KY Milk Matters November December 2020

November - December 2020 • KDDC • Page 1
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk MattersN o v e m b e r - D e c e m b e r
w w w. k y d a i r y. o r g
KENTUCKY
Supported by Inspiring and Practicing the Concept (The Glass is Half Full)
page 8
NAILE Results
page 10-11
Talking Trade
pages 14
Fairdale Total Cali ET Exhibitor Emily Goode. She was Grand Champion Brown Swiss for open and Junior Show (more photos on page 10)
The 2020 North American International Livestock Expo
Dave Roberts
T
he 2020 North American International Livestock Expo
(NAILE) looked quite different this year than any in the
past. The good news is there was a 2020 NAILE and
many people worked hard to make it happen in a year where
the Covid-19 caused many cancellations. Spectators, other
that participants, were not allowed. The number of fitters
and herdsman helping with each exhibiter’s animals were
also limited. Mandatory mask wearing and social distancing
made for some challenges but guess what, no one seemed
to be bothered. Everyone was so glad to be out doing what
they love, exhibiting their animals and visiting with fellow
dairy folks from across the U.S. The total numbers may
have been down this year, but the quality of the show lived
up to the high expectations the NAILE usually delivers.
Kentucky exhibitors represented the state with high quality
dairy heifers and cows that have become a trademark at many
shows. We would like to congratulate all the show participants
and winners.
Photo by Dairy Agenda Today
Photo by Dairy Agenda Today

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
A
fter “luckily” being able to spend a few days at the
2020 style North American International Dairy
Show, I have made some observations about
fellow dairy farmers and myself. The appreciation of
the beauty of the modern models of all the breeds of
dairy cattle resonates with all true “cow men”, whether
they have registered or grade cattle at home. Just as
importantly are all the friendships and acquaintances
that have been developed over the years of sharing
that love of great cows and the pride of hoping to
breed and show one. I have been involved for right at
sixty years from small to large scale in this endeavor
and it still keeps me excited about staying involved in
a business that at times makes you wonder why you chose it as a way of
life. It was that love that kept me going to the barn all those dark mornings
and a great way to teach your children many important lessons in life. Not
everybody catches the “show bug” but it still can be an important part of
showcasing our business to our customers throughout the world.
Hopefully in our age of larger and larger farms we will not lose the true joy of
working hands on with one of the most graceful, efficient, and “yes” intelligent
animals in the world. Not everyone is trying to breed show winners, but we
all want our future cows to be productive and long lived, and yes some of that
coincides with our show cows.
For an old dairyman it was a welcome change from constant election
commercials and the useless protests and violence going on. I wonder how these
people can feed themselves and their families while showing their ignorance and
lack of understanding in the streets of our cities. But that’s another story.
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September - October 2020 • KDDC • Page 4
Executive Director Comments
H H Barlow
I
t’s the holiday season and 2020 is almost
over. This year has been excruciating
and none of us have ever been through
anything like it before. For me, the big
question is what will 2021 bring.
Unfortunately, the air of uncertainty is still
with us. The dairy world is very much like everything else. We
really don’t know what to expect. Milk futures look bad, feed
costs appear to be much higher than last year; therefore, it looks
like another tough year ahead, but as we saw this year, things
can change rapidly. I’m old enough to know that situations are
never quite as good as they appear when things look great and
never quite as bad when everything looks terrible.
Year 2021 will bring some new developments for all of us
dairymen. I believe we will see Federal Order reform that
should improve the stability of prices. Our lower commodity
prices, compared to the world price, will improve our exports,
which should translate into higher pay prices. The opening of
the huge cheese plant in Michigan will also help our pay price.
The cheese plant will use 160 loads of milk/day, which is more
than we produce in the whole state of Kentucky. The excess
milk being produced in the states north of us should go to the
cheese plant instead of coming south to capture our markets.
Transportation costs will have a major bearing on our farm pay
prices. These are all external factors we have little direct impact
on. So what can we change? KDDC is actively working on
Federal Order reform alongside 9 other southern states and we
believe there will be some positive changes forth coming.
I’ve always been told don’t sweat the things you have no
control over but concentrate on the factors you can change.
With that in mind, what can we as individual dairyman work
on to make our own operations more profitable. (1) Set a goal
(2) Devise a plan (3) Take action implementing your plan (4)
Evaluate your progress and adjust as needed. Be sure and write
it down so you can track it.
One absolute IMPERATIVE thing every dairyman should
do if you haven’t already done so is sign up for the Dairy
Margin Coverage insurance. It paid out very good in 2020 and I
believe it will pay big again in 2021. The deadline for sign-up is
December 11th.
Along with every dairy person across the state, KDDC has
adjusted in 2020. Our signature MILK program based on quality
with milk markets participating with us has ended. The KDDC
board and staff have developed a completely new program
named MILK 4.0. The board and staff had several meetings to
discuss the direction we should go. We enlisted the help of Dr.
Jeffrey Bewley to identify the greatest needs Kentucky herds
had when compared to the top herds across the nation. We
identified 3 areas Kentucky dairies lag behind significantly (1)
Genetics (2) Reproduction Efficiency (3) Milk quality.
With this analysis, KDDC has designed a program
to incentivize Kentucky producers to make significant
improvement in these areas. Breeding for higher producing
cows, having less days open and producing higher quality milk,
all have a direct impact on profitability. The new MILK 4.0
program information and criteria will be available soon in a
special edition newsletter.
In addition to these performance initiatives, we have
developed two other areas to focus our efforts. They are Dairy
Beef and Financial evaluations. Dairy beef is a relatively
new concept, with the heavy use of sexed semen dairymen
have produced an abundance of replacement heifers. This has
created two negative situations for most dairyman. First, the
value of dairy heifers has dropped significantly. Secondly, the
cost of feeding more heifers than you need for replacements is
burdensome. National breed organizations, such as National
Holstein and the American Angus Association, are using
genomics and carcass evaluation to create a list of suitable
sires for dairy cows that are not needed for dairy replacements.
These resulting crossbred calves are averaging $100-$150 more
than a straight dairy bull calf. We view this as an opportunity to
create more profit on nearly every dairy farm.
The financial aspect of MILK 4.0 is a set of programs
working with Cornell’s Dairy Profit Program and Rockingham
Financials that are dairy specific. These evaluations will be
used to measure a dairy’s true financial position and identify
bottlenecks that need to be addressed.
All of these programs are new, innovative and, if adopted,
will increase success and sustainability for Kentucky’s dairy
producers.
During this Thanksgiving and Christmas season, we all
need to pause to remember God’s blessings. I’m so proud
and thankful to be involved in the essential business of food
production. Please join me in expressing your gratitude and
appreciation to the folks who support and work alongside of
us every day. Dairy farming is truly a community experience.
I particularly want to acknowledge the folks who make it
possible for us to farm. Coronavirus or not, the cows never
stop producing. The milk trucks ran every day and all our help,
whether family or hired, worked every day…no shutting down,
no social distancing, no mask wearing. A BIG THANK YOU
goes to each and every one!!!
I’m looking forward to closing the door on 2020. It’s time to
look forward. We have a vaccine coming which will, hopefully,
control the virus and the word ‘shutdown’ will vanish from our
livelihood. We need church, holiday celebrations, sports and the
Freedom our nation was founded on.
The year 2020 has been a year of sudden and dramatic
change, but one thing has not…God is still on His throne and
He will sustain those who put their trust in Him. God bless
everyone!!! Merry Christmas and Happy New Year!!! Raise a
glass of custard or eggnog and Keep the Faith.

