Growing North Carolina’s Dairy Industry
Dr. Shannon Davidson Extension Associate
Department of Animal Science North Carolina State University
Raleigh, NC
Southern Dairy Conference Atlanta, GA
January 25, 2012
Fluid milk market in a milk deficit state
2011: 45,000 milk cows in NC on 285 farms
Average herd size = 158 cows
North Carolina Dairy Industry
North Carolina Dairy Industry
NC farm numbers dropped from 1132 (1987) to 285 (2011)
Milk production dropped from 1,514 million lb (1987) to
903 million lbs (2011)
Population growth in NC
6.6 million (1990) to 9.5 million (2010)
NC milk production meets
about one half of current
demand for fluid milk
North Carolina Dairy Industry
North Carolina has 7 Grade A milk
processing plants, 1 large commercial
cheese processing plant and over
40 farmstead dairy operations
NC cows milk 20,067 lb/cow/year
1st in Southeast
NC’s farm price for milk consistently
ranks amongst the highest in the country
Progressive producers are leading the charge to stabilize and grow the NC Dairy Industry
The North Carolina Association for Dairy Stabilization and Growth, Inc.
2007: NC Dairy Industry Strategic Plan developed to address retention, recruitment, relocation, and long term viability of the industry
2008: 501(c)3 incorporated
2009: Dairy Development Coordinator hired
Matt Lange
2009 and 2010: 2 Dairy Extension Associates hired by NCSU
Dr. Shannon Davidson (Animal Science)
Mike Roberts (Agricultural and Resource Economics)
Goals Enhance the value of milk
and dairy products
produced in the state
Enhance the dairy farm
family quality of life
Increase the volume of milk
produced in the state
Support the number of dairy farms in the state
Resource Network
NC Coop. Extension
NC Dairy Processors
Allied Dairy Industry
NC Dairy Producers Association
NC Dept. of Agriculture
NC State University
Banking
Realty
NC Department of Environment &
Natural Resources
Dairy Cooperatives
NC Feed, Equipment, & Supply Dealers
Ag. Support Non-Profits
Retail
NCADFP, Golden Leaf, Ag & Dairy
Foundations
NC Association for Dairy Stabilization &
Growth, Inc. -Board of Directors
NC Dairy Advantage -Steering Committee -Program Committee:
Matt Lange, Dr. Shannon Davidson,
Mike Roberts
NC Dairy Industry
Dairy Farm Assessment
“Snapshot” of a dairy farm
Overview of financial state, herd
health, nutrition, milk quality,
reproduction, and management
Identify strengths and weaknesses
Prioritize possible issues and
recommend solutions
Provides producers an evaluation of farm performance and contributes to industry data on cost of production
Dairy Profit Team
Dairy producer-led group
Goal of increasing farm profitability
Farm management efficiency
Explores opportunities and challenges
The producer decides who is on the team
May include their Extension agent, veterinarian, nutritionist, accountant, etc.
Profit Team goal is to improve long term viability
Answers questions, reports on relevant research, and offers suggestions to help the producer make more effective and efficient decisions
Farm Assessment & Profit Team
Completed 13 Farm Assessments, 10 planned for 2012
2 Profit teams ongoing, 4 to begin in 2012
Farm Assessment process identifies candidates for Profit Teams
Next step is developing
training programs for
potential Profit Team
members
Advantage 1-on-1
Provides direct assistance to NC dairy producers and answers to specific dairy business questions
Offers timely and accurate information and resources
Purpose is to enable NC dairy producers to make the best decisions possible ̶ giving them a competitive edge
Responded to over 200 requests since Jan 2009
Dairy Strategy Series
Partnering with NCSU and NC Cooperative Extension Service to focus on practical solutions to dairy producer issues through educational programs and interactive workshops
Recent topics include
Marketing Alternatives
Nutrient Management
Value-added Workshop
Value-Added & Other Opportunities
Diversification
Grazing = significant growth potential
Organic = demand increasing
6 organic herds
Value-Added = #1 in Southeast
3 currently in development of bottling
4 in development of making cheese
12 more looking at other options
NC Dairy Artisan Network and
new “Got to be NC Dairy Products”
campaign through NC Dept. of Ag.
NC Dairy Artisan Products
Promotional booths at North Carolina State Fair and Mountain State Fair
Cheesemakers gave out over 80,000 samples in 2010
Commodity milk dairy producers, “Meet your NC Dairy Farmer”
World Dairy Expo Tour & Booth
Traveled with NC dairy producers
to Madison, WI for World Dairy Expo
20 individuals from 9 NC dairy farms
Great opportunity to learn about
latest technology and opportunities
in the Dairy industry
Booth has helped recruit new dairies
Myers Farms, Inc featured as a Virtual Farm tour at 2011 Expo
Over 600 views
Dairy Start Up, Renovation, & Relocation
Work with realtors & consultants to locate
Farmland to buy
Existing dairy farms for sale or lease
Equipment
Labor
Grow new dairy producers whether they are in-state or from another country
Three new dairies – 300 total milk cows
Currently two new dairies in the process of starting up
Working with at least seven more families looking to start dairy farms in NC
Young Dairy Farmer Development
Dairy 2040
Bringing together young NC dairy
producers focused on management
success combined with dairy
industry partners
Statewide conference for dairy
producers under 45
Spin off with smaller, regional working groups
Professional Dairy Producers of Wisconsin business conference
Received grants from PDPW foundation in 2011 and 2012
Sent 2 producers to conference in 2011
Sparked producer networking
Communication & Information Distribution
NC Dairy Advantages Newsletter
Facebook – 258 people like “NC Dairy Advantage”
Web site – www.ncdairyadvantage.com
Dairy contact information
Dairy Farm Surveys
Benchmarking Data
Dairy Advantage “Blogging”
NC Dairy Appreciation Dinner
Impact of NC Dairy Advantage
Individual Dairy Farm Profitability and Viability
Advantage 1-on-1, Farm Assessments and Profit Teams
Facilitation of Industry-wide Education and Interaction
NC Dairy 2040, NC Dairy Artisan’s Network, Dairy Strategy Series,
NC Dairy Appreciation Dinner
Improved Communication
Dairy Advantages newsletter, website, facebook
Growth of NC Dairy Industry
Reinvestment
Relocation
Recruitment
For more information contact:
Dr. Shannon Davidson Matt Lange
NCSU Box 7621 NC Dairy Development Coordinator
Raleigh, NC 27695 1816-A Malone Rd.
(919) 515-4045 work Burlington, NC 27215
(919) 244-5756 cell (919) 740-1762