Breaking free from the chains of the past Where
truth moves faster than a Holstein calf No law
waiting on some printed page We're charting new
ground in the digital age From genomic codes
to robot facts We cut through the noise, no hold
them back not your daddy's dairy news tonight
we're sparking Welcome to the Bullvine Podcast,
where we bring you cutting -edge insights from
the dairy industry's front lines. Today, we're
diving into dairy's bold new frontier, an eye
-opening exploration of how forward -thinking
producers are completely redefining what success
looks like in today's dairy business. In this
episode, we'll unpack the technological revolution
sweeping through dairy operations. the game -changing
potential of beef on dairy strategies, and why
sustainability is rapidly transforming from regulatory
burden to competitive advantage. We'll also tackle
the uncomfortable truths about labor shortages
and succession planning that keep many dairy
operators up at night. Whether you're milking
100 cows or 10 ,000, the insights from today's
episode will challenge you to reconsider conventional
wisdom and inspire new approaches to build a
more profitable, sustainable operation. So grab
your coffee and let's explore how the bold are
reshaping dairy's future. Well, hello there,
folks, and welcome back to another deep dive
where we, well, we try to take a whole mountain
of information and really boil it down to the
good stuff for you. That's the plan. And today
we are wading, I mean, really knee deep into
something you all know a thing or two about.
The dairy industry. Let me tell you, if you think
the price of feed is the only thing changing.
Well, you've probably got another thing coming.
Yeah, that's right. We've got a really fascinating
collection of insights here, all kind of wrapped
up in a piece called Transforming Dairy, Tech,
Diversification, and Sustainability. And it paints
such a vivid picture, doesn't it? An industry
navigating some, well, let's call them choppy
waters. Definitely choppy. Those milk price swings
we all love. And the input costs just... marching
relentlessly upwards. But what's really striking,
I think, is the ingenuity, the adaptability we're
seeing in response to all that. Absolutely. This
isn't, you know, a sob story. It's an evolution,
maybe even a bit of a dairy renaissance, if you
want to get fancy. I like that, dairy renaissance.
As Dr. Megan Richardson put it so well, we're
witnessing the birth of a new era. Forget just
hunkering down. We're seeing... Proactive producers,
forward thinkers, stepping up and actually driving
change. Yeah, much like, you know, we've always
done with genetic progress, identifying those
superior traits and breeding for them. Exactly.
And the numbers, well, they tell a story, too.
There's definitely been consolidation, no doubt.
39 % decrease in farm numbers between 2017 and
2022. That highlights just how fast things are
changing. It's a big drop. It is. But it also
shows resilience. Over the past five years, the
majority, actually over two -thirds of established
dairies have stayed profitable. Okay, so despite
the consolidation... Those remaining are finding
ways. They are. It says a lot about the savvy
management, the strategic thinking happening
out there. This consolidation isn't just farms
vanishing. It's more of a shift, right, towards
larger, maybe more tech -heavy operations that
can handle these economic pressures. So technology
isn't just a tool. It's kind of driving this
structural change itself. That's what the insights
suggest, yeah. Right. So what is the secret sauce
behind this resilience then? Well, that's what
this deep dive is all about. Your shortcut to
understanding that. We're going to unpack the
big forces at play. The tech leaps, making modern
barns look almost sci -fi sometimes. The smart
moves into diversification, especially this whole
beef on dairy thing, babin, you hear it called.
Yeah, that's exploding. Where you're strategically
breeding some cows to beef sires. And of course,
the huge shift towards sustainability, not just
because you have to, but as a real business advantage.
And we can't forget the people side. We'll be
digging into those persistent workforce challenges,
finding good help, keeping good help, and the
absolutely critical need for a solid succession
planning. So important. Because even with all
the robots and sensors, it's still an industry
powered by people, right? You absolutely got
it. So as we get rolling here, I want you listening
to really chew on this. Is your operation positioning
itself to be one of the innovators? Are you shaping
the future? Or are you maybe mostly just reacting
to the market waves as they come? It's a great
question. Let's jump right into that technology
revolution then, because stepping into a modern
dairy barn today, wow, it can feel like a completely
different world compared to even, say, 10, 15
years ago. Oh, yeah. Technology isn't just a
nice -to -have anymore. For a lot of these forward
-thinking farms, it's really become the backbone
of their infrastructure. No kidding. And we're
talking way beyond just automatic waterers here.
