Creeping across the pasture land. Got dirt on
the boots and a working hand. From the milk house
home to the auction call. These are the folks
standing strong and tall. Yeah, this is... Welcome
to the Bullvine Podcast, your trusted source
for timely insights and practical strategies
in the dairy industry. Today, we explore the
groundbreaking innovations and leadership of
the 2025 World Dairy Expo winners, including
the McCartys, Juan Moreno, and Jim Mulhern. You'll
hear how these pioneers are shaping the future
of dairy with tech, genetics, and policy reforms
that matter. Stay tuned for expert advice and
real -world takeaways to help your operation
thrive. Welcome back to The Bullvine Podcast,
the show that digs deep into the topics that
matter to dairy producers. That's right. Today,
we're tackling a truly insightful feature article
from The Bullvine that's been generating a lot
of buzz. We're going to break it all down piece
by piece, really try to help you navigate some
of the biggest challenges facing dairy today.
Absolutely. This deep dive is centered around
an article titled Dairy's Vanguard, Innovation
and Resilience from Expo Leaders. Our mission
today is to unpack the incredible insights drawn
from the 2025 World Dairy Expo Award winners.
We're talking the McCarty family, Juan Moreno
and Jim Mulhern. Some heavy hitters there. Definitely.
And we want to understand not just how these
individuals and operations are succeeding, but
how they are actively shaping the future of dairy.
Right. Providing what the article calls a roadmap
for what dairy looks like when things get done
right. And let's be honest, for many of you listening,
this couldn't be more crucial right now. Couldn't
agree more. We're seeing corn prices hover around,
what, $4 .85 a bushel? Yeah, roughly. And bean
meal. Soybean meal, climbing towards $400 a ton.
I mean, input costs are just a constant pressure.
Relentless. So finding efficiencies and forward
thinking strategies isn't just like a good idea.
It's essential for survival and for growth. Absolutely
essential. The author of this piece actually
had these three distinct kind of serendipitous
encounters at the expo that sparked this whole
deep dive. Oh, interesting. Yeah. Suggesting
there are some truly unique and maybe even counterintuitive
strategies worth exploring here. And that's precisely
what makes this deep dive so compelling, I think.
This isn't merely about celebrating three individual
success stories or handing out awards. Right.
It's deeper than that. It's about extracting
those replicable principles, the core ideas,
the strategic frameworks behind their innovation,
their commitment to sustainability, and even
their approach to industry -wide policy reform.
Things anyone can potentially use. Exactly. That
can genuinely benefit any producer, regardless
of their scale or where they are geographically.
Why is this? so vital now while you're living
it every day. We hear it all the time. We're
all navigating these intensifying environmental
pressures, right? A tightening labor market that
makes finding and keeping good help incredibly
difficult. Oh, yeah. That's a huge one. Ongoing
market consolidation that keeps shifting the
competitive landscape. Rapidly shifting consumer
preferences, demanding more transparency, specific
attributes. Flexibility, sustainability. All
of it. And let's not forget increasing climate
variability that challenges, you know, traditional
farming practices. It's a perfect storm, really.
It kind of is. So understanding these proactive
strategies, learning how to anticipate and shape
change rather than just, you know, reacting to
the next fire. Putting out fires constantly.
Yeah, reacting to the next challenge is more
vital than ever. So to really get into the nuts
and bolts of this, we're going to cover three
main areas from the article. OK. First, the McCarty
family's large scale operational efficiency.
And they're a pretty groundbreaking approach
to people management. OK. The McCarty's first.
Second, we'll dive into the cutting edge of genetic
and feed technology with Juan Moreno. Genetics
and feed. Got it. And finally, we'll look at
the often overlooked but incredibly important
realm of industry policy through the lens of
Jim Mulhern's extensive work. Policy. Right.
Often the least glamorous, but maybe the most
impactful sometimes. Could be. Consider these
like three pillars of a resilient and prosperous
dairy future. OK, let's dive right into our first
pillar of that roadmap then. Let's focus on what
we're calling the McCarty method, redefining
family dairy and operational efficiency. That's
good. So when we talk about the McCarty family,
these are folks recognized at World Dairy Expo
operating this. I mean. Truly impressive multi
-state enterprise milking a staggering 20 ,000
cows. 20 ,000? That's serious scale. It really
is. And, get this, they're successfully bringing
their fifth generation into the business. Fifth
generation, wow. Now, what's truly remarkable
here and what the article really emphasizes is
that stark contrast to conventional wisdom. Most
family farms, as the stats sadly show, they struggle
to make it past the second generation. It's a
tough transition, very tough. The McCartys aren't
just defying that. They're absolutely shattering
it. But honestly, the numbers that really grabbed
my attention in the article weren't even the
cow counts or the generations. Oh, what was it?
It was their exceptional employee retention rates.
