2015 INDUSTRY PROFILE “Idaho dairy farms currently support 23,000 jobs, which makes the dairy industry one of the largest economic drivers in Idaho.” Since 1944, the Idaho Dairymen’s Association (IDA) has worked tirelessly to develop and sustain the Idaho dairy industry, while protecting and promoting the health and welfare of the public. We have seen remarkable growth in our industry, which is currently producing more than 13.8 billion pounds of milk per year and sustaining more than 560,000 dairy cows. We are wholly committed to the growth of Idaho’s dairy industry, and to the continued success of our dairy farmers, families and workers. Idaho dairy farms currently support 23,000 jobs, which makes the dairy industry one of the largest economic drivers in Idaho. As such, the IDA shoulders the responsibility of ensuring the continued growth of Idaho dairy and the thousands of jobs that it supports. With so many jobs and such an impact on Idaho’s economy, the Idaho dairy industry is seeing growth trends well beyond the national dairy industry. As you’ll see in the following pages, Idaho dairy is well above the national average for growth. As we continue to see changes in the global dairy market, Idaho will continue to pride itself on quality, freshness and reliability. The evidence of Idaho’s dairy quality is undisputable, as shown by the recent building of the world’s largest yogurt manufacturing plant in our state. As we have since our creation, the IDA will continue to advance the interests of Idaho’s dairies. We will pursue legislation and support causes that promote the quality and sustainability of our industry. I am looking forward to yet another year of being part of the best dairymen’s association in the world, bar none! TONY VANDERHULST President, Idaho Dairymen’s Association 2 | IDAHO DAIRYMEN’S ASSOCIATION What’s Inside Leadership.................................................4 Our History................................................5 Idaho’s Dairy Landscape...........................6 Environmental Sustainability...................10 Social Responsibility................................12 Research.................................................13 Public Policy............................................14 Idaho State Department of Agriculture Dairy Bureau.....................16 Dairy Management Certificate Program..................................17 Idaho’s Dairy Processors.........................18 Idaho’s Dairy Cooperatives.....................22 Associate Members.................................23 The Idaho dairy industry is significant. As the third largest dairy producer in the country, Idaho’s dairy products and by-products are popular with food manufacturers and consumers. In response to changes in the industry, IDA continues to endorse and promote legislation that benefits and keeps the best interests of the dairies and their employees in mind. The Idaho dairy families and workers are the heart of this industry. I am moved by the overwhelming commitment of the dairy families and workers across the state. Their unwavering support allows us to produce quality products and, in-turn, grow revenues and enhance the local and regional economies. As the focus in Washington D.C. turns toward immigration reform, IDA is watching closely to ensure the best interests of our dedicated dairy workers and our state are a priority for policymakers. I am grateful to our local, state and federal elected leaders who work tirelessly to protect and promote our dairy families. The Idaho dairy industry consistently ranks higher in revenues that any other agriculture commodities produced in Idaho. From our farms to the tables of people all around the world, Idaho will continue to provide consumers with the highest quality milk and dairy products. We are proud of our global reach and will continue to strive to export our goods into markets far outside of Idaho. BOB NAEREBOUT Executive Director, Idaho Dairymen’s Association 2015 INDUSTRY PROFILE | 3 Leadership There are 18 dairy producers elected to the UDI Board of Directors. Of those, 9 are elected to the IDA Board, with the remaining 9 serving on the Idaho Dairy Products Commission. Elected Board Members of United Dairymen of Idaho TONY VANDERHULST Wendell, Idaho President, IDA Co-Chair, UDI TOM DORSEY Caldwell, Idaho Chairman, IDPC Co-Chair, UDI MIKE SIEGERSMA Nampa, Idaho Vice Chair, IDPC ADRIAN KROES Nampa, Idaho Vice President, IDA PETE WIERSMA Buhl, Idaho Secretary/Treasurer, IDA GREG ANDERSON American Falls, Idaho IDA Board Member ALLAN SWAINSTON Preston, Idaho IDA Board Member KIM KORN Terreton, Idaho IDPC Board Member WILLIE BOKMA Twin Falls, Idaho IDA Board Member STEVE BALLARD Gooding, Idaho IDPC Board Member BERNIE TEUNISSEN Nampa, Idaho IDPC Board Member TONY DEWIT Wendell, Idaho IDA Board Member JOHN BRUBAKER Buhl, Idaho IDPC Board Member DAVE VEENHOUWER Jerome, Idaho IDPC Board Member DON HEIDA Kuna, Idaho IDA Board Member BRIAN ESPLIN Shelley, Idaho IDPC Board Member ARIE ROELOFFS Wendell, Idaho IDA Board Member DAN GILBERT Blackfoot, Idaho IDPC Board Member Elected Resolution Committee Members Current IDEAL Board of Managers WINFIELD ANDERSON Blackfoot, Idaho MIKE LOVELAND St. Anthony, Idaho LYNN KEETCH Montpelier, Idaho LOU MURGOITIO Boise, Idaho JOE DEMELLO Jerome, Idaho ALAN REED Idaho Falls, Idaho KIM KORN Terreton, Idaho ARIE ROELOFFS Wendell, Idaho RUDI DEWINKLE Melba, Idaho EDWIN SOUTHFIELD Wendell, Idaho ADRIAN KROES Nampa, Idaho DON TABER Shoshone, Idaho 4 | IDAHO DAIRYMEN’S ASSOCIATION Our History Milestones 1944 Idaho Dairymen’s Association created 1950 1984 2003 2008 The National Dairy Production Stabilization Act assessed producers $0.15/ cwt on all milk produced for dairy product promotion Independent Dairy Environmental Action League (IDEAL) LLC. IDEAL LLC was formed to serve as a legal defense fund and as an environmental research fund. IDEAL Research Foundation* is formed 1960 1970 1980 1990 2000 1980 1987 2004 United Dairymen of Idaho created. UDI is a collection of IDA and the Idaho Dairy Products Commission. IDA assessment established at $0.005/cwt IDA assessment raised to $0.01/cwt. $0.005/cwt goes toward IDEAL LLC History of the IDA On July 5, 1944, Idaho’s dairy industry leaders met to form the Idaho Dairymen’s Association (IDA) to develop and sustain an economically viable Idaho dairy industry. In those early days, IDA was funded through voluntary assessments from its processor and producer members. 