WEBVTT 00:00:10.220 --> 00:00:14.039 Creeping across the pasture land. Got dirt on 00:00:14.039 --> 00:00:18.719 the boots and a working hand. From the milk house 00:00:18.719 --> 00:00:24.000 home to the auction call. These are the folks 00:00:24.000 --> 00:01:02.280 standing strong and tall. Yeah, this is... Welcome 00:01:02.280 --> 00:01:04.819 to the Bullvine Podcast, your trusted source 00:01:04.819 --> 00:01:07.299 for timely insights and practical strategies 00:01:07.299 --> 00:01:10.400 in the dairy industry. Today, we explore the 00:01:10.400 --> 00:01:12.980 groundbreaking innovations and leadership of 00:01:12.980 --> 00:01:16.560 the 2025 World Dairy Expo winners, including 00:01:16.560 --> 00:01:20.359 the McCartys, Juan Moreno, and Jim Mulhern. You'll 00:01:20.359 --> 00:01:22.519 hear how these pioneers are shaping the future 00:01:22.519 --> 00:01:26.120 of dairy with tech, genetics, and policy reforms 00:01:26.120 --> 00:01:29.140 that matter. Stay tuned for expert advice and 00:01:29.140 --> 00:01:31.439 real -world takeaways to help your operation 00:01:31.439 --> 00:01:33.840 thrive. Welcome back to The Bullvine Podcast, 00:01:34.319 --> 00:01:36.459 the show that digs deep into the topics that 00:01:36.459 --> 00:01:38.819 matter to dairy producers. That's right. Today, 00:01:38.959 --> 00:01:42.459 we're tackling a truly insightful feature article 00:01:42.459 --> 00:01:45.280 from The Bullvine that's been generating a lot 00:01:45.280 --> 00:01:47.480 of buzz. We're going to break it all down piece 00:01:47.480 --> 00:01:50.340 by piece, really try to help you navigate some 00:01:50.340 --> 00:01:52.299 of the biggest challenges facing dairy today. 00:01:52.680 --> 00:01:55.079 Absolutely. This deep dive is centered around 00:01:55.079 --> 00:01:58.299 an article titled Dairy's Vanguard, Innovation 00:01:58.299 --> 00:02:01.959 and Resilience from Expo Leaders. Our mission 00:02:01.959 --> 00:02:04.480 today is to unpack the incredible insights drawn 00:02:04.480 --> 00:02:08.419 from the 2025 World Dairy Expo Award winners. 00:02:08.620 --> 00:02:11.560 We're talking the McCarty family, Juan Moreno 00:02:11.560 --> 00:02:14.430 and Jim Mulhern. Some heavy hitters there. Definitely. 00:02:14.449 --> 00:02:16.530 And we want to understand not just how these 00:02:16.530 --> 00:02:19.250 individuals and operations are succeeding, but 00:02:19.250 --> 00:02:21.930 how they are actively shaping the future of dairy. 00:02:22.090 --> 00:02:24.389 Right. Providing what the article calls a roadmap 00:02:24.389 --> 00:02:26.469 for what dairy looks like when things get done 00:02:26.469 --> 00:02:28.590 right. And let's be honest, for many of you listening, 00:02:28.729 --> 00:02:30.830 this couldn't be more crucial right now. Couldn't 00:02:30.830 --> 00:02:33.150 agree more. We're seeing corn prices hover around, 00:02:33.289 --> 00:02:37.090 what, $4 .85 a bushel? Yeah, roughly. And bean 00:02:37.090 --> 00:02:40.849 meal. Soybean meal, climbing towards $400 a ton. 00:02:41.340 --> 00:02:44.419 I mean, input costs are just a constant pressure. 00:02:44.539 --> 00:02:47.060 Relentless. So finding efficiencies and forward 00:02:47.060 --> 00:02:50.180 thinking strategies isn't just like a good idea. 00:02:50.280 --> 00:02:54.180 It's essential for survival and for growth. Absolutely 00:02:54.180 --> 00:02:56.539 essential. The author of this piece actually 00:02:56.539 --> 00:02:59.500 had these three distinct kind of serendipitous 00:02:59.500 --> 00:03:02.400 encounters at the expo that sparked this whole 00:03:02.400 --> 00:03:04.719 deep dive. Oh, interesting. Yeah. Suggesting 00:03:04.719 --> 00:03:09.000 there are some truly unique and maybe even counterintuitive 00:03:09.000 --> 00:03:11.539 strategies worth exploring here. And that's precisely 00:03:11.539 --> 00:03:13.979 what makes this deep dive so compelling, I think. 00:03:14.000 --> 00:03:16.659 This isn't merely about celebrating three individual 00:03:16.659 --> 00:03:19.360 success stories or handing out awards. Right. 00:03:19.439 --> 00:03:21.400 It's deeper than that. It's about extracting 00:03:21.400 --> 00:03:24.819 those replicable principles, the core ideas, 00:03:25.039 --> 00:03:27.240 the strategic frameworks behind their innovation, 00:03:27.439 --> 00:03:29.659 their commitment to sustainability, and even 00:03:29.659 --> 00:03:32.039 their approach to industry -wide policy reform. 00:03:32.340 --> 00:03:34.460 Things anyone can potentially use. Exactly. That 00:03:34.460 --> 00:03:36.819 can genuinely benefit any producer, regardless 00:03:36.819 --> 00:03:39.340 of their scale or where they are geographically. 00:03:39.400 --> 00:03:41.449 Why is this? so vital now while you're living 00:03:41.449 --> 00:03:43.650 it every day. We hear it all the time. We're 00:03:43.650 --> 00:03:45.590 all navigating these intensifying environmental 00:03:45.590 --> 00:03:48.550 pressures, right? A tightening labor market that 00:03:48.550 --> 00:03:51.270 makes finding and keeping good help incredibly 00:03:51.270 --> 00:03:54.669 difficult. Oh, yeah. That's a huge one. Ongoing 00:03:54.669 --> 00:03:56.849 market consolidation that keeps shifting the 00:03:56.849 --> 00:03:59.530 competitive landscape. Rapidly shifting consumer 00:03:59.530 --> 00:04:03.189 preferences, demanding more transparency, specific 00:04:03.189 --> 00:04:06.110 attributes. Flexibility, sustainability. All 00:04:06.110 --> 00:04:09.090 of it. And let's not forget increasing climate 00:04:09.090 --> 00:04:11.789 variability that challenges, you know, traditional 00:04:11.789 --> 00:04:14.449 farming practices. It's a perfect storm, really. 00:04:14.689 --> 00:04:16.730 It kind of is. So understanding these proactive 00:04:16.730 --> 00:04:19.649 strategies, learning how to anticipate and shape 00:04:19.649 --> 00:04:22.230 change rather than just, you know, reacting to 00:04:22.230 --> 00:04:24.189 the next fire. Putting out fires constantly. 00:04:24.430 --> 00:04:26.269 Yeah, reacting to the next challenge is more 00:04:26.269 --> 00:04:28.810 vital than ever. So to really get into the nuts 00:04:28.810 --> 00:04:30.250 and bolts of this, we're going to cover three 00:04:30.250 --> 00:04:33.129 main areas from the article. OK. First, the McCarty 00:04:33.129 --> 00:04:35.329 family's large scale operational efficiency. 00:04:35.920 --> 00:04:38.860 And they're a pretty groundbreaking approach 00:04:38.860 --> 00:04:41.139 to people management. OK. The McCarty's first. 00:04:41.420 --> 00:04:44.360 Second, we'll dive into the cutting edge of genetic 00:04:44.360 --> 00:04:46.879 and feed technology with Juan Moreno. Genetics 00:04:46.879 --> 00:04:49.379 and feed. Got it. And finally, we'll look at 00:04:49.379 --> 00:04:52.079 the often overlooked but incredibly important 00:04:52.079 --> 00:04:55.420 realm of industry policy through the lens of 00:04:55.420 --> 00:04:58.259 Jim Mulhern's extensive work. Policy. Right. 00:04:58.399 --> 00:05:00.879 Often the least glamorous, but maybe the most 00:05:00.879 --> 00:05:03.379 impactful sometimes. Could be. Consider these 00:05:03.379 --> 00:05:07.240 like three pillars of a resilient and prosperous 00:05:07.240 --> 00:05:10.480 dairy future. OK, let's dive right into our first 00:05:10.480 --> 00:05:13.180 pillar of that roadmap then. Let's focus on what 00:05:13.180 --> 00:05:15.860 we're calling the McCarty method, redefining 00:05:15.860 --> 00:05:18.639 family dairy and operational efficiency. That's 00:05:18.639 --> 00:05:20.379 good. So when we talk about the McCarty family, 00:05:20.540 --> 00:05:23.180 these are folks recognized at World Dairy Expo 00:05:23.180 --> 00:05:26.439 operating this. I mean. Truly impressive multi 00:05:26.439 --> 00:05:29.920 -state enterprise milking a staggering 20 ,000 00:05:29.920 --> 00:05:32.980 cows. 20 ,000? That's serious scale. It really 00:05:32.980 --> 00:05:35.379 is. And, get this, they're successfully bringing 00:05:35.379 --> 00:05:37.399 their fifth generation into the business. Fifth 00:05:37.399 --> 00:05:39.439 generation, wow. Now, what's truly remarkable 00:05:39.439 --> 00:05:41.980 here and what the article really emphasizes is 00:05:41.980 --> 00:05:44.939 that stark contrast to conventional wisdom. Most 00:05:44.939 --> 00:05:48.480 family farms, as the stats sadly show, they struggle 00:05:48.480 --> 00:05:50.500 to make it past the second generation. It's a 00:05:50.500 --> 00:05:53.079 tough transition, very tough. The McCartys aren't 00:05:53.079 --> 00:05:55.870 just defying that. They're absolutely shattering 00:05:55.870 --> 00:05:59.670 it. But honestly, the numbers that really grabbed 00:05:59.670 --> 00:06:01.629 my attention in the article weren't even the 00:06:01.629 --> 00:06:04.389 cow counts or the generations. Oh, what was it? 00:06:04.449 --> 00:06:07.209 It was their exceptional employee retention rates. 00:06:07.509 --> 00:06:10.750 Ah, yes. That stood out to me, too. For an industry 00:06:10.750 --> 00:06:13.689 grappling with labor shortages and, you know, 00:06:13.709 --> 00:06:17.670 crazy high turnover. That, to me, is the real 00:06:17.670 --> 00:06:20.490 aha moment. Definitely. It's an indicator of 00:06:20.490 --> 00:06:22.829 something really profound happening within their 00:06:22.829 --> 00:06:26.029 operations, something systemic. And you are absolutely 00:06:26.029 --> 00:06:28.310 right to home in on that because the significance 00:06:28.310 --> 00:06:30.250 of their employee retention, well, it just cannot 00:06:30.250 --> 00:06:32.769 be overstated. Right. In an industry notoriously 00:06:32.769 --> 00:06:35.850 plagued by high turnover, we often see rates, 00:06:35.889 --> 00:06:38.649 what, well above 20, 30 percent annually, sometimes 00:06:38.649 --> 00:06:41.910 higher. Easily. The McCartys have achieved something. 