WEBVTT

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Breaking free from the chains of the past Where

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truth moves faster than a Holstein calf No law

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waiting on some printed page We're charting new

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ground in the digital age From genomic codes

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to robot facts We cut through the noise, no hold

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them back not your daddy's dairy news tonight

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we're sparking Welcome to the Bullvine Podcast,

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where we bring you cutting -edge insights from

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the dairy industry's front lines. Today, we're

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diving into dairy's bold new frontier, an eye

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-opening exploration of how forward -thinking

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producers are completely redefining what success

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looks like in today's dairy business. In this

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episode, we'll unpack the technological revolution

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sweeping through dairy operations. the game -changing

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potential of beef on dairy strategies, and why

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sustainability is rapidly transforming from regulatory

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burden to competitive advantage. We'll also tackle

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the uncomfortable truths about labor shortages

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and succession planning that keep many dairy

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operators up at night. Whether you're milking

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100 cows or 10 ,000, the insights from today's

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episode will challenge you to reconsider conventional

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wisdom and inspire new approaches to build a

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more profitable, sustainable operation. So grab

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your coffee and let's explore how the bold are

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reshaping dairy's future. Well, hello there,

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folks, and welcome back to another deep dive

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where we, well, we try to take a whole mountain

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of information and really boil it down to the

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good stuff for you. That's the plan. And today

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we are wading, I mean, really knee deep into

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something you all know a thing or two about.

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The dairy industry. Let me tell you, if you think

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the price of feed is the only thing changing.

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Well, you've probably got another thing coming.

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Yeah, that's right. We've got a really fascinating

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collection of insights here, all kind of wrapped

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up in a piece called Transforming Dairy, Tech,

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Diversification, and Sustainability. And it paints

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such a vivid picture, doesn't it? An industry

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navigating some, well, let's call them choppy

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waters. Definitely choppy. Those milk price swings

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we all love. And the input costs just... marching

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relentlessly upwards. But what's really striking,

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I think, is the ingenuity, the adaptability we're

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seeing in response to all that. Absolutely. This

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isn't, you know, a sob story. It's an evolution,

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maybe even a bit of a dairy renaissance, if you

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want to get fancy. I like that, dairy renaissance.

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As Dr. Megan Richardson put it so well, we're

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witnessing the birth of a new era. Forget just

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hunkering down. We're seeing... Proactive producers,

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forward thinkers, stepping up and actually driving

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change. Yeah, much like, you know, we've always

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done with genetic progress, identifying those

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superior traits and breeding for them. Exactly.

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And the numbers, well, they tell a story, too.

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There's definitely been consolidation, no doubt.

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39 % decrease in farm numbers between 2017 and

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2022. That highlights just how fast things are

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changing. It's a big drop. It is. But it also

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shows resilience. Over the past five years, the

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majority, actually over two -thirds of established

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dairies have stayed profitable. Okay, so despite

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the consolidation... Those remaining are finding

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ways. They are. It says a lot about the savvy

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management, the strategic thinking happening

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out there. This consolidation isn't just farms

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vanishing. It's more of a shift, right, towards

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larger, maybe more tech -heavy operations that

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can handle these economic pressures. So technology

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isn't just a tool. It's kind of driving this

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structural change itself. That's what the insights

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suggest, yeah. Right. So what is the secret sauce

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behind this resilience then? Well, that's what

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this deep dive is all about. Your shortcut to

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understanding that. We're going to unpack the

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big forces at play. The tech leaps, making modern

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barns look almost sci -fi sometimes. The smart

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moves into diversification, especially this whole

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beef on dairy thing, babin, you hear it called.

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Yeah, that's exploding. Where you're strategically

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breeding some cows to beef sires. And of course,

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the huge shift towards sustainability, not just

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because you have to, but as a real business advantage.

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And we can't forget the people side. We'll be

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digging into those persistent workforce challenges,

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finding good help, keeping good help, and the

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absolutely critical need for a solid succession

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planning. So important. Because even with all

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the robots and sensors, it's still an industry

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powered by people, right? You absolutely got

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it. So as we get rolling here, I want you listening

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to really chew on this. Is your operation positioning

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itself to be one of the innovators? Are you shaping

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the future? Or are you maybe mostly just reacting

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to the market waves as they come? It's a great

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question. Let's jump right into that technology

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revolution then, because stepping into a modern

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dairy barn today, wow, it can feel like a completely

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different world compared to even, say, 10, 15

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years ago. Oh, yeah. Technology isn't just a

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nice -to -have anymore. For a lot of these forward

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-thinking farms, it's really become the backbone

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of their infrastructure. No kidding. And we're

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talking way beyond just automatic waterers here.

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This is serious automation. And the return on

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investment, well, it's becoming harder and harder

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to ignore. Definitely. Take robotic milking systems.

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Huge upfront cost, obviously. Yeah, what are

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we talking? $150 ,000 plus per robot? Something

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like that. Easily. $150 ,000, sometimes more.

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But the research, you know, places like the Journal

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of Dairy Science and real world stories like

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Dan Weber's up in Wisconsin, they're showing

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pretty impressive returns. Like what specifically?

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Well, milk yield increases for starters, maybe

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5 to 10 percent. And labor savings could be anywhere

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from 75 cents to a full dollar per hundred weight.