Zack Burris
(270) 575-7001
Mike Owen's father started hauling in 1963. Mike started hauling milk in 1976
when he turned 18, he has hauled milk his entire life. Mike worked for 7 years after
high school every day straight driving a milk truck. In 2008, Mike and his son Justin
started their own trucking business Owen Transport and OTS Logistics. Justin has
worked with Mike his entire life as well. Justin’s wife works for the business along
with a nephew that has worked for the business for 26 years. Owen Transport has
75 total trucks and 45 tankers hauling
milk and eggs. Today they transport 10-12
million pounds of raw milk a month in
Kentucky, Tennessee, Alabama, and Ohio.
Mike’s mission is to provide a good service
to people!
Mark Williams' parents started milking
by hand in 1955. Electric milkers did not come until 1961. Our milk was sold to
Cudahay Foods which my father also worked as a fieldman representative. In 1975
my brother Billy Joe was fresh out of military and I was fresh out of high school.
We built our first grade A parlor. Billy Joe soon began working for Dairyman Inc.
After graduating college, he and I were partners with our parents until the early
90’s, at which time he left the farm to own and operate Bluegrass Dairy & Foods.
In 2010 the dairy was moved to a different farm, where I currently live. My son
Joshua and I are partners in this dairy operation. We milk around 250 cows. We
grow about 300 acres of corn for silage. Most of the corn is double cropped with
small grains as balage which is used to feed heifers and dry cows. The cows are
milked in a double 10 parallel parlor and are housed in bedded pack barns. All
grain mix is purchased

Goldilocks and her “Not too Hot or Too Cold” Dry Cow Diets
Joe Sparrow, CPC Nutritionist
O
ne of the biggest challenges across all U.S. Dairies
is the transition cow, and it is my opinion that the
largest portion of her issues can be cured by a
successful and focused dry cow diet. Since hearing the
famed Consultant and Dairyman, Gordie Jones present on
the “Goldilocks Dry Cow Diet” early in my nutrition career,
I have been recommending this diet to clients. In this brief
article, I will go into a bit more detail on the approach, in
hopes that if you are experiencing some transition cow
issues on your farm, maybe this method can be of help.
We all know that an un-successful transition period can result
in the following consequences; decreased milk yields, treatment
costs, delayed first service and often death loss or culling. In
addition, over conditioned dry cows are even more prone to
Metabolic issues. Excessive energy in their diets can multiply
these problems. Also, higher energy diets in the last trimester can
lead to an increase in dystocia, especially on first calf heifers.
This lays the groundwork for the thought process behind a
Goldilocks Dry Cow diet, which is essentially a low energy, high
fiber diet. It is designed to meet the energy and metabolizable
protein needs of the dry cow, along with a high level of fiber
to keep the rumen full. This allows an increased level of dry
matter intake post-calving, and a lower incidence of Displaced
Abomasum’s. I typically strive for a diet that contains less than
8 pounds of dry matter from corn silage to keep energy lower
than .70 NEL. One of the most important parts of this diet, and
often the part that can cause it to fail, is the “bulk” or fiber of
the ration. My preferred ingredient is straw, but have seen grass
hay, cotton hulls, gin trash, and small grains silage work well if
managed correctly. The important thing is that the fiber source
is well processed so the cows can’t sort out the ration. It is also
vital for the fiber source to have a stable mineral profile so your
nutritionist can balance out the K:Mg ratio and supply adequate
levels of Calcium from the necessary sources. Make no mistake,
these low energy diets cannot work without the addition of some
“quality protein”. A goal of mine when constructing a successful
dry cow diet is to have over 1000 grams of metabolizable
protein; Soybean Meal, along with some other high lysine and
potentially rumen bypass forms can help accomplish this. Below
are a few summary points of how I go about designing custom
dry cow diets for each farm:
• NEL ranging from .63-.69
• Minimum of 13% Protein total diet
• Minimum of 1000g of Metabolizable protein
• Minimum of 280 mg/hd Rumensin
• Minimum of 1/3 Replacement with Bioplex Zn, Cu,
Mn, Co and Sel-Plex from Alltech
• Less than 8# of Dry Matter from Corn Silage
• Diet must be processed so that cows can’t sort!
We have yet to discuss a close-up dry cow diet versus a far-
off; these types of diets can definitely work as a “one group”
dry cow diet. I do however have some close-up versions of
these diets if herd size allows, with higher levels of Protein
and Vitamin A, D, and E. A dry cow diet is only as good as
the management practices that go along with it, remembering
cooling for dry cows in the summer, along with ample
bunk space, plenty of access to fresh clean water, and a dry
environment to lay are VITAL!
Since feeding a dry cow at times can be very complicated
and tedious, I wanted to present an option for Dairy Producers
that is simple, yet effective. The dry cow period is an important
vacation on the cow, her rumen and mammary system. Make no
mistake, we don’t want to underfeed a dry cow, yet over-feeding
them can be just as dangerous; hence, the name “Goldilocks: A
dry cow diet that’s just right”.