00:06:42.240 --> 00:06:44.660 Truly foundational to their success. We're talking 00:06:44.660 --> 00:06:47.399 employees staying for 10, 15, even 25 years. 00:06:47.500 --> 00:06:51.480 25 years. On a dairy? Yeah. That's not just rare. 00:06:51.579 --> 00:06:53.420 It's almost unheard of for an operation of that 00:06:53.420 --> 00:06:56.600 size. So how? What's the secret sauce? Well, 00:06:56.639 --> 00:06:59.060 the article details their DIRT principles. That's 00:06:59.060 --> 00:07:03.540 D -I -R -T. Dedication, integrity, respect, teamwork. 00:07:04.000 --> 00:07:08.519 Okay, D -R -T. Sounds a bit... It might sound 00:07:08.519 --> 00:07:10.980 like standard corporate values you'd find on 00:07:10.980 --> 00:07:13.300 a poster, you know, in any boardroom. Right. 00:07:13.439 --> 00:07:16.480 Wall art. Exactly. But what's truly insightful 00:07:16.480 --> 00:07:19.259 is how the McCarty's seem to operationalize them. 00:07:19.420 --> 00:07:21.660 It's not just words on a wall. Okay. How so? 00:07:21.839 --> 00:07:24.360 The article hints at this deeply embedded culture 00:07:24.360 --> 00:07:27.699 of internal mentorship. Senior employees actively 00:07:27.699 --> 00:07:30.899 training and empowering new hires. So passing 00:07:30.899 --> 00:07:33.000 down the knowledge. And fostering this collective 00:07:33.000 --> 00:07:35.420 ownership. It's not just about a paycheck. It 00:07:35.420 --> 00:07:37.699 seems they build a shared purpose. This creates 00:07:37.699 --> 00:07:40.399 a feedback loop where respect and teamwork, they 00:07:40.399 --> 00:07:42.639 naturally reduce friction, improve communication. 00:07:43.079 --> 00:07:45.399 It ultimately boosts efficiency, I bet. Precisely. 00:07:45.399 --> 00:07:47.720 For instance, the article specifically notes 00:07:47.720 --> 00:07:49.879 that most of their processing plant team, they've 00:07:49.879 --> 00:07:51.740 been with them since the facility opened back 00:07:51.740 --> 00:07:54.500 in 2012. That's over a decade of the same core 00:07:54.500 --> 00:07:57.100 team. Think about the cumulative effect of that 00:07:57.100 --> 00:08:02.139 dedication, 10, 15, 25 years. Compounds into 00:08:02.139 --> 00:08:04.379 this institutional knowledge base that's incredibly 00:08:04.379 --> 00:08:07.240 difficult for competitors to replicate. Like 00:08:07.240 --> 00:08:09.939 an internal competitive advantage. Totally. And 00:08:09.939 --> 00:08:12.600 if we connect this to the broader picture, research 00:08:12.600 --> 00:08:14.360 from I think it was the University of Wisconsin 00:08:14.360 --> 00:08:17.800 Extension on dairy workforce management. It actually 00:08:17.800 --> 00:08:21.279 shows operations with stable long term workforces 00:08:21.279 --> 00:08:24.500 exhibit between 18 and 23 percent better productivity 00:08:24.500 --> 00:08:27.920 metrics. 18 to 23 percent. That's massive. It 00:08:27.920 --> 00:08:30.439 is. We're talking. milk per cow, feed efficiency, 00:08:30.839 --> 00:08:33.639 animal health outcomes, better than operations 00:08:33.639 --> 00:08:36.139 constantly training new people. So it's not just 00:08:36.139 --> 00:08:38.100 about being a nice place to work. Not at all. 00:08:38.159 --> 00:08:39.580 This isn't just about being a good employer. 00:08:39.679 --> 00:08:41.659 It fundamentally underscores that investing in 00:08:41.659 --> 00:08:45.120 your human capital pays very measurable, very 00:08:45.120 --> 00:08:47.559 significant dividends to your bottom line. Right. 00:08:47.639 --> 00:08:49.919 Far beyond just saving on recruitment costs. 00:08:50.080 --> 00:08:52.299 It's a strategic business advantage, period. 00:08:52.559 --> 00:08:55.259 It absolutely is. It's not just a feel good story. 00:08:55.399 --> 00:08:58.139 It's deeply strategic. But look, for many listening, 00:08:58.279 --> 00:09:00.559 that level of employee retention, especially 00:09:00.559 --> 00:09:03.539 in this industry, it sounds almost mythical. 00:09:03.700 --> 00:09:06.379 Like how? Yeah, it does seem almost too good 00:09:06.379 --> 00:09:09.529 to be true. What specific elements from the article 00:09:09.529 --> 00:09:12.629 help explain how they sustain that kind of commitment 00:09:12.629 --> 00:09:16.690 beyond just the DRT acronym? Does it mention 00:09:16.690 --> 00:09:21.519 specific practices, benefits, training? That's 00:09:21.519 --> 00:09:23.820 a critical question. While the article doesn't 00:09:23.820 --> 00:09:27.399 maybe lay out a full HR manual, it strongly implies 00:09:27.399 --> 00:09:29.519 that the D -ART principles are backed by robust 00:09:29.519 --> 00:09:32.240 systems. For example, respect isn't just a word. 00:09:32.320 --> 00:09:34.559 The implication is that it translates into competitive 00:09:34.559 --> 00:09:37.220 wages, comprehensive benefits, clear pathways 00:09:37.220 --> 00:09:39.419 for advancement, you know, real career potential. 00:09:39.659 --> 00:09:41.960 Okay, so tangible benefits, not just talk. Exactly. 00:09:42.399 --> 00:09:44.639 Teamwork likely means clearly defined rules, 00:09:44.919 --> 00:09:46.779 opportunities for cross -training, collaborative 00:09:46.779 --> 00:09:49.159 problem -solving environments, places where people 00:09:49.159 --> 00:09:51.320 feel safe contributing. Psychological safety, 00:09:51.480 --> 00:09:54.159 yeah. Important. And dedication seems to be reciprocated 00:09:54.159 --> 00:09:56.539 by the company actively investing in employee 00:09:56.539 --> 00:09:59.080 development, growing their skills. A two -way 00:09:59.080 --> 00:10:02.059 street. Precisely. The article also touches upon 00:10:02.059 --> 00:10:05.539 their transparent communication. Employees understand 00:10:05.539 --> 00:10:08.600 the why behind decisions, not just the what. 00:10:09.240 --> 00:10:13.159 Context matters. Hugely. This means less resistance 00:10:13.159 --> 00:10:15.679 to change, probably, because the team feels like 00:10:15.679 --> 00:10:18.159 part of the solution, not just cogs in a machine. 00:10:18.340 --> 00:10:21.259 This continuous investment in clear communication 00:10:21.259 --> 00:10:23.940 are what transform those buzzwords into lived 00:10:23.940 --> 00:10:26.840 values, cementing that long -term commitment. 00:10:27.159 --> 00:10:28.879 That makes perfect sense. They've really built 00:10:28.879 --> 00:10:30.500 a culture where the principles are embodied. 00:10:31.279 --> 00:10:34.179 Okay, and speaking of strategic innovation, let's 00:10:34.179 --> 00:10:36.429 talk about their... on -farm processing plant. 00:10:36.570 --> 00:10:38.970 Oh yeah, this part is fascinating. This is where 00:10:38.970 --> 00:10:41.090 things get really intriguing, maybe even a little 00:10:41.090 --> 00:10:43.250 bit mind -bending. When I first read about their 00:10:43.250 --> 00:10:45.929 processing facility and the claim from Ken McCarty 00:10:45.929 --> 00:10:49.049 that they're processing 2 .2 million pounds of 00:10:49.049 --> 00:10:53.169 milk daily. 2 .2 million pounds daily. And achieving 00:10:53.169 --> 00:10:56.610 a 75 % reduction in transportation needs. My 00:10:56.610 --> 00:10:58.350 initial thought, and the article's author shared 00:10:58.350 --> 00:11:01.870 this sentiment, was just skepticism. Like how? 00:11:02.070 --> 00:11:04.139 How is that even physically possible? It's a 00:11:04.139 --> 00:11:05.980 perfectly natural reaction, right? It sounds 00:11:05.980 --> 00:11:08.840 almost like magic. It does. My brain immediately 00:11:08.840 --> 00:11:12.059 went to logistics, weight, volume. But if we 00:11:12.059 --> 00:11:14.779 connect this to the broader picture of supply 00:11:14.779 --> 00:11:17.559 chain economics, the math actually starts to 00:11:17.559 --> 00:11:19.480 make a lot of sense. Okay, break it down for 00:11:19.480 --> 00:11:22.799 us. So USDA Agricultural Marketing Service data 00:11:22.799 --> 00:11:25.120 shows that transportation typically accounts 00:11:25.120 --> 00:11:28.500 for, what, 8 to 12 percent of total milk marketing 00:11:28.500 --> 00:11:31.080 costs, sometimes more depending on distance. 00:11:31.340 --> 00:11:34.000 Okay, a significant chunk. Yeah. The McCarty's 00:11:34.000 --> 00:11:37.419 aren't just moving raw fluid milk like most farms 00:11:37.419 --> 00:11:39.840 do. They're condensing it before shipping it 00:11:39.840 --> 00:11:42.220 to Danone, their partner. Condensing it, like 00:11:42.220 --> 00:11:44.740 evaporating water. Exactly. Think of it like 00:11:44.740 --> 00:11:46.840 making concentrate for orange juice, but with 00:11:46.840 --> 00:11:49.440 milk. They're essentially removing a significant 00:11:49.440 --> 00:11:52.840 portion, specifically about 75 % of the water 00:11:52.840 --> 00:11:55.519 from the raw milk. 75 % of the water gone. Right. 00:11:55.720 --> 00:11:58.299 Which drastically reduces its volume and weight. 00:11:58.700 --> 00:12:01.460 This milk concentrate is then shipped, and the 00:12:01.460 --> 00:12:04.200 water can be added back later at the Danone processing 00:12:04.200 --> 00:12:07.279 plant. Ah, okay, so you're shipping less water. 00:12:07.720 --> 00:12:11.019 Precisely. This significantly reduces water weight, 00:12:11.159 --> 00:12:13.820 which translates directly into meeting fewer 00:12:13.820 --> 00:12:17.580 trucks on the road, fewer trips, less fuel, reduced 00:12:17.580 --> 00:12:20.240 labor for drivers, a smaller carbon footprint. 