01:02:37.610 --> 01:02:40.050
amazing stuff happening with dairy genetics absolutely

01:02:40.050 --> 01:02:42.289
it's fascinating how these things are all it's

01:02:42.289 --> 01:02:44.610
like uh it's like they're all kind of coming

01:02:44.610 --> 01:02:47.670
together yeah at the same time and you know we

01:02:47.670 --> 01:02:50.030
gotta figure out how Dairy farmers, you guys,

01:02:50.110 --> 01:02:52.889
our listeners, can actually benefit from all

01:02:52.889 --> 01:02:55.329
this because there's a lot of talk about, what

01:02:55.329 --> 01:02:57.849
do they call it? Protein snack revolution. Yeah,

01:02:57.889 --> 01:03:00.590
protein snack revolution. Huge, right. Huge.

01:03:00.889 --> 01:03:02.889
And they're saying this market could be worth

01:03:02.889 --> 01:03:07.369
like almost $25 billion by 2031. A lot of protein.

01:03:07.429 --> 01:03:09.570
A lot of protein, a lot of opportunity. Yeah.

01:03:10.500 --> 01:03:12.679
I mean, who would have thought people taking

01:03:12.679 --> 01:03:15.440
Ozempic would be like swapping chips for cottage

01:03:15.440 --> 01:03:18.219
cheese? Right. It's a wild time. It is a wild

01:03:18.219 --> 01:03:19.960
time. And then you got this whole protein gold

01:03:19.960 --> 01:03:22.659
rush happening. And the decisions farmers are

01:03:22.659 --> 01:03:25.760
making now about, you know, their breeding programs

01:03:25.760 --> 01:03:28.059
are going to have a huge impact down the road.

01:03:28.260 --> 01:03:30.539
Absolutely. Yeah. So, all right, let's dive in.

01:03:30.699 --> 01:03:33.699
These GLP -1 drugs. Yeah. Everyone's talking

01:03:33.699 --> 01:03:36.639
about them, right, for weight loss. But they

01:03:36.639 --> 01:03:38.800
might actually be good for dairy, too. What's

01:03:38.800 --> 01:03:40.550
the connection there? Well, the interesting thing

01:03:40.550 --> 01:03:42.849
is, you know, they suppress appetite. Right.

01:03:42.949 --> 01:03:46.210
But they also seem to be shifting what people

01:03:46.210 --> 01:03:49.570
want to eat, like toward protein. Cornell and

01:03:49.570 --> 01:03:52.610
Numerator have some data on this. People using

01:03:52.610 --> 01:03:57.150
GLP -1s are buying 11 % fewer salty snacks and

01:03:57.150 --> 01:04:01.690
spending 8 .6 % less on fast food. Wow. So here's

01:04:01.690 --> 01:04:05.250
the kicker. 57 % of them are either maintaining

01:04:05.250 --> 01:04:09.269
or even increasing how much dairy they eat. So

01:04:09.269 --> 01:04:10.989
it's not just that they're eating less overall.

01:04:11.250 --> 01:04:13.050
Right, exactly. Why are they still wanting dairy?

01:04:13.090 --> 01:04:15.849
It's protein. They need it. When you lose weight

01:04:15.849 --> 01:04:19.269
fast, you can lose muscle too. So protein becomes

01:04:19.269 --> 01:04:21.730
super important. Like, you know how Greek yogurt

01:04:21.730 --> 01:04:24.050
is already seen as healthy? Yeah. Now it's like

01:04:24.050 --> 01:04:26.849
essential for people on these drugs. So it's

01:04:26.849 --> 01:04:29.210
not just about feeling full. No, no. There's

01:04:29.210 --> 01:04:32.329
a real biological link. This study in the Journal

01:04:32.329 --> 01:04:35.869
of Nutrition, they found that leucine and isoleucine,

01:04:35.889 --> 01:04:37.750
those amino acids we got plenty of in dairy.

01:04:38.570 --> 01:04:40.849
They actually tell the body to make more of its

01:04:40.849 --> 01:04:43.889
own GLP -1. So like the same stuff the drugs

01:04:43.889 --> 01:04:46.769
are doing? In a way, yeah. Wow. In the study,

01:04:46.949 --> 01:04:51.969
skim milk and casein boosted GLP -1 by like 176

01:04:51.969 --> 01:04:56.050
to 270 percent. Wow. And leucine alone. Yeah.

01:04:56.789 --> 01:04:59.210
474 percent increase. So dairy is not just riding

01:04:59.210 --> 01:05:01.309
the wave. It's actually working the same way

01:05:01.309 --> 01:05:04.170
on like. At a basic level. A biological level.

01:05:04.250 --> 01:05:06.289
That's pretty cool. Right. And think about it.

01:05:06.639 --> 01:05:09.039
Greek yogurt, what is it, like 17 grams of protein

01:05:09.039 --> 01:05:10.940
a serving? Yeah, something like that. Cottage

01:05:10.940 --> 01:05:14.000
cheese around 12, filtered milk 13. Right, right.

01:05:14.239 --> 01:05:16.239
Doctors are telling people on these drugs to

01:05:16.239 --> 01:05:19.280
get 20 to 40 grams of protein per meal. Perfect

01:05:19.280 --> 01:05:23.300
fit. And that's important because we can't forget

01:05:23.300 --> 01:05:26.039
that a big chunk of the weight people lose on

01:05:26.039 --> 01:05:28.860
these drugs can be muscle. It's scary. 20 to

01:05:28.860 --> 01:05:31.780
40 percent. That's a lot. And only about 35 percent

01:05:31.780 --> 01:05:33.980
of people even know that can happen. Okay, so

01:05:33.980 --> 01:05:35.639
that's where dairy comes in. Exactly. We got

01:05:35.639 --> 01:05:37.659
to get the word out, you know? Dairy protein

01:05:37.659 --> 01:05:41.039
can help protect that muscle. Okay, so GLP -1s

01:05:41.039 --> 01:05:44.880
could be good news for dairy. Now, what about

01:05:44.880 --> 01:05:48.360
this Make America Healthy Again thing? M -A -H

01:05:48.360 --> 01:05:50.360
-A. M -A -H -A, yeah. This could really shake

01:05:50.360 --> 01:05:52.300
things up, right? Oh, yeah. It's a big policy

01:05:52.300 --> 01:05:54.360
push towards real food, whatever that means.

01:05:54.519 --> 01:05:57.579
Right. We're talking $1 .7 trillion in federal

01:05:57.579 --> 01:05:59.780
spending could be going toward this stuff. Wow.

01:05:59.900 --> 01:06:03.150
And there's this... Milk for Healthy Kids Act

01:06:03.150 --> 01:06:05.889
could put whole milk back in schools. Okay. And

01:06:05.889 --> 01:06:08.449
a big one. Stricter rules about what counts as

01:06:08.449 --> 01:06:11.730
an ultra -processed food, a UPF. So this real

01:06:11.730 --> 01:06:14.110
food focus, how's that good for dairy? Well,

01:06:14.150 --> 01:06:16.329
Helena Bottomiller -Evich over at Food Fix, she

01:06:16.329 --> 01:06:19.670
says MAH is definitely pro -real food. They're

01:06:19.670 --> 01:06:22.349
looking at the nutrition, chemicals, dyes, all

01:06:22.349 --> 01:06:24.750
that. This could be tough for some of those plant

01:06:24.750 --> 01:06:27.090
-based alternatives. Because they're often, you

01:06:27.090 --> 01:06:29.280
know. heavily processed to get the right texture

01:06:29.280 --> 01:06:32.179
and all that. Dairy, at least the basic stuff,

01:06:32.380 --> 01:06:34.639
that fits right in with the real food idea. And

01:06:34.639 --> 01:06:36.760
this could change S &P and school lunches too,

01:06:36.860 --> 01:06:38.480
right? Oh, absolutely. They're talking about

01:06:38.480 --> 01:06:41.739
maybe even banning UPFs from school lunches.

01:06:41.820 --> 01:06:44.599
Big change. Huge. And dairy is already a big

01:06:44.599 --> 01:06:46.639
part of those programs, right? Yeah. Providing

01:06:46.639 --> 01:06:48.920
all those nutrients kids need. But what about

01:06:48.920 --> 01:06:53.219
some of the more processed dairy stuff? Like

01:06:53.219 --> 01:06:56.420
flavored yogurts. Ah, yeah, good point. Or processed

01:06:56.420 --> 01:06:58.719
cheese. That's where it gets tricky. The rules

01:06:58.719 --> 01:07:01.079
about what's processed are kind of vague right

01:07:01.079 --> 01:07:04.000
now. So, yeah, some dairy products might get

01:07:04.000 --> 01:07:05.579
caught up in that. That's something to watch

01:07:05.579 --> 01:07:08.059
for sure. Definitely. Consumers are getting really

01:07:08.059 --> 01:07:10.739
picky about ingredients, you know. Yeah, everyone's

01:07:10.739 --> 01:07:13.860
reading labels now. Right. 69 % of people want

01:07:13.860 --> 01:07:16.539
recognizable ingredients in their yogurt, according

01:07:16.539 --> 01:07:20.639
to research. Interesting. And get this. European

01:07:20.639 --> 01:07:24.550
cottage cheese. The simple stuff. Yeah. Sales

01:07:24.550 --> 01:07:28.369
are up 30%. People want the real deal. So maybe

01:07:28.369 --> 01:07:31.389
this is an advantage for dairy. Could be. And

01:07:31.389 --> 01:07:33.809
let's not forget California, their cattle and

01:07:33.809 --> 01:07:37.369
poultry industry, it's like a $50 billion powerhouse

01:07:37.369 --> 01:07:39.989
leading the way on this whole protein thing.

01:07:40.250 --> 01:07:42.389
Okay, so M -A -H -A could be a good thing for

01:07:42.389 --> 01:07:44.349
dairy. Let's talk genetics now. You know, the

01:07:44.349 --> 01:07:46.349
science happening on the farm. Yeah, it's pretty

01:07:46.349 --> 01:07:48.570
amazing what we can do now. How's all that impacting

01:07:48.570 --> 01:07:51.690
this move towards protein? Okay, so for a long

01:07:51.690 --> 01:07:54.789
time, there was this kind of like... a trade

01:07:54.789 --> 01:07:57.809
-off in dairy genetics. Okay. You breed for more

01:07:57.809 --> 01:08:00.849
milk, you get less fat and protein, or vice versa,

01:08:00.909 --> 01:08:02.969
like you had to pick one. Yeah, I remember those

01:08:02.969 --> 01:08:06.340
discussions. But now things are changing, particularly

01:08:06.340 --> 01:08:09.559
with Holsteins. Okay. The link between milk yield

01:08:09.559 --> 01:08:12.679
and components, it's not as strong anymore. So

01:08:12.679 --> 01:08:14.900
we can have both? More and more, yeah. The genetic

01:08:14.900 --> 01:08:17.279
correlation, it used to be like Mena 0 .60. Now

01:08:17.279 --> 01:08:20.000
it's closer to Mena 0 .30. Okay. So those numbers

01:08:20.000 --> 01:08:22.680
mean? Basically, we have way more flexibility

01:08:22.680 --> 01:08:26.119
now. We can breed for high milk production, A

01:08:26.119 --> 01:08:29.199
and E, D high protein. It is. And breeders are

01:08:29.199 --> 01:08:32.039
already seeing results. This guy, Mark Stevenson,

01:08:32.079 --> 01:08:36.439
he focused on a specific gene, beta casein A2,

01:08:36.619 --> 01:08:40.819
and bumped up his milk protein by 0 .2%. In one

01:08:40.819 --> 01:08:43.979
season. Yeah. Now scale that up to a whole her

01:08:43.979 --> 01:08:46.960
over years. Right, right. That's a lot of extra

01:08:46.960 --> 01:08:49.380
protein. That's a lot of money. Exactly. And

01:08:49.380 --> 01:08:51.439
genomic selection, that's been a game changer

01:08:51.439 --> 01:08:54.539
too. Okay, how so? We can analyze a cow's DNA

01:08:54.539 --> 01:08:56.859
and see exactly what traits she's likely to pass

01:08:56.859 --> 01:08:58.460
on. So we know which ones will give us that high

01:08:58.460 --> 01:09:00.800
protein milk. Exactly. We've identified like

01:09:00.800 --> 01:09:05.180
138 QTLs for fat percentage and 176 for protein

01:09:05.180 --> 01:09:08.319
across different breeds. Wow, that's a lot. It's

01:09:08.319 --> 01:09:10.479
amazing. And they're even doing research in China

01:09:10.479 --> 01:09:12.640
with Holstein. looking at these tiny things called

01:09:12.640 --> 01:09:15.479
micro -RNAs. Oh, okay. They actually regulate

01:09:15.479 --> 01:09:18.300
milk protein synthesis. Right. That's getting

01:09:18.300 --> 01:09:20.760
really deep into the science. So the decisions

01:09:20.760 --> 01:09:22.819
farmers make now about breeding are really going

01:09:22.819 --> 01:09:25.220
to shape their future. Big time. Now, net merit,

01:09:25.340 --> 01:09:27.760
it still weighs fat yield the heaviest. Right.

01:09:27.800 --> 01:09:30.020
But protein is catching up. It's worth more and

01:09:30.020 --> 01:09:32.159
more. So farmers need to keep that in mind when

01:09:32.159 --> 01:09:34.300
they're... Absolutely. It's not just about next

01:09:34.300 --> 01:09:36.000
year's milk check. It's about the long game.

01:09:36.119 --> 01:09:38.930
Right. And it's not just genetics either. Right.

01:09:38.970 --> 01:09:40.989
We can also change the feed, right? Yeah. We

01:09:40.989 --> 01:09:43.329
can do things with nutrition to boost protein

01:09:43.329 --> 01:09:47.189
too. Okay. Like what? One thing is rumen -protected

01:09:47.189 --> 01:09:49.770
methionine. It's an amino acid. You add it to

01:09:49.770 --> 01:09:52.930
the feed. And studies show it can increase milk

01:09:52.930 --> 01:09:56.430
protein by 0 .1 to 0 .3 percentage points. Okay.

