Ky Milk Matters January February 2021

January - February 2021 • KDDC • Page 1
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Matters
J a n u a r y - F e b r u a r y
w w w. k y d a i r y. o r g
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Supported by Milking Practices Influence Somatic Cell Count
page 6
Kentucky Farm Bureau Strengthens Dairy Policy
page 9
All American Nominations
page 16
Milk 4.0 Focuses on Data
I
n today’s world, data is all around us and it is changing
the way the world runs. Companies like Amazon, Google,
Facebook, and Netflix all use data
to increase efficiencies. The dairy
industry is no exception to this data
revolution. From ration balancing,
feed monitoring, DHIA records, new
monitoring technologies, smartphone
applications, novel software programs,
andgenomics,theoptionsforimproving
the profitability of your dairy operation
through data are everywhere. This
digital transformation has been referred
to as the 4th industrial revolution, often
shortened to 4.0.
When it was introduced, the original
KDDC MILK (Milk Incentive Leadership
for Kentucky) was the first of its kind.
This program was very successful in helping dairy producers in
our state and has been imitated by other dairy organizations. A
series of events led to the need to create a new MILK program.
As we started developing the program, it was clear that many
of the next opportunities we wanted to lead the industry in are
centered around data. And, like it’s predecessor, this program
is a big leap forward. Thus, we have named the program MILK
4.0---to capture the new program’s focus on data and the leap
forward in progressing the Kentucky dairy industry we all love.
MILK 4.0 focuses on genomics, pregnancy rate, somatic cell
count, and financial analysis. All of these data-based programs
will help progress your dairy operation. We are looking forward
to continuing this journey together.

2020 KDDC Board of Directors & Staff
Executive Committee
President: Freeman Brundige
Vice President: Charles Townsend, DVM
Sec./Treasurer: Tom Hastings
EC Member: Tony Cowherd
EC Member: Greg Goode
EC Past President: Richard Sparrow
Board of Directors
District 1: Freeman Brundige 731.446.6248
District 2: Josh Duvall 270.535.6533
District 3: Keith Long 270.670.1388
District 4: Bill Crist Jr. 270.590.3185
District 5: Tony Compton 270.378.0525
District 6: Mark Williams 270.427.0796
District 7: Greg Goode 606.303.2150
District 8: Steve Weaver 270.475.3154
District 9: Jerry Gentry 606.875.2526
District 10: Terry Rowlette 502.376.2292
District 11: Stewart Jones 270.402.4805
District 12: John Kuegel 270.316.0351
Equipment: Tony Cowherd 270.469.0398
Milk Haulers: Mike Owen 270.392.1902
Genetics: Dan Johnson 502.905.8221
Feed: Tom Hastings 270.748.9652
Nutrition:
Dairy Co-op: Stephen Broyles 859.421.9801
Veterinary: Dr. Charles Townsend 270.726.4041
Finance: Todd Lockett 270.590.9375
Heifer Raiser: Bill Mattingly 270.699.1701
Former Pres.: Richard Sparrow 502.370.6730
Employee & Consultants
Executive Director: H.H. Barlow
859.516.1129
kddc@kydairy.org
DC-Central: Beth Cox
PO Box 144, Mannsville, KY 42758
bethcoxkddc@gmail.com
859.516.1619 • 270-469-4278
DC-Western: Dave Roberts
1334 Carrville Road, Hampton, KY 42047
roberts@kydairy.org
859.516.1409
DC-Southern: Meredith Scales
2617 Harristown Road, Russell Springs, KY 42642
mescales2@gmail.com
859.516.1966
DC-Northern: Jennifer Hickerson
PO Box 293, Flemingsburg, KY 41041
j.hickersonkddc@gmail.com
859.516.2458
KDDC
176 Pasadena Drive • Lexington, KY 40503
www.kydairy.org
KY Milk Matters produced by Carey Brown
President’s Corner Freeman Brundige
T
his word best describes the
start of 2021. All of us have
far more questions about the
future than we have answers.
How much longer do we have
to deal with a pandemic and all the
problems it is causing? Will consumers
buying habits cause radical changes
in what products need to be available
in stores, markets, and hopefully
restaurants? Volatility in futures
markets keeps us and the so-called
experts guessing on what milk and
feed prices could be.
A big percentage of the milk in the
Southeast is being marketed by one
agency, with most farmers having no
other option. There has been a total leadership change in our federal
government. What changes will they make in regulations and input
costs? Exports have become the “golden" hope and predicting them
has become a moving target. But if you don’t have a positive attitude
then you would probably not be in the dairy business. It takes a lot of
courage and faith. We have an excellent product that still proves to be
a great source of nutrition and value. Hopefully, people recognized
these qualities thru this crisis.
KDDC is working on several fronts to try and ensure better futures
for our farms. The new MILK 4.0 program addresses several avenues
to improve profitability both short and long term. We are working
on milk pricing issues on several different levels, in conjunction
with other states in the southeast and on the national level with the
Kentucky Farm Bureau. We will try to work with the above groups
and our state and national legislators during this formation of the next
farm bill.
Your input is always needed and welcomed.
Uncertainty:
the state of being uncertain, times of uncertainty and danger