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Per hundred pounds of milk. And it's not just

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more milk, right? It's the potential for. optimized

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milking schedules better cow comfort maybe better

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health stuff that contributes long term beyond

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just the parlor and those labor savings they

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add up fast you mentioned dan weber didn't he

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see like a 30 drop in labor costs nearly 30 yeah

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after putting in robots and anna say 200 cow

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dairy savings like that, you could be looking

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at over $75 ,000 a year. That's significant.

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It is. Plus, and Dan mentioned this too, there's

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that quality of life improvement. Harder to put

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a number on, but being able to, you know, go

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to your kids' school events instead of being

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tied to the parlor at 4 a .m. Letting the cows

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set the schedule, not the clock. Exactly. Okay,

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what about feeding? Precision feeding tech. Yeah,

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another big one. This isn't just scooping TMR

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into the bunk anymore. We're talking sophisticated

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systems. They can cut feed costs maybe 7 % to

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12 % and boost feed efficiency at the same time.

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And Cornell's CNCPS modeling. That's the nutritional

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model, right? Yeah. Helps figure out exact needs.

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Exactly. That sophisticated Cornell model helps

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producers really fine tune rations. And it also

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points to significant environmental benefits

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like a 15 to 20 percent drop in nitrogen and

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phosphorus excretion. Which is good for the environment.

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Yeah. And probably saves on fertilizer costs,

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too. Right. And think about it. Feed is usually

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the biggest expense. Yeah. Often 40, maybe even

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60 percent of your total costs. Easily. So saving

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7 to 12 percent there, that hits. The bottom

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line directly could be over $100 per cow per

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year just from smarter feeding. And the wearables.

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Yeah. The health monitoring stuff. It's not just

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cow Fitbits, right? No, no, definitely not just

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Fitbits. The savings from catching something

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like mastitis early. I mean, the research puts

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that cost at upwards of $444 per case. Per case,

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including treatment, dumped milk, lost production.

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All of it. And these systems, the AI -powered

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ones, they can actually predict an illness 24,

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even 72 hours before you'd see it. visual signs.

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Seriously, how accurate are we talking? Well,

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some of these algorithms like support vector

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machines, think of them as really smart AI pattern

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detectors for cow health data. They're hitting

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accuracy rates like 97%. Wow. 97%. That's almost

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like having a crystal ball for finding sick cows.

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It's pretty close. But what's really fascinating,

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and the source emphasizes this, is the move from

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just adopting tech to truly integrating it. Meaning?

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Meaning just buying the robot or the sensor isn't

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the magic solution. You need the management protocols

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behind it. You need to actually use the data

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it gives you to make decisions. It's not just

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a Band -Aid. Right. It's got to be part of the

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whole system. Yeah. Which leads to that idea

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of moving from... Data collection to decision

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intelligence. Exactly. It's not enough just to

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have all this data pouring in. You need to translate

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it into action. Sarah Chen's experience, which

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the piece highlights, really shows this. What

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are they doing? They're pulling in everything,

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cow activity, rumination, milk components, feed

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intake, even weather data, all into one integrated

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platform. And the benefit. That's where the real

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power is. They're not just reacting. They're

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using that integrated data to predict potential

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issues, identifying cows heading for trouble

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before you'd normally spot it. So it's a proactive,

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not reactive. Precisely. And it's driving real

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productivity gains for them, 15, 20 % overall.

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Big improvements in conception rates, feed efficiency,

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catching health problems sooner. So like we said

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at the start, this tech revolution, it's fundamentally

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changing how farms operate, how they compete.

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It really is. Which brings us back to that tough

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question the material poses. It's not really

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about whether you can afford the technology anymore.

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Right. It's whether you can afford to be left

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behind. That gap, that technological divide between

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the farms embracing this and those sticking to

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traditional methods, it's just going to get wider.

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Now, obviously, the potential is huge, but we

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can't gloss over the real challenges. Access

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to capital is still a big one. What did the source

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say? Over a quarter of producers see that as

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a primary limitation. Yeah, 26%. And it's not

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just the money, right? Farmers need good local

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tech support. They want to see solid research

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proving these things work. And frankly, the systems

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need to be easy to use. Nobody wants another

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piece of software that takes a PhD to operate.

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Exactly. You want to manage cows, not fight with

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code. Okay, so let's shift gears then. Let's

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talk about looking beyond just that milk check

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hitting the bank account every month. Diversification.

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Yeah, this is becoming absolutely crucial, isn't

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it, for long -term success? It seems like it.

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We're not just milk producers anymore, or at

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least the really successful ones aren't thinking

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that way. They're evolving into these diversified

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agricultural businesses. It's not just a hedge

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against low milk prices either. It's becoming

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like a core part of the business model for a

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lot of these top farms. And the big one everyone's

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talking about is beef on dairy, bode. Oh, yeah.

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The adoption rate is just... Incredible. 72 %

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of U .S. dairy farms are now using beef genetics

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in their breeding programs. 72%. That's a massive

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shift in breeding philosophy. It really is. And

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look at the semen sales. Nearly 8 million units

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of beef semen sold to dairy producers last year.

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That's almost a third of all dairy semen sales.