Ah, yes. That stood out to me, too. For an industry
grappling with labor shortages and, you know,
crazy high turnover. That, to me, is the real
aha moment. Definitely. It's an indicator of
something really profound happening within their
operations, something systemic. And you are absolutely
right to home in on that because the significance
of their employee retention, well, it just cannot
be overstated. Right. In an industry notoriously
plagued by high turnover, we often see rates,
what, well above 20, 30 percent annually, sometimes
higher. Easily. The McCartys have achieved something.
Truly foundational to their success. We're talking
employees staying for 10, 15, even 25 years.
25 years. On a dairy? Yeah. That's not just rare.
It's almost unheard of for an operation of that
size. So how? What's the secret sauce? Well,
the article details their DIRT principles. That's
D -I -R -T. Dedication, integrity, respect, teamwork.
Okay, D -R -T. Sounds a bit... It might sound
like standard corporate values you'd find on
a poster, you know, in any boardroom. Right.
Wall art. Exactly. But what's truly insightful
is how the McCarty's seem to operationalize them.
It's not just words on a wall. Okay. How so?
The article hints at this deeply embedded culture
of internal mentorship. Senior employees actively
training and empowering new hires. So passing
down the knowledge. And fostering this collective
ownership. It's not just about a paycheck. It
seems they build a shared purpose. This creates
a feedback loop where respect and teamwork, they
naturally reduce friction, improve communication.
It ultimately boosts efficiency, I bet. Precisely.
For instance, the article specifically notes
that most of their processing plant team, they've
been with them since the facility opened back
in 2012. That's over a decade of the same core
team. Think about the cumulative effect of that
dedication, 10, 15, 25 years. Compounds into
this institutional knowledge base that's incredibly
difficult for competitors to replicate. Like
an internal competitive advantage. Totally. And
if we connect this to the broader picture, research
from I think it was the University of Wisconsin
Extension on dairy workforce management. It actually
shows operations with stable long term workforces
exhibit between 18 and 23 percent better productivity
metrics. 18 to 23 percent. That's massive. It
is. We're talking. milk per cow, feed efficiency,
animal health outcomes, better than operations
constantly training new people. So it's not just
about being a nice place to work. Not at all.
This isn't just about being a good employer.
It fundamentally underscores that investing in
your human capital pays very measurable, very
significant dividends to your bottom line. Right.
Far beyond just saving on recruitment costs.
It's a strategic business advantage, period.
It absolutely is. It's not just a feel good story.
It's deeply strategic. But look, for many listening,
that level of employee retention, especially
in this industry, it sounds almost mythical.
Like how? Yeah, it does seem almost too good
to be true. What specific elements from the article
help explain how they sustain that kind of commitment
beyond just the DRT acronym? Does it mention
specific practices, benefits, training? That's
a critical question. While the article doesn't
maybe lay out a full HR manual, it strongly implies
that the D -ART principles are backed by robust
systems. For example, respect isn't just a word.
The implication is that it translates into competitive
wages, comprehensive benefits, clear pathways
for advancement, you know, real career potential.
Okay, so tangible benefits, not just talk. Exactly.
Teamwork likely means clearly defined rules,
opportunities for cross -training, collaborative
problem -solving environments, places where people
feel safe contributing. Psychological safety,
yeah. Important. And dedication seems to be reciprocated
by the company actively investing in employee
development, growing their skills. A two -way
street. Precisely. The article also touches upon
their transparent communication. Employees understand
the why behind decisions, not just the what.
Context matters. Hugely. This means less resistance
to change, probably, because the team feels like
part of the solution, not just cogs in a machine.
This continuous investment in clear communication
are what transform those buzzwords into lived
values, cementing that long -term commitment.
That makes perfect sense. They've really built
a culture where the principles are embodied.
Okay, and speaking of strategic innovation, let's
talk about their... on -farm processing plant.
Oh yeah, this part is fascinating. This is where
things get really intriguing, maybe even a little
bit mind -bending. When I first read about their
processing facility and the claim from Ken McCarty
that they're processing 2 .2 million pounds of
milk daily. 2 .2 million pounds daily. And achieving
a 75 % reduction in transportation needs. My
initial thought, and the article's author shared
this sentiment, was just skepticism. Like how?
How is that even physically possible? It's a
perfectly natural reaction, right? It sounds
almost like magic. It does. My brain immediately
went to logistics, weight, volume. But if we
connect this to the broader picture of supply
chain economics, the math actually starts to
make a lot of sense. Okay, break it down for
us. So USDA Agricultural Marketing Service data
shows that transportation typically accounts
for, what, 8 to 12 percent of total milk marketing
costs, sometimes more depending on distance.
Okay, a significant chunk. Yeah. The McCarty's
aren't just moving raw fluid milk like most farms
do. They're condensing it before shipping it
to Danone, their partner. Condensing it, like
evaporating water. Exactly. Think of it like
making concentrate for orange juice, but with
milk. They're essentially removing a significant
portion, specifically about 75 % of the water
from the raw milk. 75 % of the water gone. Right.
Which drastically reduces its volume and weight.
This milk concentrate is then shipped, and the
water can be added back later at the Danone processing
plant. Ah, okay, so you're shipping less water.