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Executive Director Comments
H H Barlow
H
allelujah!! 2020 is gone and 2021
has to be better. I long for the day
of no more masks, no more zoom
meetings and no more COVID.
As we enter 2021, uncertainty is still very
prevalent in our lives. The only thing I’m
confident of is change will be significant as we navigate 2021.
In the dairy world, feed prices appear to be our largest
challenge. Thankfully, many producers did contract their feed
before the large increases in commodity prices. However,
many did not. As farmers, we are in a global market and rain
in Brazil is almost as important as rain in Illinois. Feed prices
and carryover stocks of corn and soybeans seem to be as
unpredictable as milk prices.
Most economists are predicting similar overall milk prices
to 2020 averages without the tremendous fluctuation. 2020
experienced the lowest and highest milk prices since 2000 and
only three months apart. Exports look to be strong for 2021.
We just have huge amounts of butter in storage that needs to be
sold. The closing of restaurants really punished butter sales.
Government intervention in milk prices doesn’t appear to be
as significant in ’21, even though we are starting out the year
with another food assistance program. If the country continues
to open and people get the vaccines, I believe government help
will cease.
The free food programs were a large part of KDDC’s activity
last year. Giving away those boxes of milk products was very
rewarding and helpful to a lot of people. Meredith Scales
described it as a humanitarian effort. KDDC managed 33
semi-load distributions, all in different locations. People were
extremely appreciative and KDDC got tremendous positive
exposure for the effort. RFD-TV even picked up one of our
events so we had nationwide coverage.
KDDC’s major effort this year will be the rollout of several
new initiatives for our dairymen. After days of staff meetings
and industry input, like Dr. Jeffrey Bewley, we have finalized
the new programs being offered. The purpose of these programs
is to increase the profitability of your dairy operation. As
individual dairymen, we have very little control over milk prices
and commodity feed prices, but we all can improve things in our
herds to increase profit.
Our areas of concentration will be genetics, with special
emphasis on genomics, reproduction with emphasis on
improving pregnancy rate, and milk quality, with emphasis
on lowering somatic cell count. Also, we are including beef-
on-dairy, with emphasis on raising the value of bull calves
and heifers not needed for replacement. And finally, dairy
enterprise financial analysis, to identify bottlenecks that hinder
profitability.
I’m happy to report that we are having a dairy partner’s
meeting February 24 even though the planning has been
challenging. It is our belief that we should meet for at least
one day. This year’s meeting will have fewer speakers and
our award’s program will be at lunch instead of the evening
banquet. Virtual option is available for those who can’t attend
in person.
To launch our MILK 4.0 program, we are planning on a
three-day road show March 23 in Hopkinsville, March 24 in
Campbellsville and March 25 in Glasgow. These locations have
been chosen to make attendance easier for our dairymen. We
have scheduled out-of-state speakers to explain the benefits of
our new initiatives.
To introduce our new beef-on-dairy initiative, we are planning
a June meeting with a tour.
We started our young dairymen fellowship and education
meetings in October 2020. KDDC’s board of directors
are committed to involving more young producers in our
organization. We are planning a series of these meetings in
the summer to encourage more participation and leadership in
KDDC.
Totally new for 2021, KDDC has been awarded two grants.
One is working with the University of Tennessee on value-
added dairy products. The other one is working with Kentucky
Center for Agriculture and Rural Development on value added
projects, which can be either dairy only or dairy beef. Details
and specific information on these grants will be forthcoming.
They will definitely provide opportunities for some of our
producers.
Because of the extreme volatility and inequitable milk pricing
nationwide, there is a national initiative to make adjustments
to the Federal Order program. KDDC is working with other
southern states and the American Farm Bureau dairy group
to make recommendations and get some positive changes
implemented. Hearings have been proposed, but not scheduled
as of yet. We certainly plan to be involved. For example, a
change in touch base requirements could make it more difficult
for milk to come to the southeast pulling dollars out of our pool.
There are also plans to start working on the next U.S. farm
bill. As a non-profit organization, KDDC cannot lobby, but we
can represent our membership by offering input and education
to our legislators on dairy needs in the future.
This year will be extremely busy for your KDDC staff with
new programs and opportunities to pursue. We are always
available to talk by phone and visit your operations when
needed. We consider it a privilege and a responsibility to assist
our producers and allied industry as we strive to make 2021
successful for all of us.
So on these cold mornings, put several extra slabs of butter on
those biscuits, waffles and pancakes. Keep your chin up, have
faith in God and we’ll have a good year.