2010 United Dairymen of Idaho (UDI): The Federation’s mission, solely through its two (2) member organizations, is to provide Idaho’s dairy farm families with a prosperous Idaho dairy industry and augment demand for Idaho-produced dairy products through coordinated marketing, dairy image, nutrition education and research programs. Today, the IDA falls under the umbrella of the United Dairymen of Idaho (UDI), which was formed in 1980 as a single entity that contains two separate organizations – IDA and the Idaho Dairy Products Commission (IDPC). Each organization serves a different purpose under the auspices of the UDI – IDA deals with industry and government relations projects, while IDPC focuses on promotion and marketing projects. In 2003, the Idaho Dairy Environmental Action League (IDEAL) LLC was formed, followed by the creation of the IDEAL Foundation in 2008. The IDA teamed with the IDEAL LLC and IDEAL Foundation to assist the Idaho dairy industry and our broader communities realize the many social and economic benefits of successful livestock operations, while working to protect and enhance important air, water and soil resources. Today, the Idaho Dairymen’s Association works tirelessly at the local, state, regional and federal levels to protect and promote the legislative, regulatory and legal interests of its members. *The purpose of the Foundation, a 501(c)3 non-profit, is to raise money to support the development of the University of Idaho National Center for Livestock Environmental Studies. 2015 INDUSTRY PROFILE | 5 Idaho’s Dairy Landscape Idaho Dairy Operations by Size Numbers provided by ISDA - February 2015 No. Dairy Operations Percentage of Operations No. Cows 140 27.2% < 200 94 18.3% 201 - 500 101 19.6% 501 - 1,000 82 16.0% 1,001 - 2,000 97 18.9% 2,001 + = 200 cows + TOTAL DAIRY OPERATIONS: 514 MILK COWS IN IDAHO: 561,577 Idaho Milk Production Numbers provided by IDPC 12.12 12.75 billion lbs. billion lbs. 1.30% 5.11% 2009 2010 6 | IDAHO DAIRYMEN’S ASSOCIATION 13.23 billion lbs. 3.75% 2011 13.53 billion lbs. 2.30% 2012 13.40 billion lbs. 0.94% 2013 13.84 billion lbs. 3.32% 2014 The Dairy Industry and the Economy Numbers provided by University of Idaho, College of Agriculture and Life Sciences (CALS), Department of Agriculture Economics and Rural Sociology # 3 Idaho’s milk producers have gone from an average milk production state in the 1980s to the third largest milk production state in the nation In 2012, the dairy industry supported the Idaho economy with: 23,000 JOBS + For every existing job in the dairy industry, there are 2.2 total jobs in the Idaho economy that depend on that dairy job. $2.5 BILLION For every new dairy sector job created in the Idaho economy to produce new products to sell to the outside world, a total of 6 jobs are supported in the Idaho economy. $2.2 BILLION Generated by dairy industry in domestic and foreign exports (sales outside of the state) which represents new dollars injected into the state’s economy in 2012 Contributed by the dairy industry to Idaho’s gross domestic product IDAHO RECEIVED $6.6 BILLION ECONOMIC OUTPUT THE IN SALES FROM DAIRY INDUSTRY IN 2012 $$$ 30% THE DAIRY INDUSTRY REPRESENTS 30% OF THE AGRICULTURAL SECTOR IN IDAHO 2015 INDUSTRY PROFILE | 7 Idaho’s Dairy Landscape Idaho Dairy Producers February 2015 TREASURE VALLEY DAIRIES COWS 94 118,731 18.3% 21.1% AVERAGE COWS / DAIRY 1,263 EASTERN IDAHO DAIRIES COWS 117 35,348 22.8% AVERAGE COWS / DAIRY 302 MAGIC VALLEY DAIRIES COWS 303 407,498 58.9% 72.6% AVERAGE COWS / DAIRY 1,345 8 | IDAHO DAIRYMEN’S ASSOCIATION 6.3% Idaho Dairy Processors TREASURE VALLEY Sorrento Lactalis, Nampa Darigold, Caldwell Darigold, Boise MeadowGold, Boise Marathon Cheese, Mountain Home MAGIC VALLEY EASTERN IDAHO Glanbia Foods, Richfield Reed’s Dairy, Idaho Falls Glanbia Foods, Gooding Glanbia Foods, Twin Falls Jerome Cheese, Jerome Glanbia Blackfoot Cheese Division, Blackfoot Nelson Ricks Cheese, Rexburg Darigold, Jerome Idaho Milk Products, Jerome Cloverleaf Creamery, Buhl Chobani, Twin Falls Gossner Foods, Heyburn High Desert Milk, Burley Brewster Cheese, Rupert Stoker Wholesale, Burley Commercial Creamery, Jerome Ballard Cheese, Gooding 2015 INDUSTRY PROFILE | 9 Environmental Sustainability Dairy farmers have a long heritage as responsible stewards of the land, air, water and the animals in their care. This innate appreciation for the environment has helped propel the industry’s long-term success and establish unprecedented, industry-wide collaborations on sustainability. Environmental Sustainability is not new to the Idaho dairy industry. In 1995, the Idaho dairy industry pioneered a partnership in the form of a Memorandum of Understanding (MOU) between the Idaho Dairymen’s Association, the Idaho State Department Agriculture (ISDA), the Idaho Department of Environmental Quality (DEQ) and the US Environmental Protection Agency (EPA). The MOU was so unique at the time that it received national recognition for Innovative Government from Harvard University. The objective of the MOU was to protect the ground and surface waters in Idaho by developing a working arrangement between the regulatory agencies and the industry. The MOU defined the roles of the agencies in providing regulatory oversight of the dairy industry. Sustainability is: Providing consumers with the nutritious dairy products they want, in a way that makes the industry, people and the earth economically, environmentally and socially better- now and for future generations. The MOU has been amended periodically to meet the changing needs of a rapidly growing dairy