This is serious automation. And the return on
investment, well, it's becoming harder and harder
to ignore. Definitely. Take robotic milking systems.
Huge upfront cost, obviously. Yeah, what are
we talking? $150 ,000 plus per robot? Something
like that. Easily. $150 ,000, sometimes more.
But the research, you know, places like the Journal
of Dairy Science and real world stories like
Dan Weber's up in Wisconsin, they're showing
pretty impressive returns. Like what specifically?
Well, milk yield increases for starters, maybe
5 to 10 percent. And labor savings could be anywhere
from 75 cents to a full dollar per hundred weight.
Per hundred pounds of milk. And it's not just
more milk, right? It's the potential for. optimized
milking schedules better cow comfort maybe better
health stuff that contributes long term beyond
just the parlor and those labor savings they
add up fast you mentioned dan weber didn't he
see like a 30 drop in labor costs nearly 30 yeah
after putting in robots and anna say 200 cow
dairy savings like that, you could be looking
at over $75 ,000 a year. That's significant.
It is. Plus, and Dan mentioned this too, there's
that quality of life improvement. Harder to put
a number on, but being able to, you know, go
to your kids' school events instead of being
tied to the parlor at 4 a .m. Letting the cows
set the schedule, not the clock. Exactly. Okay,
what about feeding? Precision feeding tech. Yeah,
another big one. This isn't just scooping TMR
into the bunk anymore. We're talking sophisticated
systems. They can cut feed costs maybe 7 % to
12 % and boost feed efficiency at the same time.
And Cornell's CNCPS modeling. That's the nutritional
model, right? Yeah. Helps figure out exact needs.
Exactly. That sophisticated Cornell model helps
producers really fine tune rations. And it also
points to significant environmental benefits
like a 15 to 20 percent drop in nitrogen and
phosphorus excretion. Which is good for the environment.
Yeah. And probably saves on fertilizer costs,
too. Right. And think about it. Feed is usually
the biggest expense. Yeah. Often 40, maybe even
60 percent of your total costs. Easily. So saving
7 to 12 percent there, that hits. The bottom
line directly could be over $100 per cow per
year just from smarter feeding. And the wearables.
Yeah. The health monitoring stuff. It's not just
cow Fitbits, right? No, no, definitely not just
Fitbits. The savings from catching something
like mastitis early. I mean, the research puts
that cost at upwards of $444 per case. Per case,
including treatment, dumped milk, lost production.
All of it. And these systems, the AI -powered
ones, they can actually predict an illness 24,
even 72 hours before you'd see it. visual signs.
Seriously, how accurate are we talking? Well,
some of these algorithms like support vector
machines, think of them as really smart AI pattern
detectors for cow health data. They're hitting
accuracy rates like 97%. Wow. 97%. That's almost
like having a crystal ball for finding sick cows.
It's pretty close. But what's really fascinating,
and the source emphasizes this, is the move from
just adopting tech to truly integrating it. Meaning?
Meaning just buying the robot or the sensor isn't
the magic solution. You need the management protocols
behind it. You need to actually use the data
it gives you to make decisions. It's not just
a Band -Aid. Right. It's got to be part of the
whole system. Yeah. Which leads to that idea
of moving from... Data collection to decision
intelligence. Exactly. It's not enough just to
have all this data pouring in. You need to translate
it into action. Sarah Chen's experience, which
the piece highlights, really shows this. What
are they doing? They're pulling in everything,
cow activity, rumination, milk components, feed
intake, even weather data, all into one integrated
platform. And the benefit. That's where the real
power is. They're not just reacting. They're
using that integrated data to predict potential
issues, identifying cows heading for trouble
before you'd normally spot it. So it's a proactive,
not reactive. Precisely. And it's driving real
productivity gains for them, 15, 20 % overall.
Big improvements in conception rates, feed efficiency,
catching health problems sooner. So like we said
at the start, this tech revolution, it's fundamentally
changing how farms operate, how they compete.
It really is. Which brings us back to that tough
question the material poses. It's not really
about whether you can afford the technology anymore.
