The Faces of Dairy 2008-2009 – A Year Like No Other
National Dairy Month is a time for joy and celebration; the dairy industry coming together to share in the success of our industry. Unfortunately, this year’s celebrations are few and far between. The air has been sucked out of our party balloons and many are just thankful to still say they work in the dairy business. Here at Agribusiness Dairyman we began to ponder just how dairies were staying afloat. Was there one tool, one business management technique that has ensured the cows keep milking?
We set about talking to dairy men and women across the Western United States in search of an answer. Since June 2008 until now, it has certainly been a year like no other. Here is what the faces of dairy say have kept them here, even if it’s just barely hanging on.
Has there been one single decision you’ve made to help ensure the business stays afloat? In a nutshell, how have you been able to survive the last year?
John A. Machado Dairy Farms
Janet Dyk – 3rd generation dairywoman
Manteca, CA
Operation:
2 dairies
2,500 head milking
5,000 head total
It’s simple, really. You don’t spend what you don’t have. We didn’t have it so we didn’t spend it.
In reality, we’re luckier then many. The business is paid for so that helps tremendously. But we’ve made other changes too.
We modified the feed ration, cut out some of the more expensive commodities and replaced them with cheaper ones.
We lost a member of the crew and haven’t replaced him. Everyone else has been pulling their weight to backfill and make it all happen.
After that, we just hold our breath and hope for the best. There’s really not much more that can be done.
Dairyman – 2nd generation
Madera County, CA
Operation:
1 dairy
900 head milking
1,400 head total
I never thought the day would come when we’d have to lay someone off, but it did. We looked long and hard at how our team was structured and found that it was most cost-effective to let go of our mid-level herdsmen.
Those at the top have the most experience, the background, the knowledge. They can help backfill in other areas and are dedicated to our business. For them, this is their life.
The guys at the bottom are the least expensive labor. They may come and go and we can still afford to replace them with other, cheaper help.
It’s the guys in the middle that became the victim. They’ve been here long enough to know more and have experience, but not long enough that we consider them experts.
Overall it’s been hard. For these guys, it’s personal and even though you need to do what’s best for the business, it’s still rough to let them go knowing they’ll have a hard time finding work someplace else.
Bijou Hill Dairy
Judy and Larry Pearson
Beyers, CO
Operation:
1 dairy
900 head total
Lately, like with everyone else, things have been pretty lousy. We’d done really well over the past 15 years and in the last nine to twelve months, it’s just been brutal.
The milk prices fluctuate so much; there can be up to a 25% difference from paycheck to paycheck. It makes it hard to run a business, let alone your life.
We’re fortunate to have a bank that stands behind us and is helping keep the operation moving. I know others are not as lucky and so for this, we are very grateful.
We’ve done a couple of different things to help cut back. We raise our own feed, which helps, but we’ve made changes to the ration for some of the ingredients we don’t produce.
We were lucky to get good hay last year at a decent price and there’s been enough to last this long. We also changed over to high fat pellets instead of cottonseed.
We’ve also cut back on the hired help. We no longer have herdsmen and are relying on family and others to help us keep things moving forward.
It’s tough, no doubt, and I’m hopeful that we can keep it up.
Dutra Dairy - since 1944
Larry Haworth
Manteca, CA
Operation:
1 dairy
1,300 head total
Are focus has been primarily on feed. We farm 1,300 acres alongside the dairy, so my first consideration has been on-farm versus off-farm feed.
At the end of the day, feed is the greatest expense. If I can produce more of my own feed, that’s one less check I’m writing.
Given that, we’ve really taken a long hard look at our rations and are focusing now on feeding for calf quality, not feeding for top milk production. If there are commodities I can grow that will help achieve this, I am. The less I have to pay a third party, the better.
I know a lot of guys are having to let people go, but for us it really hasn’t been an option. We need these people, so we’re holding on to them. To make it work, I’m focused on feeding for the least possible cost. I look daily at the dollars per cow per day we’re spending and I’m constantly making adjustments.
I know without a doubt this is one of the most difficult times we’ve had since the dairy started back in 1944. But I also know that we’ve made it work before, so if we keep on top of things, I think we’ll see this thing through.
Dairyman – 3rd generation
Tulare County, CA
Operation:
1 dairy
1,200 head total
Feed is where the cost is at. We’ve looked at all costs and this is by far the greatest expense for the dairy. We brought the nutritionist in and had him re-work the ration using cheaper commodities.
We’re blending with cheaper hay, using oats and straw now. And then, unfortunately, we had to drop the nutritionist for the time being. It may sound harsh, but we’re sticking with this ration for a while and will make it work.
It’s hard because you begin to develop relationships with people and over time, they become part of your business too. To have to tell them “thanks for your help and we’ll see if we can talk again in six months” is a tough thing to do.
Dairyman – 3rd generation
Fresno County, CA
Operation:
1 dairy
1,500 head total
We took a look at all our expenses and started by cutting back on things. We’ve reduced the number of vet checks to once a month as opposed to every other week. In between, we’re taking care of the pregnancy shots and other issues ourselves.
When it comes to breeding, we’ve switched from using proven semen to strictly young sires. For some, this may not seem like a big change, but we’re looking at where we can trim all around as opposed to firing people or taking other drastic measures.
Like others, we’ve also culled some of our older cows. It wasn’t our first choice at all, but it just had to be done.
Superstition Farm.com
Casey Stechnij – 3rd generation
Mesa, AZ
Operation:
Diversified farming operation
Dairy
Agro-tourism
Labor has been a major factor in our ability to keep the dairy in operation. It’s really feast or famine and not much in between.
We took a look at those on our operation that were just here for a paycheck and had no investment in the business. Those people are no longer with us. We then went to our employees that have been dedicated to us and enlisted the help of their families, our friends, anyone willing to ensure the business survives. Many have stepped up to the plate and it’s been absolutely amazing.
Fuel costs were an issue and we’ve made the transition into bio-diesel. We’re working with local restaurant owners and now we support them and they provide us with a product that still keeps our operation going.
I look at each and every bill that comes across and ask myself “is this an essential expense.” We’re always looking for ways to get rid of the deadwood.
The biggest change, though, is that we’ve shifted from being a strictly production dairy to developing and agro-tourism business. We’ve opened the farm up to schools and families. We give tours of the operation and try to connect everyday people to our lives. From my standpoint, one of our greatest failures has been in explaining how we provide essential products and services to all Americans.
The people of this country, if they knew where their food came from, would fight for us. But they don’t know the story and so we suffer as a result.
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