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Wow. It really makes you stop and think, doesn't

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it? For those farms still seeing dairy and beef

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as totally separate worlds, When was the last

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time you really looked hard at what your breeding

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program is giving you beyond just the replacement

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heifers you need? Because of the economics, they're

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getting really hard to ignore. Those studies

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from the land -grant universities, they consistently

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show these crossbred calves getting big premiums.

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How big are we talking? Anywhere from $350 up

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to $700 more per head compared to a straight

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Holstein bull calf. $350 to $700. Yeah. And get

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this. 80 % of farmers doing beef on dairy are

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actually getting those kinds of premiums. 80%.

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Yeah. So let's do some quick math. Say you have

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a 500 cow dairy. You breed maybe 200 cows to

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beef. That could be an extra $70 ,000 to $140

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,000 in revenue annually. Which is basically

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like getting a milk price bump of, what, 70 cents

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to $1 .40 per hundred weight on all your milk.

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Pretty much. It's a significant boost. And the

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market's cooperating right now too, isn't it?

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Cattle numbers are low. Yeah, the U .S. cattle

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inventory is at a 73 -year low, so beef prices

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are strong. And this Bodie trend is already making

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a real dent in the beef supply chain. How much?

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It was about 7 % of total U .S. cattle slaughter

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back in 2022. And the USDA thinks it could climb

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to maybe 15 % by 2026. So this isn't just some

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niche thing. It's becoming a major factor in

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the livestock sector. Absolutely. We heard about

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James Thornton in Pennsylvania. Right. He started

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small. Just breeding lower end cows to Angus

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to get better bull calf prices. Yeah, but it

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grew from there. Now he's raising some of those

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crossbreds all the way to finish, selling branded

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beef direct to consumers. And that accounts for

00:13:07.570 --> 00:13:10.309
what, 15 % of his farm revenue now? 15%. It's

00:13:10.309 --> 00:13:12.230
like he added a whole new business line without

00:13:12.230 --> 00:13:15.210
the huge capital outlay of, say, doubling his

00:13:15.210 --> 00:13:16.950
dairy herd. That's a great example of thinking

00:13:16.950 --> 00:13:19.710
beyond just the milk, which leads to that idea

00:13:19.710 --> 00:13:22.820
of creating value on your terms. Exactly. And

00:13:22.820 --> 00:13:24.779
it's not just about selling the calves anymore,

00:13:24.899 --> 00:13:26.960
either. That's the point the source makes about

00:13:26.960 --> 00:13:30.840
creating value on your terms. We're seeing more

00:13:30.840 --> 00:13:33.259
and more farms developing their own branded beef

00:13:33.259 --> 00:13:36.000
or other value added products selling directly.

00:13:36.259 --> 00:13:39.340
Tapping into that consumer demand for local,

00:13:39.519 --> 00:13:44.039
traceable, high quality food. You know, let's

00:13:44.039 --> 00:13:46.440
just be brutally honest for a second here. If

00:13:46.440 --> 00:13:49.220
you're still clinging to that we just milk cows

00:13:49.220 --> 00:13:52.519
mentality in today's market, that's not loyalty

00:13:52.519 --> 00:13:54.779
to tradition. It's kind of a failure of imagination,

00:13:55.200 --> 00:13:57.460
right? You're leaving money on the table. It's

00:13:57.460 --> 00:13:59.059
a harsh way to put it, but yeah, there's truth

00:13:59.059 --> 00:14:00.620
there. The market's demanding more, offering

00:14:00.620 --> 00:14:02.580
opportunities. And beef isn't the only game in

00:14:02.580 --> 00:14:04.600
town for diversification. Oh, definitely not.

00:14:04.720 --> 00:14:07.740
We're seeing farms succeed with on -farm processing,

00:14:07.960 --> 00:14:10.600
setting up creameries, making cheese, yogurt,

00:14:10.740 --> 00:14:13.059
ice cream, flavored milk. And capturing those

00:14:13.059 --> 00:14:15.600
retail margins, which can be huge. Yeah. Like

00:14:15.600 --> 00:14:18.080
$20 or more per 100 -weight equivalent. Easily.

00:14:18.120 --> 00:14:20.899
Then there's agritourism, farm tours, workshops,

00:14:21.220 --> 00:14:23.279
maybe an on -farm store, hosting events. Yeah.

00:14:23.399 --> 00:14:25.720
Turning the farm itself into an experience people

00:14:25.720 --> 00:14:28.480
pay for. Right. And don't forget just leveraging

00:14:28.480 --> 00:14:30.759
your land and equipment differently, selling

00:14:30.759 --> 00:14:33.340
surplus crops or forage if there's demand. Or

00:14:33.340 --> 00:14:35.879
energy production, methane digesters turning

00:14:35.879 --> 00:14:39.059
manure into biogas and fertilizer. Or solar panels,