Right. It's whether you can afford to be left
behind. That gap, that technological divide between
the farms embracing this and those sticking to
traditional methods, it's just going to get wider.
Now, obviously, the potential is huge, but we
can't gloss over the real challenges. Access
to capital is still a big one. What did the source
say? Over a quarter of producers see that as
a primary limitation. Yeah, 26%. And it's not
just the money, right? Farmers need good local
tech support. They want to see solid research
proving these things work. And frankly, the systems
need to be easy to use. Nobody wants another
piece of software that takes a PhD to operate.
Exactly. You want to manage cows, not fight with
code. Okay, so let's shift gears then. Let's
talk about looking beyond just that milk check
hitting the bank account every month. Diversification.
Yeah, this is becoming absolutely crucial, isn't
it, for long -term success? It seems like it.
We're not just milk producers anymore, or at
least the really successful ones aren't thinking
that way. They're evolving into these diversified
agricultural businesses. It's not just a hedge
against low milk prices either. It's becoming
like a core part of the business model for a
lot of these top farms. And the big one everyone's
talking about is beef on dairy, bode. Oh, yeah.
The adoption rate is just... Incredible. 72 %
of U .S. dairy farms are now using beef genetics
in their breeding programs. 72%. That's a massive
shift in breeding philosophy. It really is. And
look at the semen sales. Nearly 8 million units
of beef semen sold to dairy producers last year.
That's almost a third of all dairy semen sales.
Wow. It really makes you stop and think, doesn't
it? For those farms still seeing dairy and beef
as totally separate worlds, When was the last
time you really looked hard at what your breeding
program is giving you beyond just the replacement
heifers you need? Because of the economics, they're
getting really hard to ignore. Those studies
from the land -grant universities, they consistently
show these crossbred calves getting big premiums.
How big are we talking? Anywhere from $350 up
to $700 more per head compared to a straight
Holstein bull calf. $350 to $700. Yeah. And get
this. 80 % of farmers doing beef on dairy are
actually getting those kinds of premiums. 80%.
Yeah. So let's do some quick math. Say you have
a 500 cow dairy. You breed maybe 200 cows to
beef. That could be an extra $70 ,000 to $140
,000 in revenue annually. Which is basically
like getting a milk price bump of, what, 70 cents
to $1 .40 per hundred weight on all your milk.
Pretty much. It's a significant boost. And the
market's cooperating right now too, isn't it?
Cattle numbers are low. Yeah, the U .S. cattle
inventory is at a 73 -year low, so beef prices
are strong. And this Bodie trend is already making
a real dent in the beef supply chain. How much?
It was about 7 % of total U .S. cattle slaughter
back in 2022. And the USDA thinks it could climb
to maybe 15 % by 2026. So this isn't just some
niche thing. It's becoming a major factor in
the livestock sector. Absolutely. We heard about
James Thornton in Pennsylvania. Right. He started
small. Just breeding lower end cows to Angus
to get better bull calf prices. Yeah, but it
grew from there. Now he's raising some of those
crossbreds all the way to finish, selling branded
beef direct to consumers. And that accounts for
what, 15 % of his farm revenue now? 15%. It's
like he added a whole new business line without
the huge capital outlay of, say, doubling his
dairy herd. That's a great example of thinking
beyond just the milk, which leads to that idea
of creating value on your terms. Exactly. And
it's not just about selling the calves anymore,
either. That's the point the source makes about
creating value on your terms. We're seeing more
and more farms developing their own branded beef
or other value added products selling directly.
Tapping into that consumer demand for local,
traceable, high quality food. You know, let's
just be brutally honest for a second here. If
you're still clinging to that we just milk cows
mentality in today's market, that's not loyalty
to tradition. It's kind of a failure of imagination,
right? You're leaving money on the table. It's
a harsh way to put it, but yeah, there's truth
there. The market's demanding more, offering
opportunities. And beef isn't the only game in
town for diversification. Oh, definitely not.
We're seeing farms succeed with on -farm processing,
setting up creameries, making cheese, yogurt,
ice cream, flavored milk. And capturing those
retail margins, which can be huge. Yeah. Like
$20 or more per 100 -weight equivalent. Easily.