00:12:20.460 --> 00:12:23.019 Wow, the savings must be huge. And beyond the 00:12:23.019 --> 00:12:25.620 obvious transportation savings, this strategy 00:12:25.620 --> 00:12:28.159 also allows for much tighter quality control 00:12:28.159 --> 00:12:31.320 earlier in the chain. They know the quality before 00:12:31.320 --> 00:12:33.440 it leaves the farm gate in bulk. Which is invaluable 00:12:33.440 --> 00:12:35.860 for a premium product, yeah. Definitely. And 00:12:35.860 --> 00:12:37.820 that real -time feedback benefit you mentioned. 00:12:38.299 --> 00:12:40.799 That's just incredible. Imagine on your own farm 00:12:40.799 --> 00:12:43.580 getting component results back within hours instead 00:12:43.580 --> 00:12:46.159 of days. Game changer. Total game changer. That 00:12:46.159 --> 00:12:48.740 means you can make immediate, precise ration 00:12:48.740 --> 00:12:51.879 adjustments, optimizing feed efficiency, animal 00:12:51.879 --> 00:12:54.740 health, with a responsiveness most farms can 00:12:54.740 --> 00:12:57.539 only dream of. Think about it. If your butterfat 00:12:57.539 --> 00:12:59.820 or protein levels dip, you know it almost instantly. 00:12:59.980 --> 00:13:02.340 Yeah. You can tweak the diet of specific pens 00:13:02.340 --> 00:13:04.720 to bring them back into line before it significantly 00:13:04.720 --> 00:13:07.159 impacts your overall production or your component 00:13:07.159 --> 00:13:09.539 premiums on the milk check. That's a huge competitive 00:13:09.539 --> 00:13:12.120 advantage. Yeah. That level of micromanagement 00:13:12.120 --> 00:13:15.480 and optimization, it translates directly to profitability. 00:13:15.919 --> 00:13:18.379 Precisely. That immediate data loop is, well, 00:13:18.419 --> 00:13:20.740 it's revolutionary for on -farm management. What? 00:13:21.159 --> 00:13:24.740 Ah, yes, the but. This raises the important question, 00:13:24.879 --> 00:13:28.159 which the article rightly addresses as a reality 00:13:28.159 --> 00:13:31.559 check. While the benefits are undeniably clear, 00:13:31.759 --> 00:13:34.419 impressive even, building a processing plant 00:13:34.419 --> 00:13:37.940 like this, that requires massive capital investment. 00:13:38.480 --> 00:13:40.519 Massive is the right word. We're talking anywhere 00:13:40.519 --> 00:13:44.320 from, what, $5 to $15 million up front? Easily 00:13:44.320 --> 00:13:46.519 more, depending on the bells and whistles. Five 00:13:46.519 --> 00:13:49.120 to 15 million. Wow. And payback periods typically 00:13:49.120 --> 00:13:51.820 stretching between seven and 10 years, maybe 00:13:51.820 --> 00:13:54.059 longer. And that's just the build cost. Right. 00:13:54.120 --> 00:13:55.679 Doesn't even account for the ongoing operational 00:13:55.679 --> 00:13:58.039 costs. The specialized labor needed to run a 00:13:58.039 --> 00:14:00.720 food grade facility or the complex regulatory 00:14:00.720 --> 00:14:03.360 hurdles involved in food processing. That's a 00:14:03.360 --> 00:14:05.720 whole different ballgame. So for the vast majority 00:14:05.720 --> 00:14:08.340 of operations out there, especially those milking 00:14:08.340 --> 00:14:12.340 fewer than, say, a few thousand cows, this specific 00:14:12.340 --> 00:14:15.250 model. It just isn't feasible. Realistically, 00:14:15.409 --> 00:14:18.190 no. The financial barrier, the logistical complexity, 00:14:18.529 --> 00:14:22.350 it's just too high for most. And that's a crucial 00:14:22.350 --> 00:14:24.970 point for our listeners. You read this and think, 00:14:25.049 --> 00:14:27.690 wow, that's amazing, but I could never do that. 00:14:27.769 --> 00:14:31.110 Right. It can feel discouraging. So the question 00:14:31.110 --> 00:14:34.710 becomes, what is scalable from the McCarty's 00:14:34.710 --> 00:14:37.250 processing innovation? What can you take away 00:14:37.250 --> 00:14:39.549 from their approach, even if you're milking 200 00:14:39.549 --> 00:14:43.149 cows instead of 20 ,000 and don't have a multimillion 00:14:43.149 --> 00:14:45.429 -dollar plant in your future? Excellent question. 00:14:45.649 --> 00:14:48.470 And this is where the deeper insights lie, I 00:14:48.470 --> 00:14:50.809 believe. While the physical plant might be out 00:14:50.809 --> 00:14:53.350 of reach for many, their philosophy and their 00:14:53.350 --> 00:14:56.350 methodology are highly scalable. Okay. How so? 00:14:56.509 --> 00:14:59.009 What you can absolutely emulate are their methods 00:14:59.009 --> 00:15:01.490 for data standardization and employee management. 00:15:01.690 --> 00:15:03.250 Those are the foundations of that efficiency. 00:15:03.570 --> 00:15:06.269 Standardization of people. Exactly. You do not 00:15:06.269 --> 00:15:08.529 need a multimillion -dollar processing plant 00:15:08.529 --> 00:15:10.830 to implement consistent protocols across your 00:15:10.830 --> 00:15:13.870 operation. From feeding schedules to milking 00:15:13.870 --> 00:15:18.090 routines to calf care, establish clear standard 00:15:18.090 --> 00:15:21.470 operating procedures, SOPs, for every key task. 00:15:21.769 --> 00:15:24.769 Train your employees thoroughly on those SOPs. 00:15:24.769 --> 00:15:27.789 And then measure performance consistently. Track 00:15:27.789 --> 00:15:30.309 the same metrics the same way. Consistency is 00:15:30.309 --> 00:15:33.429 key. It drives efficiency. And just as importantly, 00:15:33.669 --> 00:15:35.950 that deep investment in your people we talked 00:15:35.950 --> 00:15:37.990 about earlier. Back to the dirt principles. Back 00:15:37.990 --> 00:15:40.590 to the dirt principles, exactly. The McCarty 00:15:40.590 --> 00:15:43.350 successes build on their team, not just their 00:15:43.350 --> 00:15:45.809 technology. Investing in competitive compensation, 00:15:46.330 --> 00:15:49.029 professional development, a culture of respect 00:15:49.029 --> 00:15:52.149 that will yield similar returns in employee retention 00:15:52.149 --> 00:15:54.590 and productivity, even on a much smaller scale. 00:15:54.809 --> 00:15:56.919 So focus on the systems and the culture. Those 00:15:56.919 --> 00:15:59.080 are universal principles for efficiency, for 00:15:59.080 --> 00:16:01.620 longevity, for building a truly resilient operation, 00:16:01.879 --> 00:16:04.179 regardless of size. That's a powerful distinction, 00:16:04.360 --> 00:16:06.559 separating the specific innovation, the shiny 00:16:06.559 --> 00:16:09.139 object, from the underlying principles. That 00:16:09.139 --> 00:16:11.039 really is a roadmap for efficiency right there. 00:16:11.139 --> 00:16:13.100 I think so. Now, moving on from the operational 00:16:13.100 --> 00:16:16.740 side, the article also spotlights the McCarty's 00:16:16.740 --> 00:16:19.639 impressive sustainability story. This really 00:16:19.639 --> 00:16:21.629 caught the author's attention. And ours, too. 00:16:21.750 --> 00:16:24.409 It really is inspiring, and it's another testament 00:16:24.409 --> 00:16:26.409 to their forward -thinking approach. They didn't 00:16:26.409 --> 00:16:28.210 just wait for regulations. They got ahead of 00:16:28.210 --> 00:16:30.549 it. Where did they start? Well, the article highlights 00:16:30.549 --> 00:16:33.429 this sand reclamation system developed in collaboration 00:16:33.429 --> 00:16:36.470 with Kansas State University. Sand bedding reclamation. 00:16:36.710 --> 00:16:39.649 Yeah. For those unfamiliar, sand is a great bedding 00:16:39.649 --> 00:16:42.169 material, comfortable for cows, inorganic, so 00:16:42.169 --> 00:16:44.649 less bacteria growth. But it can be expensive 00:16:44.649 --> 00:16:46.970 and tricky to manage in manure systems. Right. 00:16:47.029 --> 00:16:49.750 It settles out. It's heavy. Exactly. Their system 00:16:49.750 --> 00:16:53.450 is engineered to capture an astounding 97 % of 00:16:53.450 --> 00:16:56.009 their bedding material for reuse. 97%. Think 00:16:56.009 --> 00:16:58.309 about that. It's not just about keeping barns 00:16:58.309 --> 00:17:01.210 clean. It's about significant resource savings. 00:17:01.529 --> 00:17:04.150 Right. Imagine almost completely eliminating 00:17:04.150 --> 00:17:06.910 the need to purchase new sand. That's a huge 00:17:06.910 --> 00:17:09.970 input cost reduction. And it drastically reduces 00:17:09.970 --> 00:17:13.190 the volume of manure solids that need to be handled 00:17:13.190 --> 00:17:16.230 and transported. It's a major win -win. Environment 00:17:16.230 --> 00:17:18.619 and balance sheet. And it goes further than just 00:17:18.619 --> 00:17:20.720 bedding, right? The article mentions cover crops, 00:17:20.859 --> 00:17:24.519 too. Indeed. They've adopted cover crops on 95 00:17:24.519 --> 00:17:29.180 % of their Ohio acres. 95%. Wow. What's typical? 00:17:29.440 --> 00:17:32.339 To put that in perspective, USDA data suggests 00:17:32.339 --> 00:17:35.099 typical Midwest adoption rates are more in the 00:17:35.099 --> 00:17:38.400 range of 15 to 20%. So they are way ahead of 00:17:38.400 --> 00:17:41.059 the curve. Way ahead. Cover crops, just as a 00:17:41.059 --> 00:17:43.640 quick refresher for anyone, are planted primarily 00:17:43.640 --> 00:17:46.779 to manage soil erosion, improve soil health, 00:17:46.940 --> 00:17:50.579 enhance water infiltration, smother weeds, help 00:17:50.579 --> 00:17:54.059 with pest control. Lots of benefits. Tons. By 00:17:54.059 --> 00:17:56.900 covering nearly all their acres, they're significantly 00:17:56.900 --> 00:17:59.980 improving soil organic matter, reducing nutrient 00:17:59.980 --> 00:18:02.400 runoff into waterways, which is huge environmentally, 00:18:02.740 --> 00:18:05.460 and enhancing the overall resilience and fertility 00:18:05.460 --> 00:18:08.190 of their land. It's a long -term investment in 00:18:08.190 --> 00:18:10.549 the health of their farm ecosystem. Makes sense. 00:18:10.730 --> 00:18:13.069 Plus, their water recycling efforts sound pretty 00:18:13.069 --> 00:18:15.369 advanced, tying back to that on -farm processing. 