00:14:39.179 --> 00:14:41.600
cutting your energy bill and maybe even selling

00:14:41.600 --> 00:14:44.419
power back to the grid. It's all about looking

00:14:44.419 --> 00:14:47.559
at what you already have, land, livestock, skills,

00:14:47.720 --> 00:14:50.620
and thinking, what's underutilized here? What

00:14:50.620 --> 00:14:52.539
else could this asset be doing for me? Maybe

00:14:52.539 --> 00:14:56.250
start small, test the waters. See what clicks

00:14:56.250 --> 00:14:58.409
with customers before you bet the farm, so to

00:14:58.409 --> 00:15:00.850
speak. Good advice. And really think about what

00:15:00.850 --> 00:15:02.950
makes your farm unique. What's your competitive

00:15:02.950 --> 00:15:05.129
edge in these other ventures? Okay, let's pivot

00:15:05.129 --> 00:15:08.029
again. Sustainability. This is a topic that's

00:15:08.029 --> 00:15:10.690
really shifted, hasn't it? From being seen mostly

00:15:10.690 --> 00:15:13.830
as a regulatory headache. To actually being a

00:15:13.830 --> 00:15:15.909
competitive advantage. Yeah. It's less about

00:15:15.909 --> 00:15:17.669
just compliance now and more about efficiency

00:15:17.669 --> 00:15:20.450
and smart business. Exactly. The source mentioned,

00:15:20.490 --> 00:15:23.169
what, 63 % of U .S. dairy producers are already

00:15:23.169 --> 00:15:25.309
doing something sustainable? Right. At least

00:15:25.309 --> 00:15:28.250
one practice. But the real leaders, the ones

00:15:28.250 --> 00:15:30.929
taking a more comprehensive, holistic approach,

00:15:31.250 --> 00:15:33.909
they're the ones seeing tangible business benefits.

00:15:34.230 --> 00:15:36.549
Like what kind of benefits? Well, take water

00:15:36.549 --> 00:15:39.049
recycling. The article talks about farms recycling

00:15:39.049 --> 00:15:41.629
water multiple times, maybe up to six times,

00:15:41.750 --> 00:15:45.129
using it for cooling milk, then cleaning, flushing

00:15:45.129 --> 00:15:48.309
barns, finally irrigating crops. And there's

00:15:48.309 --> 00:15:50.549
research showing that saves costs and reduces

00:15:50.549 --> 00:15:52.990
the environmental footprint. Yeah, the Innovation

00:15:52.990 --> 00:15:55.049
Center for U .S. Dairy has done good work on

00:15:55.049 --> 00:15:57.570
that. Then there's manure management. It's way

00:15:57.570 --> 00:15:59.809
beyond just storing and spreading now. Right,

00:15:59.889 --> 00:16:03.070
capturing biogas for energy. Yeah. Reducing fertilizer

00:16:03.070 --> 00:16:05.990
bills. Exactly. The University of Wisconsin Dairy

00:16:05.990 --> 00:16:09.090
Innovation Hub found some farms saving $70 to

00:16:09.090 --> 00:16:12.549
$100 per cow a year just through better nutrient

00:16:12.549 --> 00:16:15.230
management from manure. turning waste into value.

00:16:15.409 --> 00:16:17.470
That adds up. And precision feeding ties in here

00:16:17.470 --> 00:16:19.610
too, right? We talked about cost savings, but

00:16:19.610 --> 00:16:22.970
it also means less nutrient excretion. That 15

00:16:22.970 --> 00:16:25.789
-20 % reduction in nitrogen and phosphorus Cornell

00:16:25.789 --> 00:16:28.389
talked about. Better for the environment, saves

00:16:28.389 --> 00:16:30.789
on input. It all connects. And overall, the industry

00:16:30.789 --> 00:16:33.889
has made progress, hasn't it? Since 2007, less

00:16:33.889 --> 00:16:36.610
water, less land, smaller carbon footprint per

00:16:36.610 --> 00:16:38.789
gallon of milk. Yeah, those efficiency gains,

00:16:38.970 --> 00:16:41.370
driven by both environmental awareness and just

00:16:41.370 --> 00:16:44.110
good economics, they're real. It's like the genetic

00:16:44.110 --> 00:16:46.490
gains doing more with less. It's interesting

00:16:46.490 --> 00:16:48.909
to look globally to the Dutch experience. Right.

00:16:49.029 --> 00:16:51.370
With circular farming. Yeah. They've been forced

00:16:51.370 --> 00:16:54.230
by really strict regulations to innovate, integrating

00:16:54.230 --> 00:16:57.529
crops, livestock, energy. They've shown sustainability

00:16:57.529 --> 00:17:00.289
can drive profits. Some Dutch farms cut purchase

00:17:00.289 --> 00:17:03.110
fertilizer by up to 65 percent while maintaining

00:17:03.110 --> 00:17:05.849
yields. Wow. And the market here is starting

00:17:05.849 --> 00:17:09.180
to catch on. Processors, retailers valuing sustainability.

00:17:09.500 --> 00:17:11.480
Increasingly, yes. They're setting requirements

00:17:11.480 --> 00:17:13.799
and some are offering actual premiums for milk

00:17:13.799 --> 00:17:15.940
produced with verified sustainable practices.

00:17:16.279 --> 00:17:19.000
So that sustainability divide, the source mentioned

00:17:19.000 --> 00:17:22.200
it. It's real. Some see it as a cost. Others

00:17:22.200 --> 00:17:24.660
see it as an opportunity. Right. Proactive producers

00:17:24.660 --> 00:17:26.900
are using it to get an edge, better prices, better

00:17:26.900 --> 00:17:29.119
market access. Like David Keller in New York.