Then there's agritourism, farm tours, workshops,
maybe an on -farm store, hosting events. Yeah.
Turning the farm itself into an experience people
pay for. Right. And don't forget just leveraging
your land and equipment differently, selling
surplus crops or forage if there's demand. Or
energy production, methane digesters turning
manure into biogas and fertilizer. Or solar panels,
cutting your energy bill and maybe even selling
power back to the grid. It's all about looking
at what you already have, land, livestock, skills,
and thinking, what's underutilized here? What
else could this asset be doing for me? Maybe
start small, test the waters. See what clicks
with customers before you bet the farm, so to
speak. Good advice. And really think about what
makes your farm unique. What's your competitive
edge in these other ventures? Okay, let's pivot
again. Sustainability. This is a topic that's
really shifted, hasn't it? From being seen mostly
as a regulatory headache. To actually being a
competitive advantage. Yeah. It's less about
just compliance now and more about efficiency
and smart business. Exactly. The source mentioned,
what, 63 % of U .S. dairy producers are already
doing something sustainable? Right. At least
one practice. But the real leaders, the ones
taking a more comprehensive, holistic approach,
they're the ones seeing tangible business benefits.
Like what kind of benefits? Well, take water
recycling. The article talks about farms recycling
water multiple times, maybe up to six times,
using it for cooling milk, then cleaning, flushing
barns, finally irrigating crops. And there's
research showing that saves costs and reduces
the environmental footprint. Yeah, the Innovation
Center for U .S. Dairy has done good work on
that. Then there's manure management. It's way
beyond just storing and spreading now. Right,
capturing biogas for energy. Yeah. Reducing fertilizer
bills. Exactly. The University of Wisconsin Dairy
Innovation Hub found some farms saving $70 to
$100 per cow a year just through better nutrient
management from manure. turning waste into value.
That adds up. And precision feeding ties in here
too, right? We talked about cost savings, but
it also means less nutrient excretion. That 15
-20 % reduction in nitrogen and phosphorus Cornell
talked about. Better for the environment, saves
on input. It all connects. And overall, the industry
has made progress, hasn't it? Since 2007, less
water, less land, smaller carbon footprint per
gallon of milk. Yeah, those efficiency gains,
driven by both environmental awareness and just
good economics, they're real. It's like the genetic
gains doing more with less. It's interesting
to look globally to the Dutch experience. Right.
With circular farming. Yeah. They've been forced
by really strict regulations to innovate, integrating
crops, livestock, energy. They've shown sustainability
can drive profits. Some Dutch farms cut purchase
fertilizer by up to 65 percent while maintaining
yields. Wow. And the market here is starting
to catch on. Processors, retailers valuing sustainability.
Increasingly, yes. They're setting requirements
and some are offering actual premiums for milk
produced with verified sustainable practices.
So that sustainability divide, the source mentioned
it. It's real. Some see it as a cost. Others
see it as an opportunity. Right. Proactive producers
are using it to get an edge, better prices, better
market access. Like David Keller in New York.
Yeah. He put in a digester initially for compliance.
But now he's getting a 15 cent per hundred weight
premium from his processor because of it. That's
like $45 ,000 extra a year for as far. Just for
being proactive. Yeah. But there's still a disconnect,
it seems. Lots of producers are doing good things,
but not documenting it or linking it to programs.
Yeah, that seems to be the case, especially maybe
for smaller operations or in regions where these
programs aren't as common yet. Lots of folks
are already doing sustainable things. They just
aren't getting credit. financially or otherwise.
The takeaway is take stock of what you're already
doing. Research those processor programs. Start
measuring and documenting your impact. Exactly.
Can't improve what you don't measure. And you
definitely can't market it if you don't track
it. All right. Let's shift to maybe the most
critical piece of the puzzle for the long haul.
People. The human element. Absolutely vital.
You can have the best tech, the smartest business
plan, but without good people and a plan for
the next generation, where does that leave you?
