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Nicole Breunig Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)

Grow Wisconsin Dairy 30x20. Nicole Breunig Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP). Department of Agriculture, Trade and Consumer Protection. The Mission. The mission of DATCP is to serve the citizens of Wisconsin by assuring:

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Nicole Breunig Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)

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  1. Grow Wisconsin Dairy 30x20 Nicole Breunig Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)

  2. Department of Agriculture, Trade and Consumer Protection The Mission • The mission of DATCP is to serve the citizens of Wisconsin by assuring: • The safety and quality of food. • Fair business practices for the buyer and seller • Efficient use of agricultural resources in a quality environment • Consumer protection • Healthy animals and plants • The vitality of Wisconsin agriculture and commerce

  3. Department of Agriculture, Trade and Consumer Protection Background • Wis. Act 32 provided an annual appropriation of $200,000 of the former Dairy 2020 program funding to DATCP following the disbanding of the Wisconsin Department of Commerce. • DATCP Secretary Ben Brancel convened dairy discussions with industry leaders from across the state to better understand the needs and demands of our farmers and processors. • Suggestions from these discussions formed the priorities and services model of Dairy 30x20.

  4. Department of Agriculture, Trade and Consumer Protection Discussion Collaborators • Cooperative Network • Dairy Business Association • GrassWorks, Inc. • Professional Dairy Producers of Wisconsin • UW-Extension • Wisconsin Center for Dairy Research • Wisconsin Center for Dairy Profitability • Wisconsin Cheese Makers Association • Wisconsin Dairy Products Association • Wisconsin Farm Bureau Federation • Wisconsin Farmers Union • Wisconsin Milk Marketing Board • Wisconsin National Farmers Organization

  5. Department of Agriculture, Trade and Consumer Protection WI Dairy Farm Numbers 11,637 dairy farms in Wisconsin as of 4/1/201 Less than half of the number in 1997 (25,000 then) Graphic and data courtesy of WMMB and USDA/NASS

  6. Department of Agriculture, Trade and Consumer Protection Milk Production Per Cow is Increasing • 1987 average of 13,816 • 1997 average of 16,057 • 2010 average of 20,630

  7. Services to Match Customer Needs • Dairy Farm Number Trend Continues • Herd Size Trend Continues • Cow Numbers Approximately Steady • Milk Production per Cow is Increasing • Distribution of Herds and Milk Production Shifting • Diversity of Size and Type of Dairy Farms

  8. WI Annual Milk Production In Billions of Pounds

  9. % Representation by Herd Size 80% 20% 59.5% 40.5%

  10. WI Dairy Industry Trends • 11,637 Wisconsin dairy farms as of 4/1/2012 • Less than half of the number in 1997 (25,000 then) • Milk production per cow is increasing • 2010 average of 20,630 • 1997 average of 16,057 • 1987 average of 13,816 • Shifts in % total milk production by herd size • In 1997 10% of the herds had more than 100 cows and yielded 32.5% of the milk produced in the state • In 2007 almost 20% of the herds have more than 100 cows and are producing almost 60% of the milk volume

  11. Department of Agriculture, Trade and Consumer Protection Dairy Discussion Goals • Provide assistance to dairy farmers, without regard to size or type, focusing on: • Long-term, sustained operation • Profitability • Maintaining and increasing milk production • Management & operation changes • Business planning • Transition planning • Beginning farmer assistance

  12. Department of Agriculture, Trade and Consumer Protection Dairy Discussion Items • Changes among Wisconsin dairy farms • Changes in economic conditions • Changes in federal, state, and local budgets • Need to continue to improve services and address changing needs • Identify needs by herd size • Develop clearinghouse model with DATCP as starting point to disseminate information and navigate to resources.

  13. Needs by Herd Size • According to the Wisconsin Agricultural Statistics Service(WASS) 2010 Dairy Producer Survey, ¾ of surveyed farmers are intending to be in business in 2015. Based on this number is it important to recognize the needs of the approximately 9,000 dairy farms in Wisconsin what will be in business in 2015 and incorporate a dairy development strategy to help them obtain profitability while increasing Wisconsin milk production. • Difficult to put every farm type into a box or place on a line. • Diversity isn’t just in farm size. From management styles, ownership, business planning and many other facets, every farm can be very different – But they all need basic things…

  14. Department of Agriculture, Trade and Consumer Protection Needs by Herd Size

  15. Herd Needs by Area • Planning & Preparation • Business Development • Financial Analysis • Transition/Transfer • Expansion • Modernization • On farm management • Herd Health • Facilities • Milk Production • Milk Quality • Operational Efficiency Planning and Preparation for Profit

  16. Department of Agriculture, Trade and Consumer Protection Implementing Clearinghouse Model • Establish a client based service delivery system that utilizes a multi-agency, private-public network for services and referrals • Identify internal technical assistance areas covered by DATCP staff • Coordinate list of private service professionals. Including, but not limited to: • Financial advisors • Legal service providers

  17. Clearinghouse Model - Internal

  18. Clearinghouse Model - Farmer

  19. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Goal Improve the long-term viability of Wisconsin’s dairy industry through services to achieve an annual milk production of 30 billion pounds by 2020 to meet the growing demand of the marketplace.

  20. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Need • Wisconsin dairy farmers currently only produce approximately 90% of the milk volume needed by the state’s dairy processors. • Wisconsin’s milk production grew less than 1% in 2011 to 26.1 billion pounds, which is not on pace to meet the future demands of the state’s growing processing industry. • Dairy 30x20 will help secure a strong future for Wisconsin dairy farmers that will allow our state’s dairy industry to maintain our diversity.

  21. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Objectives • Provide assistance to dairy farmers, without regard to size or type, focusing on long-term, sustained operation and increasing profitability and production. • Improve profitability through management and operational system changes, business and legal structure, and herd health and milk production. • Beginning farmer assistance.

  22. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Services • Toll-free number 855-WIDAIRY (855-943-2479) for dairy farmers to call to connect with resources and service provided for WI Dairy Development. • Email at GrowWisconsinDairy@wi.gov. • These resources and services will continue to build and be available online at GrowWisconsinDairy.wi.gov. • Electronic Catalog of Network and Contacts to facilitate clearinghouse function.  

  23. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Services • Promote the growth of the dairy industry through research, planning, and assistance, including grants and loans to dairy producers. Per Emergency Rule Scope ATCP 161. • ATCP 161 formed the Grow Wisconsin Dairy Producer Grants to retain farms, facilitate operational changes, improve profitability, and yield more milk through.

  24. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Grow Wisconsin Dairy Producer Grants • FY12 Request for Proposal release March 30, 2012 • The grant will be flexible and customizable to meet the needs of individual farms. Monies from the grant will be used by farmers to hire consultants and build a team of experts with a broad range of expertise to address specific business needs on their operation. • Each grant is up to $5,000. Cost share payments by the farmer are required at 20% of the grant amount.

  25. Department of Agriculture, Trade and Consumer Protection Grow Wisconsin Dairy 30x20 Grow Wisconsin Dairy Producer Grants • Two types of grants are available Planning & Preparation Teamsto be applied towards business development and expansion needs. Examples include business planning, financial analysis, transition planning and farm transfers. The grant money can also provide assistance with professional services costs related to dairy farm modernization and expansion efforts such as siting, engineering, design, layout of new barns, parlors or farm structures. Dairy Profit Teams to develop an on-farm management team to assist dairy producers in improving management of existing operational systems and identify opportunities to improve profit. Topics include new or appropriate technology implementation, farm growth, financial success, long-term sustainability, and production enhancing measures.

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