01:09:56.470 --> 01:09:58.310
And what else? You got to make sure the energy

01:09:58.310 --> 01:10:01.560
and protein balance in the feed is right. Okay.

01:10:01.659 --> 01:10:04.600
So those rumen microbes can do their thing and

01:10:04.600 --> 01:10:07.319
make protein for the cow to use. And there's

01:10:07.319 --> 01:10:09.560
also something about fat, right? Yeah. Adding

01:10:09.560 --> 01:10:11.920
certain fats to the feed, if you do it carefully,

01:10:12.119 --> 01:10:14.500
can provide more energy and that can actually

01:10:14.500 --> 01:10:16.500
lead to more protein in the milk. Interesting.

01:10:16.579 --> 01:10:18.800
So it's kind of all coming together, isn't it?

01:10:18.819 --> 01:10:22.060
This demand from these new drugs, the government

01:10:22.060 --> 01:10:25.600
maybe pushing for real food and us getting better

01:10:25.600 --> 01:10:27.800
and better at producing high protein milk. It

01:10:27.800 --> 01:10:31.250
is. Dairy is in a good spot. Yeah. You know,

01:10:31.270 --> 01:10:33.289
one thing we haven't talked about much is this

01:10:33.289 --> 01:10:37.649
muscle loss issue with the GLP -1s. The GLP -1

01:10:37.649 --> 01:10:39.930
muscle crisis, yeah. Yeah, that's a bit scary,

01:10:39.989 --> 01:10:42.689
isn't it? It is. 20 to 40 % of the weight people

01:10:42.689 --> 01:10:45.409
lose can be muscle. And muscle's not just about

01:10:45.409 --> 01:10:48.050
being strong. No, it's important for your whole

01:10:48.050 --> 01:10:51.149
metabolism. Right, right. Dr. Sarah Reimer, she

01:10:51.149 --> 01:10:53.130
talks about how it affects blood sugar, energy

01:10:53.130 --> 01:10:56.170
levels. Yeah. Losing muscle can make you tired.

01:10:56.760 --> 01:11:00.319
Especially as you get older. Exactly. So doctors

01:11:00.319 --> 01:11:03.479
are telling people on these drugs, get lots of

01:11:03.479 --> 01:11:07.399
protein, like 1 .3 to 1 .6 grams per kilogram

01:11:07.399 --> 01:11:09.760
of body weight every day. Wow, that's a lot.

01:11:09.920 --> 01:11:13.159
And 20 to 40 grams per meal. Plus, they need

01:11:13.159 --> 01:11:15.319
to do resistance training. So how does dairy

01:11:15.319 --> 01:11:17.279
fit into all this? It's the perfect solution.

01:11:17.659 --> 01:11:20.300
Dairy protein has all the essential amino acids.

01:11:20.600 --> 01:11:22.840
Okay. So it's really good at triggering muscle

01:11:22.840 --> 01:11:25.319
protein synthesis. That's how your body builds

01:11:25.319 --> 01:11:27.920
and repairs muscle. And don't forget, dairy protein

01:11:27.920 --> 01:11:31.060
also helps the body make its own GLP -1. Right.

01:11:31.180 --> 01:11:33.199
It's a win -win. So it's not just giving the

01:11:33.199 --> 01:11:35.899
body the building blocks for muscle. It's actually

01:11:35.899 --> 01:11:37.840
helping the body build muscle more effectively.

01:11:38.449 --> 01:11:41.210
Exactly. Dr. Miguel Freitas, he's a nutrition

01:11:41.210 --> 01:11:44.550
expert, he talks about how milk has this special

01:11:44.550 --> 01:11:48.329
combo of casein and whey proteins. Right. Casein

01:11:48.329 --> 01:11:51.369
releases amino acids slowly, whey does it quickly.

01:11:51.630 --> 01:11:53.949
Okay. So it's like a constant supply for your

01:11:53.949 --> 01:11:57.069
muscles. It's like a time -release protein. Yeah,

01:11:57.090 --> 01:11:58.949
something like that. Much better than some other

01:11:58.949 --> 01:12:01.050
protein sources. Okay, so we've got the dairy

01:12:01.050 --> 01:12:04.029
side covered. Yeah. But we can't forget about

01:12:04.029 --> 01:12:06.329
the plant -based folks. Yeah, they're definitely

01:12:06.329 --> 01:12:08.310
in the game, too. How are they trying to grab

01:12:08.310 --> 01:12:11.250
a piece of this protein pie? Well, pea protein

01:12:11.250 --> 01:12:14.210
is getting really big. That market could be worth

01:12:14.210 --> 01:12:20.210
over $7 billion by 2033. Wow. Huge growth. Companies

01:12:20.210 --> 01:12:21.989
like Purisois, they're doing some interesting

01:12:21.989 --> 01:12:24.409
stuff. Like what? They have this pea -based egg

01:12:24.409 --> 01:12:27.069
replacement called Acromade. Oh, yeah. I've seen

01:12:27.069 --> 01:12:28.970
that. Trying to compete with dairy at breakfast.

01:12:29.250 --> 01:12:30.710
And what are they saying about their products?

01:12:30.810 --> 01:12:32.579
Why should people choose them? They talk about

01:12:32.579 --> 01:12:36.039
how pea protein doesn't have allergens like dairy

01:12:36.039 --> 01:12:38.399
can. And they say it's better for the environment,

01:12:38.500 --> 01:12:41.680
uses less water and fertilizer. And they're constantly

01:12:41.680 --> 01:12:44.279
improving the taste and nutrition too. There

01:12:44.279 --> 01:12:47.739
was a study in 2025 in the Journal of the Science

01:12:47.739 --> 01:12:51.479
of Food and Agriculture showing some pea protein

01:12:51.479 --> 01:12:55.119
products have like 32 .8 % of their calories

01:12:55.119 --> 01:12:57.800
from protein. Wow. So they can actually be labeled

01:12:57.800 --> 01:12:59.880
as high protein now. But what about this whole

01:12:59.880 --> 01:13:04.039
processing thing? MHA and people wanting less

01:13:04.039 --> 01:13:05.960
processed food. Yeah, that could be a problem

01:13:05.960 --> 01:13:08.140
for them. Most pea protein goes through a lot

01:13:08.140 --> 01:13:10.500
of processing to get it concentrated. And the

01:13:10.500 --> 01:13:13.819
rules about what's ultra processed get stricter.

01:13:13.979 --> 01:13:16.899
Pea protein might get caught up in that. So that's

01:13:16.899 --> 01:13:18.880
where dairy has an advantage. Potentially, yeah.

01:13:19.039 --> 01:13:21.119
Less processing, cleaner labels. That's what

01:13:21.119 --> 01:13:23.199
people are looking for. So the plant -based folks

01:13:23.199 --> 01:13:25.659
might hit some roadblocks as things change. Could

01:13:25.659 --> 01:13:28.260
be. And dairy is ready to step up, right? Absolutely.

01:13:28.359 --> 01:13:30.119
And we're already seeing some cool new dairy

01:13:30.119 --> 01:13:32.479
products. Oh, yeah. Lots of innovation. What

01:13:32.479 --> 01:13:36.239
are some examples? Lindahl's has these high -protein

01:13:36.239 --> 01:13:39.560
pudding cups. Mmm, pudding. Saputo came out with

01:13:39.560 --> 01:13:42.409
a high -protein cheddar cheese. And Fairlife,

01:13:42.489 --> 01:13:44.590
those ultra -filtered protein shakes, they're

01:13:44.590 --> 01:13:46.569
doing really well. Yeah, I see those everywhere.

01:13:46.850 --> 01:13:49.069
Dairy companies are getting creative trying to

01:13:49.069 --> 01:13:51.489
give people what they want. And it's not just

01:13:51.489 --> 01:13:53.489
about protein anymore, right? No, people want

01:13:53.489 --> 01:13:55.850
it to taste good, be convenient. And feel real,

01:13:55.890 --> 01:13:59.369
like actual food. Exactly. This lady, Sarah Jensen,

01:13:59.510 --> 01:14:02.449
she works at Arla Foods. She said consumers...

01:14:02.640 --> 01:14:05.800
Want that connection to real food. They care

01:14:05.800 --> 01:14:08.539
about texture, convenience, all that. So it's

01:14:08.539 --> 01:14:10.600
not just about slapping a high protein label

01:14:10.600 --> 01:14:12.399
on something. No, you got to do it right. And

01:14:12.399 --> 01:14:14.260
marketing is important too, right? Yeah, huge.

01:14:14.439 --> 01:14:16.840
Remember that Danone Super Bowl commercial? Yeah,

01:14:16.880 --> 01:14:18.539
the one with all the dieticians talking about?

01:14:18.640 --> 01:14:21.260
Exactly. They partnered with dieticians to make

01:14:21.260 --> 01:14:25.520
GLP -1 nutrition guides. And they had that Oikos

01:14:25.520 --> 01:14:28.340
Stronger Together campaign. It blew up on social

01:14:28.340 --> 01:14:30.880
media. Like 50 % more people were talking about

01:14:30.880 --> 01:14:32.659
protein after that. That's a pretty big impact.

01:14:32.880 --> 01:14:35.180
Yeah. They really tapped into what consumers

01:14:35.180 --> 01:14:37.239
are thinking about. Okay. Let's talk about the

01:14:37.239 --> 01:14:39.479
government side of things again. Yeah. This MHA

01:14:39.479 --> 01:14:41.760
commission, it sounds like they can really change

01:14:41.760 --> 01:14:44.100
things up. Oh, yeah. They have a lot of power

01:14:44.100 --> 01:14:46.359
now. Not just health and human services, but

01:14:46.359 --> 01:14:49.279
USDA too. Wow. So? They could be making some

01:14:49.279 --> 01:14:53.159
big changes by August 2025. Okay. And we're already

01:14:53.159 --> 01:14:55.479
seeing some action on food additives. Right.

01:14:55.859 --> 01:14:59.010
California's banning red dye three. Yeah, I heard

01:14:59.010 --> 01:15:01.149
about that. And other artificial dyes in school

01:15:01.149 --> 01:15:04.310
food. That's coming soon. So what does this mean

01:15:04.310 --> 01:15:07.289
for dairy processors? Well, if processed cheese

01:15:07.289 --> 01:15:09.510
gets labeled as ultra -processed, that could

01:15:09.510 --> 01:15:11.130
be a problem. Yeah, because of all the additives

01:15:11.130 --> 01:15:12.989
and stuff. Exactly. They might have to change

01:15:12.989 --> 01:15:15.689
their recipes, make them cleaner. And what about

01:15:15.689 --> 01:15:18.149
dairy ingredients in other foods, like cereal?

01:15:18.430 --> 01:15:20.949
Yeah, if the cereal itself is considered ultra

01:15:20.949 --> 01:15:22.930
-processed, that could affect how much dairy

01:15:22.930 --> 01:15:26.630
they use. Hmm, interesting. So the message is

01:15:26.630 --> 01:15:30.050
clear. Dairy companies need to get on board with

01:15:30.050 --> 01:15:33.689
this clean label trend. Big time. Ingredient

01:15:33.689 --> 01:15:36.649
did some research. It shows like 69 % of consumers

01:15:36.649 --> 01:15:39.229
want recognizable ingredients in all sorts of

01:15:39.229 --> 01:15:40.989
dairy products. It's not just a fad anymore.

01:15:41.270 --> 01:15:44.189
No, it's what people expect. Okay, so all this

01:15:44.189 --> 01:15:46.310
is good news for dairy in the long run. Yeah.

01:15:46.390 --> 01:15:48.729
But right now, things are tough for farmers.

01:15:48.909 --> 01:15:51.550
No doubt about it. The USDA says farm income

01:15:51.550 --> 01:15:56.770
dropped. 81 % in 2023. That's rough. And their

01:15:56.770 --> 01:15:59.729
latest forecast, the milk price is even lower

01:15:59.729 --> 01:16:01.890
than they thought it would be. So margins are

01:16:01.890 --> 01:16:04.289
really tight. Feed costs are high, fertilizer,

01:16:04.750 --> 01:16:07.710
labor, everything. So even though this protein

01:16:07.710 --> 01:16:10.829
thing looks good for the future, farmers are

01:16:10.829 --> 01:16:12.630
struggling right now. Exactly. That's why this

01:16:12.630 --> 01:16:14.550
protein market is so important. It's not just

01:16:14.550 --> 01:16:16.310
about growth anymore. Right. It's about survival.

01:16:16.409 --> 01:16:19.130
Exactly. The farmers who can make high protein

01:16:19.130 --> 01:16:21.930
milk efficiently and keep their costs under control.

01:16:21.840 --> 01:16:23.720
control, they're going to be the ones who make

01:16:23.720 --> 01:16:25.579
it. Okay. We've covered a lot today. If you're

01:16:25.579 --> 01:16:28.159
a dairy farmer listening, what are the key things

01:16:28.159 --> 01:16:30.859
you need to do now? Three things. One, breed

01:16:30.859 --> 01:16:33.619
for protein. Choose bulls that'll give you high

01:16:33.619 --> 01:16:36.439
protein milk. Okay. Two, clean up your labels,

01:16:36.659 --> 01:16:38.800
get rid of the artificial stuff, keep the ingredients

01:16:38.800 --> 01:16:42.260
simple. And three, target those GLP -1 users.

01:16:42.920 --> 01:16:45.300
Tell them how dairy protein can help them keep

01:16:45.300 --> 01:16:48.130
their muscle. So it's about smart breeding, clean

01:16:48.130 --> 01:16:50.350
ingredients, and reaching the right customers.