Inspiring and Practicing the Concept: “The Glass Is Half-Full”
Donna M. Amaral-Phillips, UK Extension Dairy Nutritionist and Extension Professor
A
s we look back over the events of this year, 2020
has definitely been a challenging one on many
fronts. Milk prices, and now feed costs, have not
been a dairy farmer’s friend as well as the challenges
associated with the uncertainty and changing landscape
surrounding COVID-19. Businesses have had to pivot
and quickly change how they provide services and goods.
Some businesses, including our dairy businesses, have
found ways to adapt quickly to changing markets and/
or consumer preferences. Many of these changes were
already occurring, but the rate of change has accelerated
necessitating the need to adapt in a quicker, but efficient
manner. These businesses embraced change, whether
they liked it or not, but understood change was necessary to
survive. By embracing the need for change, they were able
to select how they changed and could be assured changes
best reflected their personal core values and goals for their
businesses or operations. Essentially, these businesses
looked at change as an opportunity, where the glass was
half-full versus being half-empty.
One of the best examples I can give regarding how an
agricultural business can be nimble and willing to adapt reflects
how my local feed-fertilizer store modified the sales counter
back in March. One morning, before any recommendations/
restrictions were announced by the governor, my husband went
and purchased some mulch for our blueberries. It was very
obvious that the sales staff was very leery of the developing
COVID-19 situation and did not feel comfortable waiting on
customers in a rather small defined space. The next morning
this business announced that they only would have drive-up
service where their sales staff would come to your vehicle and
take your order from the passenger’s side window. Today, they
still have this practice in place and last time I drove by, two lines
of vehicles, each three vehicles deep were out front waiting for
service. The lesson here is two-fold; this business listened to
their employees, came up with a solution that worked for them
and their customers, and most importantly implemented this
solution as the COVID-19 health concerns were developing and
not after the fact.
Sometimes, we need to step outside our comfort zone and
embrace new ways of doing tasks, procuring supplies for the
dairy, or in how we interact with others in the industry or in our
personal lives. One must have a positive attitude and believe
you can and will make things work and work well, while taking
on the challenge of working through those speed bumps in the
road. Embracing change or another way of doing a task is not
easy; it is against our human nature. However, in today’s rapidly
changing business climate, we need to explore new ways of
doing business and quickly adapt to them. These different ways
may not be new to others, but may be new to you and those
around you. Some examples might include ordering supplies
together in bulk or through an on-line vendor. Attending
meetings or educational sessions electronically, i.e. “Zoom”
sessions, is another example. The silver lining here is that you
are able to attend a wider array of educational sessions, view
them at your convenience and in smaller segments, and free
up time once associated with travel to the event to accomplish
tasks in your business, job, or personal life. Several of these
educational sessions have built in ways for participants to
interact and ask questions. Even for those who do not wish to
attend electronic educational sessions, you can benefit from
others participating in this form of informational delivery
and encouraging them to do so. Many of the articles in dairy
magazines, KY Dairy Notes, and here in Milk Matters have
their origins from these types of educational sessions as well as
information delivered one-on-one to you at the farm level.
Open, timely, and two-way communication among all partners,
employees, and family members including children on your farm
or business, as well as others in the dairy industry, is critical to
our industry’s survival now and going forward. Practicing truly
open, complete (adjusted for the age of children), and timely
communication helps people feel, believe, and act as if they are
a valued part of a team where their feelings and viewpoints, and
knowledge-base are important, and they are indeed a vital part
in implementing potential solutions and changes. By timely
information sharing, others can share not only the burdens, but
as importantly, the triumphs. All people need to be treated with
the same respect and in the same way such that no preferential
treatment, either positive or negative, is given to certain groups
or individuals. Taking a few minutes to reach out to others can
pay dividends especially in rapidly changing times. Recently,
in a Wall Street Journal article, the authors talked about how
communication had changed as people and companies quickly
pivoted to work remotely. One leader they interviewed took it
upon himself to personally call all of his employees individually
and see what and how they were adjusting to all of the changes
associated with remote working and if he could help them.
That simple act went a long way in getting his employees to
go the second mile, showed his employees he truly cared, and
he wanted to help them make the most of the changing times
and succeed in that way of doing business. We all can take
note of this simple act, especially politicians and those in upper
management positions.
Change is definitely happening faster than anyone would
have predicted. Some people have equated the changes that has
occurred since March to those which were on track to occur over
the next 10 years. I am not sure that they have changed to that
extent, but they have definitely escalated. We, as an industry,
individual dairy businesses, and in our personal lives, must
adjust to this rapidly changing environment, so we can determine