00:17:29.259 --> 00:17:31.880
Yeah. He put in a digester initially for compliance.

00:17:32.589 --> 00:17:35.950
But now he's getting a 15 cent per hundred weight

00:17:35.950 --> 00:17:37.849
premium from his processor because of it. That's

00:17:37.849 --> 00:17:41.190
like $45 ,000 extra a year for as far. Just for

00:17:41.190 --> 00:17:44.230
being proactive. Yeah. But there's still a disconnect,

00:17:44.309 --> 00:17:47.470
it seems. Lots of producers are doing good things,

00:17:47.490 --> 00:17:49.730
but not documenting it or linking it to programs.

00:17:49.990 --> 00:17:52.029
Yeah, that seems to be the case, especially maybe

00:17:52.029 --> 00:17:54.789
for smaller operations or in regions where these

00:17:54.789 --> 00:17:57.269
programs aren't as common yet. Lots of folks

00:17:57.269 --> 00:17:59.089
are already doing sustainable things. They just

00:17:59.089 --> 00:18:01.619
aren't getting credit. financially or otherwise.

00:18:01.920 --> 00:18:04.980
The takeaway is take stock of what you're already

00:18:04.980 --> 00:18:08.119
doing. Research those processor programs. Start

00:18:08.119 --> 00:18:10.579
measuring and documenting your impact. Exactly.

00:18:10.799 --> 00:18:12.619
Can't improve what you don't measure. And you

00:18:12.619 --> 00:18:14.440
definitely can't market it if you don't track

00:18:14.440 --> 00:18:16.940
it. All right. Let's shift to maybe the most

00:18:16.940 --> 00:18:19.039
critical piece of the puzzle for the long haul.

00:18:19.160 --> 00:18:21.880
People. The human element. Absolutely vital.

00:18:22.140 --> 00:18:24.400
You can have the best tech, the smartest business

00:18:24.400 --> 00:18:27.119
plan, but without good people and a plan for

00:18:27.119 --> 00:18:29.079
the next generation, where does that leave you?

00:18:29.259 --> 00:18:31.799
Nowhere fast. And the workforce dilemma, it's

00:18:31.799 --> 00:18:35.400
a big one. Persistent challenge. Huge. Many dairies

00:18:35.400 --> 00:18:38.099
rely on non -family labor for, what, more than

00:18:38.099 --> 00:18:40.759
half their workforce. Often, yeah. And immigrant

00:18:40.759 --> 00:18:43.859
labor plays such a crucial role. The stats are

00:18:43.859 --> 00:18:46.720
pretty stark. They really are. Nationally, immigrant

00:18:46.720 --> 00:18:50.099
workers are 51 % of the dairy workforce, but

00:18:50.099 --> 00:18:53.500
they produce 79 % of the milk. Wow. And in some

00:18:53.500 --> 00:18:56.579
big dairy states, it's even higher, like 80 %

00:18:56.579 --> 00:18:59.019
reliance. It's up to 80 % in places like the

00:18:59.019 --> 00:19:01.359
West and Southwest. So let's just be blunt, like

00:19:01.359 --> 00:19:04.279
the source suggests. Our industry is deeply,

00:19:04.400 --> 00:19:06.740
deeply reliant on a workforce that often doesn't

00:19:06.740 --> 00:19:09.460
have secure legal status or clear pathways to

00:19:09.460 --> 00:19:11.640
get it. It's a fundamental vulnerability we can't

00:19:11.640 --> 00:19:13.480
just ignore. And it's not just finding people,

00:19:13.640 --> 00:19:15.940
it's keeping them. Dairy work is tough, long

00:19:15.940 --> 00:19:18.339
hours, physically demanding. It's hard to attract

00:19:18.339 --> 00:19:20.980
domestic workers sometimes. And the H -2A program,

00:19:21.200 --> 00:19:23.279
the guest worker program, it doesn't really fit

00:19:23.279 --> 00:19:25.619
dairy's year -round needs, does it? Not, well,

00:19:25.640 --> 00:19:27.960
no. It's designed more for seasonal work. And

00:19:27.960 --> 00:19:29.880
the potential economic hit if there were major

00:19:29.880 --> 00:19:33.259
labor disruptions. It's scary. Oh, yeah. Modeling

00:19:33.259 --> 00:19:36.119
suggests even a 50 % cut in immigrant dairy labor

00:19:36.119 --> 00:19:39.359
could cost the U .S. economy $16 billion, a total

00:19:39.359 --> 00:19:43.460
loss. Could push retail milk prices up 90%. 90%.

00:19:43.799 --> 00:19:45.859
This isn't just a farm problem, it's a food system

00:19:45.859 --> 00:19:48.799
problem. Exactly. But, like in other areas, we're

00:19:48.799 --> 00:19:50.720
seeing innovative producers finding solutions.

00:19:51.059 --> 00:19:53.640
Strategic automation, for one. Like Miguel Rodriguez

00:19:53.640 --> 00:19:56.440
in Idaho mentioned in the source. Using tech

00:19:56.440 --> 00:19:59.779
not just to cut jobs, but to change jobs. Right.