industry to assure that the environment is property protected. The MOU was renewed annually until 2009, when the EPA determined, for reasons not clearly defined, that they would no longer participate. EPA’s absence has not detracted from the very important goals of the industry or from efforts to protect the environment. Idaho Code governs all aspects of the Idaho dairy industry. ISDA rules govern dairy nutrients management covering all Idaho dairy operations, regardless of size. Since 2006, Idaho has also led the nation in reducing ammonia emissions. To great success, and like the water quality MOU, a coalition of agencies and organizations was created to provide governance of the Ammonia Rules. IDEAL Foundation Independent Dairy Environmental Action League Foundation The goal of the IDEAL Foundation is to support scientific activities and results that validate current best management practices while generating new methods for the livestock industry. IDEAL achieves that goal by: – Raising financial support for the Idaho National Center for Livestock Environmental Studies (INCLES) in partnership with the University of Idaho and the College of Southern Idaho 10 | IDAHO DAIRYMEN’S ASSOCIATION – Focusing on environmental and economic sustainability in the livestock industry, with a major emphasis on dairy INCLES Leading Donors – Investing in research and innovation that have the potential to protect and improve the environment Elanco: $1 Million Innovation in research at INCLES is made possible by the generous donations of some of Idaho’s finest allied industries. Farm Credit: $250,000 Idaho Dairy Producers: $570,000 Continuing with a proactive environmental conviction, the Idaho Dairymen’s Association entered another MOU in 2012 with the Idaho Department of Environmental Quality to develop a strong, long-term working relationship between the two organizations. The Idaho Dairymen’s Association remains committed to its legacy of environmental sustainability and will continue to seek innovative opportunities to protect our natural resources. The US Dairy Sustainability Council Today, the world’s population growth is putting further pressure on finite resources, along with other growing environmental concerns. Through the US Dairy Sustainability Council, dairy farmers, dairy processors, scientists, suppliers, academics, retailers and businesses are working together to provide products that are nutritious, produced and sourced responsibly and economically viable for all. The US Dairy Sustainability Council is comprised of 82 companies, 113 professionals leading over 800 industry members and contributing more than $6 million in volunteer hours. Regulatory Inspections for Quality The dairy industry is highly regulated. Idaho’s dairies are committed to working with regulators and inspectors to ensure the highest quality, freshest, most wholesome products for processors, producers and consumers. In 2012, the Idaho State Department of Agriculture made the following dairy inspections: – 6,157 sanitation inspections – 1,554 environmental (nutrient) inspections – 86 ammonia air quality inspections – 278 nutrient management reviews, approvals, verifications and CAFO site evaluations – 13 nutrient regulatory letters issued *542 total dairies and 572,576 total milk cows in Idaho 2015 INDUSTRY PROFILE | 11 Social Responsibility what their nationality. Immigration reform has thus become an important priority. IDA works closely with other partners to pursue reasonable immigration reform: – Idaho Business Coalition for Immigration Reform – Agriculture Coalition for Immigration Reform The Idaho Dairymen’s Association is committed to enhancing Idaho’s workforce – National Immigration Forum through training, development and economic sustainability. To that end, IDA – National Milk Producers Federation’s works hard to establish educational opportunities for Idahoans, dairy families Immigration Task Force and agricultural workers. Doing nothing limits our nation’s Educating Idahoans Doing Well by Doing Good for Idaho’s economic potential, causes the labor force to live with threats of separation from (Education initiatives supported by Immigrant Workers families and deprives many in production the Idaho Dairymen’s Association) The Idaho Dairymen’s Association believes agriculture a steady work force. that one of its most impactful social – Bovine Veterinarian Experience initiatives revolves around promoting and IDA will continue to work to develop Program/ Univ. of Idaho functional immigration legislation that protecting our state’s talented and hardaddresses secure borders, allows are – Dairy Science Education Program/ working employees. Some of the most current labor force to remain in the US Univ. of Idaho reliable dairy labor is foreign born, yet legally, provides for earned citizenship individuals who make up that population – Dairy Extension/ Univ. of Idaho and is flexible in addressing future foreign help our dairy industry succeed in the born labor needs. – Idaho FFA & 4-H global market every day. – Employee Training Programs/ College of So. Idaho & Univ. of Idaho – Immigration Community Impact – Foreign Born Labor Contributions – Continuing Education Scholarships While immigration reform is often seen as a political issue, the Idaho Dairymen’s Association sees it as a moral and business matter. IDA believes that it has a moral obligation to protect and promote our hard working dairy workers, no matter Scholarship Programs The United Dairymen of Idaho distributes more than $25,000 in scholarships annually to family members of Idaho’s dairy producers to pursue additional educational opportunities. The Dr. Bill & Charlotte Stouder Memorial Scholarship memorializes two of Idaho’s most committed dairy advocates, who passionately served the industry, their communities and their churches. 