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Milking Practices Influence Somatic Cell Counts
Donna M. Amaral-Phillips, University of Kentucky Dairy Extension Professor and Nutritionist
W
hen it comes to maintaining a low herd somatic
cell count, continuously practicing sound milking
procedures are part of an effectively implemented,
on-farm milk quality plan. Dairy managers understand the
importance of following proven milking procedures, but the
component that often gets overlooked is translating the
importance of continuously and consistently completing
these practices to those actually milking the cows. When
these procedures are routinely reviewed or re-reviewed
with employees or other family members, an increased
understanding can lead to a higher rate of correctly
implementing these practices, avoiding the development
of bad habits, and the ability to maintain a low somatic cell
count. Even herds using robots to milk their cows need to
review whether the robot is correctly completing each of
these components associated with milking practices.
“Clean” Environment Reduces
Exposure to Mastitis-Causing Bacteria
Providing a comfortable, dry environment for cows to rest
reduces the exposure of teat ends to mastitis-causing bacteria.
A cow’s udder should be clean and not manure-laden. Not only
does this reduce mastitis, but total milking time is improved as
one does not need excessive time to clean cows before attaching
the milking unit. For freestall and tiestall barns, this means
cleaning out the manure at the back of stalls at each milking and
replacing bedding as needed to keep udders clean and dry. For
compost bedded barns, the bedding surface needs to remain dry.
Thus, the bedding area needs to be tilled twice daily and new
sawdust added when the moisture content exceeds 40 to 60%.
On pastures, muddy areas and congregation around trees needs
to be kept to a minimum.
Teat Disinfectant (Pre-dip) Needs Time to Work
Effectively applying pre-dip helps in the control of
environmental pathogens that may cause mastitis. Pre-dip needs
to be applied to all 4 teats with at least the lower ¾ of the teat
being completely covered. The germicide found within the
pre-dip needs to remain on the clean-looking teat for at least 30
seconds to be effective. Please remember that the germicide is
not effective on “dirty” teats which are manure-or mud-laden.
After applying pre-dip and allowing it to remain on the teats
for at least 30 seconds, the pre-dip needs to be removed using a
single service paper or washed cloth. Special attention should be
directed towards cleaning the teat ends.
Adequate Prep Needed for Milk Let-down
For efficient milk let-down, the milking unit should be
attached within 1 to 2 minutes of the start of prepping the cow
for milking. Within 30 seconds of touching and/or cleaning
the teats, oxytocin is released into the blood stream, which in
turn results in milk flowing from the cells that synthesize milk,
known as alveoli, into the ducts and cisterns of the mammary
gland. Less than 20% of the total milk production is stored
in the gland and teat cisterns and, thus, the majority must be
“released” from the alveoli cells. For efficient oxytocin release,
cows must not be frightened during the milking process and
a repeatable milking procedure needs to be followed with the
milking units attached within 2 minutes of the start of prepping
the cow. Attaching the milking units too soon or too late will
result in a delay in milk let-down and possible damage to the teat
ends by the milking machine.
Fore-stripping Cows Helps with Milk Let-down
Stripping a few streams of milk prior to attaching the milking
unit serves a multitude of purposes. First, fore-stripping
stimulates milk let-down and flushes bacteria from the teat canal.
Secondly, milk which is discolored, watery, or contains flakes or
clots can be detected and diverted from saleable milk. Then, an
action plan for the cow can be developed to address the issue.
Fore-stripping can occur before or after pre-dip is applied.
Don’t forget to Post-dip
An effective post-dip should be applied to all 4 teats
immediately after removing the milking unit, such that the
bottom ¾ of the teat is covered. In robotic milking systems,
managers need to check often that robots are applying post-dip
adequately to all quarters of several cows in all robots and, if
necessary, adjust the calibration for proper coverage. Post-
dipping kills a significant number of bacteria on the teats, helps
heal skin lesions, and optimizes teat skin condition. All of
these factors help reduce the chances of bacteria entering the
mammary gland. Post dipping is especially effective at reducing
bacteria that are spread from cow to cow at milking time, such
as Staph. aureus. Consistent application of post-dip helps
reduce new infections, but will not reduce or eliminate existing
infections. Teat dips should be stored in a cool, dry area and not
allowed to freeze. Dip cups should be emptied and cleaned after
every milking or if they become contaminated.
Completion of All Steps Consistently Is Important
Sound and consistent milking practices are important
components in achieving a low herd somatic cell count. These
milking practices include, but are not limited to, providing an
environment where cows stay clean, using an effective pre-dip
to help in the control of environmental mastitis, attaching the
milking unit within 2 minutes from the start of cow prep, fore-
stripping cows, and at the end of milking applying a post-dip.
Routinely reviewing these practices with those actually milking
the cows is important for effective milk let-down, efficient
milking times, and maintaining lower somatic cell counts in
milk.