00:18:15.650 --> 00:18:17.789 Absolutely. It's all connected. The water recycling 00:18:17.789 --> 00:18:19.730 is directly integrated with their condensing 00:18:19.730 --> 00:18:22.049 system. So the water they remove from the milk. 00:18:22.250 --> 00:18:25.069 Right. It's first traded, then repurposed for 00:18:25.069 --> 00:18:27.609 cleaning within the plant. So it replaces freshwater 00:18:27.609 --> 00:18:30.730 use there. And then rather than being discarded 00:18:30.730 --> 00:18:32.990 or needing additional freshwater sources for 00:18:32.990 --> 00:18:36.109 irrigation, that same water is used for irrigation 00:18:36.109 --> 00:18:38.890 on their fields. A truly closed loop system. 00:18:39.009 --> 00:18:42.069 It really is. Minimizes waste, reduces their 00:18:42.069 --> 00:18:44.529 freshwater demand, and efficiently utilizes a 00:18:44.529 --> 00:18:48.200 valuable resource. All these efforts, they underscore 00:18:48.200 --> 00:18:50.680 how proactive sustainability isn't just about 00:18:50.680 --> 00:18:53.180 being green or ticking boxes for compliance. 00:18:53.519 --> 00:18:55.779 It's strategic again. It enhances their social 00:18:55.779 --> 00:18:58.579 license to operate, strengthens their brand reputation 00:18:58.579 --> 00:19:01.839 with partners like Danone, and builds long -term 00:19:01.839 --> 00:19:04.000 resilience against those intensifying environmental 00:19:04.000 --> 00:19:06.299 pressures and potentially stricter regulations 00:19:06.299 --> 00:19:08.599 down the road. So they're building a farm that's 00:19:08.599 --> 00:19:11.099 optimized not just for today, but for decades 00:19:11.099 --> 00:19:13.359 to come. That's exactly how I see it. They're 00:19:13.359 --> 00:19:15.759 shaping their future, not just reacting to it. 00:19:15.900 --> 00:19:17.960 OK, so if the McCarty method shows us the how 00:19:17.960 --> 00:19:20.599 of operational excellence and people management, 00:19:20.839 --> 00:19:23.480 that's one crucial part of our roadmap. Let's 00:19:23.480 --> 00:19:25.579 shift gears to the what? The tool. Yeah. What 00:19:25.579 --> 00:19:27.859 new tools are emerging on the genetics and feed 00:19:27.859 --> 00:19:30.940 front to propel us forward? This leads us perfectly 00:19:30.940 --> 00:19:33.640 to our next segment, focusing on Juan Moreno 00:19:33.640 --> 00:19:36.160 and his incredible work in genetic revolution 00:19:36.160 --> 00:19:39.720 and climate action. Ah, Moreno. Yeah, really 00:19:39.720 --> 00:19:42.160 fascinating stuff here. The article paints this 00:19:42.160 --> 00:19:45.059 vivid picture of him as a genetics pioneer from 00:19:45.059 --> 00:19:48.460 SD Genetics. But what really stands out to me, 00:19:48.500 --> 00:19:51.359 and the article emphasizes this, is his background. 00:19:51.880 --> 00:19:53.839 actually working on a Colombian cattle operation. 00:19:54.039 --> 00:19:56.380 Right. Hands -on experience. It gave him this 00:19:56.380 --> 00:19:59.119 unique, practical, on -the -ground understanding 00:19:59.119 --> 00:20:02.339 of breeding challenges. He's not just a lab scientist 00:20:02.339 --> 00:20:04.839 in an ivory tower. He gets the farm reality. 00:20:05.200 --> 00:20:07.539 That practical background is absolutely key to 00:20:07.539 --> 00:20:09.759 his innovative approach, I think. It means his 00:20:09.759 --> 00:20:11.680 solutions aren't just theoretically brilliant, 00:20:11.720 --> 00:20:13.819 but they're designed with the farmer's real -world 00:20:13.819 --> 00:20:16.640 needs and challenges baked right in. Makes sense. 00:20:16.640 --> 00:20:19.299 Like his sexed semen technology. I mean, total 00:20:19.299 --> 00:20:21.680 game changer, right? Huge. The article notes 00:20:21.680 --> 00:20:25.019 it's now used in about 30 % of worldwide AI sales. 00:20:25.299 --> 00:20:28.220 30 %? Yeah, according to industry tracking. Offering 00:20:28.220 --> 00:20:30.859 over 90 % accuracy in predicting calf gender. 00:20:31.160 --> 00:20:34.349 90 % plus. That's reliable. Extremely reliable. 00:20:34.450 --> 00:20:36.430 And the impact of that technology is profound 00:20:36.430 --> 00:20:38.970 because it fundamentally shifts the economics 00:20:38.970 --> 00:20:41.150 and the strategy of replacement heifer management. 00:20:41.369 --> 00:20:44.809 Oh, so. Instead of breeding cows with, you know, 00:20:44.809 --> 00:20:47.269 basically a coin flip 50 -50 chance of getting 00:20:47.269 --> 00:20:49.509 a bull or a heifer calf. Right. The old way. 00:20:50.130 --> 00:20:52.430 Producers can now strategically breed specifically 00:20:52.430 --> 00:20:56.309 for heifers with over 90 percent accuracy. This 00:20:56.309 --> 00:20:59.410 allows for incredibly targeted breeding programs. 00:20:59.650 --> 00:21:01.369 You get the replacements you want from the cows 00:21:01.369 --> 00:21:04.869 you want. Exactly. Minimizing unwanted male calves, 00:21:05.130 --> 00:21:07.589 reducing the costs associated with raising them, 00:21:07.710 --> 00:21:10.710 and ensuring a consistent supply of replacement 00:21:10.710 --> 00:21:13.690 heifers that are genetically superior, ideally 00:21:13.690 --> 00:21:15.809 from your best dams. It's about precision in 00:21:15.809 --> 00:21:18.230 herd development. Totally. Allowing farmers to 00:21:18.230 --> 00:21:20.930 accelerate genetic progress and optimize their 00:21:20.930 --> 00:21:23.730 herd's future potential far more rapidly than 00:21:23.730 --> 00:21:26.230 ever before. And speaking of precision, that 00:21:26.230 --> 00:21:28.930 brings us to genomic testing. This is the part 00:21:28.930 --> 00:21:30.529 of the article that made the author pull out 00:21:30.529 --> 00:21:33.089 their calculator, apparently. Huh. Yeah. And 00:21:33.089 --> 00:21:35.609 for good reason. Because this is where the financial 00:21:35.609 --> 00:21:38.690 impact truly becomes clear. Let's break down 00:21:38.690 --> 00:21:41.349 those economic benefits. Please do. Genomic testing 00:21:41.349 --> 00:21:44.210 typically costs around, what, $30 to $50 per 00:21:44.210 --> 00:21:46.609 calf? Somewhere in that range. Okay. Seems like 00:21:46.609 --> 00:21:48.950 an upfront expense. It is. But recent research, 00:21:49.049 --> 00:21:50.569 I think it was cited from the Journal of Dairy 00:21:50.569 --> 00:21:54.150 Science, confirms about 76 percent accuracy in 00:21:54.150 --> 00:21:56.730 predicting productive life cycle outcomes. 76 00:21:56.730 --> 00:21:59.569 percent. So three out of four, roughly. Right. 00:21:59.690 --> 00:22:01.670 What that means in practical terms is that for 00:22:01.670 --> 00:22:03.809 three out of four calves you test, you're getting 00:22:03.809 --> 00:22:06.490 a very good, reliable picture of that animal's 00:22:06.490 --> 00:22:08.609 future potential. Potential for what exactly? 00:22:08.869 --> 00:22:11.779 Milk production. Components like fat and protein, 00:22:12.039 --> 00:22:15.380 health traits, fertility, longevity, all the 00:22:15.380 --> 00:22:17.960 key things. And you get this picture at a very 00:22:17.960 --> 00:22:20.720 early age. And those returns are truly significant, 00:22:20.900 --> 00:22:23.220 the article argues. It mentions annual returns 00:22:23.220 --> 00:22:27.059 of $75 to $150 per animal. Per animal, per year. 00:22:27.279 --> 00:22:29.619 Through early identification and, crucially, 00:22:29.799 --> 00:22:32.599 culling individuals with poor genetic quality. 00:22:32.819 --> 00:22:35.619 That culling part is key. Don't just test. Act 00:22:35.619 --> 00:22:37.759 on the data. Right. So for a producer with, let's 00:22:37.759 --> 00:22:41.660 say, a herd of 300 breeding females, doing the 00:22:41.660 --> 00:22:44.859 math quickly, that could translate to an extra 00:22:44.859 --> 00:22:49.640 $22 ,500 to $45 ,000 in the bank each year. Potentially, 00:22:49.640 --> 00:22:52.119 yes. It adds up fast across a herd. That's not 00:22:52.119 --> 00:22:54.099 just real money. That's, like you said, the difference 00:22:54.099 --> 00:22:56.000 between just getting by and investing in new 00:22:56.000 --> 00:22:58.859 equipment or expanding or just having more financial 00:22:58.859 --> 00:23:01.579 peace of mind. It's about making every single 00:23:01.579 --> 00:23:04.430 resource count. Every stall, every pound of feed. 00:23:04.730 --> 00:23:06.849 Identifying your top performers early and avoiding 00:23:06.849 --> 00:23:09.250 that costly two -year investment in an animal 00:23:09.250 --> 00:23:10.910 that just won't pull its weight down the line. 00:23:11.049 --> 00:23:12.950 Yeah, that makes total sense. You're not wasting 00:23:12.950 --> 00:23:15.509 resources on underperformers. And Moreno himself 00:23:15.509 --> 00:23:18.009 makes this really simple, compelling analogy 00:23:18.009 --> 00:23:20.269 in the article. Honestly, I think every producer 00:23:20.269 --> 00:23:22.390 needs to hear this and just let it sink in. Okay, 00:23:22.410 --> 00:23:24.609 what's the analogy? He asks, basically, for the 00:23:24.609 --> 00:23:27.789 first 60 days, a calf costs about $5 per day. 00:23:27.970 --> 00:23:31.309 After that, roughly $2 daily for feed. Simple 00:23:31.309 --> 00:23:33.779 enough. Right. Standard cost. Then he drives 00:23:33.779 --> 00:23:36.559 it home asking, so why wait two years and spend 00:23:36.559 --> 00:23:39.680 $1 ,400 to $1 ,500 to find out a heifer's below 00:23:39.680 --> 00:23:43.099 average when you can spend $30 as a calf and 00:23:43.099 --> 00:23:46.539 know her genetic potential? Wow. But that way, 00:23:46.640 --> 00:23:49.579 it's stark. It's a stark comparison that highlights 00:23:49.579 --> 00:23:52.650 the true cost of delayed decision making. Not 00:23:52.650 --> 00:23:55.109 just in direct expenses, but in lost opportunity. 