01:16:50.590 --> 01:16:53.430
Exactly. The CEO of the National Dairy Council,

01:16:53.670 --> 01:16:56.630
Barbara O 'Brien, she called this the new American

01:16:56.630 --> 01:16:59.569
diet. You know, real food instead of all that

01:16:59.569 --> 01:17:02.130
fake stuff. So dairy's got a big role to play

01:17:02.130 --> 01:17:05.229
in that. Huge. Every glass of milk, every yogurt,

01:17:05.390 --> 01:17:07.710
it's a vote for real food. That's a great way

01:17:07.710 --> 01:17:09.949
to put it. So as you all think about all this,

01:17:10.029 --> 01:17:12.590
here's something to consider. Things are changing

01:17:12.590 --> 01:17:15.329
fast. They are. How quickly can you adapt? Can

01:17:15.329 --> 01:17:17.010
you change your breeding program, your products,

01:17:17.069 --> 01:17:19.649
everything? It's a challenge. It is. But the

01:17:19.649 --> 01:17:22.130
opportunity is there for dairy farmers who are

01:17:22.130 --> 01:17:24.430
ready to seize it. That's all the time we have

01:17:24.430 --> 01:17:26.550
for today. Thanks for joining us on the Bullvine

01:17:26.550 --> 01:17:29.250
Newsroom. This protein revolution demands we

01:17:29.250 --> 01:17:31.729
rethink our approach to components and nutrition.

01:17:32.550 --> 01:17:35.010
But that's just one way the industry is transforming.

01:17:35.710 --> 01:17:39.140
The real game changer? Technology that's separating

01:17:39.140 --> 01:17:43.079
tomorrow's winners from today's also -rans. From

01:17:43.079 --> 01:17:45.720
robotic milkers to AI -powered health monitoring,

01:17:45.920 --> 01:17:48.619
the tech revolution isn't coming. It's already

01:17:48.619 --> 01:17:51.439
kicked down your barn door. And if you're still

01:17:51.439 --> 01:17:54.340
running your dairy like it's 2020, you're already

01:17:54.340 --> 01:17:57.340
falling behind. Let's dive into the five technologies

01:17:57.340 --> 01:18:00.460
reshaping what's possible in modern dairy farming.

01:18:00.720 --> 01:18:03.460
Welcome back, everyone, to the Deep Dive. You

01:18:03.460 --> 01:18:05.359
know, we're always trying to look ahead here,

01:18:05.460 --> 01:18:08.149
and today... Well, we're diving into a topic

01:18:08.149 --> 01:18:11.770
that's as timely as it is, well, a little intimidating,

01:18:11.869 --> 01:18:14.430
if I'm being honest. The future of dairy farming

01:18:14.430 --> 01:18:17.319
in 2025. Yeah, you hit the nail on the head there.

01:18:17.439 --> 01:18:20.899
Things are changing rapidly, and the pace of

01:18:20.899 --> 01:18:23.119
technological advancement in the dairy sector

01:18:23.119 --> 01:18:25.819
is, well, frankly, it's mind -boggling. It really

01:18:25.819 --> 01:18:27.680
is. We've been poring over a ton of reports,

01:18:27.800 --> 01:18:30.159
research papers, case studies, expert opinions,

01:18:30.340 --> 01:18:32.399
the whole shebang. And the overwhelming consensus

01:18:32.399 --> 01:18:35.060
is that technology is no longer just a helpful

01:18:35.060 --> 01:18:38.460
addition to a successful dairy operation. It's

01:18:38.460 --> 01:18:41.079
rapidly becoming the deciding factor between

01:18:41.079 --> 01:18:44.359
the farms that are truly thriving and those that

01:18:44.359 --> 01:18:46.890
are, well, struggling to keep up. Right. And

01:18:46.890 --> 01:18:48.729
what's really striking is it's not just about

01:18:48.729 --> 01:18:50.729
the size of your operation anymore. Exactly.

01:18:50.789 --> 01:18:52.770
You can have a small herd and still be on the

01:18:52.770 --> 01:18:55.329
cutting edge. It's about being smart with technology

01:18:55.329 --> 01:18:57.449
adoption, about understanding what's out there

01:18:57.449 --> 01:18:59.529
and how it can be integrated into your specific

01:18:59.529 --> 01:19:01.970
farm to make it more efficient, more productive,

01:19:02.029 --> 01:19:04.270
and ultimately more profitable. So that's our

01:19:04.270 --> 01:19:05.949
mission for today. We're going to break down

01:19:05.949 --> 01:19:08.590
five key technologies that are poised to have

01:19:08.590 --> 01:19:11.489
a huge impact on dairy farming in the very near

01:19:11.489 --> 01:19:13.800
future. These are technologies that are already

01:19:13.800 --> 01:19:15.779
being used by some forward -thinking farmers,

01:19:15.979 --> 01:19:18.220
and they're seeing some really impressive results.

01:19:18.520 --> 01:19:20.479
We're talking about things like smart sensors

01:19:20.479 --> 01:19:24.140
for calves, robotic milking systems, AI -powered

01:19:24.140 --> 01:19:27.100
data analysis for feed and breeding, precision

01:19:27.100 --> 01:19:30.000
feeding technologies to minimize waste, and advanced

01:19:30.000 --> 01:19:33.079
wearables to monitor cow health in real time.

01:19:33.430 --> 01:19:35.529
That's right. And while all of these technologies

01:19:35.529 --> 01:19:38.189
come with upfront costs and require a bit of

01:19:38.189 --> 01:19:40.449
a learning curve, the data we've seen suggests

01:19:40.449 --> 01:19:43.130
that the return on investment can be quite substantial.

01:19:43.430 --> 01:19:45.569
In some cases, farmers are seeing a full return

01:19:45.569 --> 01:19:47.930
on their investment in less than a year, which

01:19:47.930 --> 01:19:49.430
is pretty remarkable when you think about it.

01:19:49.529 --> 01:19:51.609
That's what we're here to really unpack today.

01:19:51.729 --> 01:19:54.189
How can you leverage these technologies not to

01:19:54.189 --> 01:19:56.329
replace... good old -fashioned stockmanship,

01:19:56.510 --> 01:20:00.149
but to enhance it, to make your farm more resilient

01:20:00.149 --> 01:20:01.909
in the face of the challenges that are coming

01:20:01.909 --> 01:20:04.869
down the pike in 2025. All right, so let's jump

01:20:04.869 --> 01:20:07.909
right into it. And what better place to start

01:20:07.909 --> 01:20:10.710
than with the future of our herds, with the calves?

01:20:10.869 --> 01:20:13.069
The babies. Exactly, the babies. We're talking

01:20:13.069 --> 01:20:16.119
about smart calf monitoring systems. You know,

01:20:16.140 --> 01:20:19.100
there was a time when losing a certain percentage

01:20:19.100 --> 01:20:21.960
of calves each year was just considered, well,

01:20:22.100 --> 01:20:24.840
an unfortunate but unavoidable part of dairy

01:20:24.840 --> 01:20:26.479
farming. Right. It was just how things were.

01:20:26.859 --> 01:20:29.319
But these new systems are completely changing

01:20:29.319 --> 01:20:32.260
that equation. They give us the tools to not

01:20:32.260 --> 01:20:35.380
only significantly reduce calf mortality, but

01:20:35.380 --> 01:20:38.199
also to improve the overall health and well -being

01:20:38.199 --> 01:20:40.840
of our future milk producers. And the key here

01:20:40.840 --> 01:20:42.899
is that these aren't just cow monitors shrunk

01:20:42.899 --> 01:20:44.979
down to fit calves. These are systems that are

01:20:44.979 --> 01:20:47.600
specifically designed to monitor the unique physiology

01:20:47.600 --> 01:20:50.680
and developmental needs of young calves. Exactly.

01:20:50.739 --> 01:20:53.100
They're looking at things like rumination, lying

01:20:53.100 --> 01:20:56.079
time. eating patterns, and even body temperature.

01:20:56.260 --> 01:20:58.479
All of these are crucial indicators of a calf's

01:20:58.479 --> 01:21:01.539
health, and these systems can detect subtle changes

01:21:01.539 --> 01:21:03.659
that might be completely missed by the human

01:21:03.659 --> 01:21:06.100
eye, often up to 48 hours before you see any

01:21:06.100 --> 01:21:08.619
visible signs of illness. That's a game changer.

01:21:08.840 --> 01:21:11.020
I mean, catching a respiratory infection or a

01:21:11.020 --> 01:21:13.560
digestive issue that early can mean the difference

01:21:13.560 --> 01:21:16.439
between a quick recovery and a calf that struggles

01:21:16.439 --> 01:21:19.760
for weeks or even, well, doesn't make it. Exactly.

01:21:20.239 --> 01:21:22.079
And a couple of companies really stand out in

01:21:22.079 --> 01:21:24.979
this space. Cow Manager with their Youngstock

01:21:24.979 --> 01:21:28.340
Manager system. Tom Stigder explains how it continuously

01:21:28.340 --> 01:21:31.220
monitors these key indicators, providing actionable

01:21:31.220 --> 01:21:33.960
insights to farm staff. And Merck Animal Health

01:21:33.960 --> 01:21:37.439
has their SenseHub Youngstock system, which Erica

01:21:37.439 --> 01:21:39.520
Tessman highlights for its intuitive design.

01:21:39.800 --> 01:21:42.920
She talks about the LED light that actually illuminates

01:21:42.920 --> 01:21:45.220
on the sensor to tell you which calf needs attention.

01:21:45.420 --> 01:21:47.210
It's pretty slick. It's like having a little

01:21:47.210 --> 01:21:49.250
alarm system right on the calf. Yeah. And the

01:21:49.250 --> 01:21:51.649
results speak for themselves. A case study at

01:21:51.649 --> 01:21:53.670
Cornell University showed some pretty remarkable

01:21:53.670 --> 01:21:56.050
improvements in both fecal and respiratory scores

01:21:56.050 --> 01:21:58.590
after implementing these systems. They saw fecal

01:21:58.590 --> 01:22:02.149
scores go from 70 % ideal to almost 99%, and

01:22:02.149 --> 01:22:05.829
respiratory scores jumped from 81 % to over 87%.

01:22:05.829 --> 01:22:08.449
That's a massive improvement. And the farm owner

01:22:08.449 --> 01:22:10.430
involved was quite impressed with how such a

01:22:10.430 --> 01:22:12.810
relatively small investment could lead to such

01:22:12.810 --> 01:22:15.010
a big improvement in calf health. So let's talk

01:22:15.010 --> 01:22:16.949
dollars and cents. The cost of these systems

01:22:16.949 --> 01:22:20.229
is typically in the range of $4 to $8 per calf

01:22:20.229 --> 01:22:22.229
per month. Which seems like a pretty reasonable

01:22:22.229 --> 01:22:24.289
price to pay when you consider that the cost

01:22:24.289 --> 01:22:26.590
of treating a single case of respiratory disease

01:22:26.590 --> 01:22:30.329
can easily run you $25 to $40. Not to mention

01:22:30.329 --> 01:22:33.090
the time and labor involved in caring for a sick

01:22:33.090 --> 01:22:35.930
calf and the potential long term impacts on growth

01:22:35.930 --> 01:22:38.350
and future milk production. Right. And the benefits

01:22:38.350 --> 01:22:41.069
extend beyond just health. We came across an

01:22:41.069 --> 01:22:43.789
example of Wisconsin dairy where they were able

01:22:43.789 --> 01:22:46.390
to increase their calf capacity by 30 percent

01:22:46.390 --> 01:22:48.850
with the same size crew just by implementing

01:22:48.850 --> 01:22:51.130
these systems. That kind of labor efficiency

01:22:51.130 --> 01:22:54.300
is huge in today's market. So to sum up. Smart

01:22:54.300 --> 01:22:56.859
calf monitoring systems are not just about saving

01:22:56.859 --> 01:22:59.319
calves. They're about optimizing your entire

01:22:59.319 --> 01:23:01.819
calf rearing operation. It's about making it

01:23:01.819 --> 01:23:04.260
more efficient, more data -driven, and ultimately

01:23:04.260 --> 01:23:06.020
more profitable. All right, so we've covered

01:23:06.020 --> 01:23:08.239
the youngsters. Now let's talk about something

01:23:08.239 --> 01:23:10.960
that impacts every cow in your herd, genetics.