Georgia Milk Producers Conference Summary
HH Barlow
I
t is exciting to report on dairy farmers getting together
off the farm. A good group of 200 producers, exhibitors
and industry personnel gathered in Savannah, Georgia
March 18-20. Everyone said it was just good to see fellow
dairymen and resist the fear and lockdown that COVID-19
had created.
The conference centered around information that we all
need for the future success of the dairy industry. Economic
predictions for 2021 milk prices, dairy exports and government
programs were stated. Dixie Dairy economist, Calvin
Covington, predicted prices in 2021 overall will be similar to
2020 unless another major government program is instituted.
New technology was discussed for producers regarding
milking equipment, on-farm quality testing, and the most
interesting new technology of putting worms in your manure
lagoon. The worms eat the manure, lower the nitrogen and
phosphorus levels and create worm casings, which can be sold
as organic fertilizer. These types of advance technologies are
coming to U.S. dairy producers.
Discussion was held about environmental factors such as
methane production. A new initiative has been started by Dairy
Management Inc. for dairies across the U.S. to become carbon
net zero by 2050. This initiative causes great concern for smaller
dairy producers that do not have the capability to have a methane
digester or the tools and equipment needed to process our animal
waste. Many of these ideas are tremendously expensive.
The new emphasis of dairy beef was highlighted by two
speakers. One focused on beef genetics and the other one on
carcass size and quality. To maximize dairy beef value, the
correct size carcass has to be created for processing, e.g., an
animal over 58 inches is too tall. The beef-on-dairy is a new
technology that can create extra profits for dairies small and
large through their bull calves.
The ten Kentucky attendees gave the conference high marks
for information, and especially the fellowship and exchange of
ideas with fellow dairymen.
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Kentucky Farm Bureau’s
101st Annual Meeting
“Together We Grow” served as this year’s theme
T
he 2020 Kentucky Farm Bureau (KFB) Annual Meeting took
on a new look with all components of the meeting being
held virtually due to COVID-19 restrictions. But the purpose
of the meeting remained the same as KFB leadership conducted
the business of the organization, which serves more than 460,000
members.
KFB President Mark Haney said while holding the meeting in such a
way was disappointing, no pandemic was going to stop the organization
from fulfilling its mission to serve members and the agricultural
communities throughout the state.
“We saw many changes take place throughout 2020 due to safety
regulations and restrictions, but our farm families never stopped,” he
said. “Those outside the agricultural world discovered what we have
known all along: how essential our industry is to everyone, everywhere.
Many thanks go out to our state commodity and governmental leaders,
as well as our KFB staff who have all worked so hard to ensure the
needs of our members and citizens of the Commonwealth have been met
during these unprecedented times.”
Haney added that KFB has served as the Voice of Kentucky
Agriculture for more than 100 years and has never failed to conduct an
annual meeting regardless of worldly events.
“As an organization, we have come through depressions, recessions,
wars and turbulent times in the agriculture industry, and we never
let any of that stop us from our duties in this organization,” he said.
“We’ll see better days ahead and will continue to move forward, as we
always have, in providing the best services to our members and the best
advocacy for our agriculture industry.”
The meeting included the business of board elections, approving of
policy and priorities, announcement of competition winners, and guest
speakers that included American Farm Bureau Federation President
Zippy Duvall, and Kentucky Agriculture Commissioner Dr. Ryan
Quarles, both of whom spoke remotely. Virtual guests also heard from
KFB leadership throughout the three-day event.
Duvall said the theme for this year’s annual meeting is so appropriate
as it relates to working together with KFB.
“I think, as we have gone through this pandemic, we have grown
together, became stronger together and we set forth the perfect example
to this country that when you (do) work together how strong you can be
and how much you can accomplish,” he said. “It has been an honor to
work with the leadership team at KFB, and I value their opinions each
and every day.”
Quarles said rarely does a day go by that he is not talking to
or working with someone from Farm Bureau on issues related to
agriculture.
“This year put a lot of tests on our food supply systems and other
issues across our Commonwealth, and the strength of KFB and its
coordination with the Kentucky Department of Agriculture really shined
through during this pandemic.”
Quarles also noted KFB’s grassroots way of implementing policy
which starts from the ground up, something he called a hallmark of
good governance and democracy.
Kentucky Farm Bureau
Strengthens Dairy Policy
K
entucky Farm Bureau participated in the American Farm
Bureau (AFBF) virtual delegate session in January to adopt
national policy and direction for 2021. One very important
segment in that effort was strengthening dairy policy supporting
reforms to the Federal Milk Market Order (FMMO). Dairy has
always been a significant focus of policy, but in 2019 AFBF
President Zippy Duvall appointed a FMMO Dairy Working Group
to review the current dairy situation, identify specific problem
areas where change is needed and develop effective policy
recommendations to focus efforts on addressing those issues.
This fits nicely with Kentucky Farm Bureau’s mission statement to
“identify problems, develop solutions, promote economic success
and enhance the quality of life for all.”
Dr. John Newton, Chief Economist for AFBF noted that Farm
Bureau delegates adopted two key dairy policy statements and renewed
an effort to continue pushing for dairy reforms. First, delegates
adopted the following policy to support “Changes to the Federal Milk
Marketing Order program to reduce or eliminate negative Producer
Price Differentials and reduce the economic incentives to de-pool milk
including but not limited to modifications to the Class I milk pricing
formula, adjustments to pool qualification criteria and stricter limitations
on producer milk receipts in months following the de-pooling of
milk.” We need to revisit the Class I formula that was changed in the
2018 farm bill that has resulted in significant loss of revenue for dairy
farmers. There are a variety of proposals being considered across the
industry including going back to the higher-of, adjusting the current
average formula, or basing class I milk prices on class III alone. Now
Farm Bureau policy is flexible enough to find consensus on an alternate
approach. De-pooling and qualification criteria differ on an order-
by-order basis and would need to be changed individually unless the
industry seeks national changes or seeks mandatory pooling of all milk.
Secondly, Farm Bureau policy supports “A change to bloc voting
that would require cooperatives to give notice to members of their
intended vote and the member’s right to opt out of that vote and vote
independently and confidentially.” By striking language that opposed
bloc voting by cooperatives this means we support cooperatives being
able to bloc vote but want to see clear options for farmers to be able
to opt out of that vote and cast individual and confidential ballots.
Engaging all dairymen is important and ensuring a representative vote
by enough members is critical to making necessary changes.
The AFBF Board of Directors also directed staff to re-convene the
FMMO dairy working group for 2021. Like the 2019 effort, this will
involve AFBF dairy farmer members working on ways to improve
milk pricing in the United States; especially as we begin the process
of reauthorizing a new farm bill that includes significant dairy policy.
Working together, some aspects of FMMO reform are clearly possible in
a new farm bill, but others will take time. The one thing that is certain
is that it will take a fully engaged effort to enact the changes necessary.