12 | IDAHO DAIRYMEN’S ASSOCIATION Research Areas of Research Supported by the Idaho Dairymen’s Association in 2014: Research Title Project Award *Provided by Idaho Dairymen’s Association “Do alterations in retinoid metabolism affect mammary gland health during the periparturient period” $99,000 (over two years) Development of emission factors from manure storage and enhancement of process based models to determine whole farm emissions $86,400 “Identify and reduce nitrate concentration in the East Snake River Plain Aquifer” $71,250 “The Contribution of the Dairy Industry to the Idaho Economy” $40,000 “Dairy Science Learning Experience” $25,000 “Idaho Bovine Veterinary Experience Program” $25,000 “Long-Term Impacts of Manure Applications” $20,000 “Producing Commercial Bio Plastics from Fermented Dairy Manure” $15,000 College of Southern Idaho: Develop and implement certified training programs for dairy employees $10,000 “Magic Valley Extension Education” $5,000 “Treasure Valley Extension Education” $5,000 “Eastern Idaho Extension Education” $5,000 *Contributions also being made by Elanco Proposed Idaho National Center for Livestock Environmental Studies (INCLES) – Research & educational facility, which will be located in South Central Idaho – A 1,500 milking cow functional dairy and pens for 600 head feed lot located on a 1,000+ acre farm – Educational and scientific institution for dairy and livestock research and environmental sustainability – Research and education of the integration of crops and livestock on a large scale From 2007-2013, IDA and IDEAL awarded combined grants of $1,479,615 for research. During that same time, IDA also supported multiple educational programs with donations totaling $385,538. 2015 INDUSTRY PROFILE | 13 Public Policy The Idaho Dairymen’s Association recognizes milk and dairy products to be some of the finest foods available for human consumption and therefore supports quality production of our dairy products. We prioritize our role in the market by influencing public policy to encourage increased dairy production and consumption. Immigration Reform IDA recognizes the need for a competent and stable supply of labor on the dairy farms of Idaho and, therefore, supports programs to meet these needs. The Idaho Dairymen’s Association has long supported smart, responsible immigration reform. IDA seeks to address economic and national security issues often at the center of immigration debates. Specifically, IDA supports: The people who make up foreign born – An affordable, efficient guest worker labor in America are hard working, program that ensures continued family-oriented individuals. They are availability of immigrant labor for all assets to our communities and critical agriculture, including dairy resources for the success of our agriculture – A provision that allows immigrants production. currently employed or with recent Costs associated with deportation not employment history in the US to earn only negatively affect our federal budget, the right to work legally, without having they also impact our local communities to go back to their country of origin by breaking up families, reducing the – A provision that specifies that the available workforce and raising the cost responsibility for ultimate verification of goods. of the legal status of a worker lies with the government, not employers 14 | IDAHO DAIRYMEN’S ASSOCIATION Promotion & Nutrition Education IDA supports the Idaho Dairy Products Commission (IDPC), a state agency that acts as the promotion and nutrition education organization for the dairy industry. IDPC works to drive market demand, increase consumption and enhance sales of Idaho’s dairy products. Somatic Cell Count Somatic Cell Count (SCC) is a quality indicator of milk. IDA worked with the Idaho State Department of Agriculture (ISDA) Dairy Division to allow for the lowering of state levels of SCC to 400,000, which is an industry-acknowledged standard. IDA will also work with the National Conference of Interstate Milk Shippers to set a similar standard at the national level from the current national standard of 750,000 SCC. Air Quality Standards IDA believes that air quality is a valid concern and is essential for everyone’s quality of life. Idaho’s dairymen believe that any established State or Federal air quality standards be based on scientific studies that can be replicated, conducted regionally, and considerate of climate conditions. Regulations must be applied to all of production agriculture equally. Equal Standards For Nutrient Management IDA supports equal regulation of nutrient management usage. All parties that utilize commercial fertilizer, plant waste material and manure shall meet the same nutrient management standards. Phosphorous Regulation Idaho’s dairymen believe that consideration must be given to all naturally occurring phosphorous in the soil in the area adjacent to a dairy operation before threshold standards are established. IDA supports a positive testing regime that includes more than one regulatory test and the development of reasonable phosphorous testing and management protocols. Animal Care And Welfare Policy IDA recognizes that an integral part of good animal husbandry practices includes comfort and sanitation, which will benefit both producers and consumers. These practices improve efficiency and profitability for the producer and provide a healthy, wholesome product to the consumer at a reasonable price. Dairy Research Programs – Permanent animal identification to establish rightful ownership, avoid theft and to trace and recognize diseased and/ or contaminated animals Dairy Research Facility IDA supports dairy research that adds value to all Idaho dairy producers and believes that research should be visionary IDA supports management practices on in its scope to meet the future needs of Idaho’s dairy operations that promote the Idaho dairy industry with funding of health, reduce stress and protect the those programs to be the responsibility animal from unnecessary injury and pain. of the state, the industry and ally Idaho’s dairymen support: industries. As a partner in building the new Idaho National Center for Livestock – Good husbandry practices that improve Environmental Studies (INCLES), production efficiency IDA will be serve an important role in – Prudent and humane use of animals understanding the livestock industry’s for food, clothing, enjoyment and impact on the environment while biomedical research researching and demonstrating control technologies that will be affordable and – Human transportation and handling of efficient. animals To further IDA’s animal care and welfare policy priorities, the organization endorses the National Milk Producers Federation Farmers Assuring Responsible Management (FARM) Animal Care Manual. IDA supports a dairy research facility between private industry, the public and education entities. The facility would be dedicated to both education and research with adequate animal numbers to reflect the dairy industry today and in the future. The facility should be located where the dairy industry is prominent. 