00:23:55.430 --> 00:23:58.430 You're committing feed, labor, space to an animal 00:23:58.430 --> 00:24:00.930 that might never provide a decent return. What 00:24:00.930 --> 00:24:03.710 a small, upfront investment could redirect those 00:24:03.710 --> 00:24:06.369 resources to your genetically superior animals. 00:24:06.650 --> 00:24:08.859 Exactly. It feels almost like a... penny wise 00:24:08.859 --> 00:24:12.099 pound foolish lesson, doesn't it? Avoid the $30 00:24:12.099 --> 00:24:14.900 test. Spend $1 ,500 finding out the hard way. 00:24:14.960 --> 00:24:17.259 It absolutely is. That analogy really cuts through 00:24:17.259 --> 00:24:20.059 the noise, emphasizes the value of early data. 00:24:20.140 --> 00:24:22.440 Now, OK, while this technology sounds amazing 00:24:22.440 --> 00:24:24.180 and the economics are compelling, there's always 00:24:24.180 --> 00:24:26.240 a but. There's always a but. Ah. The article 00:24:26.240 --> 00:24:28.460 also discusses scalability and some important 00:24:28.460 --> 00:24:31.500 caveats. The economic analysis cited, I think, 00:24:31.500 --> 00:24:33.579 from Cornell Cooperative Extension. Right. It 00:24:33.579 --> 00:24:36.299 shows. Those positive returns from genomic testing 00:24:36.299 --> 00:24:39.859 typically emerge within 18 to 24 months for operations 00:24:39.859 --> 00:24:43.099 managing 500 or more breeding female. 500 plus, 00:24:43.299 --> 00:24:45.579 okay. So it's not necessarily a universal fit 00:24:45.579 --> 00:24:47.819 right out of the gate, at least not yet for everyone. 00:24:48.200 --> 00:24:50.599 This raises that important question for smaller 00:24:50.599 --> 00:24:53.480 operations. When does it make sense to implement 00:24:53.480 --> 00:24:56.819 this or does it ever? The article acknowledges 00:24:56.819 --> 00:24:59.960 that for farms with fewer than, say, 200 cows, 00:25:00.339 --> 00:25:02.920 the benefits of genomic testing, while still 00:25:02.920 --> 00:25:05.839 present genetically, they may not immediately 00:25:05.839 --> 00:25:08.539 outweigh the costs unless you first make significant 00:25:08.539 --> 00:25:10.500 improvements in other foundational management 00:25:10.500 --> 00:25:13.440 areas. Like what? Could be things like perfecting 00:25:13.440 --> 00:25:16.599 your AI program, ensuring really robust calf 00:25:16.599 --> 00:25:19.210 health protocols. calls, optimizing your feeding 00:25:19.210 --> 00:25:21.789 strategies to maximize the potential you already 00:25:21.789 --> 00:25:24.390 have in the herd. The basics right first. Exactly. 00:25:24.650 --> 00:25:27.529 The idea is that genomic testing amplifies good 00:25:27.529 --> 00:25:30.309 management. It doesn't replace it. So for a smaller 00:25:30.309 --> 00:25:32.829 operation, ensuring those basics are rock solid 00:25:32.829 --> 00:25:35.210 might provide more immediate and significant 00:25:35.210 --> 00:25:38.460 ROI before layering on genomics. That makes sense. 00:25:38.579 --> 00:25:41.059 It's not a silver bullet, but a powerful tool 00:25:41.059 --> 00:25:44.000 when integrated into an already well -managed 00:25:44.000 --> 00:25:46.700 system. Precisely. Strategic implementation is 00:25:46.700 --> 00:25:48.720 key. Okay, strategic implementation. Got it. 00:25:49.049 --> 00:25:52.069 Now, moving on, we absolutely have to talk about 00:25:52.069 --> 00:25:55.710 his Ecofeed innovation. Ah, Ecofeed. This sounds 00:25:55.710 --> 00:25:58.769 truly groundbreaking and directly addresses climate 00:25:58.769 --> 00:26:01.589 action, which is a growing concern and pressure 00:26:01.589 --> 00:26:03.730 point for the industry. Huge pressure point. 00:26:03.890 --> 00:26:06.349 It recently won the 2024 International Dairy 00:26:06.349 --> 00:26:08.829 Federation's Innovation in Climate Action Award. 00:26:09.029 --> 00:26:11.589 That's a massive honor. And deservedly so, I 00:26:11.589 --> 00:26:14.099 think, given its potential impact. What's really 00:26:14.099 --> 00:26:16.579 compelling here about Ecofeed is its dual benefit. 00:26:16.819 --> 00:26:18.940 Okay. It targets feed efficiency improvements 00:26:18.940 --> 00:26:22.279 of 8 % to 10%. 8 % to 10 % better feed efficiency. 00:26:22.380 --> 00:26:25.559 That's significant. It is. Now, connect this 00:26:25.559 --> 00:26:27.859 to the bigger picture. Feed represents about 00:26:27.859 --> 00:26:30.579 55 % of most operations' total costs, right? 00:26:30.640 --> 00:26:32.720 Yeah, easily the biggest chunk. So even modest 00:26:32.720 --> 00:26:35.859 improvements in efficiency, like 8%, 10%, translate 00:26:35.859 --> 00:26:38.660 into truly significant savings on the input side. 00:26:38.920 --> 00:26:42.079 Less feed purchased, lower costs. That alone 00:26:42.079 --> 00:26:44.339 is huge for the bottom line. But critically, 00:26:44.579 --> 00:26:47.440 these improvements also lead directly to a reduced 00:26:47.440 --> 00:26:49.720 environmental footprint. How does that work? 00:26:49.880 --> 00:26:52.180 Ecofeed apparently works by enhancing the cow's 00:26:52.180 --> 00:26:54.920 gut microbiome and nutrient absorption. So the 00:26:54.920 --> 00:26:57.579 cow gets more out of every bite. Okay. Which 00:26:57.579 --> 00:27:00.380 means less waste coming out the back end and 00:27:00.380 --> 00:27:03.500 importantly, reduced methane emissions. Methane 00:27:03.500 --> 00:27:06.460 being a major greenhouse gas from cattle. Right. 00:27:06.759 --> 00:27:09.400 Less waste, less methane. So for you, the producer, 00:27:09.619 --> 00:27:12.099 that means not only substantial cost savings 00:27:12.099 --> 00:27:15.140 on your largest expense, but also a tangible 00:27:15.140 --> 00:27:17.680 contribution to reducing your operation's environmental 00:27:17.680 --> 00:27:20.759 impact. Which is increasingly valuable for consumer 00:27:20.759 --> 00:27:23.859 perception, supply chain demands, regulatory 00:27:23.859 --> 00:27:26.420 compliance. All of the above. It's a win -win. 00:27:26.539 --> 00:27:29.720 Bottom line and sustainability. Working together. 00:27:29.859 --> 00:27:31.819 That's the sweet spot everyone's looking for. 00:27:32.680 --> 00:27:35.099 And this leads us perfectly to Moreno's fascinating 00:27:35.099 --> 00:27:38.079 regional adaptation philosophy. This really struck 00:27:38.079 --> 00:27:39.960 me. He's quoted in the article saying, and this 00:27:39.960 --> 00:27:44.559 is direct quote, Yeah, that's a bold statement. 00:27:44.799 --> 00:27:47.220 Especially from a genetics pioneer who is literally 00:27:47.220 --> 00:27:50.640 developing the future of dairy genetics. Why 00:27:50.640 --> 00:27:52.140 does he feel that way? What does he mean by that? 00:27:52.599 --> 00:27:54.920 It's a profound statement, isn't it? It challenges 00:27:54.920 --> 00:27:57.940 this long -held industry ideal, the quest for 00:27:57.940 --> 00:28:00.599 the one perfect animal, and it speaks directly 00:28:00.599 --> 00:28:03.660 to the need for tailored solutions in genetics. 00:28:04.079 --> 00:28:07.519 Okay. Tailored how? What's fascinating here is 00:28:07.519 --> 00:28:10.000 his deep understanding that farmers have wildly 00:28:10.000 --> 00:28:12.019 different priorities based on their specific 00:28:12.019 --> 00:28:16.160 situation, location, climate, resources, their 00:28:16.160 --> 00:28:19.559 specific markets. Right. Dairy isn't monolithic. 00:28:19.779 --> 00:28:22.650 Not at all. The super cow concept often implies 00:28:22.650 --> 00:28:26.049 this one size fits all genetic package, usually 00:28:26.049 --> 00:28:28.970 laser focused on maximum milk production above 00:28:28.970 --> 00:28:31.589 all else. Get to pump out the volume. Yeah. But 00:28:31.589 --> 00:28:34.269 Moreno argues this overlooks crucial regional 00:28:34.269 --> 00:28:36.910 needs. For example, if you're farming in the 00:28:36.910 --> 00:28:39.349 southeast U .S. where heat stress is a constant 00:28:39.349 --> 00:28:42.109 battle for months on end. Brutal heat and humidity. 00:28:42.539 --> 00:28:44.720 Right. Genetic markers for heat tolerance might 00:28:44.720 --> 00:28:46.960 be far more valuable to you than an extra hundred 00:28:46.960 --> 00:28:49.000 pounds of milk from a cow that just wilts and 00:28:49.000 --> 00:28:51.259 crashes reproduction in the summer. That cow 00:28:51.259 --> 00:28:53.420 isn't super for that environment. Good point. 00:28:53.599 --> 00:28:56.559 Context matters. Or if you're a producer running 00:28:56.559 --> 00:28:59.279 a pasture -based system, maybe in New Zealand 00:28:59.279 --> 00:29:02.700 or Ireland or parts of the U .S., prioritizing 00:29:02.700 --> 00:29:05.519 grazing efficiency, feed conversion on forage, 00:29:05.539 --> 00:29:08.460 maybe foot and leg health, that will yield the 00:29:08.460 --> 00:29:11.349 best returns for you. even if it means slightly 00:29:11.349 --> 00:29:13.950 lower peak milk numbers compared to a confinement 00:29:13.950 --> 00:29:17.210 cow. Match the cow to the system. Exactly. And 00:29:17.210 --> 00:29:19.289 if you're supplying a niche market that values 00:29:19.289 --> 00:29:22.069 high protein or butterfat for cheese or specialty 00:29:22.069 --> 00:29:25.009 products, then component quality becomes your 00:29:25.009 --> 00:29:27.849 primary focus for selection. So his philosophy 00:29:27.849 --> 00:29:30.390 emphasizes adapting the technology, especially 00:29:30.390 --> 00:29:33.490 genetics, to your specific conditions. Rather 00:29:33.490 --> 00:29:37.269 than chasing some mythical perfect cow that might 00:29:37.269 --> 00:29:39.650 not even be perfect for your farm, it's about 00:29:39.650 --> 00:29:41.890 optimizing for your unique environment and your 00:29:41.890 --> 00:29:44.170 market, making sure the technology serves. your 00:29:44.170 --> 00:29:47.170 specific goals. So it's about intelligent, purpose 00:29:47.170 --> 00:29:50.390 -driven genetics, not just blindly chasing raw 00:29:50.390 --> 00:29:52.509 production numbers. That's a really critical 00:29:52.509 --> 00:29:55.069 distinction for any farmer considering genetic 00:29:55.069 --> 00:29:57.329 investments. Absolutely. It's about being strategic 00:29:57.329 --> 00:30:00.410 with your genetic dollars. Okay, so we've explored 00:30:00.410 --> 00:30:03.609 operational excellence with the McCartys that 00:30:03.609 --> 00:30:06.730 focus on systems and people. We've looked at 00:30:06.730 --> 00:30:09.710 cutting -edge genetic and feed innovation with 00:30:09.710 --> 00:30:12.410 Juan Moreno, tailoring tech to specific needs. 