our destiny. Practicing open and timely communication always
will be important and help us adjust to change. We need to
approach these changes and our response to them with the
mindset that the glass is half-full and not half-empty. The path
of least resistance always leads downhill.
Often times we get easily distracted or overwhelmed and
forget to look for problem areas staring us in the face that we
can control or at least minimize their impact. For the past 6
months, I have been working from my basement home office.
One recent afternoon, I was working downstairs on a deadline.
My dogs kept barking and I assumed that they wanted inside,
so I went upstairs to let them in—simple enough. Well, I went
to the French door to our patio to let them in. I noticed that
Teddy was standing off the patio, still barking. I happened to
look down and on the rug outside curled up, was a rather large
snake—yes I typed the correct word!!!! I knew I had to get
this situation under control quickly before my husband, who
hates snakes, came back to the house and proceeded to put some
holes in the house. Bottom line, I knew I had to take control,
do what needed to get done, and then get back to my deadline.
As you look around and think about those management areas
you can control and work on modifying, remember that you are
practicing those concepts associated with that “comfort food”
you might be having for dinner that day.
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SAVE THE DATE
We are currently under planning for our upcoming annual conference. Please check our website and
Facebook page for the most current information as we go forward. We all hope Covid will be behind us
by then and we can enjoy a normal conference. However, if not we are still dedicated to providing you,
our dairy producers, with a beneficial and high quality conference where we can learn more about the
dairy industry and come together as a group to share and encourage each other as we all have one thing
in common – DAIRY.
KENTUCKY DAIRY PARTNERS ANNUAL MEETING
February 23 & 24, 2021

Brown Swiss is Reserve Junior Champion Fairdale Carter Cameo
ETV Exhibitor Fairdale Farm LLC
Millcreek Lottery Ladyluck Exhibited by Taylor Graves. She was 1st
place 4 year old; Senior Champion and Grand Champion of
junior Milking Shorthorn show
North American International
Livestock Exposition Dairy
Show Results for Kentucky
Exhibitors
Open Show Ayrshire
1st Place Senior Three Year Old and
Intermediate Champion - MOWRY’S
BURDETTE SCARLE Exhibitor-
Kadyn Gibson, Tre Wright and
Lukus Schmitt-Eminence, KY
Open Show Brown Swiss
1st Place Fall Heifer Calf and Reserve
Junior Champion
Fairdale Carter Cameo ETV Exhibitor-
Fairdale Farm LLC-Worthville, KY
1st Place Yearling in Milk
Kruses GK Thunder Jaclyn Exhibitor-
Fairdale Farm LLC-Worthville, KY
1st Place Age Cow Six Years and Over,
Senior Champion and Grand Champion
Brown Swiss
Fairdale Total Cali ET Exhibitor-Emily
Goode-Liberty, KY.
Premier Exhibitor Brown Swiss
Fairdale Farm LLC-Worthville, Ky.

Reserve Junior Champion honors went to the 1st place winter yearling –
KY-Blue Diet Pepsi, owned by Jeff & Lisa Gibson of Eminence, KY
Open Show Milking Shorthorn
1st Place Junior Two Year Old
KY-BLUE DIET DEW EXP ET
Exhibitor-Kadyn Gibson, Tre Wright and
Lukus Schmitt-Eminence, KY
1st Place Aged Cow
B-D-F POLARIS ABBI Exhibitor-
Kadyn Gibson, Tre Wright and Dakota
Thompson-Eminence, KY
1st Place Intermediate Heifer Calf
Logsdons Comanche Nova Exhibitor-
Mckenzie Pedigo and Gracie Logsdon-
Smiths Grove, KY
1st Place Intermediate Senior Yearling
and Reserve Junior Champion
KY-BLUE DIET PEPSI Exhibitor-Kadyn
Gibson, Tre Wright, and Lukus Schmitt-
Eminence, KY
Open Show Red and White
1st Place 125,000 lb. Cow
Foltzbrook Advent Jamie Red Exhibitor-
Tre Wright, Kadyn Gibson and Lucas
Schmitt-Elizabethtown, KY
Kinslow’s Armani 91-Red Exhibitor McKenzie Pedigo Reserve Senior
Champion and Reserve Grand Champion