KDDC Board Member Spotlight
District 10 Director Stewart Jones
Stewart along with his
wife Mary are co-owners and
founder of Coleman Crest
Dairy located in Marion
County. Stewart along with
his wife and children operate
an approximate 300 cow herd
and grow crops on around
700 acres also. Stewart
has a passion for the dairy
business and actively engages in opportunities to promote
its future. Stewart and his family are known for showing
their Holstein cattle at local, regional and state levels with
the CCD-Jones prefix. Stewart values his time on the farm
being spent with his children and grandchildren.
Financial Institution Director Todd Lockett
Todd grew up in Hart
County, KY in the Pascal
community on his family’s
dairy farm, which operated
from 1981-2016, producing
milk, hay, and tobacco.
The family milked about
50 cows and practiced
rotational grazing. After
graduating high school, Todd
attended Western Kentucky University where he received
a Bachelor’s Degree in Agriculture, and was awarded
the Animal Science Student of the Year in 2008. After
graduation, Todd accepted an employment opportunity with
Southern States Glasgow Cooperative working directly with
producers, specializing in dairy nutrition and tobacco &
greenhouse production. After 5 years with Southern States,
Todd changed his career trajectory and went to work for
Farm Credit Mid-America, training in Ag Finance and again
specializing with many of the area dairy farmers as clients.
Presently, Todd works for South Central Bank, Inc. based
in Glasgow, KY as an Ag Lender. He operates a registered
Red Angus Beef Herd, serves as Treasurer of the Hart
County Cattlemen’s Association, and still works with many
area dairy farmers. Todd has often said, no matter what part
of agriculture he chooses to work in, his heart will always
remain in dairy and he is very excited and thankful for the
opportunity to work with the KDDC Board and it’s many
members across the state.
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Dixie Dairy Report
January 2021
Calvin Covington
Class milk prices. The graph below, showing 2020
monthly federal order class milk prices, provides an overview
of the 2020 pandemic year. The year began with relatively
strong milk prices, the January Class I Mover was almost $4.00/
cwt. higher than a year earlier. Then as the pandemic hit, prices
declined in May (II, III and IV) and June (Mover) to the lowest
levels since 2009. Then USDA’s Food Box program started,
and lifted the Class III price to the second highest on record
high in June and then record highs in July and November. The
peaks and valleys in the Class III prices correlate to when a
round of Food Box purchases was coming to an end and another
round announced. We estimate USDA purchased the equivalent
of about 1.75% of 2020 milk production through the Food
Box program. We estimate about 70% of the milk equivalent
purchased was in the form of cheddar cheese, thus the strong
Class III prices. As the graph depicts, Class II and IV prices
only recovered, modestly, from the May low. Due to the change
in the Class I Mover calculation, implemented in May 2019,
the Mover failed to receive the full benefits of record Class III
prices. We estimate from January to November of 2020, the
new calculation lowered the Florida blend price $1.11/cwt.,
Southeast $0.94/cwt. and Appalachian $1.05/cwt.
Dairy product prices. December butter and cheese
DPSR prices are lower than November while NDM and dry
whey are higher. The butter inventory continues to expand
with the November inventory 39.4% greater than a year ago.
Government restrictions and shutdowns hurt restaurants the
most, a major butter user. Cheese took a large decline in
December as the Food Box program wound down. Italian
cheese sales continue to struggle, similar to butter, food service
is a primary user. From July to October 2020 production of
Italian cheese is 2.5% lower compared to the same period a year
earlier. Generally, Italian cheese is not produced unless there is
a market. Strong exports sales continue to lift both NDM and
dry whey prices.
2020 MONTHLY FEDERAL ORDER CLASS MILK PRICES ($/CWT.)
DAIRY PRODUCTS SALES REPORT (DPSR) PRICES *
PROCUCT DEC 2020 NOV 2020 DEC 2019 DEC 2018
($/lb)
Butter $1.4431 $1.4558 $1.9842 $2.2425
Cheese (block) $1.7708 $2.5808 $1.9363 $1.4032
Cheese (barrel) $1.4944 $2.2929 $2.1395 $1.3160
Cheese Weighted Avg. $1.6433 $2.4535 $2.0509 $1.3742
Nonfat Dry Milk Powder $1.0951 $1.0816 $1.2161 $0.9020
Dry Whey $0.4171 $0.3830 $0.3293 $0.4685
*Dairy product prices used to calculate federal order class prices