Precisely. This significantly reduces water weight,
which translates directly into meeting fewer
trucks on the road, fewer trips, less fuel, reduced
labor for drivers, a smaller carbon footprint.
Wow, the savings must be huge. And beyond the
obvious transportation savings, this strategy
also allows for much tighter quality control
earlier in the chain. They know the quality before
it leaves the farm gate in bulk. Which is invaluable
for a premium product, yeah. Definitely. And
that real -time feedback benefit you mentioned.
That's just incredible. Imagine on your own farm
getting component results back within hours instead
of days. Game changer. Total game changer. That
means you can make immediate, precise ration
adjustments, optimizing feed efficiency, animal
health, with a responsiveness most farms can
only dream of. Think about it. If your butterfat
or protein levels dip, you know it almost instantly.
Yeah. You can tweak the diet of specific pens
to bring them back into line before it significantly
impacts your overall production or your component
premiums on the milk check. That's a huge competitive
advantage. Yeah. That level of micromanagement
and optimization, it translates directly to profitability.
Precisely. That immediate data loop is, well,
it's revolutionary for on -farm management. What?
Ah, yes, the but. This raises the important question,
which the article rightly addresses as a reality
check. While the benefits are undeniably clear,
impressive even, building a processing plant
like this, that requires massive capital investment.
Massive is the right word. We're talking anywhere
from, what, $5 to $15 million up front? Easily
more, depending on the bells and whistles. Five
to 15 million. Wow. And payback periods typically
stretching between seven and 10 years, maybe
longer. And that's just the build cost. Right.
Doesn't even account for the ongoing operational
costs. The specialized labor needed to run a
food grade facility or the complex regulatory
hurdles involved in food processing. That's a
whole different ballgame. So for the vast majority
of operations out there, especially those milking
fewer than, say, a few thousand cows, this specific
model. It just isn't feasible. Realistically,
no. The financial barrier, the logistical complexity,
it's just too high for most. And that's a crucial
point for our listeners. You read this and think,
wow, that's amazing, but I could never do that.
Right. It can feel discouraging. So the question
becomes, what is scalable from the McCarty's
processing innovation? What can you take away
from their approach, even if you're milking 200
cows instead of 20 ,000 and don't have a multimillion
-dollar plant in your future? Excellent question.
And this is where the deeper insights lie, I
believe. While the physical plant might be out
of reach for many, their philosophy and their
methodology are highly scalable. Okay. How so?
What you can absolutely emulate are their methods
for data standardization and employee management.
Those are the foundations of that efficiency.
Standardization of people. Exactly. You do not
need a multimillion -dollar processing plant
to implement consistent protocols across your
operation. From feeding schedules to milking
routines to calf care, establish clear standard
operating procedures, SOPs, for every key task.
Train your employees thoroughly on those SOPs.
And then measure performance consistently. Track
the same metrics the same way. Consistency is
key. It drives efficiency. And just as importantly,
that deep investment in your people we talked
about earlier. Back to the dirt principles. Back
to the dirt principles, exactly. The McCarty
successes build on their team, not just their
technology. Investing in competitive compensation,
professional development, a culture of respect
that will yield similar returns in employee retention
and productivity, even on a much smaller scale.
So focus on the systems and the culture. Those
are universal principles for efficiency, for
longevity, for building a truly resilient operation,
regardless of size. That's a powerful distinction,
separating the specific innovation, the shiny
object, from the underlying principles. That
really is a roadmap for efficiency right there.
I think so. Now, moving on from the operational
side, the article also spotlights the McCarty's
impressive sustainability story. This really
caught the author's attention. And ours, too.
It really is inspiring, and it's another testament
to their forward -thinking approach. They didn't
just wait for regulations. They got ahead of
it. Where did they start? Well, the article highlights
this sand reclamation system developed in collaboration
with Kansas State University. Sand bedding reclamation.
Yeah. For those unfamiliar, sand is a great bedding
material, comfortable for cows, inorganic, so
less bacteria growth. But it can be expensive
and tricky to manage in manure systems. Right.
It settles out. It's heavy. Exactly. Their system
is engineered to capture an astounding 97 % of
their bedding material for reuse. 97%. Think
about that. It's not just about keeping barns
clean. It's about significant resource savings.
Right. Imagine almost completely eliminating
the need to purchase new sand. That's a huge
input cost reduction. And it drastically reduces
the volume of manure solids that need to be handled
and transported. It's a major win -win. Environment
and balance sheet. And it goes further than just
bedding, right? The article mentions cover crops,
too. Indeed. They've adopted cover crops on 95
% of their Ohio acres. 95%. Wow. What's typical?
To put that in perspective, USDA data suggests
typical Midwest adoption rates are more in the
range of 15 to 20%. So they are way ahead of
the curve. Way ahead. Cover crops, just as a
quick refresher for anyone, are planted primarily
to manage soil erosion, improve soil health,
enhance water infiltration, smother weeds, help
with pest control. Lots of benefits. Tons. By
covering nearly all their acres, they're significantly
improving soil organic matter, reducing nutrient
runoff into waterways, which is huge environmentally,
and enhancing the overall resilience and fertility
of their land. It's a long -term investment in
the health of their farm ecosystem. Makes sense.