00:30:13.069 --> 00:30:15.369 Now, what does this all mean for the big picture? 00:30:15.890 --> 00:30:19.269 The industry stability, the policy framework 00:30:19.269 --> 00:30:22.150 that underpins everything. Yeah, the scaffolding 00:30:22.150 --> 00:30:24.829 that holds it all up in a way. Right. Let's turn 00:30:24.829 --> 00:30:26.710 our attention to our third segment, focusing 00:30:26.710 --> 00:30:29.130 on Jim Mulhern, whom the article aptly calls 00:30:29.130 --> 00:30:32.549 the policy architect who built the dairy safety 00:30:32.549 --> 00:30:35.190 net. A fitting title. You know, you might not 00:30:35.190 --> 00:30:37.289 know Jim Mulhern's name personally. Probably 00:30:37.289 --> 00:30:39.529 most producers don't, day to day. But I guarantee 00:30:39.529 --> 00:30:41.650 you, you've likely felt the positive impact of 00:30:41.650 --> 00:30:43.930 his work on your operation at some point. 45 00:30:43.930 --> 00:30:46.849 years in dairy policy, most recently CEO of the 00:30:46.849 --> 00:30:49.430 National Milk Producers Federation. His fingerprints 00:30:49.430 --> 00:30:52.069 are all over the programs and reforms that, I 00:30:52.069 --> 00:30:54.589 mean, literally kept operations running during 00:30:54.589 --> 00:30:56.849 the worst market downturns. It's a significant 00:30:56.849 --> 00:31:00.049 legacy, often unheralded, maybe outside of policy 00:31:00.049 --> 00:31:03.170 circles, but deeply impactful for every producer 00:31:03.170 --> 00:31:05.190 on the ground. Absolutely. So what are some key 00:31:05.190 --> 00:31:07.609 examples? Well, a key highlight from the article 00:31:07.609 --> 00:31:10.109 is just how impactful his work has been, particularly 00:31:10.109 --> 00:31:13.529 with the dairy margin coverage program, the DMC 00:31:13.529 --> 00:31:16.230 program. DMC. OK, most listeners will know that 00:31:16.230 --> 00:31:18.569 one. Yeah. This program alone has distributed 00:31:18.569 --> 00:31:22.130 over two billion dollars since its inception. 00:31:22.390 --> 00:31:25.950 Two billion with a B. Think about that for a 00:31:25.950 --> 00:31:28.650 moment. During crises like the COVID -related 00:31:28.650 --> 00:31:31.130 market crashes, remember when milk prices just 00:31:31.130 --> 00:31:34.549 collapsed almost overnight? Oh yeah, scary times. 00:31:34.789 --> 00:31:38.809 And feed costs stayed stubbornly high. DMC payments 00:31:38.809 --> 00:31:41.369 provided critical cash flow for thousands upon 00:31:41.369 --> 00:31:43.630 thousands of operations. A lifeline, really. 00:31:43.869 --> 00:31:46.250 For many, without that direct support, they simply 00:31:46.250 --> 00:31:48.630 wouldn't have survived those unprecedented market 00:31:48.630 --> 00:31:52.109 shocks. It acts as this crucial safety net, insulating 00:31:52.109 --> 00:31:54.450 producers from that extreme volatility between 00:31:54.450 --> 00:31:56.869 milk prices and feed costs. Letting them weather 00:31:56.869 --> 00:31:58.589 storms that would otherwise be catastrophic. 00:31:58.970 --> 00:32:00.890 Precisely. And the numbers really underscore 00:32:00.890 --> 00:32:03.130 that impact, don't they? They paint this picture 00:32:03.130 --> 00:32:05.450 of just how widely adopted and essential this 00:32:05.450 --> 00:32:07.940 program has become. They really do. USDA Farm 00:32:07.940 --> 00:32:10.579 Service Agency data shows DMC enrollment grew 00:32:10.579 --> 00:32:13.859 dramatically from about 18 ,000 operations in 00:32:13.859 --> 00:32:19.640 2019 to over 23 ,000 in 2024, now covering approximately 00:32:19.640 --> 00:32:24.680 85 % of U .S. milk production. 85%. That's huge 00:32:24.680 --> 00:32:27.240 uptake. These aren't just statistics, as the 00:32:27.240 --> 00:32:29.640 article powerfully points out. These represent 00:32:29.640 --> 00:32:32.259 real farms, families, employees, communities. 00:32:33.079 --> 00:32:34.839 that stayed in business instead of being forced 00:32:34.839 --> 00:32:37.099 to sell out or go to auction. That's a tangible, 00:32:37.240 --> 00:32:39.220 measurable difference for countless individuals 00:32:39.220 --> 00:32:41.460 and for the overall health and structure of the 00:32:41.460 --> 00:32:44.000 dairy industry, keeping those farms viable. Definitely. 00:32:44.400 --> 00:32:47.339 But Mulhern's impact goes far beyond just DMC, 00:32:47.380 --> 00:32:49.680 right? The article mentions FMMO reforms, too. 00:32:49.839 --> 00:32:52.140 Right. Federal Milk Marketing Order reforms. 00:32:52.460 --> 00:32:54.900 And this gets, well, it gets complicated fast. 00:32:55.240 --> 00:32:57.900 Ah, understatement of the year. Yeah. For those 00:32:57.900 --> 00:33:00.740 less familiar, FMMOs are these complex regulatory 00:33:00.740 --> 00:33:03.519 systems that establish minimum prices that dairy 00:33:03.519 --> 00:33:06.259 processors must pay farmers for milk. And it's 00:33:06.259 --> 00:33:09.299 categorized by its end -use fluid milk, cheese, 00:33:09.559 --> 00:33:12.660 butter, powder, class 1, 2, 3, fee. The class 00:33:12.660 --> 00:33:15.720 system. Mulhern played a pivotal role in shepherding 00:33:15.720 --> 00:33:18.400 reforms aimed at reducing milk price volatility 00:33:18.400 --> 00:33:21.440 within that complex system. And did they work? 00:33:21.849 --> 00:33:23.869 Well, if we connect this to the broader picture, 00:33:24.170 --> 00:33:27.890 USDA analysis indicates these reforms did reduce 00:33:27.890 --> 00:33:30.809 milk price volatility by an impressive 8 to 12 00:33:30.809 --> 00:33:33.509 percent in most markets. 8 to 12 percent less 00:33:33.509 --> 00:33:36.069 volatility. OK. Now, that might not sound like 00:33:36.069 --> 00:33:38.210 a huge number on its own, but its effects on 00:33:38.210 --> 00:33:40.890 your daily operations, on your planning. They're 00:33:40.890 --> 00:33:43.609 profound and far -reaching. Exactly. For producers 00:33:43.609 --> 00:33:46.130 like you listening, that 8 % to 12 % reduction 00:33:46.130 --> 00:33:49.029 in volatility, it means much more predictable 00:33:49.029 --> 00:33:51.650 cash flow. Which is gold, right? Absolutely. 00:33:51.950 --> 00:33:54.609 It translates to an easier time with financial 00:33:54.609 --> 00:33:56.950 planning, making it simpler to project income, 00:33:57.289 --> 00:34:00.130 manage expenses, less guesswork. Reduces the 00:34:00.130 --> 00:34:02.609 need for maybe expensive or complicated hedging 00:34:02.609 --> 00:34:05.250 strategies, too. Good point. Frees up capital 00:34:05.250 --> 00:34:06.990 that might otherwise be tied up in risk management 00:34:06.990 --> 00:34:08.969 tools you might not fully understand or have 00:34:08.969 --> 00:34:11.840 time for. Right. This increased predictability 00:34:11.840 --> 00:34:14.559 allows you to make more confident long -term 00:34:14.559 --> 00:34:16.840 investments in your herd, new equipment, facilities, 00:34:17.179 --> 00:34:20.239 knowing that your income stream is... Well, at 00:34:20.239 --> 00:34:22.340 least a bit more stable. These are practical, 00:34:22.420 --> 00:34:25.380 tangible benefits for daily operations and the 00:34:25.380 --> 00:34:27.860 long term strategic health of your farm. Definitely. 00:34:28.039 --> 00:34:30.239 Now, this raises an important question, though. 00:34:30.340 --> 00:34:33.139 Which is? Despite the clear benefits of stability 00:34:33.139 --> 00:34:35.679 that most people appreciate, not everyone is 00:34:35.679 --> 00:34:38.539 entirely happy with these FMMO reforms or the 00:34:38.539 --> 00:34:41.340 FMMO system in general. Ah, yes. The eternal 00:34:41.340 --> 00:34:44.719 debate. The article openly acknowledges the complexities. 00:34:44.840 --> 00:34:47.039 It notes that Vermont producers, for instance, 00:34:47.260 --> 00:34:50.199 continue to complain about class. Okay, unpack 00:34:50.199 --> 00:34:53.019 that a bit. Class I differentials. Right. Class 00:34:53.019 --> 00:34:55.920 I is milk used for fluid consumption drinking 00:34:55.920 --> 00:34:59.019 milk. The differential is a premium added to 00:34:59.019 --> 00:35:01.500 the basic price, theoretically based on location 00:35:01.500 --> 00:35:03.639 and transportation costs to consumer markets. 00:35:04.750 --> 00:35:07.329 Vermont producers, often running smaller grass 00:35:07.329 --> 00:35:09.909 -based dairies, might argue the current differential 00:35:09.909 --> 00:35:12.349 doesn't adequately reflect their production costs 00:35:12.349 --> 00:35:15.030 or market realities. Maybe makes their fluid 00:35:15.030 --> 00:35:17.670 milk less competitive compared to milk going 00:35:17.670 --> 00:35:20.369 into manufacturing like cheese or butter where 00:35:20.369 --> 00:35:22.739 the pricing is different. And Western operations 00:35:22.739 --> 00:35:24.900 have issues, too. Yeah. The article mentions 00:35:24.900 --> 00:35:27.260 Western operations often questioning the fluid 00:35:27.260 --> 00:35:30.000 milk pricing mechanisms more broadly, especially 00:35:30.000 --> 00:35:32.400 concerning how transportation costs are factored 00:35:32.400 --> 00:35:35.099 in over vast distances. They might argue their 00:35:35.099 --> 00:35:37.380 distance from major population centers puts them 00:35:37.380 --> 00:35:39.380 at a disadvantage that the system doesn't fairly 00:35:39.380 --> 00:35:41.400 compensate them. So lots of regional tension. 