Nowhere fast. And the workforce dilemma, it's
a big one. Persistent challenge. Huge. Many dairies
rely on non -family labor for, what, more than
half their workforce. Often, yeah. And immigrant
labor plays such a crucial role. The stats are
pretty stark. They really are. Nationally, immigrant
workers are 51 % of the dairy workforce, but
they produce 79 % of the milk. Wow. And in some
big dairy states, it's even higher, like 80 %
reliance. It's up to 80 % in places like the
West and Southwest. So let's just be blunt, like
the source suggests. Our industry is deeply,
deeply reliant on a workforce that often doesn't
have secure legal status or clear pathways to
get it. It's a fundamental vulnerability we can't
just ignore. And it's not just finding people,
it's keeping them. Dairy work is tough, long
hours, physically demanding. It's hard to attract
domestic workers sometimes. And the H -2A program,
the guest worker program, it doesn't really fit
dairy's year -round needs, does it? Not, well,
no. It's designed more for seasonal work. And
the potential economic hit if there were major
labor disruptions. It's scary. Oh, yeah. Modeling
suggests even a 50 % cut in immigrant dairy labor
could cost the U .S. economy $16 billion, a total
loss. Could push retail milk prices up 90%. 90%.
This isn't just a farm problem, it's a food system
problem. Exactly. But, like in other areas, we're
seeing innovative producers finding solutions.
Strategic automation, for one. Like Miguel Rodriguez
in Idaho mentioned in the source. Using tech
not just to cut jobs, but to change jobs. Right.
Robots might reduce the need for parlor milkers,
but they create demand for skilled technicians,
cow managers. Often better, less physically demanding
jobs. And farms are getting smarter about compensation,
too. Moving beyond just wages. Yeah. offering
good housing, more flexible schedules where possible,
performance incentives tied to milk quality or
repro goals, recognizing that good employees
are a valuable asset. Like your best cows, right?
You invested them. Precisely. And investing in
professional development, creating actual career
paths on the farm. Amanda Chen's experience was
interesting, that multi -site dairy cut turnover
by 40 % with a structured advancement program.
40%. People stick around when they see a future.
A way to move up from entry level to more skilled,
higher paying roles. Makes sense. Which links
directly to the other huge human challenge. Succession
planning. Oh, absolutely critical. The stats
are worrying. About a quarter of current operators
plan to retire in the next five years. Yet almost
half don't have a formal plan. Or aren't sure
how the form will transition. It's alarming.
And you look at the general stats for family
ag businesses, less than a third make it to Generation
2, only about 16 .5 % to Generation 3. Oof. We
need to have some honest conversations, both
industry -wide and on our own farms. Are we ready
for this potential wave of transitions? Or potential
closures? Because it's complex, right? Financially,
emotionally. Modern dairies are huge capital
assets. Figuring out fair distribution, ensuring
the farm stays viable. It takes serious planning
and communication. And probably professional
help. Often, yeah. Thomas Weber, the young guy
who took over his family's dairy, his advice
was spot on. Start early. Way earlier than you
think. Like five years before you need it, then
double that timeline. It's a marathon, not a
sprint. Definitely. And the source laid out a
good starting framework. Right. Step one, vision
alignment meetings. Get everyone talking values,
goals, dreams for the farm. Maybe use a neutral
facilitator. Good idea. Step two, a thorough
business assessment. Know the farm's real value,
its efficiency, its viability. Get financial
specialists involved. Then step three. Develop
multiple scenarios. Don't just fixate on one
path. Gradual transfer, partnerships, maybe even
equity for key non -family managers. Explore
the options. Step four, create a separate timeline
for management transfer that often needs to happen
before ownership shifts, lets the next generation
ease in. Good point. And step five, keep reviewing
and adapting the plan quarterly during the transition,
annually after. It's not set in stone. Things
change. The good news is there is a new generation
coming up, often tech savvy, business minded,
environmentally aware, and there are resources
out there to help them. University programs,
producer groups, support is available. So the
key takeaway on succession is just start, have
the conversation, build your team, take an honest
look at your farm's transferability. Okay, so
we've talked tech, diversification, sustainability,
people. Kind of a separate pieces. But the real
magic, the next frontier is putting it all together,
right? Integration. That's exactly it. The most
successful operations aren't just doing one thing
while in isolation. They're thinking holistically.
About the whole system. How these different parts
feed off each other, amplify the benefits, build
resilience. Yeah, Ryan Kimball in Wisconsin put
it perfectly. They stopped thinking about individual
projects and started focusing on how everything
connects. Like his example with the robots. The
data didn't just solve a labor issue, it helped
them fine -tune nutrition. Which cut feed costs
and improved cow health. See? It's all linked.
