Winter 2001
Volume 3, Number 2



  



Dairy Alliance
helps Pennsylvania dairy industry


By Deborah A. Benedetti


Agriculture is the No. 1 industry in Pennsylvania, and within this economic sector, the dairy industry reigns supreme. More than 17,000 people work on nearly 10,000 dairy farms, caring for 616,000 cows, which annually produce 10.9 billion pounds of milk.

Like every successful business enterprise, the dairy industry relies on research and development, education programs and expert advice to remain competitive in an increasingly global economy. In Pennsylvania, the dairy industry’s partner in success is the Dairy Alliance.

“Penn State Cooperative Extension’s Dairy Alliance initiative is targeted to strengthen the dairy industry and enhance its productivity and profitability,” Dr. Theodore R. Alter, associate vice president for outreach, director of Cooperative Extension and associate dean in the College of Agricultural Sciences, said. “The dairy industry is a very essential and critical part of Pennsylvania’s agricultural economy. In our service to Pennsylvania agriculture, the Dairy Alliance is one of Penn State Cooperative Extension’'s top priorities.”

“Pennsylvania’s dairy industry is growing, unlike the dairy industries in many of the traditional dairy states,” N. Alan Bair, director of dairy industry relations for Penn State’s Department of Dairy and Animal Science, said. “Tremendous educational resources are needed to help our Pennsylvania producers continue to grow and to implement the modern business practices that will help them remain competitive. The Dairy Alliance’s role is to combine the resources of Penn State and the dairy industry to meet this urgent need.”

Dr. Lisa Holden, associate professor of dairy and animal science at Penn State, agrees. She noted that Pennsylvania is the fourth-largest dairy state in milk production, with many advantages for growth in the future. The state also has a good forage base, and its dairies are close to markets.

“Through education, we can develop the human capacity in the dairy industry,” Holden said. “Dairy Alliance focuses on human resource and information management as areas that can make a difference at the farm level. We are targeting economic development for the dairy industry in Pennsylvania. We want to help the dairy industry not just to survive, but to thrive in the future.”

The Dairy Alliance got its start in November 1999, when Bair and Holden brought together a core group of dairy industry members, dairy producers and dairy agribusiness representatives to talk about the industry’s needs. According to Tammy Perkins, Dairy Alliance program manager, this group identified many focus areas. The top three are:
  • Information Management — Dairy producers and their advisers collect information about herd productivity, business performance and other factors. Information management is a systematic, standardized method for collecting, processing, reporting, integrating and using that information. By integrating and interpreting production and financial data, producers can increase profitability and improve their competitive advantage in business.

  • Human Resource Management — People working in the dairy industry need education and training programs to help them improve the performance, profitability and overall success of their enterprises. The Dairy Alliance focuses its efforts on three areas: developing the personnel management abilities of producers, which include recruiting, interviewing, evaluating, promoting, etc.; organizational development, which includes motivating employees, continuously improving systems, creating effective workplaces, communicating, training, organizing, etc.; and human resource development, which involves training employees in technical skills.

  • Business Management — Dairy managers set goals, manage risk and develop business plans. To do these business management tasks well, they need current knowledge and training.

“Alan and Lisa were instrumental in moving the Dairy Alliance concept forward and pulling together the dairy industry, dairy producers and dairy-related agribusinesses,” Perkins said. “This was a grassroots effort to find out what these groups need.”

The Dairy Alliance team includes Perkins; Brad Hilty, information management specialist; and Richard Stup, human resource specialist. The alliance is part of Penn State Cooperative Extension, and alliance programs are supported by Penn State faculty members with extension appointments in five College of Agricultural Sciences departments: Dairy and Animal Science, Agricultural and Biological Engineering, Agricultural Economics and Rural Sociology, Agronomy, and Veterinary Science.

“We are really focused on planning our education programs from the farm up,” Perkins said. “We start on the farm and determine what’s needed for farm managers and employees.”

The mission of the Dairy Alliance is “to enhance the economic development of the dairy industry through leadership and focused educational efforts.”

Funding for the alliance comes from the Pennsylvania General Assembly’s budget for animal initiatives, which is administered by the College of Agricultural Sciences, Perkins explained.

The Dairy Alliance also is supported by a grant from Penn State Outreach and Cooperative Extension’s Program Innovation Fund, according to Dr. Patricia A. Book, associate vice president for outreach and executive director, Division of Continuing Education.

“The Dairy Alliance is engaged in critically important outreach for Pennsylvania’s dairy industry,” Book said. “We strongly support the alliance’s efforts to share the research and expertise of Penn State faculty members and Cooperative Extension educators to help empower dairy owners, managers, employees and agribusiness professionals to be competitive in the dairy industry within the state and beyond.” The initial programs being offered by the Dairy Alliance include:

  • Dairy Accounting and Benchmark Standardization. The two goals of this program are to standardize the methods by which information about dairy operations is collected, processed and analyzed, and to define a standardized set of benchmarks for monitoring dairy business performance. These goals are achieved through a coordination of efforts between the Dairy Alliance, faculty members from the Department of Agricultural Economics and Rural Sociology (AERS) and the many professionals providing business services to progressive dairy producers. Input for developing a set of guidelines for data collection and processing and pertinent benchmarks was sought from dairy business professionals through regional meetings held throughout the state. Dairy Alliance staff and the AERS faculty will develop guidelines and tools that dairy professionals can then use to generate more uniform sets of data for benchmark comparisons. The result will be better management advice and decision making at the farm level.