00:35:41.619 --> 00:35:43.760 It truly highlights the inherent challenges in 00:35:43.760 --> 00:35:46.099 crafting policy for such a geographically and 00:35:46.099 --> 00:35:52.280 operationally diverse industry. And the reform 00:35:52.280 --> 00:35:54.969 process itself. As described in the article, 00:35:55.050 --> 00:35:57.590 it certainly wasn't pretty or easy. Sounds like 00:35:57.590 --> 00:36:00.369 it was a battle. Oh, yeah. Months of intense 00:36:00.369 --> 00:36:03.150 stakeholder negotiations, regional conflicts, 00:36:03.550 --> 00:36:05.789 competing interests, fluid versus manufacturing, 00:36:06.130 --> 00:36:08.929 big versus small, co -ops versus independents, 00:36:08.949 --> 00:36:11.230 all battling it out. Leading to compromises that. 00:36:11.409 --> 00:36:14.329 Frankly, satisfied no one completely. That's 00:36:14.329 --> 00:36:16.750 often the nature of compromise in policy. It's 00:36:16.750 --> 00:36:19.289 a stark reminder of the immense difficulty in 00:36:19.289 --> 00:36:21.949 creating policy that works equitably for every 00:36:21.949 --> 00:36:24.980 single segment. of vast and varied industry. 00:36:25.159 --> 00:36:28.219 Absolutely. Where what benefits one region might 00:36:28.219 --> 00:36:31.199 genuinely be perceived as or actually be a disadvantage 00:36:31.199 --> 00:36:34.059 to another. But despite that dissent and the 00:36:34.059 --> 00:36:35.840 inherent difficulties of getting everyone to 00:36:35.840 --> 00:36:38.539 agree, the producer perspective highlighted in 00:36:38.539 --> 00:36:41.119 the article really emphasizes the core value 00:36:41.119 --> 00:36:43.960 here. Right. That quote. Yeah. The article quotes 00:36:43.960 --> 00:36:46.940 one co -op chair who said, very simply, predictable 00:36:46.940 --> 00:36:49.659 beats chaos in my mailbox every time. That just 00:36:49.659 --> 00:36:51.659 cuts right to the heart of it, doesn't it? It 00:36:51.659 --> 00:36:53.960 really does. It encapsulates the trade -offs 00:36:53.960 --> 00:36:56.719 involved. And why, even with ongoing debate and 00:36:56.719 --> 00:36:59.500 imperfections, these efforts to establish a floor 00:36:59.500 --> 00:37:02.280 of stability are so vital for many producers. 00:37:02.719 --> 00:37:06.500 For many, that foundational security The ability 00:37:06.500 --> 00:37:08.940 to plan with at least a little bit of certainty 00:37:08.940 --> 00:37:12.320 outweighs the desire for maybe perfect pricing 00:37:12.320 --> 00:37:15.000 or the theoretical ability to hit every market 00:37:15.000 --> 00:37:17.760 high. It's about managing that downside risk, 00:37:18.019 --> 00:37:20.960 avoiding the catastrophic lows. And that's really 00:37:20.960 --> 00:37:23.599 the key takeaway from Mulhern's extensive work, 00:37:23.639 --> 00:37:26.440 it seems. Even with all the debate and acknowledging 00:37:26.440 --> 00:37:29.400 you can't please everyone in such a complex system. 00:37:29.559 --> 00:37:32.039 Impossible task. These policies aim to provide 00:37:32.039 --> 00:37:34.420 a fundamental layer of stability and a crucial 00:37:34.420 --> 00:37:36.840 safety net. And for long -term planning, for 00:37:36.840 --> 00:37:39.079 the simple act of staying in business year after 00:37:39.079 --> 00:37:41.739 year, that foundational security is absolutely 00:37:41.739 --> 00:37:44.000 crucial. It allows producers to focus more on 00:37:44.000 --> 00:37:46.019 what they do best, producing milk efficiently, 00:37:46.320 --> 00:37:48.760 caring for cows with maybe a little less anxiety 00:37:48.760 --> 00:37:51.320 about the wild, unpredictable swings of the market. 00:37:51.559 --> 00:37:53.880 It's an essential part of that roadmap for resilience 00:37:53.880 --> 00:37:56.019 we're talking about. Okay, so after all that, 00:37:56.199 --> 00:37:59.539 we've covered the McCarty's revolutionary approach 00:37:59.539 --> 00:38:02.780 to operational efficiency and people. We've looked 00:38:02.780 --> 00:38:05.099 at Juan Moreno's cutting -edge genetic and climate 00:38:05.099 --> 00:38:08.280 innovations and Jim Mulhern's extensive work 00:38:08.280 --> 00:38:10.880 building the policy architecture, that safety 00:38:10.880 --> 00:38:14.019 net. Three distinct but interconnected pillars. 00:38:14.380 --> 00:38:17.079 Exactly. Now, the million -dollar question for 00:38:17.079 --> 00:38:20.179 you, the farmer listening today, what's the key 00:38:20.179 --> 00:38:23.440 takeaway? How can you take these big ideas, these 00:38:23.440 --> 00:38:26.139 macro strategies we've discussed, and actually 00:38:26.139 --> 00:38:28.500 apply them to your own operation? whether you're 00:38:28.500 --> 00:38:31.619 milking 20 ,000 cows or 200. That's the most 00:38:31.619 --> 00:38:33.860 important question, right? Bridging the gap from 00:38:33.860 --> 00:38:36.519 expo award winners to everyday farm reality. 00:38:36.780 --> 00:38:39.460 And the good news is these principles are far 00:38:39.460 --> 00:38:41.360 more scalable than you might initially think. 00:38:41.440 --> 00:38:43.579 Okay, how? Let's start with the McCarty's, standardization 00:38:43.579 --> 00:38:45.960 and people. Right, applying the McCarty lessons. 00:38:46.219 --> 00:38:48.480 You don't need a multi -state operation to implement 00:38:48.480 --> 00:38:51.239 consistency. Start small. Small steps. Maybe 00:38:51.239 --> 00:38:54.360 select just one health protocol. Maybe your standard 00:38:54.360 --> 00:38:56.760 procedure for treating mastitis or your calving 00:38:56.760 --> 00:38:59.920 assistance protocol or one feeding schedule for 00:38:59.920 --> 00:39:03.000 a particular group like dry cows or one breeding 00:39:03.000 --> 00:39:06.280 strategy for first lactation heifers. Pick one 00:39:06.280 --> 00:39:09.039 thing. Pick one thing. The key is to implement 00:39:09.039 --> 00:39:11.900 it consistently across your facility. Create 00:39:11.900 --> 00:39:14.840 clear, maybe even written, standard operating 00:39:14.840 --> 00:39:18.300 procedures, SOPs, designate who's responsible 00:39:18.300 --> 00:39:21.179 for training on it, and then track the same metrics 00:39:21.179 --> 00:39:24.239 the same way. Measure it. Measure it. The power 00:39:24.239 --> 00:39:26.639 isn't just in the protocol itself, but in the 00:39:26.639 --> 00:39:29.400 consistency and the data it generates. That allows 00:39:29.400 --> 00:39:31.300 you to see what works, what doesn't, and make 00:39:31.300 --> 00:39:33.960 informed adjustments. Makes sense. And the people 00:39:33.960 --> 00:39:36.849 part. And critically, invest in your human capital, 00:39:36.969 --> 00:39:39.369 even on a smaller scale. Remember those workforce 00:39:39.369 --> 00:39:41.949 studies, operations offering competitive benefits. 00:39:42.210 --> 00:39:45.590 Not just wages. Right. Wages matter hugely. But 00:39:45.590 --> 00:39:47.670 also think about health insurance options, maybe 00:39:47.670 --> 00:39:50.670 a simple retirement plan, opportunities for professional 00:39:50.670 --> 00:39:52.750 development, sending someone to a workshop maybe, 00:39:52.829 --> 00:39:54.909 and clear advancement paths, even if it's just 00:39:54.909 --> 00:39:57.530 taking on more responsibility. These things show 00:39:57.530 --> 00:40:00.900 you value your team. It's loyalty. Exactly. It 00:40:00.900 --> 00:40:03.239 helps build that stable, productive team where 00:40:03.239 --> 00:40:06.460 individuals feel valued and see a future, not 00:40:06.460 --> 00:40:09.420 just a job. Even small gestures of recognition 00:40:09.420 --> 00:40:11.960 or opportunities for skill development can make 00:40:11.960 --> 00:40:14.659 a huge difference in retention on any sized farm. 00:40:15.000 --> 00:40:17.900 Okay. So consistency in process, investment in 00:40:17.900 --> 00:40:21.440 people. Cool. Got it. Now, what about leveraging 00:40:21.440 --> 00:40:23.940 Moreno's genetics insights? That felt maybe a 00:40:23.940 --> 00:40:26.369 bit more high tech. It can feel that way. For 00:40:26.369 --> 00:40:28.809 Murano's genetic strategy, the takeaway isn't 00:40:28.809 --> 00:40:31.369 just go out and do genomic testing tomorrow. 00:40:31.550 --> 00:40:34.369 It's do it strategically. Strategically how? 00:40:34.840 --> 00:40:37.019 Well, if you're managing 200 or more breeding 00:40:37.019 --> 00:40:39.860 females, the economics, as we discussed, usually 00:40:39.860 --> 00:40:42.559 work out pretty favorably within that 18 to 24 00:40:42.559 --> 00:40:44.980 month time frame. The ROI is generally there. 00:40:45.119 --> 00:40:47.420 OK, so scale matters for that specific tool. 00:40:47.559 --> 00:40:49.659 It does influence the payback period. But the 00:40:49.659 --> 00:40:52.420 key here, and this is where Moreno's no super 00:40:52.420 --> 00:40:55.059 cow philosophy really comes into play for everyone, 00:40:55.179 --> 00:40:58.260 is not to chase every single new genetic marker 00:40:58.260 --> 00:41:00.639 just because it's the latest shiny object on 00:41:00.639 --> 00:41:02.380 the market. Don't get caught up in the hype. 00:41:02.699 --> 00:41:06.460 Exactly. Instead, meticulously analyze your environment, 00:41:06.760 --> 00:41:09.639 your herd -specific challenges, your market demands, 00:41:09.940 --> 00:41:12.820 what traits actually make you money or save you 00:41:12.820 --> 00:41:15.480 money on your farm. Tailor it. If you're in a 00:41:15.480 --> 00:41:17.739 region battling heat stress, then genetic markers 00:41:17.739 --> 00:41:19.860 for heat tolerance, maybe slick coat genetics, 00:41:20.099 --> 00:41:22.619 should be paramount in your selection. Forget 00:41:22.619 --> 00:41:25.219 chasing that last bit of milk potential if the 00:41:25.219 --> 00:41:27.880 cow can't handle the heat. If you're pasture 00:41:27.880 --> 00:41:31.579 -based, prioritize grazing efficiency. Feed conversion 00:41:31.579 --> 00:41:34.619 on forage. Maybe utter depth and foot health. 