One chain creates ripple. And that systems thinking
applies to the business model, too. Integrating
milk production with, say, processing and direct
marketing. Creates multiple income streams. Makes
you much less vulnerable to price swings in any
one area. It's like diversifying your investments.
Don't put all your eggs in one basket. Exactly.
So the big question for you, the listener, is
are you still tackling challenges in silos? Or
are you starting to see and leverage how interconnected
everything is in modern dairy management? Because
the opportunities for synergy are huge. Tech
can solve labor issues and improve welfare and
boost sustainability. Think automated cat feeders.
Right. Diversification like Botis leverages existing
assets, your cows, your land for new markets.
Sustainability cuts costs and potentially opens
up premium markets. And investing in your people
better pay, meaningful work, growth paths, leads
to stability and productivity across the board.
The Sanchez family dairy in California mentioned
in the source sounds like a prime example of
this integrated approach. They really do. Robots,
smart feeding, health monitoring, solar power,
water recycling, a big beef on dairy program
with finishing and branding, and their own creamery.
Wow. They're doing it all. And Maria Sanchez
said it herself. Each piece reinforces the others.
sustainability helps market their branded products
technology helps with labor and animal welfare
which is part of their brand story it all works
together it's a powerful combination so as we
start to wrap this up It's crystal clear, isn't
it? The dairy industry is in a massive period
of change, evolution, maybe even revolution across
the board. Definitely. And yeah, there are challenges,
big ones, but there are also these huge unprecedented
opportunities for producers willing to think
differently, to embrace strategic change. The
key principles seem pretty clear. Think systems,
not silos. Invest smartly in tech. Diversify
thoughtfully. See sustainability as an opportunity.
And prioritize your people. And here's that direct
challenge for you again. What's one conventional
practice on your farm? Something you've maybe
always done that really deserves a hard second
look right now. Maybe it's your breeding program.
Maybe labor management. Maybe your whole business
model. But pick one area and commit to an honest
assessment. Could innovation there change your
whole trajectory? Because the producers who are
really going to lead the way in this new dairy
era, they're the ones blending that deep tradition,
that love of cows and land, with a smart embrace
of innovation. Yeah, it's like managing that
transition cow, right? You invest up front, manage
her carefully around calving so she peaks high
and stays strong. Good analogy. Proactive investment
and adaptation now leads to... better, more sustainable
performance later. The future of dairy really
does belong to the bold. Absolutely. And hey,
we'd love to hear from you. What's one bold change
you've made on your operation that's paying off?
Share it in the comments. Your story might be
just what someone else needs to hear. Yeah, definitely.
And just to quickly hit those key takeaways one
more time. Tech. Non -negotiable now. Two -thirds
using advanced feeding. Robots showing big potential.
Diversification. dominating, 80 % getting revenue
beyond milk, Bodo Bodi premiums are real. Sustainability,
it pays. Nutrient management savings, processor
premiums happening. Labor in succession, still
critical crises, huge workforce reliance, too
few succession plans. But overall, a growth mindset
wins. Producers are expanding, blending tradition
and tech. So the executive summary is basically
this. Dairy is transforming fast. tech, diversification,
sustainability are driving it. Despite consolidation
of people challenges, proactive, adaptable farms
are finding ways to thrive by integrating everything.
Adaptability and embracing change, that seems
to be the name of the game in this new era of
dairy. And that wraps up today's episode of the
Bullvine Podcast. I hope this discussion has
sparked some fresh thinking about your own operations
future. Remember, as we've explored today, the
most successful dairy producers aren't just adapting
to change. They're actively driving it through
strategic technology adoption, revenue diversification,
and systems thinking. What conventional practice
on your farm most deserves critical re -evaluation?
We'd love to hear your thoughts. Head over to
thebullvine .com and share your comments on this
episode or drop us a message on social media.
If you found value in today's conversation, Please
subscribe to the Bullvine Podcast wherever you
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a fellow dairy producer who might benefit. Until
next time, remember that in today's dairy industry,
the future belongs to the bold. Thanks for listening.