Dairy cow population reduction • Economists estimated the industry would need to remove between five and six billion pounds of milk, the production of approximately 250,000 cows, to boost milk prices.

• According to the November 20 USDA Livestock Slaughter report, 2,375,000 dairy cows have been slaughtered from January through October 2009, up 221,000 from the year before.
• The Cooperatives Working Together (CWT) program removed 252,000 cows and 5,400 bred heifers through four herd retirements held since December 2008.
• The members of CWT voted February 10 to fund the self-help program for two full years, from January 2009 through December 2010.

As milk prices plummeted, the number of dairy cows sent to slaughter increased. Whether it was answering the call to reduce supply, making economical decisions in herd management, taking a CWT buyout or a response to bankruptcy, the number of dairy cows in production in the U.S. continued to decline this year. The CWT program was set in high gear, and recently released study results claim the program enhanced milk checks by $1.54 per hundredweight in 2009. The decline of total U.S. dairy cows in production will be the first since 2004.

Blame MPCs?
• New York Senator Charles Schumer proposes Milk Import Tariff Equity Act to limit foreign imports of milk protein concentrates.
• Beginning in March, Sherry Bunting, writer for the Pennsylvania-based weekly newspaper Farmshine, featured a series of articles about the impact of MPCs, leading to much discussion throughout the Northeast.

Cow genome completed
• Hundreds of scientists in more than 12 countries map the entire genome of an 8-year-old Hereford.
• 22,000 genes, 2.9 billion DNA base pairs
• First livestock animal to have genome sequenced
• April 2009, researchers publish papers and studies in scientific journals.

The mapping of the bovine genome was seen as a revolutionary step that will quickly allow for genetic improvements in the beef and dairy industries. The project took more than three years and around $53 million to complete. The mapping of the genome has led to genomics, the characterizing of A.I. bull traits early in their life, cutting down on the cost of raising bulls and research to track their daughters’ productivity. The full impact of this genetic mapping is still being realized.

Cal Poly threatens to cull cows
• Dairy and creamery started with the school in 1903. Dairy Science department started in 1930.
• Cal Poly’s herd has been recognized by the Holstein Association USA as one of the longest progressive Holstein breeding herds.
• One of the largest student-run dairies in the U.S.
• The only dairy in San Luis Obispo County

The poor milk prices that have hurt dairymen nationwide have caused California Polytechnic State University Dairy Science Departments administration to consider culling the milking herd from 150 milking cows to 30, just enough to meet the needs of the school’s creamery. Students and alumni rallied to ask for more time and opportunities to explore other options before losing 106 years of good genetics. The letter that was sent out at the end of September, stated that the herd would be restored as soon as possible, but many students and alumni feared the cuts would be permanent.

On November 11, students, administration, alumni and concerned individuals gathered at the World Wide Sires Visitors Center to discuss possible options for the herd. Some of the options discussed were:
• Continuation of the cull cow program
• Sale of elite Cal Poly genetics
• Care-4-A-Calf Program
• Forage donations
• Student Labor Program
• Development of premium-branded Cal Poly Creamery products

Animal welfare
• PETA reveals undercover investigation of Land O’Lakes dairy farm
• National Dairy FARM (Farmers Assuring Responsible Management) launches at World Dairy Expo.
• PETA protests at World Dairy Expo.
• Issue 2, a constitutional amendment in Ohio that proposed the establishment of a livestock care standards board, passes in November.
• Michigan passes legislature to phase out battery cages, gestation and veal crates.

The National Dairy FARM program and the passing of Issue 2 in Ohio show a change regarding animal welfare in today’s dairy industry. Instead of allowing activist groups like HSUS and PETA to establish policies and dictate how producers should run their operations, it is the producers themselves setting the standards. However, the news from Michigan indicated that agriculture faces an uphill battle. Michigan is now the seventh state to pass such legislation.

Hard times
• Dairy gets national media attention with New York Times’ “As Recession Deepens, So Does Milk Surplus” and TIME’s “Getting Real about the High Price of Cheap Food” in August.
• Funding cut in some land-grant university dairy programs across the nation
• In protest of low milk prices, Belgian farmers sprayed 790,000 gallons of milk into fields while French dairy producers sprayed nearly 921,700 gallons.

Dairy aid
• The 2008 Farm Bill reauthorized the Milk Income Loss Contract (MILC) program and sign-ups began just as the year ended. The MILC payment trigger price was reached, and in April the USDA began issuing approximately $150 million to dairy producers for milk produced in February.
•To no avail, dairy groups nationwide asked for the industry to be included in President Obama’s economic stimulus package.
• On March 26, it was announced approximately 200 million pounds of nonfat dry milk will be transferred from the Commodity Credit Corporation (CCC) to USDA’s Food and Nutrition Service for use in domestic feeding programs.
• Ag Secretary Vilsack announced allocations under USDA’s Dairy Export Incentive Program for the July 2008 through June 30, 2009 period.
• This fall, the government passed legislation to deliver $350 million in aid to dairy farmers. The money includes $60 million to cover the federal purchase of surplus cheese and other dairy products. The remaining $290 million is expected to go out in direct payments to farmers.
• Dairy cooperatives across the country advanced year-end payments or distributed additional cash to their producer members.

When former Iowa Governor Tom Vilsack took the office of the 30th U.S. Secretary of Agriculture he was immediately bombarded with calls urging aid for a struggling dairy industry. Accepting some of the lowest milk prices in history and facing the foreclosure of the businesses they worked their lives at building, dairymen asked for help from anyone and everyone that could answer. Some dairymen denounced the aid of the government and preferred the market simply work itself, which, as it seems, may happen before producers see their share of $290 million.

Supply management
• In July, Organic Valley requires farmer-owners to reduce organic milk supply by seven percent
• Holstein USA announces Dairy Price Stabilization Program in September; program is supported by many, including Dairy Farmers Working Together in Vermont and Milk Producers Council in California
• Senators Arlen Specter and Robert Casey re-introduce a dairy bill, Federal Milk Marketing Improvement Act of 2007, that aims to price all U.S. milk based on the average cost of producing milk and calls for a supply management program

The idea of supply management is not new, but some producer groups began advocating for a supply management system as milk prices continued to be dismal throughout 2009. While proponents of the system pointed out Canada’s success with the system, others argue that there are too many other factors involved to implement the system in the U.S. Not only would supply management not work, some say, but it would lead to even bigger problems for small and medium-sized operations.