01:23:11.279 --> 01:23:13.699
And the big takeaway here is that if you're still

01:23:13.699 --> 01:23:16.279
selecting bulls primarily based on milk production,

01:23:16.600 --> 01:23:19.039
you're probably missing out on a lot of potential

01:23:19.039 --> 01:23:21.600
profit. Yeah, the old adage of more milk is always

01:23:21.600 --> 01:23:24.699
better. Just doesn't hold up anymore. The focus

01:23:24.699 --> 01:23:27.460
has shifted to creating cows that are more than

01:23:27.460 --> 01:23:29.520
just milk machines. They need to be durable,

01:23:29.720 --> 01:23:31.420
they need to be healthy, they need to be fertile,

01:23:31.579 --> 01:23:33.859
and they need to be able to thrive in your specific

01:23:33.859 --> 01:23:36.539
farm environment. It's about balanced breeding,

01:23:36.680 --> 01:23:39.920
not just chasing high milk yields. And the companies

01:23:39.920 --> 01:23:41.699
that are leading the charge in this area are

01:23:41.699 --> 01:23:44.699
seeing some really impressive results. LIC, for

01:23:44.699 --> 01:23:47.640
instance, reported a 35 % profit increase in

01:23:47.640 --> 01:23:50.699
just six months, thanks to their focus on breeding

01:23:50.699 --> 01:23:53.460
cows that are not only high producers, but also

01:23:53.460 --> 01:23:56.500
resilient and long -lasting. We looked at a table

01:23:56.500 --> 01:23:58.899
that broke down the relative weights in modern

01:23:58.899 --> 01:24:01.359
genetic evaluation systems for different breeds,

01:24:01.619 --> 01:24:03.800
and it's fascinating to see how much emphasis

01:24:03.800 --> 01:24:05.739
is now being placed on things like longevity,

01:24:06.000 --> 01:24:08.840
disease resistance, and fertility. These traits

01:24:08.840 --> 01:24:11.060
are becoming just as important, if not more so,

01:24:11.159 --> 01:24:14.060
than just peak milk production. A cow that produces

01:24:14.060 --> 01:24:16.500
a ton of milk but only lasts a couple of lactations

01:24:16.500 --> 01:24:19.399
just isn't as profitable as a cow that might

01:24:19.399 --> 01:24:21.739
produce a bit less but stays healthy and productive

01:24:21.739 --> 01:24:24.079
for five or six lactations. And what's really

01:24:24.079 --> 01:24:26.739
cool is how these modern genetic programs are

01:24:26.739 --> 01:24:30.260
incorporating real -time data from farms into

01:24:30.260 --> 01:24:33.520
their evaluations. It's not just about the pedigree

01:24:33.520 --> 01:24:36.300
anymore. It's about how actual cows are performing

01:24:36.300 --> 01:24:39.319
in real -world conditions. Data on things like

01:24:39.319 --> 01:24:42.560
somatic cell counts, calving ease, even foot

01:24:42.560 --> 01:24:44.779
health is being fed back into the system. So

01:24:44.779 --> 01:24:46.680
the genetic recommendations you're getting are

01:24:46.680 --> 01:24:49.359
tailored specifically to your herd and your management

01:24:49.359 --> 01:24:51.699
style. Dr. Jennifer Rodriguez talked about how

01:24:51.699 --> 01:24:53.500
her clients who are using these advanced genetic

01:24:53.500 --> 01:24:55.680
programs are breeding cows that are spending

01:24:55.680 --> 01:24:57.800
way less time in the sick pen and more time in

01:24:57.800 --> 01:25:00.039
the milking parlor, which obviously translates

01:25:00.039 --> 01:25:03.079
into higher profits. And fewer vet bills, less

01:25:03.079 --> 01:25:05.460
need for antibiotics, and less time and stress

01:25:05.460 --> 01:25:08.000
for you. And a great trend we're seeing is that

01:25:08.000 --> 01:25:10.520
these advanced genetic tools are becoming increasingly

01:25:10.520 --> 01:25:13.979
accessible to smaller farms. Cooperative extension

01:25:13.979 --> 01:25:16.000
programs like the Initiative at the University

01:25:16.000 --> 01:25:18.840
of Wisconsin are doing a great job of making

01:25:18.840 --> 01:25:21.659
these resources available to farms of all sizes,

01:25:21.920 --> 01:25:24.300
sometimes even with partial funding from the

01:25:24.300 --> 01:25:28.069
USDA. That's great to hear. All right, moving

01:25:28.069 --> 01:25:30.430
on. Let's talk about keeping our cows healthy

01:25:30.430 --> 01:25:32.949
and not just relying on the old eyeball test.

01:25:33.210 --> 01:25:35.810
We're going deep into advanced health monitoring

01:25:35.810 --> 01:25:37.770
systems. These systems are really like having

01:25:37.770 --> 01:25:41.149
a 247 virtual veterinarian watching over your

01:25:41.149 --> 01:25:44.170
herd. They provide continuous data on key health

01:25:44.170 --> 01:25:46.989
indicators so you can catch problems early and

01:25:46.989 --> 01:25:49.010
intervene before they become serious. Yeah, we're

01:25:49.010 --> 01:25:50.609
not talking about just taking a cow's temperature

01:25:50.609 --> 01:25:52.430
once a day anymore. Right. We're talking about

01:25:52.430 --> 01:25:54.970
systems that constantly monitor things like temperature,

01:25:55.130 --> 01:25:57.720
activity levels, rumination. patterns, eating

01:25:57.720 --> 01:26:00.600
habits, even milk production. Cornell University

01:26:00.600 --> 01:26:03.039
is doing a lot of really impressive work in this

01:26:03.039 --> 01:26:06.079
area. Their RoofVest program, for example, uses

01:26:06.079 --> 01:26:08.220
whole farm simulation to help farmers optimize

01:26:08.220 --> 01:26:11.140
their management practices. And their CAS -T

01:26:11.140 --> 01:26:13.840
program focuses on integrating various sensor

01:26:13.840 --> 01:26:16.500
technologies for comprehensive animal monitoring.

01:26:16.779 --> 01:26:18.539
The technology is getting pretty incredible.

01:26:18.739 --> 01:26:21.239
We saw a system that combines real -time temperature

01:26:21.239 --> 01:26:24.279
recognition, behavior classification, and step

01:26:24.279 --> 01:26:27.550
counting. all in a single device with a battery

01:26:27.550 --> 01:26:30.810
life of around 120 hours. Some even have solar

01:26:30.810 --> 01:26:33.069
panels to extend that even further. Dr. Michael

01:26:33.069 --> 01:26:35.090
Chen explained that these systems are really

01:26:35.090 --> 01:26:37.350
good at establishing individual baselines for

01:26:37.350 --> 01:26:40.289
each animal. So instead of just looking for deviations

01:26:40.289 --> 01:26:42.550
from some general average, they're learning what's

01:26:42.550 --> 01:26:45.289
normal for each specific cow and only alerting

01:26:45.289 --> 01:26:47.270
you when something is significantly different

01:26:47.270 --> 01:26:49.890
from that baseline. It's so much more accurate

01:26:49.890 --> 01:26:52.390
and effective than just relying on general thresholds.

01:26:52.600 --> 01:26:55.060
And this kind of early detection can make a huge

01:26:55.060 --> 01:26:58.380
difference. James Miller, a dairy farmer in Pennsylvania,

01:26:58.680 --> 01:27:01.399
reported a nearly 40 % reduction in fresh cow

01:27:01.399 --> 01:27:03.720
treatments after implementing advanced monitoring.

01:27:04.060 --> 01:27:07.060
That's huge. And think of all the other benefits

01:27:07.060 --> 01:27:10.319
that come with that. Fewer vet bills, lower antibiotic

01:27:10.319 --> 01:27:13.659
usage, better peak milk production. And of course,

01:27:13.659 --> 01:27:15.859
less time and stress spent dealing with sick

01:27:15.859 --> 01:27:18.880
cows. Now, the cost of these systems can range

01:27:18.880 --> 01:27:22.600
from $150 to $200 per cow for the hardware and

01:27:22.600 --> 01:27:25.840
software. But the reported ROI is pretty impressive.

01:27:25.979 --> 01:27:28.579
Many farmers are seeing a positive return on

01:27:28.579 --> 01:27:32.039
their investment in just 12 to 18 months. And

01:27:32.039 --> 01:27:33.920
for those who might feel a bit overwhelmed by

01:27:33.920 --> 01:27:36.560
all the data, many companies offer service packages

01:27:36.560 --> 01:27:38.880
where their experts handle the analysis and just

01:27:38.880 --> 01:27:41.560
send you actionable alerts. So you get the benefits

01:27:41.560 --> 01:27:43.779
of the technology without needing to become a

01:27:43.779 --> 01:27:45.770
data scientist yourself. All right, so we've

01:27:45.770 --> 01:27:48.210
talked about keeping calves healthy and monitoring

01:27:48.210 --> 01:27:50.890
our cows. But let's face it, one of the biggest

01:27:50.890 --> 01:27:54.210
line items in any dairy operation is feed. And

01:27:54.210 --> 01:27:55.789
the sources we've been looking at are pretty

01:27:55.789 --> 01:27:58.789
clear. Precision feeding is no longer a luxury.

01:27:59.010 --> 01:28:01.449
It's a necessity. Yeah, they were really emphasizing

01:28:01.449 --> 01:28:03.609
that point. The days of just tossing a bunch

01:28:03.609 --> 01:28:05.130
of feed in front of the cows and hoping for the

01:28:05.130 --> 01:28:07.189
best are over. Right. It's like throwing money

01:28:07.189 --> 01:28:10.010
in the manure pit. Precision feeding is all about

01:28:10.010 --> 01:28:12.489
optimizing every pound of feed that goes into

01:28:12.489 --> 01:28:15.310
your cows, making sure that each individual animal

01:28:15.310 --> 01:28:17.710
is getting exactly the nutrients they need to

01:28:17.710 --> 01:28:19.970
maximize milk production and minimize waste.

01:28:20.229 --> 01:28:22.430
And there's a whole suite of technologies that

01:28:22.430 --> 01:28:24.649
fall under the umbrella of precision feeding.

01:28:24.949 --> 01:28:27.909
We've got automatic feed pushers to ensure cows

01:28:27.909 --> 01:28:30.989
always have access to fresh feed. We've got precision

01:28:30.989 --> 01:28:33.590
TMR mixing systems to ensure that every batch

01:28:33.590 --> 01:28:36.050
is perfectly consistent. We've even got real

01:28:36.050 --> 01:28:38.449
-time feed analysis technologies to account for

01:28:38.449 --> 01:28:41.090
variations in ingredient quality. And then there

01:28:41.090 --> 01:28:43.630
are the individual cow feeding systems. These

01:28:43.630 --> 01:28:46.829
use things like RFID tags to identify each cow

01:28:46.829 --> 01:28:49.010
and dispense specific amounts of grain based

01:28:49.010 --> 01:28:51.189
on their production levels, lactation stage,

01:28:51.369 --> 01:28:53.609
and even health status. The typical savings we've

01:28:53.609 --> 01:28:56.109
seen with these systems is around 5 to 10 % on

01:28:56.109 --> 01:28:58.789
your overall feed costs, which, when you think

01:28:58.789 --> 01:29:00.590
about the amount of feed a dairy farm goes through,

01:29:00.689 --> 01:29:03.229
can be a significant amount of money. And one

01:29:03.229 --> 01:29:04.970
of the most exciting developments here is the

01:29:04.970 --> 01:29:07.350
integration of precision feeding systems with

01:29:07.350 --> 01:29:09.029
the health monitoring systems we were talking

01:29:09.029 --> 01:29:12.000
about earlier. Imagine a scenario where your

01:29:12.000 --> 01:29:15.039
cow's wearable sensor detects early signs of

01:29:15.039 --> 01:29:17.840
ketosis. The precision feeding system can then

01:29:17.840 --> 01:29:20.680
automatically adjust her ration to include things

01:29:20.680 --> 01:29:23.340
like propylene glycol to help her get back on

01:29:23.340 --> 01:29:25.500
track. It's like having a nutritionist on call

01:29:25.500 --> 01:29:29.020
247 for each individual cow in your herd. And

01:29:29.020 --> 01:29:32.079
as feed prices continue to rise and we face more

01:29:32.079 --> 01:29:33.899
challenges with drought and other environmental

01:29:33.899 --> 01:29:36.699
pressures, being able to use our feed resources

01:29:36.699 --> 01:29:39.479
as efficiently as possible is only going to become

01:29:39.479 --> 01:29:42.000
more critical. All right, for our last technology

01:29:42.000 --> 01:29:44.800
deep dive, we're stepping into the realm of science

01:29:44.800 --> 01:29:47.520
fiction, or at least it feels that way. We're

01:29:47.520 --> 01:29:50.739
talking about AI supervision. AI -powered monitoring

01:29:50.739 --> 01:29:53.739
systems that are so sophisticated, they can practically

01:29:53.739 --> 01:29:56.800
watch your cows for you and alert you to potential

01:29:56.800 --> 01:29:59.380
problems before they even become visible to the

01:29:59.380 --> 01:30:01.739
human eye. It sounds crazy, but it's already

01:30:01.739 --> 01:30:04.340
happening. Researchers at Tokyo University of

01:30:04.340 --> 01:30:06.380
Science in Japan have developed a multi -camera

01:30:06.380 --> 01:30:09.399
system that uses AI to track cows throughout

01:30:09.399 --> 01:30:12.979
the barn with an accuracy of around 90%. And

01:30:12.979 --> 01:30:14.800
it's not just about keeping track of where your

01:30:14.800 --> 01:30:18.159
cows are. These systems can analyze their movements,

01:30:18.420 --> 01:30:21.359
their posture, their gait, and even their interactions

01:30:21.359 --> 01:30:24.239
with each other to detect subtle signs of illness

01:30:24.239 --> 01:30:26.699
or injury. Remember that example we talked about

01:30:26.699 --> 01:30:29.340
from that dairy in Idaho where the AI flagged

01:30:29.340 --> 01:30:31.840
a cow that was slightly lame? Right. It had a

01:30:31.840 --> 01:30:34.500
rock lodged in its hoof, and it was only causing

01:30:34.500 --> 01:30:36.939
a 5 % change in her gait, which probably wouldn't

01:30:36.939 --> 01:30:39.000
have been noticed by a human observer for a while.

01:30:39.119 --> 01:30:41.600
But the AI picked it up right away. Amazing.

01:30:41.640 --> 01:30:44.119
And these systems can even automate tasks like

01:30:44.119 --> 01:30:46.039
body condition scoring, which has traditionally

01:30:46.039 --> 01:30:48.659
been a very time -consuming and subjective process.

01:30:49.319 --> 01:30:51.340
Instead of having to manually score every cow

01:30:51.340 --> 01:30:53.880
once a month, you can have AI doing it for you

01:30:53.880 --> 01:30:56.439
on a daily basis, giving you a much more detailed

01:30:56.439 --> 01:30:58.520
and consistent picture of your herd's nutritional

01:30:58.520 --> 01:31:01.600
status. And the potential impact on productivity

01:31:01.600 --> 01:31:05.220
is pretty significant. Some reports suggest that

01:31:05.220 --> 01:31:08.140
AI implementation can lead to a 30 % boost in

01:31:08.140 --> 01:31:10.939
overall productivity and up to a 15 % increase

01:31:10.939 --> 01:31:13.260
in milk yield within the first year. Now, the

01:31:13.260 --> 01:31:15.720
upfront cost of these systems can be a bit daunting.