Plus, their water recycling efforts sound pretty
advanced, tying back to that on -farm processing.
Absolutely. It's all connected. The water recycling
is directly integrated with their condensing
system. So the water they remove from the milk.
Right. It's first traded, then repurposed for
cleaning within the plant. So it replaces freshwater
use there. And then rather than being discarded
or needing additional freshwater sources for
irrigation, that same water is used for irrigation
on their fields. A truly closed loop system.
It really is. Minimizes waste, reduces their
freshwater demand, and efficiently utilizes a
valuable resource. All these efforts, they underscore
how proactive sustainability isn't just about
being green or ticking boxes for compliance.
It's strategic again. It enhances their social
license to operate, strengthens their brand reputation
with partners like Danone, and builds long -term
resilience against those intensifying environmental
pressures and potentially stricter regulations
down the road. So they're building a farm that's
optimized not just for today, but for decades
to come. That's exactly how I see it. They're
shaping their future, not just reacting to it.
OK, so if the McCarty method shows us the how
of operational excellence and people management,
that's one crucial part of our roadmap. Let's
shift gears to the what? The tool. Yeah. What
new tools are emerging on the genetics and feed
front to propel us forward? This leads us perfectly
to our next segment, focusing on Juan Moreno
and his incredible work in genetic revolution
and climate action. Ah, Moreno. Yeah, really
fascinating stuff here. The article paints this
vivid picture of him as a genetics pioneer from
SD Genetics. But what really stands out to me,
and the article emphasizes this, is his background.
actually working on a Colombian cattle operation.
Right. Hands -on experience. It gave him this
unique, practical, on -the -ground understanding
of breeding challenges. He's not just a lab scientist
in an ivory tower. He gets the farm reality.
That practical background is absolutely key to
his innovative approach, I think. It means his
solutions aren't just theoretically brilliant,
but they're designed with the farmer's real -world
needs and challenges baked right in. Makes sense.
Like his sexed semen technology. I mean, total
game changer, right? Huge. The article notes
it's now used in about 30 % of worldwide AI sales.
30 %? Yeah, according to industry tracking. Offering
over 90 % accuracy in predicting calf gender.
90 % plus. That's reliable. Extremely reliable.
And the impact of that technology is profound
because it fundamentally shifts the economics
and the strategy of replacement heifer management.
Oh, so. Instead of breeding cows with, you know,
basically a coin flip 50 -50 chance of getting
a bull or a heifer calf. Right. The old way.
Producers can now strategically breed specifically
for heifers with over 90 percent accuracy. This
allows for incredibly targeted breeding programs.
You get the replacements you want from the cows
you want. Exactly. Minimizing unwanted male calves,
reducing the costs associated with raising them,
and ensuring a consistent supply of replacement
heifers that are genetically superior, ideally
from your best dams. It's about precision in
herd development. Totally. Allowing farmers to
accelerate genetic progress and optimize their
herd's future potential far more rapidly than
ever before. And speaking of precision, that
brings us to genomic testing. This is the part
of the article that made the author pull out
their calculator, apparently. Huh. Yeah. And
for good reason. Because this is where the financial
impact truly becomes clear. Let's break down
those economic benefits. Please do. Genomic testing
typically costs around, what, $30 to $50 per
calf? Somewhere in that range. Okay. Seems like
an upfront expense. It is. But recent research,
I think it was cited from the Journal of Dairy
Science, confirms about 76 percent accuracy in
predicting productive life cycle outcomes. 76
percent. So three out of four, roughly. Right.
What that means in practical terms is that for
three out of four calves you test, you're getting
a very good, reliable picture of that animal's
future potential. Potential for what exactly?
Milk production. Components like fat and protein,
health traits, fertility, longevity, all the
key things. And you get this picture at a very
early age. And those returns are truly significant,
the article argues. It mentions annual returns
of $75 to $150 per animal. Per animal, per year.
Through early identification and, crucially,
culling individuals with poor genetic quality.
That culling part is key. Don't just test. Act
on the data. Right. So for a producer with, let's
say, a herd of 300 breeding females, doing the
math quickly, that could translate to an extra
$22 ,500 to $45 ,000 in the bank each year. Potentially,
yes. It adds up fast across a herd. That's not
just real money. That's, like you said, the difference
between just getting by and investing in new
equipment or expanding or just having more financial
peace of mind. It's about making every single
resource count. Every stall, every pound of feed.
Identifying your top performers early and avoiding
that costly two -year investment in an animal
that just won't pull its weight down the line.
Yeah, that makes total sense. You're not wasting
resources on underperformers. And Moreno himself
makes this really simple, compelling analogy
in the article. Honestly, I think every producer
needs to hear this and just let it sink in. Okay,
what's the analogy? He asks, basically, for the
first 60 days, a calf costs about $5 per day.