Milk Prices
FMMO 5
www.malouisville.com
January 2021
Class 1 Advanced Price
(@3.5%BF)
$ 18.54
February 2021
(@3.5%BF)
$ 18.94
FMMO 7
www.fmmmatlanta.com
January 2021
(@3.5%BF)
$18.94
February 2021
(@3.5%BF)
$ 19.34
PROJECTED* BLEND PRICES – Base Zones – SOUTHEASTERN FEDERAL ORDERS
MONTH APPALACHIAN FLORIDA SOUTHEAST
($/cwt. at 3.5% butterfat)
November 2020 $19.72 $21.70 $19.66
December $20.68 $23.16 $21.20
January 2021 $17.54 $19.72 $17.86
February $17.60 $19.68 $17.96
March $17.82 $19.98 $18.37
April $17.96 $20.27 $18.39
* Projections in bold
Robust milk production. Since July, milk production
is well ahead of a year ago. July-November 2020 milk
production is 2.3% higher than the same period in 2019.
More milk is due to more cows and more milk per cow. At
the end of November, the nation’s dairy herd is estimated
at 9.407 million cows, 62,000 more head than a year
ago. Through November, 168,700 fewer dairy cows were
slaughtered compared to the same period in 2019. Since
July, milk per cow is up 1.7%. Of the 24 monthly reporting
milk states, production is higher in 17 and lower in 7.
Florida has the second lowest July-November production
decline (3.8%). Vermont has the lowest. Georgia production
is up 0.7% and Virginia up 2.4%.
Supply and demand in 2021. The major challenge
we see facing milk prices in 2021 is farm milk production
exceeding supply. Based on current indicators, we estimate
2% more milk in 2021. On the demand side, domestic
demand remains weak, while exports are strong. Through
the first ten months of 2020, domestic demand is 0.7%
(total solids) lower than the same period in 2019. However,
domestic demand would be much lower without USDA
purchases. We do not expect USDA purchases to continue
in 2021 at the same level as 2020. Through October of last
year, export demand is up 15.8% (total solids) and accounts
for almost 16% of total dairy demand. Combining domestic
and export demand, total demand is 1.6% higher for the
first ten months of 2020 compared to the previous year.
Milk prices in 2021. USDA’s December outlook
projects the 2021 all-milk price $1.65/cwt. lower than
2020. CME futures as of December 31 show 2021 Class
III futures averaging $0.95/cwt. lower and Class IV futures
averaging $1.98/cwt. higher than 2020. Our 2021 projection
show blend prices, in the three southeastern orders,
averaging about $0.50/cwt. lower than 2020. If nothing
else, last year told us milk price projection are not much
more than guesstimates. We see answers to the following
questions having the greatest impact on milk prices in
2021:
• Will cooperatives and plants
implement milk production
controls to lower milk
supply? Last spring showed
dairy farmers can lower milk
production if provided the
incentive.
• Based on 2021 grain futures
prices at the end of 2020
(corn $4.65/bushel, soybeans
$12.50/bushel, and soybean
meal $400/ton), feed costs
appear higher in 2021. Higher
feed costs mean a lower
gross margin. Will this slow
production?
• How long will it be before
the food service sector (40%
of dairy sales), recovers, thus
lifting domestic demand?
• Can the export market expand
further and utilize the milk
produced beyond domestic
demand? The cheaper dollar
helps, but production is
growing outside of the U.S.
as well.
• What volume of dairy products will USDA
purchase in 2021? It makes a significant impact.
Blend prices. We project December blend prices in
the three southeastern orders about $1.00/cwt. higher than
November. Our 2021 projections have changed little since
last month. First quarter 2021 blend prices will struggle.
We project a first quarter average about $2.25/cwt. lower
than 2020.

2021 KDDC Board Meeting Dates
Please see below the scheduled KDDC board meeting dates.
All board meetings are open to producers.
Virtual attendance will be available.
FEB
24
2021
Installation of new board
members/Regular
2PM
CST
Sloan Convention Center
1021 Wilkinson Trace
Bowling Green, Kentucky 42103
MAR
18
2021
Regular
10AM
EST
Taylor County Extension Office
1143 S Columbia Avenue
Campbellsville, Kentucky 42718
MAY
20
2021
Regular
10AM
EST
Hardin County Extension Office
111 Opportunity Way
Elizabethtown, Kentucky 42701
JUL
15
2021
Regular
10AM
EST
Nelson County Extension Office
317 South 3rd Street
Bardstown, Kentucky 40004
SEP
16
2021
Regular
10AM
CST
Barren County Extension Office
1463 W Main Street
Glasgow, Kentucky 42141
NOV
18
2021
Regular
10AM
CST
Adair County Extension Office
409 Fairgrounds Street
Columbia, Kentucky 42728
JAN
4
2022
KDDC Board
Planning Meeting
10AM
CST
Adair County Extension Office
409 Fairgrounds Street
Columbia, Kentucky 42728