00:41:34.880 --> 00:41:37.300 Things that work in your system. Components if 00:41:37.300 --> 00:41:39.480 you're in a cheese market. Precisely. If you're 00:41:39.480 --> 00:41:42.079 supplying a market valuing high protein or butterfat, 00:41:42.260 --> 00:41:45.039 then component quality becomes your primary focus 00:41:45.039 --> 00:41:47.400 for genetic selection. It's about optimizing 00:41:47.400 --> 00:41:49.260 for your unique challenges and opportunities. 00:41:49.599 --> 00:41:51.800 Not just adopting technology for adoption's sake. 00:41:52.079 --> 00:41:54.679 Right. And for smaller operations, maybe below 00:41:54.679 --> 00:41:57.159 that 200 cow threshold where genomics might seem 00:41:57.159 --> 00:42:00.250 pricey up front. Start by optimizing your existing 00:42:00.250 --> 00:42:04.329 genetic program. Better record -keeping. Careful 00:42:04.329 --> 00:42:06.809 sire selection using proven indices relevant 00:42:06.809 --> 00:42:09.650 to your goals, not just the highest TPI. Ensure 00:42:09.650 --> 00:42:11.989 your herd health and reproduction are top -notch 00:42:11.989 --> 00:42:14.230 first. Build the foundation. Build the foundation. 00:42:14.650 --> 00:42:17.590 These things will make genomics even more impactful 00:42:17.590 --> 00:42:20.269 if and when you decide to adopt it later. It's 00:42:20.269 --> 00:42:22.989 about smart, targeted genetic progress. That's 00:42:22.989 --> 00:42:24.789 a great point about tailoring the technology. 00:42:24.929 --> 00:42:27.130 It makes it much more accessible. And finally, 00:42:27.230 --> 00:42:29.909 what about utilizing Mulhern's policy tools? 00:42:30.250 --> 00:42:32.510 How can producers make the most of those safety 00:42:32.510 --> 00:42:35.449 nets, like DMC? For Mulhern's tools, the advice 00:42:35.449 --> 00:42:37.880 is actually... Quite direct, I think. View your 00:42:37.880 --> 00:42:39.840 dairy margin coverage premiums, you know, that 00:42:39.840 --> 00:42:42.860 $0 .05 to $1 .20 per hundred weight you pay, 00:42:42.940 --> 00:42:45.000 depending on the coverage level you choose. Don't 00:42:45.000 --> 00:42:46.860 look at it as just another cost, another bill 00:42:46.860 --> 00:42:49.179 to pay. View it as a strategic investment in 00:42:49.179 --> 00:42:51.860 your business stability. Like insurance. Exactly 00:42:51.860 --> 00:42:54.579 like insurance. It's a form of risk management 00:42:54.579 --> 00:42:57.280 that provides a crucial safety net. Especially 00:42:57.280 --> 00:42:59.760 when you consider the insane volatility we've 00:42:59.760 --> 00:43:02.239 seen in milk prices and feed costs in recent 00:43:02.239 --> 00:43:05.639 years. It buys you peace of mind to some extent. 00:43:05.820 --> 00:43:08.059 And it's not just DMC, right? Critically, no. 00:43:08.570 --> 00:43:11.730 Operations that actively use multiple risk management 00:43:11.730 --> 00:43:15.630 tools. So maybe DMC combined with other options 00:43:15.630 --> 00:43:18.690 like futures contracts, options trading, maybe 00:43:18.690 --> 00:43:21.769 dairy RP insurance, other private insurance products. 00:43:22.030 --> 00:43:24.130 Layering the protection. Yeah, layering. Those 00:43:24.130 --> 00:43:26.769 operations actually show 12 to 18 percent less 00:43:26.769 --> 00:43:29.349 income volatility over 10 year periods, according 00:43:29.349 --> 00:43:31.949 to some analyses. Wow, that's significant smoothing 00:43:31.949 --> 00:43:34.230 of the income curve. It really is. It means you're 00:43:34.230 --> 00:43:36.469 building a more robust financial foundation that 00:43:36.469 --> 00:43:48.570 can weather the inevitable market. Okay, so treat 00:43:48.570 --> 00:43:51.409 DMC as an investment and layer different risk 00:43:51.409 --> 00:43:56.510 management tools. Got it. So when we look at 00:43:56.510 --> 00:43:58.949 the bottom line across all three of these areas, 00:43:59.090 --> 00:44:04.530 McCarty, Moreno, Mulhern, it really boils down 00:44:04.530 --> 00:44:06.880 to this fundamental concept, doesn't it? Proactive 00:44:06.880 --> 00:44:09.340 versus reactive change. That feels like the core 00:44:09.340 --> 00:44:11.679 message. Yeah. We know these pressures are coming. 00:44:11.780 --> 00:44:14.639 In many cases, they're already here and intensifying. 00:44:14.820 --> 00:44:17.059 Environmental pressure demanding more sustainable 00:44:17.059 --> 00:44:19.539 practices. Check. Labor markets tightening further, 00:44:19.699 --> 00:44:21.619 requiring smarter employee management. Double 00:44:21.619 --> 00:44:24.250 check. Market consolidation accelerating. pushing 00:44:24.250 --> 00:44:26.769 for greater efficiency, consumer preferences 00:44:26.769 --> 00:44:30.070 constantly shifting, requiring adaptability in 00:44:30.070 --> 00:44:33.010 what and how we produce. Absolutely. And climate 00:44:33.010 --> 00:44:35.190 variability demanding more sophisticated risk 00:44:35.190 --> 00:44:37.530 management and resilient practices from all of 00:44:37.530 --> 00:44:39.949 us. It's the reality of 21st century dairy farming. 00:44:40.110 --> 00:44:42.969 So this raises that important, maybe even urgent 00:44:42.969 --> 00:44:45.469 question for every producer listening right now. 00:44:45.750 --> 00:44:48.789 Will you help shape this change or will you simply 00:44:48.789 --> 00:44:51.070 react to it when it hits you? It's a critical 00:44:51.070 --> 00:44:54.119 question to ask yourself. These three leaders 00:44:54.119 --> 00:44:57.400 we talked about, the McCartys, Juan Moreno, Jim 00:44:57.400 --> 00:45:00.760 Mulhern, they didn't just wait for change to 00:45:00.760 --> 00:45:03.260 overwhelm them. They chose to be proactive. They 00:45:03.260 --> 00:45:06.920 leaned in. Their recognition at World Dairy Expo 00:45:06.920 --> 00:45:09.920 isn't just an award for past achievement. It's 00:45:09.920 --> 00:45:12.760 a testament to the immense value of that forward 00:45:12.760 --> 00:45:15.659 -thinking, strategic approach. They built resilience 00:45:15.659 --> 00:45:19.460 before the crisis hit, not just responded afterwards. 00:45:19.860 --> 00:45:22.269 And what's truly empowering, I think. is that 00:45:22.269 --> 00:45:24.710 the same opportunities exist for you, the producers 00:45:24.710 --> 00:45:26.789 willing to think strategically about the future 00:45:26.789 --> 00:45:29.369 of your operations. It's not necessarily about 00:45:29.369 --> 00:45:31.550 being the biggest. Not at all. But about being 00:45:31.550 --> 00:45:33.710 the smartest, the most adaptable, the most prepared. 00:45:34.010 --> 00:45:35.989 It's about taking those principles we've discussed 00:45:35.989 --> 00:45:38.730 today, investing in people and standardizing 00:45:38.730 --> 00:45:41.809 processes, strategically adopting relevant technology, 00:45:42.269 --> 00:45:44.489 proactively leveraging risk management tools, 00:45:44.630 --> 00:45:46.610 and applying them thoughtfully to your unique 00:45:46.610 --> 00:45:49.050 farm, your unique situation. Absolutely. You 00:45:49.050 --> 00:45:50.630 don't have to do everything at once. Pick one 00:45:50.630 --> 00:45:53.349 area. Start small. So maybe pour yourself that 00:45:53.349 --> 00:45:55.809 next cup of coffee. Or tea. Or tea. Fair enough. 00:45:56.230 --> 00:45:58.130 Take a thoughtful walk through your facility. 00:45:58.309 --> 00:46:01.789 Look at your records. Talk to your team. And 00:46:01.789 --> 00:46:03.449 start thinking about what your next chapter looks 00:46:03.449 --> 00:46:06.510 like. What's one small, actionable step you can 00:46:06.510 --> 00:46:08.989 take this week, this month, to begin shaping 00:46:08.989 --> 00:46:10.989 your future rather than just reacting to it? 00:46:11.210 --> 00:46:13.309 Because the dairy industry's future doesn't just 00:46:13.309 --> 00:46:15.510 depend on, you know, big corporate decisions 00:46:15.510 --> 00:46:18.090 or government policy alone. It depends heavily 00:46:18.090 --> 00:46:20.170 on the strategic choices being made right now 00:46:20.170 --> 00:46:23.570 today. in operations just like yours every single 00:46:23.570 --> 00:46:26.909 day. Well said. Great points. And that looks 00:46:26.909 --> 00:46:29.130 like all the time we have for today's Deep Dive. 00:46:29.190 --> 00:46:30.809 For more articles and insights like the one we 00:46:30.809 --> 00:46:34.110 discussed today, be sure to visit www .thebullvine 00:46:34.110 --> 00:46:36.829 .com. And don't forget to subscribe wherever 00:46:36.829 --> 00:46:39.170 you get your podcasts so you don't miss our next 00:46:39.170 --> 00:46:42.090 Deep Dive. Thanks for listening. Thanks for tuning 00:46:42.090 --> 00:46:45.230 in to the Bullvine Podcast. We hope today's stories 00:46:45.230 --> 00:46:47.869 inspire and equip you to navigate the evolving 00:46:47.869 --> 00:46:51.380 dairy landscape with confidence. Remember, Blending 00:46:51.380 --> 00:46:53.940 traditional values with innovation is key to 00:46:53.940 --> 00:46:57.280 long term success. Subscribe for more no -nonsense 00:46:57.280 --> 00:46:59.420 insights from the heart of the dairy industry. 00:46:59.820 --> 00:47:03.320 Until next time, keep milking, keep learning, 00:47:03.460 --> 00:47:04.559 and keep thriving.