After that, roughly $2 daily for feed. Simple
enough. Right. Standard cost. Then he drives
it home asking, so why wait two years and spend
$1 ,400 to $1 ,500 to find out a heifer's below
average when you can spend $30 as a calf and
know her genetic potential? Wow. But that way,
it's stark. It's a stark comparison that highlights
the true cost of delayed decision making. Not
just in direct expenses, but in lost opportunity.
You're committing feed, labor, space to an animal
that might never provide a decent return. What
a small, upfront investment could redirect those
resources to your genetically superior animals.
Exactly. It feels almost like a... penny wise
pound foolish lesson, doesn't it? Avoid the $30
test. Spend $1 ,500 finding out the hard way.
It absolutely is. That analogy really cuts through
the noise, emphasizes the value of early data.
Now, OK, while this technology sounds amazing
and the economics are compelling, there's always
a but. There's always a but. Ah. The article
also discusses scalability and some important
caveats. The economic analysis cited, I think,
from Cornell Cooperative Extension. Right. It
shows. Those positive returns from genomic testing
typically emerge within 18 to 24 months for operations
managing 500 or more breeding female. 500 plus,
okay. So it's not necessarily a universal fit
right out of the gate, at least not yet for everyone.
This raises that important question for smaller
operations. When does it make sense to implement
this or does it ever? The article acknowledges
that for farms with fewer than, say, 200 cows,
the benefits of genomic testing, while still
present genetically, they may not immediately
outweigh the costs unless you first make significant
improvements in other foundational management
areas. Like what? Could be things like perfecting
your AI program, ensuring really robust calf
health protocols. calls, optimizing your feeding
strategies to maximize the potential you already
have in the herd. The basics right first. Exactly.
The idea is that genomic testing amplifies good
management. It doesn't replace it. So for a smaller
operation, ensuring those basics are rock solid
might provide more immediate and significant
ROI before layering on genomics. That makes sense.
It's not a silver bullet, but a powerful tool
when integrated into an already well -managed
system. Precisely. Strategic implementation is
key. Okay, strategic implementation. Got it.
Now, moving on, we absolutely have to talk about
his Ecofeed innovation. Ah, Ecofeed. This sounds
truly groundbreaking and directly addresses climate
action, which is a growing concern and pressure
point for the industry. Huge pressure point.
It recently won the 2024 International Dairy
Federation's Innovation in Climate Action Award.
That's a massive honor. And deservedly so, I
think, given its potential impact. What's really
compelling here about Ecofeed is its dual benefit.
Okay. It targets feed efficiency improvements
of 8 % to 10%. 8 % to 10 % better feed efficiency.
That's significant. It is. Now, connect this
to the bigger picture. Feed represents about
55 % of most operations' total costs, right?
Yeah, easily the biggest chunk. So even modest
improvements in efficiency, like 8%, 10%, translate
into truly significant savings on the input side.
Less feed purchased, lower costs. That alone
is huge for the bottom line. But critically,
these improvements also lead directly to a reduced
environmental footprint. How does that work?
Ecofeed apparently works by enhancing the cow's
gut microbiome and nutrient absorption. So the
cow gets more out of every bite. Okay. Which
means less waste coming out the back end and
importantly, reduced methane emissions. Methane
being a major greenhouse gas from cattle. Right.
Less waste, less methane. So for you, the producer,
that means not only substantial cost savings
on your largest expense, but also a tangible
contribution to reducing your operation's environmental
impact. Which is increasingly valuable for consumer
perception, supply chain demands, regulatory
compliance. All of the above. It's a win -win.
Bottom line and sustainability. Working together.
That's the sweet spot everyone's looking for.
And this leads us perfectly to Moreno's fascinating
regional adaptation philosophy. This really struck
me. He's quoted in the article saying, and this
is direct quote, Yeah, that's a bold statement.
Especially from a genetics pioneer who is literally
developing the future of dairy genetics. Why
does he feel that way? What does he mean by that?
It's a profound statement, isn't it? It challenges
this long -held industry ideal, the quest for
the one perfect animal, and it speaks directly
to the need for tailored solutions in genetics.
Okay. Tailored how? What's fascinating here is
his deep understanding that farmers have wildly
different priorities based on their specific
situation, location, climate, resources, their
specific markets. Right. Dairy isn't monolithic.
Not at all. The super cow concept often implies
this one size fits all genetic package, usually
laser focused on maximum milk production above
all else. Get to pump out the volume. Yeah. But
Moreno argues this overlooks crucial regional
needs. For example, if you're farming in the
southeast U .S. where heat stress is a constant
battle for months on end. Brutal heat and humidity.
Right. Genetic markers for heat tolerance might
be far more valuable to you than an extra hundred
pounds of milk from a cow that just wilts and
crashes reproduction in the summer. That cow
isn't super for that environment. Good point.