01:31:15.819 --> 01:31:19.359
We're talking $40 ,000 to $60 ,000 for the hardware

01:31:19.359 --> 01:31:23.500
in a typical 500 -cow barn, plus monthly subscription

01:31:23.500 --> 01:31:25.859
fees. But when you consider the ongoing labor

01:31:25.859 --> 01:31:28.739
shortages and the rising cost of labor, it might

01:31:28.739 --> 01:31:31.250
be a worthwhile investment in the long run. And

01:31:31.250 --> 01:31:33.550
a lot of companies are offering hybrid approaches

01:31:33.550 --> 01:31:36.029
where the AI flags potential problems, but the

01:31:36.029 --> 01:31:37.770
final decisions about treatment and management

01:31:37.770 --> 01:31:40.229
are still made by the farm staff. Like Dr. Yori

01:31:40.229 --> 01:31:43.229
Yamamoto said, it's about using AI to enhance

01:31:43.229 --> 01:31:46.029
good stockmanship, not replace it. So we've covered

01:31:46.029 --> 01:31:48.350
a lot of ground today. And the big takeaway is

01:31:48.350 --> 01:31:50.949
that the dairy industry is on the cusp of a major

01:31:50.949 --> 01:31:54.609
technological transformation. The next few years

01:31:54.609 --> 01:31:56.670
are going to be crucial for deciding which farms

01:31:56.670 --> 01:32:00.020
adapt and thrive. and which, unfortunately, might

01:32:00.020 --> 01:32:02.239
struggle to keep up. One of our sources put it

01:32:02.239 --> 01:32:05.600
pretty bluntly. They said, adapt or perish. Yeah,

01:32:05.720 --> 01:32:08.460
that's a pretty stark warning. But it highlights

01:32:08.460 --> 01:32:10.960
the importance of staying informed, being open

01:32:10.960 --> 01:32:13.800
to new ideas, and being willing to invest in

01:32:13.800 --> 01:32:15.600
the technologies that are going to make your

01:32:15.600 --> 01:32:18.439
operation more efficient, more resilient, and

01:32:18.439 --> 01:32:21.460
ultimately more profitable. We saw a table that

01:32:21.460 --> 01:32:24.260
broke down the expected ROI timeframes for these

01:32:24.260 --> 01:32:26.840
technologies, and it's really encouraging. Even

01:32:26.840 --> 01:32:28.899
the more expensive technologies like AI monitoring

01:32:28.899 --> 01:32:30.800
are showing a potential return on investment

01:32:30.800 --> 01:32:33.619
within a few years. So our advice, don't try

01:32:33.619 --> 01:32:35.920
to do everything at once. Start by identifying

01:32:35.920 --> 01:32:37.979
the areas of your operation where you're experiencing

01:32:37.979 --> 01:32:40.060
the most significant challenges, whether it's

01:32:40.060 --> 01:32:42.939
calf mortality, high treatment costs, feed waste,

01:32:43.020 --> 01:32:45.880
or labor shortages. Then focus on the technologies

01:32:45.880 --> 01:32:49.079
that specifically address those problems. You

01:32:49.079 --> 01:32:51.539
can always expand to other areas as you see positive

01:32:51.539 --> 01:32:54.159
results and your team becomes more comfortable

01:32:54.159 --> 01:32:56.220
with the new tools. And remember that technology

01:32:56.220 --> 01:32:59.819
is only part of the solution. Proper implementation,

01:33:00.399 --> 01:33:03.000
thorough training for your team, and strong management

01:33:03.000 --> 01:33:06.840
practices are just as crucial for success. As

01:33:06.840 --> 01:33:09.520
one of our sources put it, even the best hammer

01:33:09.520 --> 01:33:11.439
won't build a house if you don't know how to

01:33:11.439 --> 01:33:14.119
use it. And don't forget the importance of good

01:33:14.119 --> 01:33:17.270
old -fashioned stockmanship. All of this technology

01:33:17.270 --> 01:33:19.970
is designed to enhance your skills and knowledge

01:33:19.970 --> 01:33:23.010
as a dairy farmer, not replace them. Like that

01:33:23.010 --> 01:33:25.590
Wisconsin farmer said, my grandpa knew every

01:33:25.590 --> 01:33:28.369
one of his 40 cows by name. I've got 400 and

01:33:28.369 --> 01:33:30.449
I couldn't possibly keep track of them all without

01:33:30.449 --> 01:33:32.409
the help of technology. It's all about using

01:33:32.409 --> 01:33:34.750
these tools to make better decisions, to be more

01:33:34.750 --> 01:33:37.050
proactive, and to stay ahead of the curve in

01:33:37.050 --> 01:33:39.350
a rapidly changing world. The challenges facing

01:33:39.350 --> 01:33:42.250
the dairy industry in 2025 are going to be significant,

01:33:42.470 --> 01:33:45.869
but the opportunities are also immense. So the

01:33:45.869 --> 01:33:48.010
question isn't whether you can afford to adopt

01:33:48.010 --> 01:33:49.869
these technologies, it's whether you can afford

01:33:49.869 --> 01:33:52.510
not to. We hope this deep dive has been helpful

01:33:52.510 --> 01:33:54.909
in giving you a better understanding of what

01:33:54.909 --> 01:33:57.470
the future holds and how you can prepare for

01:33:57.470 --> 01:33:59.829
it. So take some time to reflect on what you've

01:33:59.829 --> 01:34:02.399
heard today. Do some more research on the specific

01:34:02.399 --> 01:34:05.260
technologies that pique your interest and start

01:34:05.260 --> 01:34:07.560
thinking about how you can incorporate them into

01:34:07.560 --> 01:34:10.020
your operation. And most importantly, stay curious,

01:34:10.220 --> 01:34:13.619
stay adaptable, and stay engaged with the exciting

01:34:13.619 --> 01:34:16.239
advancements that are shaping the future of dairy

01:34:16.239 --> 01:34:18.279
farming. Thanks for joining us for this deep

01:34:18.279 --> 01:34:20.840
dive. We'll see you next time. While we're focused

01:34:20.840 --> 01:34:23.640
on adopting new technologies and capitalizing

01:34:23.640 --> 01:34:26.560
on emerging markets, we can't forget the fundamental

01:34:26.560 --> 01:34:29.899
threats that can devastate an operation overnight.

01:34:30.920 --> 01:34:33.699
This week brings a sobering reminder from Europe

01:34:33.699 --> 01:34:36.380
about how quickly disease can upend even the

01:34:36.380 --> 01:34:40.020
most advanced dairy regions. Hungary is facing

01:34:40.020 --> 01:34:42.359
its first foot and mouth disease outbreak in

01:34:42.359 --> 01:34:45.579
over 50 years, and their response shows just

01:34:45.579 --> 01:34:48.420
how serious this threat remains to global dairy.

01:34:48.640 --> 01:34:51.060
Their military -led containment strategy offers

01:34:51.060 --> 01:34:54.579
critical lessons for producers everywhere. Oh,

01:34:54.579 --> 01:34:57.739
hello there, and buckle up, because today we're

01:34:57.739 --> 01:35:00.359
diving headfirst into a situation brewing in

01:35:00.359 --> 01:35:02.479
Europe that should have every dairy farmer and

01:35:02.479 --> 01:35:05.840
industry guru listening with their ears perked.

01:35:06.399 --> 01:35:10.359
We're talking about Hungary, which has gone full

01:35:10.359 --> 01:35:14.399
-on military mode, yes. actual soldiers to combat

01:35:14.399 --> 01:35:17.539
a foot and mouth disease outbreak and not just

01:35:17.539 --> 01:35:20.140
any outbreak mind you but the worst they've seen

01:35:20.140 --> 01:35:23.039
in half a century now it's a stark reminder that

01:35:23.039 --> 01:35:24.920
some of the nastiest bugs in the business can

01:35:24.920 --> 01:35:27.239
come roaring back when you least expect it it

01:35:27.239 --> 01:35:29.960
certainly is a jolt isn't it foot and mouth disease

01:35:29.960 --> 01:35:32.720
or fmd is one of those things you hope you'll

01:35:32.720 --> 01:35:35.270
only ever read about in Well, history books.

01:35:35.430 --> 01:35:37.170
But for those tuning in who might not deal with

01:35:37.170 --> 01:35:40.470
it directly, understand this. FMD is a highly

01:35:40.470 --> 01:35:42.970
contagious viral smackdown on cloven -hoofed

01:35:42.970 --> 01:35:45.310
critters, your cows, your pigs, your sheep. For

01:35:45.310 --> 01:35:47.329
a dairy operation, it's like a perfect storm

01:35:47.329 --> 01:35:51.510
of bad news. Milk production tanks, sick animals

01:35:51.510 --> 01:35:53.850
cost you money. And then the trade restrictions

01:35:53.850 --> 01:35:55.689
kick in, potentially cutting off your market

01:35:55.689 --> 01:35:58.739
faster than you can say quarantine. Exactly.

01:35:58.739 --> 01:36:02.279
So our mission today is clear as a freshly washed

01:36:02.279 --> 01:36:05.399
bulk tank. We've sifted through the reports coming

01:36:05.399 --> 01:36:07.779
out of Hungary. And let me tell you, they're

01:36:07.779 --> 01:36:10.100
not pretty. And we've lined them up against the

01:36:10.100 --> 01:36:12.420
rock solid advice of the National Dairy Farm

01:36:12.420 --> 01:36:15.149
Biosecurity Program. Good plan. We're here to

01:36:15.149 --> 01:36:17.829
extract the crucial, actionable strategies that

01:36:17.829 --> 01:36:20.109
you can and frankly should be thinking about

01:36:20.109 --> 01:36:22.510
right now to protect your herd and, let's not

01:36:22.510 --> 01:36:25.130
sugar note it, your financial future from this

01:36:25.130 --> 01:36:27.390
kind of devastating hit. We're pulling directly

01:36:27.390 --> 01:36:29.770
from the frontline reports out of Hungary and

01:36:29.770 --> 01:36:31.729
the tried and true wisdom baked into the Farm

01:36:31.729 --> 01:36:34.310
Biosecurity Program. Okay, so where did this

01:36:34.310 --> 01:36:36.529
all kick off in Hungary? What's the opening scene

01:36:36.529 --> 01:36:38.829
of this unfolding drama? Well, the first sign

01:36:38.829 --> 01:36:42.470
that something was amiss came on March 3rd of

01:36:42.470 --> 01:36:45.550
this year, 2025, at a dairy farm in Kisbagics,

01:36:45.689 --> 01:36:47.770
that's in the northwestern corner of Hungary,

01:36:47.989 --> 01:36:50.329
practically waving hello to the Slovak border.

01:36:50.510 --> 01:36:53.090
The lab coats were donned shortly after, and

01:36:53.090 --> 01:36:56.149
by March 6th, the confirmation came through FMD.

01:36:56.630 --> 01:36:59.850
And just a day later, March 7th, Hungary officially

01:36:59.850 --> 01:37:02.329
alerted the World Organization for Animal Health.

01:37:02.840 --> 01:37:05.840
Now, keep in mind, their last tango with FMD

01:37:05.840 --> 01:37:09.819
was over 50 years ago. 50 years. Wow. Yeah. You

01:37:09.819 --> 01:37:12.380
can only imagine the level of, oh, no, not this

01:37:12.380 --> 01:37:14.100
again, that was going through their agricultural

01:37:14.100 --> 01:37:17.100
authorities. And as these things often go, it

01:37:17.100 --> 01:37:19.439
wasn't a one and done situation, was it? This

01:37:19.439 --> 01:37:21.939
wasn't a neatly contained little incident. No,

01:37:21.939 --> 01:37:24.779
not by a long shot. Yeah. Just a few weeks later,

01:37:24.840 --> 01:37:28.140
on March 26th, a second alarm blared in Lavelle.

01:37:28.460 --> 01:37:30.979
Another dairy farm, and a significant one this

01:37:30.979 --> 01:37:33.720
time, housing around 3 ,000 head of cattle. 3

01:37:33.720 --> 01:37:37.140
,000? Yeah. What makes this particularly unsettling

01:37:37.140 --> 01:37:39.260
is that Lavelle is about 30 miles down the road

01:37:39.260 --> 01:37:42.380
from that initial outbreak in Kisbachax. It suggests

01:37:42.380 --> 01:37:44.319
that the virus is already making unwelcome road

01:37:44.319 --> 01:37:46.079
trips across the region. And just when you're

01:37:46.079 --> 01:37:48.380
thinking, well, that's bad enough. Right. Then,

01:37:48.380 --> 01:37:51.279
just yesterday, April 2nd, the Hungarian agriculture

01:37:51.279 --> 01:37:53.880
minister... Isvanagi dropped the news of not

01:37:53.880 --> 01:37:56.699
one, but two more outbreaks. These popped up

01:37:56.699 --> 01:37:59.739
in Darnosli and Dunakiliti, bringing the grand

01:37:59.739 --> 01:38:03.100
total to four farms under the FMD cloud and a

01:38:03.100 --> 01:38:07.260
hefty 3 ,500 cattle directly affected. Minister

01:38:07.260 --> 01:38:10.300
Negi himself stated they are taking every possible

01:38:10.300 --> 01:38:12.859
measure to wrestle this thing to the ground.

01:38:13.159 --> 01:38:16.039
It really underscores the sheer panic and...

01:38:17.080 --> 01:38:18.739
determination they're operating under. Every

01:38:18.739 --> 01:38:20.760
possible measure. That's the kind of phrase that

01:38:20.760 --> 01:38:22.659
makes you sit up and pay attention. And it sounds

01:38:22.659 --> 01:38:25.039
like they weren't just paying lip service considering

01:38:25.039 --> 01:38:27.600
the next card they played. Absolutely. Hungary

01:38:27.600 --> 01:38:29.560
has essentially thrown a biosecurity blanket

01:38:29.560 --> 01:38:32.500
over the affected areas. And a key part of that

01:38:32.500 --> 01:38:34.359
has been calling in the military. The military.