2015 INDUSTRY PROFILE | 15 Idaho State Department of Agriculture Dairy Bureau The Dairy Bureau provides oversight of the dairy industry in Idaho to ensure its consumers have access to safe and wholesome milk, milk products, shell egg and poultry products. Bureau programs encompass sanitary inspections of dairy farms, bulk milk haulers, processors, manufacturing and processing equipment, warehouses, stores and other businesses where milk and dairy products are manufactured, stored, sold or offered for sale. Its other duties include inspecting establishments where shell eggs are packaged, stored or offered for sale. The program also includes finished 16 | IDAHO DAIRYMEN’S ASSOCIATION dairy product testing for compliance with state and national standards and an FDA approved laboratory certification program for industry and private laboratories. ISDA is also responsible for the protection of surface and groundwater from dairy farm nutrient by-products, which is accomplished through routine inspections of dairy farm facilities, land application sites, and review and approval of new or modified systems. Beyond its reinforcement of state requirements, ISDA works in conjunction with several state and federal agencies through cooperative agreements or memoranda of agreement to protect the environment and ensure food product safety. For more information on the Idaho State Department of Agriculture, contact Dairy Division Director Marv Patten at 208-332-8550. Dairy Management Certificate Program The Idaho Dairymen’s Association assists in funding and actively participates in a collaborative effort between the University of Idaho Extension Dairy Team and the College of Southern Idaho to develop employee certification programs in different areas of dairy management. The certification program will be offered in different modules to meet the needs of dairy herd workers and managers who are interested in expanding their technical knowledge. The modules will have a practical orientation and focus on the knowledge and skills required to be successful on a dairy as a herdsman or a dairy employee. The University of Idaho Extension Dairy Team will be providing the technical instruction for the program. Workers who complete each of the training modules will earn certificates of completion and may earn credits at the College of Southern Idaho, which can be applied toward a certificate. These credits could also transfer to an associate or technical degree programs. The programs are also being made available those who currently not employed in the dairy industry but are considering seeking employment on Idaho dairy farm operations. Some of the modules that will be offered are: Milkers’ training: Introduction to Idaho’s dairy industry; Pasteurized Milk Ordinance; dairy design; milking equipment; cow behavior; milking routine; udder health and mastitis; milking systems and equipment; and workplace safety, biosecurity and milker’s responsibilities. Feeder training: Applied principles of feeding dairy animals, feed components, analysis and interpretation; TMR mixing and troubleshooting; feedbunk management; metabolic diseases and nutrients and the environment. Calving and transition cows’ management training: Dry cow management; the calving process and calving assistance; cow management at parturition and care of fresh cows. Calf-raising training: Neonatal calf management; colostrum programs; feeding dairy calves; managing calf housing and calf health management. Animal care and handling training: Importance of animal care; dairy cattle stockmanship / low stress animal handling; care of calves; identifying sick animals; management of non-ambulatory cows; when and how to practice euthanasia; legal issues and lameness on dairies. For additional information about the program, please contact Dr. Mireille Chahine, Associate Professor and Extension Dairy Specialist, University of Idaho, 208-736-3600, mchahine@uidaho.edu or Terry Patterson, Instructional Dean, College of Southern Idaho, 208-732-6402, tpatterson@csi.edu. 2015 INDUSTRY PROFILE | 17 Idaho’s Dairy Processors Ballard Cheese Chobani Ballard Family Dairy & Cheese, based in Gooding, Idaho, creates award-winning cheeses, including Idaho White Cheddar; Truffle Salt Cheddar; Pepper Cheddar; cheese curds in seven flavors; Baby Swiss; Danish Pearl (Gouda Style); Jersey Dream (Feta Style); and Idaho Golden Greek Grilling Cheese (Halloumi Style). Chobani is the world’s most recognizable name in the Greek Yogurt market. Started in 2005, Chobani recently opened a new production facility in Twin Falls, Idaho. In addition to bringing hundreds of jobs to the Magic Valley, the Twin Falls plant also uses locally sourced milk from Idaho farms. Ballard Cheese, which was founded nine years ago, makes its cheeses in small, handmade batches to ensure the finest quality and richest taste for consumers. The milk used comes from a small herd of approximately 100 cows. The Twin Falls plant was awarded Food Engineer’s “Plant of the Year” award for its state-of-the-art facility that was built in just 326 days. The new plant covers 100 million square feet, and is now the largest