Context matters. Or if you're a producer running
a pasture -based system, maybe in New Zealand
or Ireland or parts of the U .S., prioritizing
grazing efficiency, feed conversion on forage,
maybe foot and leg health, that will yield the
best returns for you. even if it means slightly
lower peak milk numbers compared to a confinement
cow. Match the cow to the system. Exactly. And
if you're supplying a niche market that values
high protein or butterfat for cheese or specialty
products, then component quality becomes your
primary focus for selection. So his philosophy
emphasizes adapting the technology, especially
genetics, to your specific conditions. Rather
than chasing some mythical perfect cow that might
not even be perfect for your farm, it's about
optimizing for your unique environment and your
market, making sure the technology serves. your
specific goals. So it's about intelligent, purpose
-driven genetics, not just blindly chasing raw
production numbers. That's a really critical
distinction for any farmer considering genetic
investments. Absolutely. It's about being strategic
with your genetic dollars. Okay, so we've explored
operational excellence with the McCartys that
focus on systems and people. We've looked at
cutting -edge genetic and feed innovation with
Juan Moreno, tailoring tech to specific needs.
Now, what does this all mean for the big picture?
The industry stability, the policy framework
that underpins everything. Yeah, the scaffolding
that holds it all up in a way. Right. Let's turn
our attention to our third segment, focusing
on Jim Mulhern, whom the article aptly calls
the policy architect who built the dairy safety
net. A fitting title. You know, you might not
know Jim Mulhern's name personally. Probably
most producers don't, day to day. But I guarantee
you, you've likely felt the positive impact of
his work on your operation at some point. 45
years in dairy policy, most recently CEO of the
National Milk Producers Federation. His fingerprints
are all over the programs and reforms that, I
mean, literally kept operations running during
the worst market downturns. It's a significant
legacy, often unheralded, maybe outside of policy
circles, but deeply impactful for every producer
on the ground. Absolutely. So what are some key
examples? Well, a key highlight from the article
is just how impactful his work has been, particularly
with the dairy margin coverage program, the DMC
program. DMC. OK, most listeners will know that
one. Yeah. This program alone has distributed
over two billion dollars since its inception.
Two billion with a B. Think about that for a
moment. During crises like the COVID -related
market crashes, remember when milk prices just
collapsed almost overnight? Oh yeah, scary times.
And feed costs stayed stubbornly high. DMC payments
provided critical cash flow for thousands upon
thousands of operations. A lifeline, really.
For many, without that direct support, they simply
wouldn't have survived those unprecedented market
shocks. It acts as this crucial safety net, insulating
producers from that extreme volatility between
milk prices and feed costs. Letting them weather
storms that would otherwise be catastrophic.
Precisely. And the numbers really underscore
that impact, don't they? They paint this picture
of just how widely adopted and essential this
program has become. They really do. USDA Farm
Service Agency data shows DMC enrollment grew
dramatically from about 18 ,000 operations in
2019 to over 23 ,000 in 2024, now covering approximately
85 % of U .S. milk production. 85%. That's huge
uptake. These aren't just statistics, as the
article powerfully points out. These represent
real farms, families, employees, communities.
that stayed in business instead of being forced
to sell out or go to auction. That's a tangible,
measurable difference for countless individuals
and for the overall health and structure of the
dairy industry, keeping those farms viable. Definitely.
But Mulhern's impact goes far beyond just DMC,
right? The article mentions FMMO reforms, too.
Right. Federal Milk Marketing Order reforms.
And this gets, well, it gets complicated fast.
Ah, understatement of the year. Yeah. For those
less familiar, FMMOs are these complex regulatory
systems that establish minimum prices that dairy
processors must pay farmers for milk. And it's
categorized by its end -use fluid milk, cheese,
butter, powder, class 1, 2, 3, fee. The class
system. Mulhern played a pivotal role in shepherding
reforms aimed at reducing milk price volatility
within that complex system. And did they work?
Well, if we connect this to the broader picture,
USDA analysis indicates these reforms did reduce
milk price volatility by an impressive 8 to 12
percent in most markets. 8 to 12 percent less
volatility. OK. Now, that might not sound like
a huge number on its own, but its effects on
your daily operations, on your planning. They're
profound and far -reaching. Exactly. For producers
like you listening, that 8 % to 12 % reduction
in volatility, it means much more predictable
cash flow. Which is gold, right? Absolutely.
It translates to an easier time with financial
planning, making it simpler to project income,
manage expenses, less guesswork. Reduces the
need for maybe expensive or complicated hedging
strategies, too. Good point. Frees up capital
that might otherwise be tied up in risk management
tools you might not fully understand or have
time for. Right. This increased predictability
allows you to make more confident long -term
investments in your herd, new equipment, facilities,
knowing that your income stream is... Well, at
least a bit more stable. These are practical,
tangible benefits for daily operations and the
long term strategic health of your farm. Definitely.
Now, this raises an important question, though.
Which is? Despite the clear benefits of stability
that most people appreciate, not everyone is
entirely happy with these FMMO reforms or the
FMMO system in general. Ah, yes. The eternal
debate. The article openly acknowledges the complexities.