01:38:34.539 --> 01:38:37.359
Yes. This isn't just about setting up a few cones

01:38:37.359 --> 01:38:39.479
and directing traffic. It's about injecting a

01:38:39.479 --> 01:38:41.979
serious dose of order and discipline into the

01:38:41.979 --> 01:38:44.560
containment efforts. Minister Nagy specifically

01:38:44.560 --> 01:38:47.300
talked about ensuring virus control can be carried

01:38:47.300 --> 01:38:49.539
out in an orderly and disciplined manner 24 hours

01:38:49.539 --> 01:38:52.000
a day under controlled conditions. Right. That

01:38:52.000 --> 01:38:54.560
constant vigilance is absolutely crucial when

01:38:54.560 --> 01:38:57.140
you're dealing with a virus this slick and, well,

01:38:57.180 --> 01:38:59.979
contagious. We're talking about biosecurity with

01:38:59.979 --> 01:39:02.819
Sergeant Stripes here. So what does that actually

01:39:02.819 --> 01:39:04.840
look like on the ground? What are these military

01:39:04.840 --> 01:39:07.630
personnel doing? Well, one of their first moves

01:39:07.630 --> 01:39:10.409
was to establish these really tight disinfection

01:39:10.409 --> 01:39:12.130
checkpoints, especially along their borders.

01:39:12.390 --> 01:39:14.670
We're talking about every crossing from Rajka

01:39:14.670 --> 01:39:17.550
all the way down to Estragon, now requiring vehicles

01:39:17.550 --> 01:39:19.710
to go through disinfection. Every single one.

01:39:19.850 --> 01:39:22.289
Yeah. They've also set up shop at every exit

01:39:22.289 --> 01:39:25.390
along the M1 motorway, a major artery running

01:39:25.390 --> 01:39:28.310
from Hege Shalom to Bernie. And it's not just

01:39:28.310 --> 01:39:30.409
a quick spray of the tires. They've deployed

01:39:30.409 --> 01:39:33.430
disinfection mats as well. creating these zones

01:39:33.430 --> 01:39:36.630
of viral defense to try and stop the bug from

01:39:36.630 --> 01:39:39.550
hitching a ride out of the hot zones. The sheer

01:39:39.550 --> 01:39:41.750
scale of this, particularly when we're talking

01:39:41.750 --> 01:39:43.909
about a disease that can potentially travel through

01:39:43.909 --> 01:39:46.649
the air, is significant. It's about throwing

01:39:46.649 --> 01:39:49.050
up as many roadblocks as possible to break any

01:39:49.050 --> 01:39:51.470
chain of transmission. And beyond trying to stop

01:39:51.470 --> 01:39:53.170
the virus from spreading, they're also having

01:39:53.170 --> 01:39:55.069
to deal with the animals that are already infected,

01:39:55.170 --> 01:39:58.460
correct? That's the tough part. Precisely. The

01:39:58.460 --> 01:40:01.060
initial 1 ,400 cattle from that first outbreak

01:40:01.060 --> 01:40:04.399
in Kisbais have been culled. And unfortunately,

01:40:04.819 --> 01:40:07.020
similar heartbreaking operations are underway

01:40:07.020 --> 01:40:09.939
at the other infected farms. But here's a curveball

01:40:09.939 --> 01:40:12.819
you might not expect. They've also issued a mandatory

01:40:12.819 --> 01:40:15.159
culling order for pigs in those affected areas.

01:40:15.380 --> 01:40:17.800
Pigs? Why pigs? Well, pigs are also susceptible

01:40:17.800 --> 01:40:21.439
to FMD, and they can actually amplify the virus.

01:40:22.239 --> 01:40:24.880
produce a lot more of it than cattle, and potentially

01:40:24.880 --> 01:40:28.159
spread it further. So it's a drastic but necessary

01:40:28.159 --> 01:40:30.899
measure to try and eliminate any hidden reservoirs

01:40:30.899 --> 01:40:33.180
of the disease. Okay, that makes sense. And to

01:40:33.180 --> 01:40:36.159
further clamp down on any potential spread, they've

01:40:36.159 --> 01:40:38.279
put some pretty serious restrictions on animal

01:40:38.279 --> 01:40:39.939
movement, haven't they? It's like creating invisible

01:40:39.939 --> 01:40:42.840
fences. Exactly. They've established these layered

01:40:42.840 --> 01:40:45.920
security zones around the infected farms. Right

01:40:45.920 --> 01:40:48.100
on the doorstep, there's a tight 3 -kilometer

01:40:48.100 --> 01:40:50.640
protection zone and then a wider 10 -kilometer

01:40:50.640 --> 01:40:52.689
surveillance zone. Right. What's particularly

01:40:52.689 --> 01:40:55.189
noteworthy and a sign of how interconnected agriculture

01:40:55.189 --> 01:40:57.970
is across borders is that these zones actually

01:40:57.970 --> 01:41:00.449
bleed over into neighboring Slovakia. Oh, interesting.

01:41:00.770 --> 01:41:03.130
Yeah. On top of that, they've put grazing restrictions

01:41:03.130 --> 01:41:06.270
in place along a 10 -kilometer strip near their

01:41:06.270 --> 01:41:09.029
borders. The whole idea is to minimize any nose

01:41:09.029 --> 01:41:11.890
-to -nose or even just close proximity contact

01:41:11.890 --> 01:41:14.390
between animals that could allow the virus to

01:41:14.390 --> 01:41:17.180
jump from one herd to another. So they are pulling

01:41:17.180 --> 01:41:19.220
out all the stops, it seems. But let's put on

01:41:19.220 --> 01:41:21.779
our CSI hats for a moment and dig into the science

01:41:21.779 --> 01:41:24.180
of this thing. What do we know about this particular

01:41:24.180 --> 01:41:27.159
strain of FMD that's causing all this trouble?

01:41:27.420 --> 01:41:29.340
Right. The boffins at the Hungarian National

01:41:29.340 --> 01:41:31.319
Reference Laboratory have been burning the midnight

01:41:31.319 --> 01:41:33.760
oil on this, and they've pinned it down as serotype

01:41:33.760 --> 01:41:36.560
O. Now, here's where it gets really interesting.

01:41:36.739 --> 01:41:40.460
OK. The genetic fingerprint of this virus shows

01:41:40.460 --> 01:41:43.699
a very high similarity. We're talking 98 to 99

01:41:43.699 --> 01:41:46.439
percent. to a strain that was causing headaches

01:41:46.439 --> 01:41:50.779
in Pakistan back in 2017 and 2018. Yeah. This

01:41:50.779 --> 01:41:53.060
strongly suggests a potential link to outbreaks

01:41:53.060 --> 01:41:56.199
in South Asia rather than to that isolated incident

01:41:56.199 --> 01:41:59.640
we saw in Germany earlier this year, which thankfully

01:41:59.640 --> 01:42:01.960
involved a completely different strain. It really

01:42:01.960 --> 01:42:04.800
makes you think about how easily these bugs can

01:42:04.800 --> 01:42:07.060
hop across continents in our interconnected world

01:42:07.060 --> 01:42:09.829
of trade and travel. Absolutely. It's not just

01:42:09.829 --> 01:42:11.649
about keeping an eye on your neighbor down the

01:42:11.649 --> 01:42:15.029
road anymore. So given this Pakistani connection,

01:42:15.449 --> 01:42:18.149
what are the likely ways this thing is spreading

01:42:18.149 --> 01:42:21.229
in Hungary right now? How is it making these

01:42:21.229 --> 01:42:23.890
leaps between farms? Well, they're looking at

01:42:23.890 --> 01:42:27.350
a whole host of potential culprits. Human vectors

01:42:27.350 --> 01:42:29.810
are definitely high on the list. Things like

01:42:29.810 --> 01:42:32.710
contaminated boots and clothing can unknowingly

01:42:32.710 --> 01:42:35.199
carry the virus from one farm to another. Yeah,

01:42:35.279 --> 01:42:38.000
the usual suspects. Exactly. Direct nuzzles and

01:42:38.000 --> 01:42:40.579
interactions with infected animals are, of course,

01:42:40.619 --> 01:42:43.000
a major pathway, as is the movement and trade

01:42:43.000 --> 01:42:45.000
of animals themselves, even before they start

01:42:45.000 --> 01:42:47.859
showing any telltale signs. Contaminated animal

01:42:47.859 --> 01:42:50.340
products are another potential risk. And then

01:42:50.340 --> 01:42:53.180
there's the possibility of wildlife reservoirs,

01:42:53.180 --> 01:42:55.920
like wild boar and deer, potentially harboring

01:42:55.920 --> 01:42:57.520
and spreading the virus, although that's still

01:42:57.520 --> 01:42:59.630
under investigation. But the reports seem to

01:42:59.630 --> 01:43:02.010
really emphasize one particular transmission

01:43:02.010 --> 01:43:04.630
route as being the most problematic in this situation,

01:43:04.930 --> 01:43:07.369
the one that makes containing it such a headache.

01:43:07.819 --> 01:43:09.760
You're right. Airborne transmission seems to

01:43:09.760 --> 01:43:11.859
be the main villain in this northwestern Hungary

01:43:11.859 --> 01:43:14.979
outbreak. Airborne? Oh boy. Yeah, the virus can

01:43:14.979 --> 01:43:17.319
actually hitch a ride on tiny droplets in the

01:43:17.319 --> 01:43:19.739
air and travel on air currents, which is why

01:43:19.739 --> 01:43:21.600
those wide -ranging movement restrictions and

01:43:21.600 --> 01:43:24.300
disinfection zones are so critical. Once it goes

01:43:24.300 --> 01:43:26.800
airborne, it makes containment efforts exponentially

01:43:26.800 --> 01:43:28.800
more difficult because you're not just dealing

01:43:28.800 --> 01:43:30.720
with direct contact, you're battling something

01:43:30.720 --> 01:43:33.689
you can't always see or easily control. This

01:43:33.689 --> 01:43:36.850
isn't just about a few sick cows and some extra

01:43:36.850 --> 01:43:39.829
vet bills, is it? There are some serious economic

01:43:39.829 --> 01:43:41.869
dominoes that start to fall with an outbreak

01:43:41.869 --> 01:43:44.449
like this, and every producer needs to understand

01:43:44.449 --> 01:43:47.390
the potential impact on their bottom line. Absolutely.

01:43:47.590 --> 01:43:50.170
While Hungary's total cattle population, at just

01:43:50.170 --> 01:43:53.270
over 860 ,000 head, might seem like a relatively

01:43:53.270 --> 01:43:56.960
small slice of the EU pie, around 1 .2%. The

01:43:56.960 --> 01:43:59.640
financial fallout from an FMD outbreak can be

01:43:59.640 --> 01:44:02.100
absolutely devastating and can ripple far beyond

01:44:02.100 --> 01:44:04.460
the directly affected farms. We can look at studies

01:44:04.460 --> 01:44:07.140
from places like Kenya, which, while a different

01:44:07.140 --> 01:44:09.939
agricultural system, still provide stark insights.

01:44:10.520 --> 01:44:12.779
They found that milk yields in high -producing

01:44:12.779 --> 01:44:15.880
cows can plummet by a staggering 35 % during

01:44:15.880 --> 01:44:19.899
an outbreak. 35 %? Yeah. Even on average, affected

01:44:19.899 --> 01:44:22.039
dairy farms reported production losses in the

01:44:22.039 --> 01:44:26.210
20 to 30 % range. And here's a particularly sobering

01:44:26.210 --> 01:44:30.010
statistic. Cows in their fourth lactation or

01:44:30.010 --> 01:44:32.470
higher can experience an average milk loss of

01:44:32.470 --> 01:44:35.970
almost 700 kilograms per lactation. Wow. You

01:44:35.970 --> 01:44:38.869
can directly translate those kind of losses into

01:44:38.869 --> 01:44:41.189
a significant chunk of your income disappearing.

01:44:41.649 --> 01:44:44.369
It's not just a temporary dip. It can have long

01:44:44.369 --> 01:44:46.449
-lasting effects on your profitability. And it's

01:44:46.449 --> 01:44:48.529
not just the immediate drop in milk checks, is

01:44:48.529 --> 01:44:50.890
it? The trade implications can be just as financially

01:44:50.890 --> 01:44:52.630
crippling. It's like the market slams the door

01:44:52.630 --> 01:44:54.649
shut. Precisely. As we've already seen in real

01:44:54.649 --> 01:44:56.250
time, the Czech Republic has already slapped

01:44:56.250 --> 01:44:59.130
an import ban on certain animal products, not

01:44:59.130 --> 01:45:01.670
just from Hungary, but also from parts of Slovakia

01:45:01.670 --> 01:45:04.489
and even Austria. Austria, wow. And this is despite

01:45:04.489 --> 01:45:06.350
the fact that they haven't had any confirmed

01:45:06.350 --> 01:45:08.810
cases within their own borders. That's the immediate

01:45:08.810 --> 01:45:12.369
ripple effect of an FMD outbreak. Suddenly, your

01:45:12.369 --> 01:45:15.029
market access can vanish overnight, even if your

01:45:15.029 --> 01:45:17.250
farm is hundreds of miles away from the infracted

01:45:17.250 --> 01:45:20.260
zone. It really underscores just how interconnected

01:45:20.260 --> 01:45:23.600
the agricultural economy is and how quickly fear

01:45:23.600 --> 01:45:26.140
and precaution can disrupt established trade

01:45:26.140 --> 01:45:30.159
flows. So given this very real and economically

01:45:30.159 --> 01:45:32.659
threatening situation unfolding in Europe, what

01:45:32.659 --> 01:45:35.520
can producers right here and now actually do

01:45:35.520 --> 01:45:38.420
to build a stronger defense? That's where the

01:45:38.420 --> 01:45:40.659
Farm Biosecurity Program steps onto the stage,

01:45:40.659 --> 01:45:42.520
right? It's our playbook. Absolutely. The National

01:45:42.520 --> 01:45:44.750
Dairy Farm Biosecurity Program. which rolled

01:45:44.750 --> 01:45:47.329
out in 2021, is built on the fundamental principles

01:45:47.329 --> 01:45:50.289
of responsible animal care and provides a robust

01:45:50.289 --> 01:45:53.050
framework for minimizing disease risks on any

01:45:53.050 --> 01:45:55.909
dairy operation, regardless of size. It's not

01:45:55.909 --> 01:45:58.750
just for the mega dairies. The core principles

01:45:58.750 --> 01:46:01.590
are scalable and relevant to every single farm.