Dixie Dairy Report
November 2020
Calvin Covington
Another record high for cheese prices. Both barrel
and block cheddar cheese at the CME were record high prices
for the month of October. As the graph below shows, October
is the second “price run-up” this year. Record cheese prices
are not supported by commercial cheese disappearance only up
1.5%, and strong monthly cheese production in recent months.
USDA purchases for food donation programs is the reason for
record high cheese prices. Based on trading last week at the
CME, high cheese prices are coming to a close. During the
first week of November, blocks declined $0.44/lb. to close at
$2.3425/lb. Barrels closed at $2.3175/lb., down $0.2125/lb. for
the week. Current USDA dairy donation purchases are estimated
at about one-half of what they were earlier in the year. Plus,
the donation program is currently due to expire at year-end.
Dairy Market News reports the spot milk price in the Midwest,
$2.00 below and in some cases $4.00/cwt. below class. These
low milk prices are a bellwether for lower cheese prices. Over
the past five months there were record Class III milk prices.
However, unless USDA purchases are extended, food service
sales rebound, and/or milk production declines; cheese prices
are headed lower.
Butter, powder, and whey. Turning to the other three
dairy products that determine federal order milk prices; butter,
nonfat dry milk powder (NDM) and dry whey. As the graph
above shows, butter has struggled since the middle of the year.
The October CME butter price was $1.4550/lb. The price is over
$0.65/lb. lower than a year ago, and the lowest October butter
price since 2009. Supply is overwhelming demand. August
butter disappearance is 9.2% lower than last August while butter
production is up 7.8%. Dairy farmers continue to produce more
butterfat. Through the first eight months of this year compared
to 2019, butterfat production is 2.3% higher. In addition, the
butter inventory is about 18% higher than a year ago. Unless
something out the ordinary happens, it will be some time before
butter gets back over $2.00/lb. Increased export demand is
lifting NDM and dry whey prices. The October DPSR NDM
price of $1.0670/lb. was about a nickel higher than September.
Dry whey was almost $0.03/lb. higher at $0.3480/lb. Through
September NDM exports are 25% and dry whey exports are
31% higher than a year ago. Re-building of the Asian swine
industry is responsible for higher dry whey exports. So far this
year, dry whey exports to China and Indonesia are up 173% and
74%, respectively. Higher NDM prices will result in improved
Class IV prices in 2021. And, stronger dry whey prices will help
offset some of the decline in the Class III price due to lower
cheese prices.
Butter, powder, and whey. Turning to the other three
dairy products that determine federal order milk prices; butter,
nonfat dry milk powder (NDM) and dry whey. As the graph
above shows, butter has struggled since the middle of the year.
The October CME butter price was $1.4550/lb. The price is over
$0.65/lb. lower than a year ago, and the lowest October butter
price since 2009. Supply is overwhelming demand. August
butter disappearance is 9.2% lower than last August while butter
production is up 7.8%. Dairy farmers continue to produce more
butterfat. Through the first eight months of this year compared
to 2019, butterfat production is 2.3% higher. In addition, the
butter inventory is about 18% higher than a year ago. Unless
something out the ordinary happens, it will be some time before
CME BUTTER AND BLOCK AND BARREL CHEDDAR CHEESE PRICES JANUARY-OCTOBER 2020)

Milk Prices
FMMO 5
www.malouisville.com
November 2020
Class 1 Advanced Price
(@3.5%BF)
$ 21.44
December 2020
(@3.5%BF)
$ 23.27
FMMO 7
www.fmmmatlanta.com
November 2020
(@3.5%BF)
$ 21.84
December 2020
(@3.5%BF)
$ 23.67
AVERAGE DAILY CLASS I PRODUCER MILK – 3RD QUARTER (2018-2020)
FEDERAL
ORDER
2018 2019 2020 2020 VS 2019
(million lbs) (%)
Appalachian 10.4 10.3 10.5 1.1%
Florida 5.5 5.6 5.2 -6.3%
Southeast 9.8 9.3 8.5 -8.5%
Total 25.8 25.2 24.2 -4.1%
PROJECTED* BLEND PRICES – Base Zones – SOUTHEASTERN FEDERAL ORDERS
MONTH APPALACHIAN FLORIDA SOUTHEAST
($/cwt. at 3.5% butterfat)
September 2020 $19.68 $21.85 $19.62
October $18.08 $19.54 $17.70
November $20.00 $21.77 $20.42
December $20.19 $22.49 $20.64
January 2021 $18.85 $21.34 $19.21
February $18.10 $20.99 $18.48
* Projections in bold
butter gets back over $2.00/lb. Increased export demand is lifting NDM and dry whey prices. The
October DPSR NDM price of $1.0670/lb. was about a nickel higher than September. Dry whey was
almost $0.03/lb. higher at $0.3480/lb. Through September NDM exports are 25% and dry whey
exports are 31% higher than a year ago. Re-building of the Asian swine industry is responsible for
higher dry whey exports. So far this year, dry whey exports to China and Indonesia are up 173%
and 74%, respectively. Higher NDM prices will result in improved Class IV prices in 2021. And,
stronger dry whey prices will help offset some of the decline in the Class III price due to lower
cheese prices.
Strong third quarter milk production. Third quarter milk production was 2.0% higher than
a year ago. More milk was due to 33,000 more cows, and milk per cow up 1.6%. Looking at the
nation’s largest milk producing states, third quarter production was up 2.3% in California, 0.2% in
Wisconsin, 3.3% in Idaho, 2.6% in Michigan, 2.4% in Pennsylvania, and 1.1% in New York. Of the
24 milk reporting states, production was higher in 16 and lower in 8 states. Turning to the ten (10)
Southeast states, third quarter production was 0.7% lower than the same period a year ago. Lower
production is primarily due to 14,000 less cows. As of September 30, the Southeast States dairy cow
population was estimated at 412,000 head. Looking at individual states, third quarter production was
4.1% lower in Florida and 0.2% lower in Georgia. Compared to a year earlier, Florida has 5,000
fewer cows and Georgia 1,000. Virginia’s production was up 2.6% due to steady cow numbers and
more milk per cow. Third quarter production was 1.4% higher in Kentucky.
Class I Producer Milk. In the three Southeastern federal orders, average daily Class I producer
milk for the third quarter of the year was 24.2 million lbs. This is about 1 million lbs. or 20 milk
tankers per day lower than last year. As shown below, Class I was higher in the Appalachian
order, but lower in the other two orders. Declining Class I sales is the greatest challenge facing the
Southeast dairy industry.
Blend Prices. There will be another
price inversion (Class III price higher than
blend price) in October. The October Class
III price is $21.61, propelled by record
high cheese prices. As shown below, we
project October blend prices in all three
orders lower than the Class III price.
November blend prices are projected
about $2.00/cwt. higher than October,
due to the Class I market receiving some
benefit from higher October cheese
prices. Blend prices are projected to
increase further in December. Our current
projection for 2021 show blend prices (see
price sheet) about $0.30/cwt. lower than
2020. USDA’s October projections show
the 2021 all milk price $0.40/cwt. lower
than 2020