It notes that Vermont producers, for instance,
continue to complain about class. Okay, unpack
that a bit. Class I differentials. Right. Class
I is milk used for fluid consumption drinking
milk. The differential is a premium added to
the basic price, theoretically based on location
and transportation costs to consumer markets.
Vermont producers, often running smaller grass
-based dairies, might argue the current differential
doesn't adequately reflect their production costs
or market realities. Maybe makes their fluid
milk less competitive compared to milk going
into manufacturing like cheese or butter where
the pricing is different. And Western operations
have issues, too. Yeah. The article mentions
Western operations often questioning the fluid
milk pricing mechanisms more broadly, especially
concerning how transportation costs are factored
in over vast distances. They might argue their
distance from major population centers puts them
at a disadvantage that the system doesn't fairly
compensate them. So lots of regional tension.
It truly highlights the inherent challenges in
crafting policy for such a geographically and
operationally diverse industry. And the reform
process itself. As described in the article,
it certainly wasn't pretty or easy. Sounds like
it was a battle. Oh, yeah. Months of intense
stakeholder negotiations, regional conflicts,
competing interests, fluid versus manufacturing,
big versus small, co -ops versus independents,
all battling it out. Leading to compromises that.
Frankly, satisfied no one completely. That's
often the nature of compromise in policy. It's
a stark reminder of the immense difficulty in
creating policy that works equitably for every
single segment. of vast and varied industry.
Absolutely. Where what benefits one region might
genuinely be perceived as or actually be a disadvantage
to another. But despite that dissent and the
inherent difficulties of getting everyone to
agree, the producer perspective highlighted in
the article really emphasizes the core value
here. Right. That quote. Yeah. The article quotes
one co -op chair who said, very simply, predictable
beats chaos in my mailbox every time. That just
cuts right to the heart of it, doesn't it? It
really does. It encapsulates the trade -offs
involved. And why, even with ongoing debate and
imperfections, these efforts to establish a floor
of stability are so vital for many producers.
For many, that foundational security The ability
to plan with at least a little bit of certainty
outweighs the desire for maybe perfect pricing
or the theoretical ability to hit every market
high. It's about managing that downside risk,
avoiding the catastrophic lows. And that's really
the key takeaway from Mulhern's extensive work,
it seems. Even with all the debate and acknowledging
you can't please everyone in such a complex system.
Impossible task. These policies aim to provide
a fundamental layer of stability and a crucial
safety net. And for long -term planning, for
the simple act of staying in business year after
year, that foundational security is absolutely
crucial. It allows producers to focus more on
what they do best, producing milk efficiently,
caring for cows with maybe a little less anxiety
about the wild, unpredictable swings of the market.
It's an essential part of that roadmap for resilience
we're talking about. Okay, so after all that,
we've covered the McCarty's revolutionary approach
to operational efficiency and people. We've looked
at Juan Moreno's cutting -edge genetic and climate
innovations and Jim Mulhern's extensive work
building the policy architecture, that safety
net. Three distinct but interconnected pillars.
Exactly. Now, the million -dollar question for
you, the farmer listening today, what's the key
takeaway? How can you take these big ideas, these
macro strategies we've discussed, and actually
apply them to your own operation? whether you're
milking 20 ,000 cows or 200. That's the most
important question, right? Bridging the gap from
expo award winners to everyday farm reality.
And the good news is these principles are far
more scalable than you might initially think.
Okay, how? Let's start with the McCarty's, standardization
and people. Right, applying the McCarty lessons.
You don't need a multi -state operation to implement
consistency. Start small. Small steps. Maybe
select just one health protocol. Maybe your standard
procedure for treating mastitis or your calving
assistance protocol or one feeding schedule for
a particular group like dry cows or one breeding
strategy for first lactation heifers. Pick one
thing. Pick one thing. The key is to implement
it consistently across your facility. Create
clear, maybe even written, standard operating
procedures, SOPs, designate who's responsible
for training on it, and then track the same metrics
the same way. Measure it. Measure it. The power
isn't just in the protocol itself, but in the
consistency and the data it generates. That allows
you to see what works, what doesn't, and make
informed adjustments. Makes sense. And the people
part. And critically, invest in your human capital,
even on a smaller scale. Remember those workforce
studies, operations offering competitive benefits.
Not just wages. Right. Wages matter hugely. But
also think about health insurance options, maybe
a simple retirement plan, opportunities for professional
development, sending someone to a workshop maybe,
and clear advancement paths, even if it's just
taking on more responsibility. These things show
you value your team. It's loyalty. Exactly. It
helps build that stable, productive team where
individuals feel valued and see a future, not
just a job. Even small gestures of recognition
or opportunities for skill development can make
a huge difference in retention on any sized farm.
Okay. So consistency in process, investment in
people. Cool. Got it. Now, what about leveraging
Moreno's genetics insights? That felt maybe a
bit more high tech. It can feel that way. For
Murano's genetic strategy, the takeaway isn't
just go out and do genomic testing tomorrow.
It's do it strategically. Strategically how?
Well, if you're managing 200 or more breeding
females, the economics, as we discussed, usually
work out pretty favorably within that 18 to 24
month time frame. The ROI is generally there.