01:46:02.250 --> 01:46:05.750
The program emphasizes a practical two tiered

01:46:05.750 --> 01:46:09.880
approach. Everyday biosecurity, the habits you

01:46:09.880 --> 01:46:13.239
live by, and enhanced biosecurity, the extra

01:46:13.239 --> 01:46:15.260
layers of protection you deploy when the stakes

01:46:15.260 --> 01:46:17.840
are higher, like right now. Okay, let's break

01:46:17.840 --> 01:46:19.260
it down, starting with the bread and butter stuff.

01:46:19.479 --> 01:46:22.960
What falls under the umbrella of everyday biosecurity?

01:46:23.319 --> 01:46:26.000
These are the non -negotiables. Right. These

01:46:26.000 --> 01:46:28.439
are the foundational, consistent practices that

01:46:28.439 --> 01:46:31.039
should be ingrained in your daily routine to

01:46:31.039 --> 01:46:33.220
prevent the introduction and spread of common

01:46:33.220 --> 01:46:35.659
diseases. Think about things like minimizing

01:46:35.659 --> 01:46:38.119
the opportunities for wild birds to mingle with

01:46:38.119 --> 01:46:40.920
your cattle in their feed. Birds. Carefully managing

01:46:40.920 --> 01:46:43.640
how you move cattle on and off your farm, and

01:46:43.640 --> 01:46:46.279
being mindful of who has contact with your livestock

01:46:46.279 --> 01:46:48.760
ideally, keeping it to essential personnel only.

01:46:49.380 --> 01:46:51.560
Another critical point, and one that can sometimes

01:46:51.560 --> 01:46:53.779
be overlooked, is avoiding feeding raw milk to

01:46:53.779 --> 01:46:56.000
calves, cattle, or any other mammals, as that

01:46:56.000 --> 01:46:57.800
can be a surprisingly direct route for disease

01:46:57.800 --> 01:47:00.100
transmission. Raw milk, right. And of course,

01:47:00.159 --> 01:47:03.100
good old -fashioned hygiene. Thorough milking

01:47:03.100 --> 01:47:06.140
practices and scrupulous sanitation of all milking

01:47:06.140 --> 01:47:09.000
equipment, especially when dealing with new arrivals,

01:47:09.119 --> 01:47:11.720
returning animals, or those that might be showing

01:47:11.720 --> 01:47:14.840
signs of illness. Finally, a cornerstone of disease

01:47:14.840 --> 01:47:17.960
prevention is physically separating any new animals

01:47:17.960 --> 01:47:20.539
or those returning from shows or other events

01:47:20.539 --> 01:47:23.579
from your main herd for a quarantine period,

01:47:23.819 --> 01:47:26.840
and promptly isolating any animal showing even

01:47:26.840 --> 01:47:29.710
the slightest hint of sickness. These everyday

01:47:29.710 --> 01:47:32.090
habits form your first line of defense. Those

01:47:32.090 --> 01:47:34.189
all sound like pretty standard good management

01:47:34.189 --> 01:47:36.869
practices that most conscientious producers are

01:47:36.869 --> 01:47:38.909
likely already doing or, you know, should be.

01:47:39.069 --> 01:47:41.289
Hopefully, yeah. But when a high -stakes situation

01:47:41.289 --> 01:47:43.909
like this FMD outbreak rears its ugly head, you

01:47:43.909 --> 01:47:46.229
need to crank things up a notch, right? That's

01:47:46.229 --> 01:47:48.430
where the enhanced biosecurity measures come

01:47:48.430 --> 01:47:50.710
into play. This is when you batten down the hatches.

01:47:50.890 --> 01:47:53.130
Precisely. Enhanced biosecurity measures are

01:47:53.130 --> 01:47:55.210
what you need to actively implement and perhaps

01:47:55.210 --> 01:47:57.670
even amplify given the current situation in Europe.

01:47:57.890 --> 01:48:00.449
This involves establishing a really clear and

01:48:00.449 --> 01:48:03.010
physical line separation on your farm line of

01:48:03.010 --> 01:48:05.409
separation okay think of it as drawing an invisible

01:48:05.409 --> 01:48:09.149
but critical border on one side the clean zone

01:48:09.149 --> 01:48:12.090
where your healthy animals reside on the other

01:48:12.090 --> 01:48:15.109
the dirty zone where potential contaminants might

01:48:15.109 --> 01:48:18.689
arrive or be handled every person and every piece

01:48:18.689 --> 01:48:21.729
of equipment needs to respect this border to

01:48:21.729 --> 01:48:24.130
minimize the risk of carrying infection into

01:48:24.130 --> 01:48:26.489
the heart of your operation makes sense you want

01:48:26.489 --> 01:48:28.630
to limit animal movement on your farm as much

01:48:28.630 --> 01:48:31.600
as humanly possible Pre -movement testing before

01:48:31.600 --> 01:48:34.100
you relocate any animals, even within your own

01:48:34.100 --> 01:48:37.420
farm, becomes even more critical. Maintaining

01:48:37.420 --> 01:48:39.779
meticulous logs of everyone who sets foot on

01:48:39.779 --> 01:48:42.439
your property visitors, delivery drivers, service

01:48:42.439 --> 01:48:45.319
technicians, and any movement of animals is absolutely

01:48:45.319 --> 01:48:48.260
essential for tracing back the source if, heaven

01:48:48.260 --> 01:48:51.960
forbid, an outbreak were to occur. Exactly. And

01:48:51.960 --> 01:48:54.039
finally, implementing strict protocols for protective

01:48:54.039 --> 01:48:56.100
gear for anyone interacting with your animals,

01:48:56.220 --> 01:48:58.600
including covering eyes, nose, mouth, and hands.

01:48:59.069 --> 01:49:01.029
especially when dealing with potentially contaminated

01:49:01.029 --> 01:49:03.689
materials like sick animals, carcasses, milk,

01:49:03.850 --> 01:49:06.750
or manure. It's about creating a multi -layered

01:49:06.750 --> 01:49:09.270
shield around your herd. It really does sound

01:49:09.270 --> 01:49:11.930
like creating a fortress around your farm. Now,

01:49:11.989 --> 01:49:14.069
one of the big debates that always surfaces when

01:49:14.069 --> 01:49:15.890
dealing with a highly contagious disease like

01:49:15.890 --> 01:49:19.649
this is the best strategy for containment. What

01:49:19.649 --> 01:49:22.689
does the scientific community and economic analysis

01:49:22.689 --> 01:49:25.189
tell us about the effectiveness of vaccination

01:49:25.189 --> 01:49:29.279
versus simply culling infected herds? That's

01:49:29.279 --> 01:49:31.560
a pivotal question, and the research offers some

01:49:31.560 --> 01:49:33.880
really valuable insights, particularly when you

01:49:33.880 --> 01:49:36.579
consider different farming environments. A recent

01:49:36.579 --> 01:49:38.859
Italian study, for example, looked at various

01:49:38.859 --> 01:49:41.760
livestock density scenarios, from sparsely populated

01:49:41.760 --> 01:49:44.460
rural areas to regions with a high concentration

01:49:44.460 --> 01:49:47.800
of farms. They found that while culling, often

01:49:47.800 --> 01:49:50.520
referred to as stamping out, can be a swift and

01:49:50.520 --> 01:49:52.939
effective method in areas where livestock populations

01:49:52.939 --> 01:49:55.439
are spread out or moderately dense. It often

01:49:55.439 --> 01:49:57.520
falls short in regions with a high density of

01:49:57.520 --> 01:49:59.579
animals. Right. Too many animals too close together.

01:49:59.800 --> 01:50:02.180
Exactly. In those densely populated agricultural

01:50:02.180 --> 01:50:05.079
areas, the study concluded that vaccination is

01:50:05.079 --> 01:50:06.960
often the only strategy that can effectively

01:50:06.960 --> 01:50:10.180
bring an epidemic under control and prevent widespread

01:50:10.180 --> 01:50:12.880
devastation. That makes intuitive sense, doesn't

01:50:12.880 --> 01:50:15.340
it? If the disease is spreading like wildfire

01:50:15.340 --> 01:50:17.859
through close contact in densely packed areas,

01:50:18.180 --> 01:50:20.819
simply removing the initially infected animals

01:50:20.819 --> 01:50:23.180
might be like trying to empty a bathtub with

01:50:23.180 --> 01:50:25.479
a teaspoon. That's a good analogy, yeah. What

01:50:25.479 --> 01:50:27.640
about the financial implications of these two

01:50:27.640 --> 01:50:30.039
different approaches? Well, the economic analysis

01:50:30.039 --> 01:50:33.039
within that Italian study also shed some important

01:50:33.039 --> 01:50:35.680
light on the cost effectiveness. They found that

01:50:35.680 --> 01:50:37.739
while compensating farmers for cold animals,

01:50:37.880 --> 01:50:40.500
what's known as livestock indemnity, represents

01:50:40.500 --> 01:50:44.060
a significant upfront cost in any outbreak scenario.

01:50:44.420 --> 01:50:47.260
Huge cost. Huge cost. But vaccination actually

01:50:47.260 --> 01:50:49.319
proved to be the more economically sound approach

01:50:49.319 --> 01:50:51.800
in those densely populated livestock regions

01:50:51.800 --> 01:50:54.079
over the long haul. This suggests that in areas

01:50:54.079 --> 01:50:56.020
with a lot of dairy farms clustered together,

01:50:56.640 --> 01:50:59.439
A proactive vaccination strategy, while having

01:50:59.439 --> 01:51:02.600
its own costs, could ultimately be less damaging

01:51:02.600 --> 01:51:05.779
to the overall agricultural economy than relying

01:51:05.779 --> 01:51:08.819
solely on reactive culling measures. So it's

01:51:08.819 --> 01:51:11.319
not just about the immediate cost of the vaccine

01:51:11.319 --> 01:51:14.600
dose versus the indemnity payment for a culled

01:51:14.600 --> 01:51:17.239
animal, but about the broader economic resilience

01:51:17.239 --> 01:51:20.340
of the entire sector. Exactly. And the researchers

01:51:20.340 --> 01:51:22.380
also raised a crucial point about maintaining

01:51:22.380 --> 01:51:25.140
what they termed a permanently non -immune population.

01:51:26.170 --> 01:51:28.710
If you're not vaccinating, your entire herd remains

01:51:28.710 --> 01:51:31.109
susceptible, which means you have to be in a

01:51:31.109 --> 01:51:33.510
constant state of heightened alert and preparedness.

01:51:33.930 --> 01:51:36.890
Always on edge. Right. They emphasize that contingency

01:51:36.890 --> 01:51:39.569
plans need to be flexible and adaptable to the

01:51:39.569 --> 01:51:42.189
specific circumstances of an outbreak because

01:51:42.189 --> 01:51:44.689
there's no one -size -fits -all magic bullet

01:51:44.689 --> 01:51:47.189
when it comes to disease control. Okay, so for

01:51:47.189 --> 01:51:49.090
the folks listening right now, sitting in their

01:51:49.090 --> 01:51:52.289
tractors or milking parlors, what are some concrete,

01:51:52.449 --> 01:51:56.060
actionable steps they can take today? Based on

01:51:56.060 --> 01:51:58.420
the unsettling situation unfolding in Hungary

01:51:58.420 --> 01:52:00.560
and the robust guidelines of the farm program,

01:52:00.840 --> 01:52:03.260
what are the immediate to -dos? There are several

01:52:03.260 --> 01:52:05.760
immediate actions that every dairy producer should

01:52:05.760 --> 01:52:08.800
seriously consider implementing right away. First

01:52:08.800 --> 01:52:11.159
and foremost, take a critical look at your farm

01:52:11.159 --> 01:52:14.260
layout and clearly identify and ideally physically

01:52:14.260 --> 01:52:17.100
mark your line of separation. Define the line.

01:52:17.340 --> 01:52:19.720
Define it. Where does your clean animal zone

01:52:19.720 --> 01:52:22.840
end? And where might potential dirty areas begin?

01:52:23.319 --> 01:52:25.840
Second, if you haven't already, put in place

01:52:25.840 --> 01:52:29.039
or reinforce strict visitor protocols. That means

01:52:29.039 --> 01:52:31.000
requiring everyone who comes onto your property,

01:52:31.159 --> 01:52:34.199
from vets to feed delivery drivers, to use clean

01:52:34.199 --> 01:52:37.100
disinfected boots and ideally clean coveralls.

01:52:37.279 --> 01:52:40.000
And maintain a detailed logbook of every visitor,

01:52:40.119 --> 01:52:42.560
noting when they arrived, where they went, and

01:52:42.560 --> 01:52:44.760
when they left. Log everything. Log everything.

01:52:45.000 --> 01:52:48.039
Third, establish and rigorously adhere to robust

01:52:48.039 --> 01:52:51.199
quarantine procedures for any new animals arriving

01:52:51.199 --> 01:52:54.119
on your farm. or any animals returning from off

01:52:54.119 --> 01:52:57.359
-farm events. A 30 -day isolation period in a

01:52:57.359 --> 01:52:59.899
dedicated area with thorough veterinary examination

01:52:59.899 --> 01:53:02.119
and testing before they are integrated into your

01:53:02.119 --> 01:53:04.899
main herd is a non -negotiable step. 30 days

01:53:04.899 --> 01:53:07.460
minimum. Got it. Those all sound like practical

01:53:07.460 --> 01:53:09.460
and relatively easy to implement preventative

01:53:09.460 --> 01:53:11.539
measures. What else should producers be thinking

01:53:11.539 --> 01:53:14.119
about in the current climate? Evaluate your farm's

01:53:14.119 --> 01:53:16.880
potential exposure to wildlife. Are there areas

01:53:16.880 --> 01:53:18.979
where wild animals like deer or raccoons could

01:53:18.979 --> 01:53:21.039
easily come into contact with your cattle, their

01:53:21.039 --> 01:53:23.500
feed, or their natter sources? Wildlife vectors,

01:53:23.600 --> 01:53:26.859
right. Exactly. Take proactive steps to minimize

01:53:26.859 --> 01:53:29.619
that interaction, perhaps by securing feed storage

01:53:29.619 --> 01:53:32.300
areas and ensuring fences are in good repair.