Talking Trade: New Markets a Must
As tough as 2020 has been, there has been some positivity when it comes to international trade
Kentucky Farm Bureau
A
s simplistic as some people may think life on the farm
is, in today’s modern era of production agriculture,
simplistic is not really a word that is commonly used
to describe the day-to-day operations for farm families.
And while navigating the current U.S. market environment,
dodging weather events, and keeping up with continual
advancements in technology, those in the agriculture industry
have also had to become global economists, of sorts, in order to
make decisions that come with each crop year.
But no one expected the year 2020 has turned out to be. Still
farmers are farming, and selling, and making the most of what
has been dealt to them. It would seem ironic that as tough as the
economy has gotten for all sectors this year, farm families could
be sitting on top of record yields and production as weather
conditions played into their favor.
Those anticipated record harvest numbers for corn and
soybean growers and some increases in grain prices are offering
some glimmer of hope as 2021 gets closer.
The new marketing year has also seen a jump in trading,
especially with China. But some caution should be taken before
putting 2020 in the rear-view mirror.
Kentucky Farm Bureau (KFB) President Mark Haney said
all farm families are grateful to see export markets improve but
warns of counting too much on one market.
“As much as we like to see ramped up trade with China, it is
still critically important that we also explore other international
markets and avoid the proverbial ‘putting our eggs in one basket’
situation,” he said.
In regard to those large purchase promises made by China,
American Farm Bureau Federation Chief Economist John
Newton said the big question is whether or not the purchase
commitments turn into actual shipments.
“If we actually see those sales materialize, it could go a long
way to supporting prices at or above current levels,” he said.
And while many factors go into any fluctuation in commodity
prices, increased international trade could certainly help.
Kentucky Agriculture Commissioner Dr. Ryan Quarles is
currently serving as president of National Association of State
Departments of Agriculture. He said it is critical that the United
States continues to open up markets around the world so that
American farmers can benefit from market growth.
“In just 2020 alone, we have new trade deals with Japan,
China, Canada, Mexico, and have one in the works for the
United Kingdom,” he said. This year was supposed to be the
year of international trade and agriculture, but obviously has
been overshadowed by a global pandemic and its implications.”
However, Quarles notes that international trade continues to
grow, and one of the major accomplishments related to trade
in 2020 was the implementation of the U.S-Mexico-Canada
Agreement (USMCA), which revised the more than 25-year-old
North American Free Trade Agreement (NAFTA).
“Last year, it was all hands on deck to get USMCA ratified,”
he said. “This year, it's about moving forward and not losing any
momentum getting it implemented.”
Quarles led the United States trade delegation during this
year’s tri-national accord, which is an annual summit between
the U.S., Canada, and Mexico that focuses on agriculture trade.
He said having this USMCA in place put the country in a
better position to tackle additional trade agreements.
“For example, the USMCA is the first trade agreement that
has provisions relating to biotechnology and that builds some
momentum so that those sorts of provisions can be in other
countries' trade agreements, as well,” he said. “With USMCA
being successfully negotiated and now implemented, this creates
an expectation with other countries that hopefully is replicated.
We like to think of this as a new era of modern trade deals that
benefit agriculture.”
Regarding the recent uptick in expected ag exports to China,
Quarles said it's important to realize that despite heavy emphasis
on China, there are other markets to work with.
“We're also looking at other countries, such as the Philippines,
Indonesia, and even Latin American countries that are buying
more American (products) every single day,” he said. “We also
think it's important that as we grow markets here in America,
that we look at what would happen if these trade agreements had
not been negotiated. It benefits the Kentucky farmer when we're
able to reduce tariffs and increase access in any country in the
world.”
KFB Farming Footnote
Nationally, the United States exports about $140 billion for all agricultural
goods. According to the latest information from the USDA’s Foreign Agricultural
Service, in August 2020 alone, national ag exports totaled $11,108,971,281. In
Kentucky, ag exports are worth an estimated $2.2 billion.
KFB President Mark Haney said these numbers are critical to the nation’s
agricultural industry.
“We cannot ignore the importance of the trade dollar to our farm families here,
in Kentucky, and across this country,” he said. “We must continue to do all we
can to ensure our farm products have a place on the world market. Our industry
is depending on it.”