yogurt manufacturing plant in the world. For more information, visit www.chobani.com. Ballard Cheese has invested heavily in efficiencies and sustainability while ensuring that quality and freshness remain priorities for the company. In 2013, Ballard Cheese was recognized for its environmental stewardship at the US Dairy Sustainability Awards in Washington, DC. For more information, visit www.ballardcheese.com. Brewster Cheese Cloverleaf Creamery Swiss Immigrant John Leeman purchased the Ohio Brewster Cheese facility in 1965. Since then, they have expanded to include additional facilities in Stockton, Illinois and Rupert, Idaho. Cloverleaf Creamery uses an old-fashioned technique to bottle healthy, all natural milk from their small dairy of registered, pedigree Holsteins. Owner Bill Stoltzfus has been in the dairy business since the early 70’s and he is nationally known for his award winning herd. Brewster Cheese is the largest manufacturer of Swiss cheese in the United States and is headquartered in Brewster, OH. The company is committed to producing consistently superior quality cheese and whey products, employing process-enhancing technology to reduce costs and utilizing value-added services Today, Brewster Cheese’s three facilities throughout the US produce around 85 million pounds of cheese annually. For more information, visit www.brewstercheese.com. 18 | IDAHO DAIRYMEN’S ASSOCIATION Though the creamery opened in 2007, milk production has been operational since 1992. The creamery’s products range from various milk products to cream, butter, yogurt and ice cream. Processing roughly 28,000 pounds of milk per week, Cloverleaf makes all of its products from the milk produced in its own dairy, which currently milks around 80 cows on a regular basis. Commercial Creamery Davisco Foods In the early 1900s, Commercial Creamery offered many traditional dairy products to the Pacific Northwest region of the United States. Since then, Commercial Creamery Company has become a leading developer and manufacturer of specialty food ingredients. Davisco Foods is an international cheese and food ingredient company headquartered in Le Sueur, MN. Founded in 1943 by Stanley Davis, with his purchase of the St. Peter Creamery, Davisco is managed by Jon Davis, CEO and grandson of the founder. Davisco has cheese companies in Le Sueur, MN; Jerome, ID and Lake Norden, SD as well as food ingredient companies in Le Sueur and Nicollet, MN, Lake Norden, SD and Jerome, ID. Davisco has sales offices in Minneapolis, Geneva, Shanghai and worldwide strategic partners in the Middle East, Japan and Africa. Their expertise and ongoing research in spray-dried cheese powders and other specialty dairy powders are unmatched. Their products are necessary ingredients in a variety of delicious foods, including unique snack seasonings, rice and pasta dishes, entrées, baked goods, dips, dressings, sauces, and soups. Focused on quality, consistency and excellent customer service, Commercial Creamery serves numerous clients in the United States and throughout the world and exports its products to more than 25 countries presently. For more information, visit www.cheesepowder.com. Davisco processes 11 million pounds of milk per day into cheese and whey products. Davisco prides itself in its support of local communities by providing jobs and buying milk from regional farmers. Meticulous about quality control and excellent customer service, Davisco’s mission is to lead the industry in food technology by producing innovative proteins for health and nutrition. For more information, visit www.daviscofoods.com. Darigold Glanbia Foods Darigold produces the equivalent of two million gallons of milk per day and distributes a full line of dairy-based products for wholesale, retail, grocery, foodservice, commodity and specialty markets. Consumer products that Darigold produces include milk, half-and-half, whipping cream, buttermilk, cottage cheese, yogurt, sour cream and butter. The company also produces cheese, milk powder and whey products for institutions, food brokers and food processing companies. These ingredient customers range from small food processors to very large multi-national food companies with household names. Darigold, Inc. operates 12 processing plants throughout the Northwest to serve its dairy farm families. For more information, visit www.darigold.com. Glanbia Foods is the world’s largest producer of American Style cheese. Headquartered in Twin Falls, Idaho, Glanbia works closely with dairy operations to receive quality milk needed to produce award-winning cheese. With the help of more than 1,000 employees, Glanbia and its sister company Southwest Cheese, of Clovis, NM, makes, sells and ships more than 880 million pounds of cheese annually, serving customers in more than 30 countries. Glanbia Foods is a powerful global cheese player and a division of Glanbia, plc, a publically traded international company based in Ireland with strong footprints in cheese and nutrition. For more information, visit www.glanbiausa.com. 2015 INDUSTRY PROFILE | 19 Idaho’s Dairy Processors Gossner Foods, Inc. Idaho Milk Products Gossner Foods was founded in 1966 by Ed Gossner. At that time, 1/2 vat of cheese was made every other day, and only the milk from the family dairy farm was used. Today, Gossner Foods has three locations – Logan, Utah; Imperial Valley, California and Gossner Foods of Magic Valley. Located in Jerome, Idaho, Idaho Milk Products is a privately held international milk processing leader supplying Milk Protein Isolate, Milk Protein Concentrate, Milk Permeate and Cream to global food and nutrition companies. Owned by three American dairies, Idaho Milk Products has the world’s most efficient farmto-finished product operation resulting in the freshest and highest quality dairy ingredients available. Idaho Milk Products operates the largest dedicated Milk Protein Concentrate and Milk Protein Isolate processing plant in the world, processing 40 million pounds (18 metric tons) of IdaPro™ MPC and