01:53:32.680 --> 01:53:35.100
Review your feed and milk handling practices.

01:53:35.420 --> 01:53:38.300
Double check that any milk fed to calves is properly

01:53:38.300 --> 01:53:41.319
pasteurized to kill potential pathogens and that

01:53:41.319 --> 01:53:43.680
all feed ingredients are sourced and stored in

01:53:43.680 --> 01:53:45.699
a way that minimizes the risk of contamination.

01:53:46.000 --> 01:53:48.939
Feed safety, yeah. Critically, invest the time

01:53:48.939 --> 01:53:51.520
to thoroughly train all your staff on these enhanced

01:53:51.520 --> 01:53:54.479
biosecurity protocols. Everyone on the phone

01:53:54.479 --> 01:53:56.380
needs to understand why these measures are so

01:53:56.380 --> 01:53:58.880
important and be diligent in following them consistently.

01:53:59.140 --> 01:54:02.159
Everyone on the same page. Absolutely. And finally,

01:54:02.239 --> 01:54:04.640
it's wise to dust off or even develop a clear

01:54:04.640 --> 01:54:07.880
written outbreak response plan. What specific

01:54:07.880 --> 01:54:10.060
steps will you take immediately if you observe

01:54:10.060 --> 01:54:12.869
any suspicious symptoms in your herd? Having

01:54:12.869 --> 01:54:14.989
a predetermined plan of action can save valuable

01:54:14.989 --> 01:54:18.069
time and limit the spread in a crisis. It's certainly

01:54:18.069 --> 01:54:20.590
sobering to realize that this isn't just an isolated

01:54:20.590 --> 01:54:23.010
hiccup in Hungary. We're seeing a concerning

01:54:23.010 --> 01:54:26.170
pattern of resurgence of FMD in various parts

01:54:26.170 --> 01:54:28.649
of Europe, aren't we? It feels like the bug is

01:54:28.649 --> 01:54:32.270
on the move. Unfortunately, yes. Slovakia has

01:54:32.270 --> 01:54:34.789
reported multiple FMD outbreaks at five different

01:54:34.789 --> 01:54:37.350
locations since March, indicating a concerning

01:54:37.350 --> 01:54:39.949
spread within that country as well. Five locations.

01:54:40.329 --> 01:54:42.850
Yeah. And as we touched on earlier, Germany had

01:54:42.850 --> 01:54:45.890
its first confirmed case of FMD since 1988, just

01:54:45.890 --> 01:54:48.390
this past January. Although, thankfully, that

01:54:48.390 --> 01:54:51.149
involved water buffalo near Berlin. A different

01:54:51.149 --> 01:54:53.670
strain. Right, different strain, but still. Still

01:54:53.670 --> 01:54:56.489
worrying. This pattern of reappearance across

01:54:56.489 --> 01:54:59.449
Europe does raise some serious questions about

01:54:59.449 --> 01:55:01.369
potential vulnerabilities in the continent's

01:55:01.369 --> 01:55:03.970
overall biosecurity infrastructure. And that

01:55:03.970 --> 01:55:05.810
has potential implications for animal health

01:55:05.810 --> 01:55:08.319
security worldwide. And it's not like governments

01:55:08.319 --> 01:55:10.479
haven't grappled with this before. There's a

01:55:10.479 --> 01:55:12.840
well -documented history of the massive economic

01:55:12.840 --> 01:55:15.460
fallout from FMD outbreaks, right? It's not just

01:55:15.460 --> 01:55:17.880
the farmers who feel the pinch. Absolutely. A

01:55:17.880 --> 01:55:20.819
comprehensive 2015 study that analyzed the economic

01:55:20.819 --> 01:55:23.420
impact of FMD outbreaks in various countries,

01:55:23.579 --> 01:55:25.960
including previous incidents in Hungary, really

01:55:25.960 --> 01:55:27.920
highlighted just how financially devastating

01:55:27.920 --> 01:55:30.699
government responses can be. The study found

01:55:30.699 --> 01:55:33.260
that the costs associated with slaughtering infected

01:55:33.260 --> 01:55:35.619
and at -risk animals and providing compensation

01:55:35.619 --> 01:55:38.260
to affected farmers often represent the lion's

01:55:38.260 --> 01:55:40.319
share of government expenditures in the immediate

01:55:40.319 --> 01:55:43.220
aftermath of an outbreak. This just underscores

01:55:43.220 --> 01:55:45.680
the massive economic burden that these highly

01:55:45.680 --> 01:55:48.260
contagious diseases place on the entire agricultural

01:55:48.260 --> 01:55:52.619
system and, well, the public purse. So bringing

01:55:52.619 --> 01:55:54.859
it all home for our listeners, the dairy producers

01:55:54.859 --> 01:55:56.840
and industry professionals who are tuning in,

01:55:56.920 --> 01:55:59.579
what's the core message here? What's the ultimate

01:55:59.579 --> 01:56:02.300
takeaway from this deep dive into the Hungarian

01:56:02.300 --> 01:56:05.130
crisis? Well, the unfolding situation in Hungary

01:56:05.130 --> 01:56:08.029
serves as a stark and powerful, albeit unsettling

01:56:08.029 --> 01:56:10.829
reminder that even in regions with what we might

01:56:10.829 --> 01:56:13.609
consider advanced veterinary and regulatory systems,

01:56:13.869 --> 01:56:16.729
these highly contagious and economically crippling

01:56:16.729 --> 01:56:19.310
livestock diseases can reemerge after a long

01:56:19.310 --> 01:56:21.670
period of absence. Yeah. It really drives home

01:56:21.670 --> 01:56:24.430
the critical point that proactive, comprehensive,

01:56:24.850 --> 01:56:27.130
and consistently applied biosecurity measures

01:56:27.130 --> 01:56:29.850
aren't just a nice to have. They're absolutely

01:56:29.850 --> 01:56:31.729
essential for safeguarding the health of your

01:56:31.729 --> 01:56:34.170
herd and the long -term viability of your operation.

01:56:34.329 --> 01:56:37.770
Essential, not optional. Not optional. We can

01:56:37.770 --> 01:56:39.949
look to the insightful words of Dr. James Wabacha,

01:56:40.069 --> 01:56:43.630
who led that significant Kenyan FMD study. He

01:56:43.630 --> 01:56:46.590
warned that smallholder farms using European

01:56:46.590 --> 01:56:50.029
genetics face disproportionate risks. A single

01:56:50.029 --> 01:56:52.649
outbreak can erase years of productivity gains.

01:56:52.710 --> 01:56:55.670
Years of gains just gone. Just gone. And that

01:56:55.670 --> 01:56:58.310
fundamental principle absolutely holds true for

01:56:58.310 --> 01:57:00.890
larger commercial dairy operations as well, where

01:57:00.890 --> 01:57:03.029
the financial stakes and potential losses can

01:57:03.029 --> 01:57:05.229
be even more significant. The bottom line, plain

01:57:05.229 --> 01:57:07.930
and simple, is this. You need to strengthen your

01:57:07.930 --> 01:57:10.449
farm's defenses before an outbreak even threatens

01:57:10.449 --> 01:57:13.439
your region. In this arena, prevention is truly

01:57:13.439 --> 01:57:16.359
the only sustainable and economically sound option.

01:57:16.600 --> 01:57:18.939
So to bring it all together, the situation in

01:57:18.939 --> 01:57:20.979
Hungary is a flashing red warning light for the

01:57:20.979 --> 01:57:23.500
entire dairy industry. The military deployment,

01:57:23.680 --> 01:57:26.039
the rapid spread across multiple farms, it all

01:57:26.039 --> 01:57:28.420
underscores the extreme contagiousness and potential

01:57:28.420 --> 01:57:31.159
devastation of foot and mouth disease. The proactive

01:57:31.159 --> 01:57:33.699
and meticulously detailed biosecurity measures

01:57:33.699 --> 01:57:36.180
outlined in programs like the Farm Biosecurity

01:57:36.180 --> 01:57:39.239
Program are no longer just recommended best practices.

01:57:39.560 --> 01:57:42.539
They are your critical frontline defense against

01:57:42.539 --> 01:57:45.560
a very real and present threat. Absolutely. Think

01:57:45.560 --> 01:57:47.439
hard about those immediate steps we've discussed

01:57:47.439 --> 01:57:50.300
today. Rigorously defining and maintaining your

01:57:50.300 --> 01:57:53.399
clean and dirty zones, implementing and enforcing

01:57:53.399 --> 01:57:55.920
stringent visitor protocols, and establishing

01:57:55.920 --> 01:57:58.420
those ironclad quarantine procedures for any

01:57:58.420 --> 01:58:01.079
incoming animals. These aren't just suggestions.

01:58:01.260 --> 01:58:03.520
They are essential investments in the future

01:58:03.520 --> 01:58:06.390
security of your farm. And considering the increasingly

01:58:06.390 --> 01:58:09.430
interconnected nature of global agriculture and

01:58:09.430 --> 01:58:11.550
the ease with which diseases can travel across

01:58:11.550 --> 01:58:14.229
borders, this isn't just a localized European

01:58:14.229 --> 01:58:17.890
issue. It's a global biosecurity challenge that

01:58:17.890 --> 01:58:20.050
demands the attention and proactive measures

01:58:20.050 --> 01:58:23.090
of every dairy producer, regardless of their

01:58:23.090 --> 01:58:26.350
location. Right. So here's a final thought to

01:58:26.350 --> 01:58:28.369
really ruminate on as you go about your day.

01:58:29.489 --> 01:58:31.710
Considering everything we've unpacked in this

01:58:31.710 --> 01:58:34.800
deep dive today, How genuinely confident are

01:58:34.800 --> 01:58:37.340
you in the robustness of your current biosecurity

01:58:37.340 --> 01:58:40.579
protocols? And what is the one immediate tangible

01:58:40.579 --> 01:58:42.960
change that you will commit to implementing on

01:58:42.960 --> 01:58:45.859
your farm after listening to this to better protect

01:58:45.859 --> 01:58:48.739
your valuable herd and your future in this industry?

01:58:48.939 --> 01:58:51.100
Good question. It's a question worth wrestling

01:58:51.100 --> 01:58:53.140
with, perhaps even discussing with your farm

01:58:53.140 --> 01:58:55.920
team or your fellow producers. Thanks for joining

01:58:55.920 --> 01:58:57.720
us for this vital deep dive. We'll catch you

01:58:57.720 --> 01:58:59.539
next time. And let's all hope we don't have to

01:58:59.539 --> 01:59:01.939
revisit this particular topic anytime soon. Let's

01:59:01.939 --> 01:59:04.760
hope. Stay safe out there. And that wraps our

01:59:04.760 --> 01:59:07.279
whirlwind tour of this week's dairy industry

01:59:07.279 --> 01:59:10.819
headlines. From the brutal consolidation math

01:59:10.819 --> 01:59:12.960
that's forcing tough decisions about scaling

01:59:12.960 --> 01:59:15.739
up or specializing to the cutting edge technologies

01:59:15.739 --> 01:59:18.439
separating tomorrow's winners from the also -rans,

01:59:18.699 --> 01:59:22.479
one thing is crystal clear. This industry isn't

01:59:22.479 --> 01:59:25.739
standing still for anyone. The protein revolution

01:59:25.739 --> 01:59:29.260
driven by weight loss medications offers a surprising

01:59:29.260 --> 01:59:32.100
bright spot for dairy components, while Hungary's

01:59:32.100 --> 01:59:34.500
disease outbreak reminds us that fundamental

01:59:34.500 --> 01:59:37.340
biosecurity can never take a backseat to innovation.

01:59:37.899 --> 01:59:40.939
Meanwhile, elite genetics continue commanding

01:59:40.939 --> 01:59:43.840
premium prices, proving that excellence still

01:59:43.840 --> 01:59:46.460
matters in an industry facing relentless pressure

01:59:46.460 --> 01:59:49.760
to commoditize. What's the bottom line for your

01:59:49.760 --> 01:59:53.560
operation? Adaptation isn't optional. It's survival.

01:59:54.239 --> 01:59:56.399
Whether you're plotting your consolidation strategy,

01:59:56.779 --> 01:59:59.760
investing in game -changing technologies, or

01:59:59.760 --> 02:00:02.319
reinforcing your biosecurity protocols against

02:00:02.319 --> 02:00:05.420
emerging threats, passive observation is the

02:00:05.420 --> 02:00:08.680
one luxury none of us can afford. For deeper

02:00:08.680 --> 02:00:11.359
dives into any of today's stories, head over

02:00:11.359 --> 02:00:14.399
to TheBullvine .com, where you'll find comprehensive

02:00:14.399 --> 02:00:17.979
analysis and actionable strategies. While you're

02:00:17.979 --> 02:00:20.380
there, make sure you're subscribed to our daily

02:00:20.380 --> 02:00:22.859
newsletter that keeps dairy professionals ahead

02:00:22.859 --> 02:00:26.250
of the curve. Remember, in today's dairy industry,

02:00:26.529 --> 02:00:29.189
you're either evolving or exiting. The choice

02:00:29.189 --> 02:00:32.090
is yours. We'll catch you next week with another

02:00:32.090 --> 02:00:34.189
round of industry -shaking updates.