Introduction of Dorsey Ridley, GOAP Executive Director
I
n August, Gov. Andy Beshear appointed
Dorsey Ridley of Henderson to serve
in the role of executive director for the
Governor’s Office of Agricultural Policy
(GOAP).
Under Ridley’s direction, GOAP will
continue to help support the important dairy
industry in Kentucky. Since the inception
of the Kentucky Agricultural Development
Fund, more than $22 million has been
invested in the dairy industry through
different programs and projects, such as the
Kentucky Dairy Development Council. One
of the most common programs utilized by
Kentucky’s dairy producers is the On-Farm
Energy Efficiency Incentives Program.
“My hat is off to the dairy producers of Kentucky that milk
their cattle 365 days a year, regardless of the weather just to
provide dairy products for our state and nation,” said Dorsey
Ridley, GOAP Executive Director. “I am dedicated to doing all
that we can through GOAP’s programs to help our dairymen and
women.”
Ridley has a long-standing record of public
service. Previously, Ridley served in the
Kentucky House of Representatives from
1987 to 1994 and the State Senate, as senate
caucus chair, from 2004 to 2018. Ridley
proudly represented Caldwell, Crittenden,
Henderson, Livingston, Union and Webster
counties. Additionally, Ridley sat on the
Senate Agriculture Committee for 15 years.
Professionally, Ridley has been employed
by Independence Bank, as regional business
development director and former president
of Independence Bank in Henderson.
Independence Bank currently is the largest
agricultural lending community bank in
Kentucky.
Reared on his family’s cattle farm in Henderson, Ridley is a
graduate of Western Kentucky University and received his B.S.
in business and agriculture. Reared working on a family cattle
farm, Ridley is a lifelong advocate for the agriculture industry.
Ridley is married to Glenn Hodge Ridley and together they own
and operate a grain farm in Henderson. They are the parents of
four adult children and enjoy two granddaughters.
KDDC and Zoetis:
Increasing Genetic Progress Through Genomic Testing
Nicholas Randle, Zoetis, Manager, Dairy Genetics Marketing
I
t has been just over 10 years since genomic testing was
introduced to commercial dairies. Since the beginning,
many discoveries and advancements have occurred in
the technology. Genomic testing is the process of using
DNA to predict the outcomes and generational passing of
traits with higher reliability than using parent average data.
Zoetis has been working to increase the value of genomic
testing by introducing profit-driven traits and indexes for
dairy producers.
CLARIFIDE® and CLARIFIDE® Plus are the two genetic
evaluations that are offered by Zoetis for dairy producers in
the United States. These evaluations use the Council for Dairy
Cattle Breeding (CDCB) database and a Zoetis internal database
to produce traits that are easy to use on farm. Most of the traits
that you read in a Bull book from any AI company are the
same ones available to any producer through CLARIFIDE and
CLARIFIDE Plus. Reliability increases on these traits almost
triple in most cases when comparing genomic values to parent
average. The main reason to use genomic testing is to have
better data when making critical on farm decisions.
Through collaborative talks with Kentucky Dairy
Development Council, Zoetis will be helping KDDC’s members
strategize and understand the value of genomic testing through
CLARIFIDE and CLARIFIDE Plus. Utilizing the genomic
data available, members will be able to build a stronger herd
genetically with a focus on the most important traits to them.
More information on genomic testing can be found at www.
zoetisus.com/animal-genetics/dairy

MONDAY, JANUARY 18 8:00 am ACCM Board of Directors Meeting
10:00 am GA Milk Board of Directors Meeting
11:00 am Registration Opens (all day)
12:00 pm GDYF Board of Directors Meeting
12:00 pm The Dairy Alliance/ADA of GA Meeting Board Meeting
2:00 pm
Impact of Risk Management Programs on 2020 Producer Cashflow, Dr. Marin
Bozic, MN
3:15 pm
State of the U.S. Dairy Industry Post Covid-19 – Mary
Ledman, Rabobank
4:00 pm International Markets and Expectations for 2021 – Secretary Tom Vilsack, USDEC
TUESDAY, JANUARY 19 7-8:00 am Continental Breakfast
8:00 am New Waste and Manure Technologies - Biofiltro
8:45 am Inflations and New Technology to Improve Milk Quality – Dr. Roger Thomson
9:30 am Exhibit Break
10:30 am On-Farm Milk Testing and Managing Results – Dr. Justin Graham
11:15 am Teat dips and other new products – Dr. Roger Thompson, ABS
12:15 pm DHIA Awards Luncheon
1:45 pm Crossbreeding Beef on Dairy – Dr. Tim Timmons, ABS
2:30 pm The Demise of the Holstein Steer market – Justin Cleghorn, Cactus Feed Yard
3:15 pm Exhibit Break
4:00 pm
Advances in Holstein Genetics that Address Health, Milk Components and Culling
– Dr. Jeff Ziegler, Premier Select Sires
WEDNESDAY, JANUARY 20 7-8:00 am Continental Breakfast
8:00 am
Milk on My Mind Marketing Update and Partnership with Kroger – Amanda Lucey
and Kroger
8:45 am
The Sustainability Initiative and What is In It for Everyone – Geri Berdak, The Dairy
Alliance and Caleb Harper, DMI
9:30 am Exhibit Break
10:15 am
Understanding Dairy Risk Management Programs – Christine Brodeur, DFA Risk
Management
11:00 am SE Dairy Market Outlook - Calvin Covington
ADJOURN
TENTATIVE AGENDA
PLEASE NOTE THAT SPEAKERS, TIME SLOTS AND TOPICS MAY CHANGE AT ANY GIVEN TIME
DUE TO CHALLENGES AND PROTOCOLS RELATED TO COVID-19. THIS IS A TENTATIVE AGENDA.