Kentucky Dairy Short Course
W
e are proud to announce the dates of the upcoming Center of Kentucky Dairy Short Course. As in the past, this
program will consist of three sessions of discussion led by experts within the industry. Due to current constraints
and the interest of everyone’s health, the program will be held virtually this year via zoom. While we will miss the
in-person discussions, we are hopeful a greater number of individuals are able to participate this year.
The dates, topics, speakers, and Zoom links to register for each session are listed below. Each session will start at 10:00 am
CT/11:00 am ET
February 11th- So I DNA tested my herd…now what? Dr. Jeffery Bewley w/Holstein USA
Register for this session here: https://uky.zoom.us/meeting/register/tZUrf-mtqj8vGNI7PNai4LTPAVhz-WX4OMbl
February 25th- Fungicide application methods and products for corn silage Dr. Kiersten Wise, UK Extension Plant Pathologist
Register for this session here: https://uky.zoom.us/meeting/register/tZctdOqqqD4qHNSmWz7f4ArtK9axwzQ06VvY
March 4th- Managing for the Invisible Cow, Dr. Donna Amaral-Phillips, UK Extension Dairy Specialist
Register for this session here: https://uky.zoom.us/meeting/register/tZUsfu-oqjMqGdUOFG1tSg3Jkl6MTSG1gGoQ
Classified
Ads
Comprehensive Nutrient Management Plans (CNMPs). Livestock manure management and water
quality BMPs. Ky Division of Water permitting and compliance. Ben Koostra - Professional Engineer
and NRCS Technical Service Provider - Lexington - 859-559-4662
Meyer 510 TMR mixers - In STOCK
Cloverdale 500 T -TMR mixers - in Stock
ESCH DRILLS-7/10/12 ft - IN STOCK
HORNING 2/3 row headers in stock
Stoltzfus 10 ton Litter spreader $30,000 Gehl R150 skid loader $19,500 Caterpillar 242B skid
loader-$19,000 New Holland 790 choppers-@$7500 John Deere 8200 drill $6000 John Deere 3950
Harvestor $10,000 Gehl 8335 feeder wagon $8000 New Idea 363- manure spreader $7500 Artex SB
200- vertical beater- for rental Kemco Bale Wrapper new $29,000 Stoltzfus lime - litter- fert cu 50
$18,500 JD 5085E- loader - 4wd- canopy $33,500 JD 5325 loader- 2 wd- canopy $24,500 Farmco
feeder wagons-15 in stock-call Www.redbarnandassociates.com Charlie B. Edgington 859-608-9745
To place a classified ad, contact any of the KDDC Dairy Consultants or Carey Brown at (859) 948-1256

Southland Dairy Farmers are excited to begin 2021
as a new sponsor for #TeachKYAg. This sponsorship
will include funding for dairy and agriculture programs
and materials, as well as, Southland Dairy Farmers
being present with the Mobile Dairy Classroom at
select #TeachKYAg events. The Kentucky Agriculture
and Environment in the Classroom, Inc. works with
agricultural, environmental, and educational partners to
produce and distribute Kentucky-based and standards-
aligned resources and programs that showcase how
Kentucky farmers utilize natural resources to produce
sustainable food and renewable goods. All lessons
and programs can be used as teaching supplements in
all subject areas. “We are looking forward to working
with #TeachKYAg, as their mission aligns closely with
ours and supports teaching agriculture and nutrition to
America’s youth,” said Jim Hill, CEO of Southland Dairy
Farmers.
Southland Dairy
Farmers Join as
Kentucky Agriculture
and Environment in the
Classroom Sponsor
Congratulations to the
All American Nominations
from Kentucky
Fairdale Farms LLC
Fairdale Carter Cameo ETV- Brown Swiss
Fairdale Famous Whiskers-Brown Swiss
Fairdale Renegade C Jessie ETV- Brown Swiss
Kruses GK Thunder Jaclyn- Brown Swiss
WF Cayenne Nicole ET- Brown Swiss
Pine-Tree Rich Alli 7462 ETV-Brown Swiss
Lorreda Ssbloom Panda- Brown Swiss
La Rainbow Bfly Sunkist ETV- Brown Swiss
Fairdale Wasp Tillie- Brown Swiss
J-G Springs Dairy - Emily Goode
Fairdale total Cali- Brown Swiss
Golden Oaks Topprize-Red ET- Red & White
MS Sunrose Naomi ET- Holstein
Colton & Cade Huffman
Coulee Crest AP Jordan-ET- Guernsey
Springhill YB Jewelry-ETV- Guernsey
Springhill Cactus Blitzen- Guernsey
Jeff & Lisa Gibson, Elmore & Stump
Mowry’s Burdette Scarlet- Ayrshire
Feltzbrook Advent Janie- Red- Red & White
BDF Polaris Abbi- Milking Shorthorn
Gibson, Hill & Whitman
Heiz Acres Seaman Maine- Brown Swiss
Gibson & Stump
KY-Blue Diet Dew Exp-Et- Milking Shorthorn
KY- Blue Diet Pepsi- Milking Shorthorn
KY- Blue LS Diet Dr Pepper P- Milking Shorthorn
Brilee Tucker & Hadley Olt
Apple-PTS Aleesa-Red-ET- Red & White
Apple-PTS Adesina-Red-ET- Red & White
Kinslow Dairy
Logsdon Comanche Nova- Milking Shorthorn
Sagesar Ricochet Fancy- Milking Shorthorn
Kinslow’s Armani 91- Red- Red & White