MPI per year. For more information, visit www.idahomilkproducts.com. Between the three locations, Gossner Foods has over 350 farm families and nearly 600 employees. Gossner Foods produces 60,000,000 pounds of Swiss cheese each year, about 18% of the total Swiss produced in the United States. All Gossner Foods milk is Grade A. Most of Gossners Foods’ production is Swiss cheese, but the company also produces UHT shelf stable milk, fresh cheese curd, Muenster, fresh butter, cheese spreads, ice cream, and whey protein concentrate. Gossner Foods packages over 1.3 million pounds of cheese per week, much of which is private label. For more information, visit www.gossner.com. High Desert Milk Lactalis American Group Six farmers and dairy owners from the Burley and Twin Falls region of Idaho founded High Desert Milk in 2001. The six owners had, at the time of the company’s founding, a vision to create a stable market for their milk and develop and end product of which they could be proud. The Lactalis Nampa plant employs more than 600 Idahoans, produces cheese and whey products made from milk the majority of which is purchased from local and regional dairies. The Nampa plant is the company’s flagship plant in the United States and is part of Lactalis American Group (LAG) which in the United States produces some of America’s most popular cheese brands, including Président, Galbani, Sorrento, Precious and Rondelé. Vertical integration and ownership of farms, dairies, trucks and the milk plant allow High Desert Milk to control and monitor all aspects of its supply chain and offer its customers the youngest and freshest products on the market. The company prides itself on clean, flavorful powdered milk and sweet cream butter, always meeting Grade A product standards. Today, High Desert Milk owners farm close to 40,000 acres, milk 35,000 cows and market 2.2 million pounds of milk per day. For more information, visit www.highdesertmilk.com. 20 | IDAHO DAIRYMEN’S ASSOCIATION Since 2012, LAG is entirely controlled by Parmalat Group, an Italian-based global player in the production and distribution of milk, dairy products (yogurt, cream based sauces, desserts and cheese) and fruit beverages, which generated revenues of about 5.2 billion euros in 2012. Parmalat Group is present in 29 countries and has 70 factories and about 16,000 people work at Parmalat’s facilities in Europe, the Americas, Africa and Australia. Since 2011, Groupe Lactalis owns today an 82.2% interest in Parmalat S.p.A., the holding company of Parmalat Group, which is listed on the Italian Stock Exchange. Groupe Lactalis is n. 1 for dairy products in the world. For more information, visit www.lactalisamericangroup.com. Marathon Cheese Reed’s Dairy Ray and Marie Goldbach founded Marathon Cheese in 1952. Things have come a long way since the Goldbachs founded the company in their basement. The Mountain Home, Idaho location was opened in 2007 and continues to produce quality cheese. Reed’s Dairy is a 160-cow producer/handler in Idaho Falls. Their processing facility bottles non-fat, 1%, 2% and whole milk in returnable half gallon plastic and glass bottles as well as disposable gallon bottles that are sold in grocery stores. They also produce a super premium ice cream, soft serve ice cream mix, mild cheddar and mozzarella cheese. Marathon Cheese packages millions of pounds of cheese each year – customizing packaging and orders for clients. Marathon Cheese never competes with their clients; instead, maintaining themselves as one of the only cheese packagers that never sells direct to retailers, wholesalers, marketers or food service operations. For more information, visit www.mcheese.com. The majority of Reed’s products are sold in their own dairy store and milk home delivery routes. Orders through their website have their ice cream and chocolate milk shipped all across the United States. For more information, visit www.reedsdairy.com. Stoker Farms Stoker Farms is a milk processing plant in Burley, ID that was founded in 1943. The family-owned facility has 7 full-time employees who process around 70,000 lbs. of milk each week. Stoker receives their milk from a dairy in Jerome, ID. They bottle whole, 2%, 1% and skim milk in both the gallon and half gallon. Stoker also bottles organic milk for Organic Acres, a local organic company. Their bottled milk is sold commercially throughout the state and the region. 2014 INDUSTRY PROFILE | 21 Idaho’s Dairy Cooperatives Dairy Farmers of America (DFA) Magic Valley Quality Milk Producers Dairy Farmers of America (DFA) is a national milk marketing cooperative owned by and focused on more than 13,000 dairy farmer members in 48 states. The cooperative’s core business is to market members’ milk, pay them a competitive price, deliver value and be a leader in the industry. Our membership in Idaho is 82 operations strong. Magic Valley Quality Milk Producers Inc. was established in 1987 by a group of producers located in Southern Idaho, which provided milk to processors located in Idaho and Utah. Over the next ten years, the producer base expanded to nearly 70 producer members located in both states. After Mid-American Dairymen purchased a major customer located in Utah in 1998, which accounted for nearly 25% of the market, many Utah members decided to form their own organization. At DFA, we are making investments in new products, new facilities and new ways for families around the world to enjoy what our member-owners produce. Our customers in Idaho include: Chobani Inc, High Desert Milk, Brewster Cheese, Darigold, Glanbia, Sorrento Lactalis, Gossner Foods and Dean Foods. These businesses connect family farms to family tables. For more information, visit www.dfamilk.com. Today, Magic Valley has 30 member farms located in Southern Idaho with nearly 3,000,000 lbs. of milk per day. It also hauls nearly 95% of their member milk after forming an entity to support this effort in 2011. Independent Milk Producers Cooperative, Inc. Northwest Dairy Association Independent Milk Producers