Georgia Dairy Conference to be Hosted in January
D
airy farm families and industry leaders of the Southeast
dairy community will gather Jan. 18-20 for the 2021
Georgia Dairy Conference at the Riverfront Marriott
in Savannah.
This three-day conference provides attendees the chance to
listen to nationally known educators and engage with the nation’s
leading industry suppliers at the tradeshow.
With 81 dairies and over 120,000 cows represented at the 2020
GDC, the 2021 event will build on the success of previous years.
The agenda features speakers who will present on topics ranging
from milk quality management, genetics, dairy risk management
programs, and retail marketing.
Veterinarians and animal nutritionists attending the 2021
Georgia Dairy Conference can earn continuing education credit
hours. Registration and certificate of proof can be found at the
registration table.
A tradeshow featuring industry sponsors and exhibitors is held
in conjunction with the Conference and provides representatives
with the opportunity to spark conversations with dairy producers.
Last year, the GDC featured more than 80 exhibitor booths.
Our GDC staff is working hard to ensure that safety protocols
are in place to minimize the spread of germs during our event.
Due to the outbreak of COVID-19, we are navigating the
decisions for the event day by day and we take the safety,
health, and well-being of dairy farmers and attendees seriously.
Like many other events, our conference is in an unpredictable
position. We will continue to stay abreast of the situation and
have safety protocols in place for the event. To learn more about
our efforts visit our website at https://www.gadairyconference.
com/covid-19-measures-at-gmp.
Updates and announcements about the 2021 Georgia
Dairy Conference will be posted on our website at www.
gadairyconference.com. Sponsorships and exhibit space are
available and early reservations are recommended for prime
options.
KDDC is happy to announce the funding
approval from the Ag Development Board for
the calendar years 2021 and 2022. The support
and leadership of the board is an integral part
of KDDC helping to continue our mission
in educating, representing and promoting
Kentucky’s dairy producers and dairy industry
as a whole. This approval also covers our new
MILK 4.0 program. Look for more information
on MILK 4.0 program coming up in the near
future. There’s a lot of work to be done but
your staff is eager to get started with our new
programs and hopefully they will make all of us
more sustainable and profitable.

The Dairy Alliance Helps Bring Kentucky Cheese Cares to Kroger
A
new initiative to help Kentucky’s food-insecure families
is bringing Kentucky Proud artisan cheese products to
10 local Kroger grocery stores.
Kroger, the state’s largest purchaser of Kentucky Proud
products, kicked off the launch of the Kentucky Cheese Cares
program in October. Kentucky Cheese Cares is a partnership
between The Dairy Alliance, Kentucky Department of
Agriculture, Kentucky Center for Agriculture and Rural
Development, Kroger, Feeding Kentucky and local dairy
farmers. The new initiative, which encourages consumers to
purchase select Kentucky Proud artisan cheeses, will increase
access of dairy products to the food insecure while supporting
Kentucky’s dairy farmers.
By purchasing these award-winning Kentucky cheese
products, fifty cents from each unit sold at participating Kroger
locations will be used to distribute dairy products through the
Feeding Kentucky food bank network. Within the first week of
sales, all participating stores sold out and had to quickly restock,
showing consumers interest in the program. Currently, special
Kentucky Cheese Cares coolers provided by The Dairy Alliance
are placed at ten Kroger locations containing products from
Harvest Home Dairy, Kenny’s Farmhouse Cheese and Wildcat
Mountain Cheese. In time for the holiday season, consumers
looking for delicious cheeses for appetizers or an elegant touch
to a daily meal will be able to support their state with each
purchase.
Kentucky Classes Take a Virtual Farm Day
T
he Dairy Alliance held a virtual tour at Harvest
Home Dairy in Crestwood, Kentucky. Using Zoom
and Facebook Live, dairy farmers Bob and Angie
Klingenfus led students from across the region, including
29 Kentucky classrooms, around their dairy farm. Viewers
learned about calf care, cow comfort and the milking
process. The students and additional viewers on Facebook
saw fun cow facts on their screens throughout the live tour,
while the 4th to 8th grade classes were able have questions
answered ranging from breed and fur colorings to how
equipment works. With a total of 335 classrooms and 2,559
students in the region interacting with the Harvest Home
Dairy tour, the virtual farm tours provided an opportunity for
students to connect to the farm whether they are learning
from home or the classroom. To watch the virtual tour, you
can visit The Dairy Alliance Facebook page and watch the
recording.

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
JAN 14-16 Kentucky Cattlemen’s Association Convention, Convention Center, Owensboro
JAN 18-20 Georgia Dairy Conference, Savannah Marriot Riverfront, Savannah, Georgia
FEB 23
KDDC Young Dairy Producers Conference, Sloan Convention Center, Bowling
Green, KY
FEB 23 Dairy Awards Banquet, Bowling Green, KY (6PM)
FEB 24
Kentucky Dairy Partners Meeting and Industry Trade Show, Sloan Convention
Center, Bowling Green, KY
MAR 17-18
Professional Dairy Producers of Wisconsin Business Conference, Kalahari
Resort and Conventions, Wisconsin Dells, WI
Calendar of Events

KY Milk Matters November December 2020

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