00:20:00.160 --> 00:20:02.440
Robots might reduce the need for parlor milkers,

00:20:02.539 --> 00:20:04.519
but they create demand for skilled technicians,

00:20:04.880 --> 00:20:07.900
cow managers. Often better, less physically demanding

00:20:07.900 --> 00:20:10.299
jobs. And farms are getting smarter about compensation,

00:20:10.539 --> 00:20:13.480
too. Moving beyond just wages. Yeah. offering

00:20:13.480 --> 00:20:15.900
good housing, more flexible schedules where possible,

00:20:16.099 --> 00:20:18.900
performance incentives tied to milk quality or

00:20:18.900 --> 00:20:21.660
repro goals, recognizing that good employees

00:20:21.660 --> 00:20:23.940
are a valuable asset. Like your best cows, right?

00:20:24.019 --> 00:20:26.359
You invested them. Precisely. And investing in

00:20:26.359 --> 00:20:28.420
professional development, creating actual career

00:20:28.420 --> 00:20:30.880
paths on the farm. Amanda Chen's experience was

00:20:30.880 --> 00:20:33.039
interesting, that multi -site dairy cut turnover

00:20:33.039 --> 00:20:36.460
by 40 % with a structured advancement program.

00:20:37.000 --> 00:20:39.500
40%. People stick around when they see a future.

00:20:39.640 --> 00:20:42.640
A way to move up from entry level to more skilled,

00:20:42.700 --> 00:20:45.019
higher paying roles. Makes sense. Which links

00:20:45.019 --> 00:20:48.119
directly to the other huge human challenge. Succession

00:20:48.119 --> 00:20:51.000
planning. Oh, absolutely critical. The stats

00:20:51.000 --> 00:20:54.000
are worrying. About a quarter of current operators

00:20:54.000 --> 00:20:56.839
plan to retire in the next five years. Yet almost

00:20:56.839 --> 00:21:00.200
half don't have a formal plan. Or aren't sure

00:21:00.200 --> 00:21:02.700
how the form will transition. It's alarming.

00:21:02.799 --> 00:21:04.579
And you look at the general stats for family

00:21:04.579 --> 00:21:07.480
ag businesses, less than a third make it to Generation

00:21:07.480 --> 00:21:12.019
2, only about 16 .5 % to Generation 3. Oof. We

00:21:12.019 --> 00:21:13.880
need to have some honest conversations, both

00:21:13.880 --> 00:21:16.619
industry -wide and on our own farms. Are we ready

00:21:16.619 --> 00:21:19.740
for this potential wave of transitions? Or potential

00:21:19.740 --> 00:21:22.400
closures? Because it's complex, right? Financially,

00:21:22.420 --> 00:21:25.039
emotionally. Modern dairies are huge capital

00:21:25.039 --> 00:21:27.920
assets. Figuring out fair distribution, ensuring

00:21:27.920 --> 00:21:30.559
the farm stays viable. It takes serious planning

00:21:30.559 --> 00:21:32.599
and communication. And probably professional

00:21:32.599 --> 00:21:34.859
help. Often, yeah. Thomas Weber, the young guy

00:21:34.859 --> 00:21:36.839
who took over his family's dairy, his advice

00:21:36.839 --> 00:21:40.339
was spot on. Start early. Way earlier than you

00:21:40.339 --> 00:21:42.319
think. Like five years before you need it, then

00:21:42.319 --> 00:21:44.730
double that timeline. It's a marathon, not a

00:21:44.730 --> 00:21:47.069
sprint. Definitely. And the source laid out a

00:21:47.069 --> 00:21:50.190
good starting framework. Right. Step one, vision

00:21:50.190 --> 00:21:52.750
alignment meetings. Get everyone talking values,

00:21:53.130 --> 00:21:55.890
goals, dreams for the farm. Maybe use a neutral

00:21:55.890 --> 00:21:59.369
facilitator. Good idea. Step two, a thorough

00:21:59.369 --> 00:22:02.250
business assessment. Know the farm's real value,

00:22:02.349 --> 00:22:04.549
its efficiency, its viability. Get financial

00:22:04.549 --> 00:22:07.680
specialists involved. Then step three. Develop

00:22:07.680 --> 00:22:10.019
multiple scenarios. Don't just fixate on one

00:22:10.019 --> 00:22:13.319
path. Gradual transfer, partnerships, maybe even

00:22:13.319 --> 00:22:16.079
equity for key non -family managers. Explore

00:22:16.079 --> 00:22:19.240
the options. Step four, create a separate timeline

00:22:19.240 --> 00:22:21.480
for management transfer that often needs to happen

00:22:21.480 --> 00:22:23.779
before ownership shifts, lets the next generation

00:22:23.779 --> 00:22:27.019
ease in. Good point. And step five, keep reviewing

00:22:27.019 --> 00:22:29.539
and adapting the plan quarterly during the transition,

00:22:29.720 --> 00:22:32.799
annually after. It's not set in stone. Things

00:22:32.799 --> 00:22:35.279
change. The good news is there is a new generation

00:22:35.279 --> 00:22:37.900
coming up, often tech savvy, business minded,

00:22:38.079 --> 00:22:40.319
environmentally aware, and there are resources

00:22:40.319 --> 00:22:42.220
out there to help them. University programs,

00:22:42.500 --> 00:22:44.819
producer groups, support is available. So the

00:22:44.819 --> 00:22:47.920
key takeaway on succession is just start, have

00:22:47.920 --> 00:22:51.380
the conversation, build your team, take an honest

00:22:51.380 --> 00:22:54.220
look at your farm's transferability. Okay, so

00:22:54.220 --> 00:22:57.000
we've talked tech, diversification, sustainability,

