National convention focuses on marketing advice, organization business in year ahead

     2010 marketing and risk management strategies, farm policy and organizational business headlined National Farmers Convention 2010 in Coralville, Iowa, Jan. 18-21.
     In his keynote address, National Farmers President Paul Olson spoke about the need for agricultural markets that are competitive and fair, and that change needs to happen quickly for farmers after a dismal year in 2009.
     During his speech, Olson revisited the organization in its early years, and compared farmers' standard of living in past decades to those of today. He reminded members how the organization evolved into a marketing and bargaining organization, and the ongoing need to develop programs for producers of tomorrow.
     He also encouraged members to continue to support adoption of the latest technology to increase productivity and reduce costs for the organization. "Let's turn the focus to the future and make it bright for our children and grandchildren," Olson emphasized.

Mattos acknowledges times
     National Farmers Vice President Ron Mattos acknowledged the tough times agricultural producers have been forced to endure the last year.
     And he underscored the importance of turning negatives into positives, noting the Justice Department's series of anti-trust hearings scheduled in the year ahead. "There are many things our government has allowed to happen..Anti-trust laws have not been enforced," said Mattos.
     Mattos reminded members that National Farmers bargaining programs are based upon a simple concept. All it takes are people working together who care.
     That's what it takes, working together, it's very important, said Mattos. It's the right thing to do.

Value-added probiotic milk venture
     National Farmers Dairy Division rolled out its new probiotic milk program to members. The value-added milk venture partners the organization with Ganeden Biotech and selected milk processors to supply probiotic milk to consumers.
     "As a milk cooperative, we're searching for ways to improve farmer member income through value added products," said National Farmers Dairy Division Director Brad Rach. "Because of the uniqueness of this new probiotic milk offering, and the fact that we are the sole supplier of this product to processors, it can mean real dividends to our dairy members."
     Probiotics, dubbed good bacteria, have been shown to support healthy digestive and immune systems. Unlike many other popular probiotics strains, Ganeden Biotech's patented probiotic strain, GanedenBC30, is easily able to survive harsh manufacturing conditions, including those associated with milk production. This makes it an ideal probiotic for beverage and food applications.
     "National Farmers is excited to be able to provide the health benefits of probiotic-enhanced milk to consumers, while at the same time providing another stream of revenue for our nation's family dairy farmers," said Rach. "The quality of Ganeden Biotech's probiotic strain, coupled with the caliber of the company's scientific operations, made it the ideal partner for our organization." A year-long process is bearing the fruit of opportunity for National Farmers dairy producers. Dairy Division leaders and national board representatives began exploring a relationship with Ganedan, in 2009, discovering a way to open up markets for National Farmers milk.
     Nick Nerheim, national director of milk sales, explained the relationship to producers during the Dairy Workshop. He said the Ganedan product is added to raw milk before the pasteurization and homogenization process. "We're excited about the project," Nerheim told dairy workshop attendees. "It offers a lot of opportunities."
     Additionally, National Farmers has been working with a Michigan processor willing to handle the probiotic additive process, and retail labels are going through the approval process with the state of Michigan Department of Agriculture, Regional Director Gary Schmesing added.

     Ganedan also produces an animal product, a BC30 feed additive, GanPro, that survives pelleting at a 94 percent rate, and it has up to a two-year shelf life.

BC30 feed benefits to animals

     In animals, BC30 results in a healthier gut, which in turn improves feed efficiency, nutrient absorption, healthier gain to feed ratio, average and total daily weight gain, with specifics depending on species. It also helps stimulate animals immune systems.
     BC30 produces lactic acid, lowering gut pH and creating a bad environment for bad bacteria. The product is available in a variety of delivery methods, including pre-mix, supplement and TMR. It can be added at farm level.



National Farmers CMI promoted
     Rach also promoted the organization's Cooperative Marketing Initiative (CMI) to members and the media. Rach urged producers to talk about CMI to other producers, noting that CMI would complement CWT, and help improve general milk price levels across the country.
     Rach noted that although CWT retired 61,000 lactating cows from the nation's dairy herd in the last 16 months, during that same timeframe 55,000 lactating cows crossed the border into the United States.
     That factor, along with new technology, may make it increasingly difficult for family farms to remain sustainable. Recently National Milk Producer Federation (NMPF) reported that sexed semen technology has already added 132,000 lactating cows to the national herd.

To manage fallout from NASS corn crop estimate, GMP pros suggest options
     The recent corn price dip of 50 cents to 60 cents per bu. was on the minds of grain growers at Convention 2010, but Grain Marketing Plus Grain Analyst Pete Lorenz said producers can capitalize on marketing strategies to minimize the impact.
     A veteran grain marketer who assists producers with managing price risk, he is urging producers in with corn that needs to be sold because of quality issues to look at market planning.
     "There are ways they could pick up gains in the market that may occur later, such as options," Lorenz said. "Price concerns may straighten out in the spring, because of attempts to encourage planting more corn acres." For assistance, contact Lorenz at 785.545.8519.
     Many producers do want to market corn right away for those quality reasons. Talk in the trade is putting that number at 2 billion bu. to 3 billion bu. with concerns of deteriorating conditions.
     "It was put in wet," Lorenz said. "So it doesn't store well." And test weights may have an influence on final figures, though the depth of that impact is uncertain.
     Further, USDA said it will issue another report on the 2009 crop in March. "When they say they may come out with another report, they're saying they don't yet know what the crop is. The numbers aren't final," Lorenz explained.

Cattlemen talk shop in Coralville
     At Convention '10 Livestock Division Director Garry Crosby talked about how even large producers need marketplace representation.
     Some producers might think they can do marketing and risk management themselves, he said. "The biggest guy out there might think he can do it himself," Crosby said. "But how many sets of ears, and how many sets of eyes does he have? How many bids does he get? Does he know what's going on from one end of the country to the other?"
     National Farmers Livestock Division staff know what's happening in the markets because they communicate with each other across the country. "Talk to them a little bit and you'll know, there's terrific value in having this team represent you in the marketplace," Crosby said.
     Marketing representatives and marketing center managers shared updates of procurement growth in their areas, what attracts new producers to National Farmers and the service habits that prove they put producers first.

Ag policy includes establishing world food reserve
     On the ag policy front, National Farmers Organization members announced support for creating a world food reserve in the wake of the Haiti disaster.
     "The natural disaster in Haiti clearly shows why it's time to establish a world food reserve," said National Farmers Organization Ag Policy Analyst Gene Paul. "This program would create a commodity storage reserve system, and help stabilize world food supplies."
     The new food storage reserve would complement the U.N.'s World Food Program. "Unfortunately, almost on a daily basis, we hear reports of hunger and starvation in some parts of the world, and in our own country there is an ever-growing demand at food shelves," Paul said.
     Members voiced support for legislation to add transparency to futures markets and closing the door to excessive speculation. The policy would tighten key investment laws and clarify the oversight mission of the Commodities Futures Trading Commission (CFTC).
     Regarding carbon sequestration-producers discussed recent conflicting data and reports of climate change trend lines, indicating that more knowledge is needed before implementing policies that would significantly impact ag producers financially.
     Producers commended the Department of Justice (DOJ) and USDA's series of anti-trust workshops, and encouraged all farmers and ranchers to attend.