Cooperative, Inc. was established in 2004 by a group of local dairy producers who wanted to be more engaged in the marketing and pricing of their milk. The Co-op is comprised of ten family-owned and operated dairies within the Magic Valley area in Southwestern Idaho. The Co-op’s members range from small to medium-sized dairies. Independent Milk prides itself on the quality of milk supplied to its customers, which exceeds all state and federal quality standards. All Co-op member dairies are Grade A. Northwest Dairy Association (NDA) is an integrated milk marketing and processing cooperative, owned by over 500 dairy producers (with a total of 79 member-owners located in Idaho). Its marketing and processing subsidiary Darigold, produces a full line of dairy-based products for retail, food service, commodity and specialty markets. Darigold operates 12 processing plants throughout the Northwest, including ones in Boise, Jerome and Caldwell, Idaho, to serve its dairy farm families. Idaho NDA members ship a total of 2.06 billion lbs. out of the co-op’s total 8.0 billion pounds of annual milk supply from farms in Washington, Oregon, Idaho, northern California, Montana and Utah. NDA is the fifth largest dairy cooperative in the United States based on milk volume. Beyond the exceptional quality of its products, the Co-op has also strived to build long term, mutually beneficial relationships with its customers over the past 9 years, which has translated into a more competitive milk price for its members. 22 | IDAHO DAIRYMEN’S ASSOCIATION Associate Members Cooper Norman FCStone Founded by E. LeGrande Nelson in 1954, Cooper Norman has grown to become the #1 public accounting firm with a reputation for quality service and innovative planning ideas. FCStone originated as 550 grain cooperatives known as Farmers Commodity Corporation (“FCC”). FCC continued to evolve, merging with Saul Stone to become FCStone, going public in 2007 and acquiring leading dairy price risk management firm Downes-O’Neill LLC end establishing our roots in the dairy industry. Today, our dairy clients milk approximately 50% of the cows in Idaho. Our professional team has invested significant hours and resources to gain a working knowledge beyond your financial statements, including herd health, reproduction and dairy management concepts. Our commitment to these disciplines and building relationships enable us to be Idaho’s premier dairy accounting firm. Cooper Norman provides all traditional financial and tax services, and also provide consulting services such as negotiating and evaluating financing alternatives, forecasts and projections, cost of production analysis, estate and transition planning to younger generations, and tax planning strategies. Our goal is to exceed your expectations. Today we continue this longstanding commitment to the dairy industry as the dairy/ foods group of FCStone. Our emphasis is on assisting and educating the industry on how to manage margins, taking a lead role in liaising between exchanges and the industry to develop new tools for dairy, both domestically and internationally. We continue to be the dairy industry’s advocate, helping its members through innovation, education and developing new tools that better fit industry needs. Today INTL is ranked #30 on the 2012 Fortune 500 with 33 offices in 13 countries and total assets of $3.0 billion. Northwest Farm Credit Services Northwest Farm Credit Services has been serving farmers and ranchers for nearly a hundred years. As the largest financial cooperative in the Northwest, no other lender understands agriculture better or is more committed to the future of rural America. With a unique understanding of the marketplace and proven track record of being even handed through various commodity and economic cycles, our employees are viewed as trusted advisors by the customers they serve. Northwest FCS is a $12 billion financial cooperative with farm-elected governance and strong patronage dividends paid to customer-owners. The cooperative is also part of a $194 billion nationwide network of borrower-owned lending institutions, and regularly provides seminars, financial workshops and one-on-one business planning and facilitation. Visit www.northwestfcs.com to learn more. Sawtooth Law Offices Sawtooth Law Offices is dedicated to providing excellent service to the legal and policy needs of Idaho citizens, businesses, water users and recreationists. With offices in Boise, Challis and Twin Falls, we are strategically located throughout Southern and Central Idaho to provide superior service to producers and organizations related to Idaho’s key resources – agriculture, natural resources, recreation, and water. Our attorneys are licensed to practice law in state and federal courts in Idaho and Washington, and before the U.S. Ninth Circuit Court of Appeals. Moreover, our attorneys have unique experience in handling legislation at the Idaho statehouse and water rights matters in the Snake River Basin Adjudication and before the Idaho Department of Water Resources. Sawtooth Law utilizes a friendly, team approach to pursue your legal needs in a cost effective, efficient manner. Our team includes attorneys David Claiborne, Bryce Farris, Evan Roth, Dan Steenson and Andy Waldera. Associate Membership Idaho Dairymen’s Association offers associate membership packages for individuals and organizations that share our strategic vision for the well-being of Idaho’s dairy producers. We have two levels of associate memberships available and each one generates awareness for you and your organization among our members, partners and other individuals that we come into contact with through our industry report, newsletters, website and event sponsorship. For more information about becoming an associate member and to fill out an application, please visit IdahoDairymens.org/AssociateMembership or email us at bob@wdbs.us. 2014 INDUSTRY PROFILE | 23 195 River Vista Place Twin Falls, Idaho 83301 208.736.1953 www.idahodairymens.org UPDATED FEBRUARY 2015