KYHOOPBARNS.com
Joe Paul Mattingly
830 Sally Ray Pike, Raywick, KY
joepmattingly@gmail.com
Kentucky Hoop Barns
Don’t Cost, They Pay
Invest in a Kentucky Hoop Barn Today!
Since 1999
CATTLE
EQUIPMENT
HAY
& GRAIN

Choosing Functional Foods and Fermented Dairy
T
his past winter, The Dairy Alliance featured the
Functional Foods: Fermented Dairy for Health media
campaign, focusing on the importance of fermented
dairy like yogurt and kefir as a part of a healthy diet.
The campaign was featured in banner ads on Under Armour’s
MyFitnessPal app and in their digital newsletter, providing
opportunities for health-conscious consumers to discover the
benefits of dairy. Kentucky’s own dairy advocate, medical
student, and Olympic athlete Lee Kiefer posted to her social
media encouraging the consumption of fermented dairy products,
featuring a smoothie recipe developed by The Dairy Alliance,
while in traditional media, The Dairy Alliance staff discussed
what fermented foods are and why they are important to include
at mealtimes. Through these utilized platforms, many consumers
have learned the benefits of choosing fermented dairy foods.
More Milk Cooler Programs Begin in Kentucky Food Pantries
S
ince sharing the success of the milk cooler program at
the Adair County Food Bank in Columbia last summer,
additional programs have been implemented in 10
other Kentucky locations: Allen County Fiscal Court Food
Pantry in Scottsville, A Better Community in Flemingsburg,
Central Kentucky Community Action Council in Lebanon, the
Community Relief Fund in Glasgow, First Christian Church
Community Food Pantry in Owenton, Garrard County Food
Pantry in Lancaster, Livingston County Helping Hands in
Smithland, Monroe County Food Pantry in Tompkinsville,
New Hope Food Pantry of Danville, and the Shepherd’s Pie
Food Pantry in Magnolia.
Grants for this long-term milk cooler program provides
a customized Undeniably Dairy cooler, supplies a one-time
purchase of fresh half-gallons and gallons of milk, and connects
the food bank with a processor for a continuing milk supply. The
pantries, identified by dairy farmers, will only fill the coolers
with real milk. Along with other The Dairy Alliance programs,
partnerships, and grants that aid the fight against food insecurity,
families in Kentucky will continue to be positively impacted
through these endeavors in 2021.

Allied Sponsors
PLATINUM
Ag Central
Alltech
Bel Cheese
Bluegrass Dairy & Food
Burkmann Feeds
Cowherd Equipment
CPC Commodities
Kentucky Department of Agriculture
Kentucky Farm Bureau
Kentucky Soybean Board
Prairie Farms
Shaker Equipment Sales
Southwest Dairy Museum
GOLD
Dairy Express Services
Farm Credit Services
Givens & Houchins Inc.
Mid-South Dairy Records
Select Sires Mid-America
SILVER
Grain Processing Corporation
Kentucky Veterinary Medical Association
Luttrull Feed
Owen Transport
South Central Bank
BRONZE
Bagdad Rolling Mills
Bank of Jamestown
Central Farmers Supply
Hartland Animal Hospital
Kentucky Corn Growers Association
Limestone & Cooper
Mammoth Cave Dairy Auction
QMI Quality Mgt Inc.
Wilson Trucking
Special Thanks to Our Sponsors

176 Pasadena Drive
Lexington, KY 40503
859.516.1129 ph
www.kydairy.org
Non-Profit
US Postage
PAID
FEB 23 Dairy Alliance Annual Meeting, 12:00 CT, Online
FEB 24
Kentucky Dairy Partners Meeting and Industry Trade Show, Sloan Convention Center
Bowling Green, KY 9:00 A.M. C.T.
FEB 24 Dairy Awards Banquet, Sloan Convention Center, Bowling Green, KY 12:00 C.T.
FEB 24 KDDC Board Meeting, Sloan Convention Center, Bowling Green, KY 2:00 P.M. C.T.
MAR 17-18
Professional Dairy Producers of Wisconsin Business Conference, Kalahari Resort and
Convention, Wisconsin Dells, Wi
MAR 18 KDDC Board Meeting, Taylor Co Ext. Office, Campbellsville KY 10: 00 A.M. E.T
MAR 23 KDDC MILK 4.0 Road Show, Christian Co Ext. Office, Hopkinsville, KY 10:00 A.M. C.T.
MAR 24 KDDC MILK 4.0 Road Show, Taylor Co Ext. Office, Campbellsville KY 10: 00 A.M. E.T.
MAR 25 KDDC MILK 4.0 Road Show, Barren Co. Ext. Office, Glasgow, Ky 10:00 A.M. C.T.
APR 07-10 Kentucky National Dairy Show and Sale, Exposition Center, Louisville, KY
Calendar of Events

Ky Milk Matters January February 2021

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