OK, so scale matters for that specific tool.
It does influence the payback period. But the
key here, and this is where Moreno's no super
cow philosophy really comes into play for everyone,
is not to chase every single new genetic marker
just because it's the latest shiny object on
the market. Don't get caught up in the hype.
Exactly. Instead, meticulously analyze your environment,
your herd -specific challenges, your market demands,
what traits actually make you money or save you
money on your farm. Tailor it. If you're in a
region battling heat stress, then genetic markers
for heat tolerance, maybe slick coat genetics,
should be paramount in your selection. Forget
chasing that last bit of milk potential if the
cow can't handle the heat. If you're pasture
-based, prioritize grazing efficiency. Feed conversion
on forage. Maybe utter depth and foot health.
Things that work in your system. Components if
you're in a cheese market. Precisely. If you're
supplying a market valuing high protein or butterfat,
then component quality becomes your primary focus
for genetic selection. It's about optimizing
for your unique challenges and opportunities.
Not just adopting technology for adoption's sake.
Right. And for smaller operations, maybe below
that 200 cow threshold where genomics might seem
pricey up front. Start by optimizing your existing
genetic program. Better record -keeping. Careful
sire selection using proven indices relevant
to your goals, not just the highest TPI. Ensure
your herd health and reproduction are top -notch
first. Build the foundation. Build the foundation.
These things will make genomics even more impactful
if and when you decide to adopt it later. It's
about smart, targeted genetic progress. That's
a great point about tailoring the technology.
It makes it much more accessible. And finally,
what about utilizing Mulhern's policy tools?
How can producers make the most of those safety
nets, like DMC? For Mulhern's tools, the advice
is actually... Quite direct, I think. View your
dairy margin coverage premiums, you know, that
$0 .05 to $1 .20 per hundred weight you pay,
depending on the coverage level you choose. Don't
look at it as just another cost, another bill
to pay. View it as a strategic investment in
your business stability. Like insurance. Exactly
like insurance. It's a form of risk management
that provides a crucial safety net. Especially
when you consider the insane volatility we've
seen in milk prices and feed costs in recent
years. It buys you peace of mind to some extent.
And it's not just DMC, right? Critically, no.
Operations that actively use multiple risk management
tools. So maybe DMC combined with other options
like futures contracts, options trading, maybe
dairy RP insurance, other private insurance products.
Layering the protection. Yeah, layering. Those
operations actually show 12 to 18 percent less
income volatility over 10 year periods, according
to some analyses. Wow, that's significant smoothing
of the income curve. It really is. It means you're
building a more robust financial foundation that
can weather the inevitable market. Okay, so treat
DMC as an investment and layer different risk
management tools. Got it. So when we look at
the bottom line across all three of these areas,
McCarty, Moreno, Mulhern, it really boils down
to this fundamental concept, doesn't it? Proactive
versus reactive change. That feels like the core
message. Yeah. We know these pressures are coming.
In many cases, they're already here and intensifying.
Environmental pressure demanding more sustainable
practices. Check. Labor markets tightening further,
requiring smarter employee management. Double
check. Market consolidation accelerating. pushing
for greater efficiency, consumer preferences
constantly shifting, requiring adaptability in
what and how we produce. Absolutely. And climate
variability demanding more sophisticated risk
management and resilient practices from all of
us. It's the reality of 21st century dairy farming.
So this raises that important, maybe even urgent
question for every producer listening right now.
Will you help shape this change or will you simply
react to it when it hits you? It's a critical
question to ask yourself. These three leaders
we talked about, the McCartys, Juan Moreno, Jim
Mulhern, they didn't just wait for change to
overwhelm them. They chose to be proactive. They
leaned in. Their recognition at World Dairy Expo
isn't just an award for past achievement. It's
a testament to the immense value of that forward
-thinking, strategic approach. They built resilience
before the crisis hit, not just responded afterwards.
And what's truly empowering, I think. is that
the same opportunities exist for you, the producers
willing to think strategically about the future
of your operations. It's not necessarily about
being the biggest. Not at all. But about being
the smartest, the most adaptable, the most prepared.
It's about taking those principles we've discussed
today, investing in people and standardizing
processes, strategically adopting relevant technology,
proactively leveraging risk management tools,
and applying them thoughtfully to your unique
farm, your unique situation. Absolutely. You
don't have to do everything at once. Pick one
area. Start small. So maybe pour yourself that
next cup of coffee. Or tea. Or tea. Fair enough.
Take a thoughtful walk through your facility.
Look at your records. Talk to your team. And
start thinking about what your next chapter looks
like. What's one small, actionable step you can
take this week, this month, to begin shaping
your future rather than just reacting to it?
Because the dairy industry's future doesn't just
depend on, you know, big corporate decisions
or government policy alone. It depends heavily
on the strategic choices being made right now
today. in operations just like yours every single
day. Well said. Great points. And that looks
like all the time we have for today's Deep Dive.
For more articles and insights like the one we
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