00:22:57.380 --> 00:23:00.630
people. Kind of a separate pieces. But the real

00:23:00.630 --> 00:23:04.329
magic, the next frontier is putting it all together,

00:23:04.430 --> 00:23:07.450
right? Integration. That's exactly it. The most

00:23:07.450 --> 00:23:10.109
successful operations aren't just doing one thing

00:23:10.109 --> 00:23:12.390
while in isolation. They're thinking holistically.

00:23:13.049 --> 00:23:15.349
About the whole system. How these different parts

00:23:15.349 --> 00:23:18.329
feed off each other, amplify the benefits, build

00:23:18.329 --> 00:23:20.950
resilience. Yeah, Ryan Kimball in Wisconsin put

00:23:20.950 --> 00:23:23.329
it perfectly. They stopped thinking about individual

00:23:23.329 --> 00:23:26.130
projects and started focusing on how everything

00:23:26.130 --> 00:23:28.809
connects. Like his example with the robots. The

00:23:28.809 --> 00:23:30.970
data didn't just solve a labor issue, it helped

00:23:30.970 --> 00:23:33.910
them fine -tune nutrition. Which cut feed costs

00:23:33.910 --> 00:23:36.609
and improved cow health. See? It's all linked.

00:23:36.710 --> 00:23:38.950
One chain creates ripple. And that systems thinking

00:23:38.950 --> 00:23:41.269
applies to the business model, too. Integrating

00:23:41.269 --> 00:23:43.970
milk production with, say, processing and direct

00:23:43.970 --> 00:23:46.529
marketing. Creates multiple income streams. Makes

00:23:46.529 --> 00:23:48.849
you much less vulnerable to price swings in any

00:23:48.849 --> 00:23:51.130
one area. It's like diversifying your investments.

00:23:51.769 --> 00:23:53.369
Don't put all your eggs in one basket. Exactly.

00:23:53.509 --> 00:23:55.369
So the big question for you, the listener, is

00:23:55.369 --> 00:23:58.809
are you still tackling challenges in silos? Or

00:23:58.809 --> 00:24:01.390
are you starting to see and leverage how interconnected

00:24:01.390 --> 00:24:04.309
everything is in modern dairy management? Because

00:24:04.309 --> 00:24:07.220
the opportunities for synergy are huge. Tech

00:24:07.220 --> 00:24:10.000
can solve labor issues and improve welfare and

00:24:10.000 --> 00:24:12.539
boost sustainability. Think automated cat feeders.

00:24:12.599 --> 00:24:15.900
Right. Diversification like Botis leverages existing

00:24:15.900 --> 00:24:18.960
assets, your cows, your land for new markets.

00:24:19.259 --> 00:24:21.819
Sustainability cuts costs and potentially opens

00:24:21.819 --> 00:24:24.119
up premium markets. And investing in your people

00:24:24.119 --> 00:24:27.720
better pay, meaningful work, growth paths, leads

00:24:27.720 --> 00:24:30.200
to stability and productivity across the board.

00:24:30.539 --> 00:24:32.819
The Sanchez family dairy in California mentioned

00:24:32.819 --> 00:24:35.220
in the source sounds like a prime example of

00:24:35.220 --> 00:24:38.319
this integrated approach. They really do. Robots,

00:24:38.359 --> 00:24:41.160
smart feeding, health monitoring, solar power,

00:24:41.359 --> 00:24:44.140
water recycling, a big beef on dairy program

00:24:44.140 --> 00:24:46.940
with finishing and branding, and their own creamery.

00:24:47.180 --> 00:24:49.880
Wow. They're doing it all. And Maria Sanchez

00:24:49.880 --> 00:24:53.400
said it herself. Each piece reinforces the others.

00:24:54.200 --> 00:24:56.640
sustainability helps market their branded products

00:24:56.640 --> 00:24:59.579
technology helps with labor and animal welfare

00:24:59.579 --> 00:25:01.839
which is part of their brand story it all works

00:25:01.839 --> 00:25:04.140
together it's a powerful combination so as we

00:25:04.140 --> 00:25:06.869
start to wrap this up It's crystal clear, isn't

00:25:06.869 --> 00:25:09.490
it? The dairy industry is in a massive period

00:25:09.490 --> 00:25:12.910
of change, evolution, maybe even revolution across

00:25:12.910 --> 00:25:15.750
the board. Definitely. And yeah, there are challenges,

00:25:15.890 --> 00:25:19.269
big ones, but there are also these huge unprecedented

00:25:19.269 --> 00:25:22.630
opportunities for producers willing to think

00:25:22.630 --> 00:25:25.890
differently, to embrace strategic change. The

00:25:25.890 --> 00:25:28.369
key principles seem pretty clear. Think systems,

00:25:28.430 --> 00:25:31.759
not silos. Invest smartly in tech. Diversify

00:25:31.759 --> 00:25:34.700
thoughtfully. See sustainability as an opportunity.

00:25:35.000 --> 00:25:37.720
And prioritize your people. And here's that direct

00:25:37.720 --> 00:25:39.980
challenge for you again. What's one conventional

00:25:39.980 --> 00:25:42.200
practice on your farm? Something you've maybe

00:25:42.200 --> 00:25:44.519
always done that really deserves a hard second

00:25:44.519 --> 00:25:46.680
look right now. Maybe it's your breeding program.

00:25:47.000 --> 00:25:49.480
Maybe labor management. Maybe your whole business

00:25:49.480 --> 00:25:52.759
model. But pick one area and commit to an honest

00:25:52.759 --> 00:25:55.220
assessment. Could innovation there change your

00:25:55.220 --> 00:25:57.509
whole trajectory? Because the producers who are

00:25:57.509 --> 00:25:59.269
really going to lead the way in this new dairy

00:25:59.269 --> 00:26:02.490
era, they're the ones blending that deep tradition,

00:26:02.650 --> 00:26:06.029
that love of cows and land, with a smart embrace

00:26:06.029 --> 00:26:08.150
of innovation. Yeah, it's like managing that

00:26:08.150 --> 00:26:11.589
transition cow, right? You invest up front, manage

00:26:11.589 --> 00:26:13.910
her carefully around calving so she peaks high

00:26:13.910 --> 00:26:17.730
and stays strong. Good analogy. Proactive investment

00:26:17.730 --> 00:26:21.130
and adaptation now leads to... better, more sustainable

00:26:21.130 --> 00:26:23.630
performance later. The future of dairy really

00:26:23.630 --> 00:26:26.589
does belong to the bold. Absolutely. And hey,

00:26:26.690 --> 00:26:28.970
we'd love to hear from you. What's one bold change

00:26:28.970 --> 00:26:30.930
you've made on your operation that's paying off?

00:26:31.009 --> 00:26:32.690
Share it in the comments. Your story might be

00:26:32.690 --> 00:26:34.829
just what someone else needs to hear. Yeah, definitely.

00:26:35.009 --> 00:26:37.150
And just to quickly hit those key takeaways one

00:26:37.150 --> 00:26:40.890
more time. Tech. Non -negotiable now. Two -thirds

00:26:40.890 --> 00:26:43.490
using advanced feeding. Robots showing big potential.

00:26:44.029 --> 00:26:47.150
Diversification. dominating, 80 % getting revenue

00:26:47.150 --> 00:26:50.490
beyond milk, Bodo Bodi premiums are real. Sustainability,

00:26:50.630 --> 00:26:53.750
it pays. Nutrient management savings, processor

00:26:53.750 --> 00:26:56.630
premiums happening. Labor in succession, still

00:26:56.630 --> 00:26:59.650
critical crises, huge workforce reliance, too

00:26:59.650 --> 00:27:03.029
few succession plans. But overall, a growth mindset

00:27:03.029 --> 00:27:05.990
wins. Producers are expanding, blending tradition

00:27:05.990 --> 00:27:08.930
and tech. So the executive summary is basically

00:27:08.930 --> 00:27:12.680
this. Dairy is transforming fast. tech, diversification,

00:27:12.880 --> 00:27:15.299
sustainability are driving it. Despite consolidation

00:27:15.299 --> 00:27:17.940
of people challenges, proactive, adaptable farms

00:27:17.940 --> 00:27:20.420
are finding ways to thrive by integrating everything.

00:27:20.740 --> 00:27:22.960
Adaptability and embracing change, that seems

00:27:22.960 --> 00:27:25.079
to be the name of the game in this new era of

00:27:25.079 --> 00:27:27.660
dairy. And that wraps up today's episode of the

00:27:27.660 --> 00:27:30.480
Bullvine Podcast. I hope this discussion has

00:27:30.480 --> 00:27:33.059
sparked some fresh thinking about your own operations

00:27:33.059 --> 00:27:36.920
future. Remember, as we've explored today, the

00:27:36.920 --> 00:27:39.700
most successful dairy producers aren't just adapting

00:27:39.700 --> 00:27:42.470
to change. They're actively driving it through

00:27:42.470 --> 00:27:45.849
strategic technology adoption, revenue diversification,

00:27:46.170 --> 00:27:49.470
and systems thinking. What conventional practice

00:27:49.470 --> 00:27:53.150
on your farm most deserves critical re -evaluation?

00:27:53.450 --> 00:27:55.769
We'd love to hear your thoughts. Head over to

00:27:55.769 --> 00:27:58.509
thebullvine .com and share your comments on this

00:27:58.509 --> 00:28:01.089
episode or drop us a message on social media.

00:28:01.569 --> 00:28:04.730
If you found value in today's conversation, Please

00:28:04.730 --> 00:28:07.089
subscribe to the Bullvine Podcast wherever you

00:28:07.089 --> 00:28:09.509
get your podcasts and share this episode with

00:28:09.509 --> 00:28:12.890
a fellow dairy producer who might benefit. Until

00:28:12.890 --> 00:28:15.970
next time, remember that in today's dairy industry,

00:28:16.309 --> 00:28:20.250
the future belongs to the bold. Thanks for listening.