  • Cow Sense Workshop: Identifying Problem Cows Before and After Calving. The program covers topics on detecting problem cows and offers hands-on experience in basic examination practices. Instructors are faculty members in the departments of Veterinary Science and Dairy and Animal Science, Cooperative Extension agents and Dairy Alliance staff.

  • Management Essentials for Dairy Success. This five-part seminar series is designed to help dairy managers learn new skills for supervising employees and developing an effective work environment. It is a joint effort of Penn State’s Management Development Programs and Services and the Dairy Alliance. The modules cover: Supervisory Roles and Responsibilities and Leadership; Performance Management and Motivation; Coaching Skills and Improving Performance; Problem Solving and Decision Making; and Time Management, Delegation and Meeting Management and Action Planning. Instructors include Dr. John Park, associate director, Management Development Programs and Services; Holden and Stup.

The Dairy Alliance also is involved in planning and supporting other dairy programs. A sampling of these programs includes: the Capital Region Extension Dairy Team program to help dairy managers train employees responsible for livestock feeding, held last March; Managing a Hispanic Workforce, held in January in Harrisburg, Pa., and Rochester, N.Y., to assist dairy managers in meeting the challenges and opportunities that come with managing a workforce comprised of people from various cultures (Cooperative Extension faculty and staff from Penn State and Cornell University jointly organized the one-day conference); and the Mid-Atlantic Dairy Management Conference on “Implementing Competitive Business Strategies,” planned for March 7 and 8, in Camp Hill, Pa.

Other Dairy Alliance activities include making presentations at dairy-related programs, meetings and conferences, participating in the College of Agricultural Sciences’ annual Ag Progress Days and meeting with dairy professionals throughout Pennsylvania.

The Dairy Alliance also has organized tours of dairy operations to help Penn State Cooperative Extension and Dairy Alliance faculty and staff keep up to date with what’s happening at dairy farms and businesses. In September, the alliance arranged a tour for Dr. James H. Ryan, vice president for Outreach and Cooperative Extension, and Dr. Terry Etherton, Distinguished Professor of Animal Nutrition and head of the Department of Dairy and Animal Science. They met with dairy owners, managers and employees at Frey Dairy and Turkey Hill Dairy in Conestoga, Pa., and Brubaker Farms in Mount Joy, Pa.

The tour illustrated how two types of family dairy farms operate in today’s economy. Frey Dairy, owned by Tom Frey, has 1,000 cows, while Brubaker Farms, owned by Luke Brubaker and his sons Tony and Mike, has 460 cows. Turkey Hill Dairy, near the Frey Farm, is the largest producer of ice cream in the eastern United States and distributes fluid milk through Turkey Hill convenience stores.

In addition, the Dairy Alliance is affiliated with the Professional Dairy Managers of Pennsylvania, founded in 1994 as a discussion group to address the educational needs of progressive producers in south-central Pennsylvania. Perkins is executive secretary of the organization.

The Dairy Alliance is organized as a partnership involving the dairy industry, dairy producers, dairy-related agribusinesses and Cooperative Extension. It is not a membership organization, Perkins explained. “You are a partner of the alliance if you are a member of one of these groups,” she added. Dairy Alliance staff guide the alliance, with advice from the alliance partners.

To keep everyone involved in the dairy industry apprised of current research and developments, news, educational programs and other events, the Dairy Alliance developed a Web site: www.dairyalliance.org. Perkins said the Web site was designed with the needs of its users in mind. Because many dairy farmers and others in the agricultural community have computers with small monitors and slow modem connections to the Internet, the Web site downloads quickly and has an easy-to-use format. Information about the Dairy Alliance also is available by phone toll-free at (888) 373-PADAIRY (888-373-7232).




Dairy Alliance staff members meet with Pennsylvania dairy farmer Abe Harpster (second from left) at Evergreen Farms. In the photo, from left, are Brad Hilty, Dairy Alliance information management specialist; Harpster; Tammy Perkins, Dairy Alliance program manager; Richard Stup, Dairy Alliance human resource specialist; and Chet Esber of Evergreen Farms. The Dairy Alliance was created “to enhance the economic development of the dairy industry through leadership and focused educational efforts.”
Dr. Lisa Holden, associate professor of dairy and animal science at Penn State, was instrumental in bringing together a core group of dairy industry members, dairy producers and dairy agribusiness representatives to talk about the industry’s needs. The Dairy Alliance was formed as a result of this meeting.


N. Alan Bair, director of dairy industry relations for Penn State’s Department of Dairy and Animal Science, played a key role in establishing the Dairy Alliance to help meet the educational needs of Pennsylvania’s dairy industry.
 
Recognizing exemplary outreach teaching, research and service This Penn State faculty member is sharing research with individuals, organizations and communities to make life better:
Dr. Errol M. Aksu
Assistant Professor of Psychiatry
Director of Medical Student Teaching Program Penn State College of Medicine at The Milton S. Hershey Medical Center


Dr. Errol M. Aksu is extending outreach to state hospitals across the Commonwealth in an effort to enhance the care of those suffering from chronic mental illnesses. He is accomplishing this through the integration of training and research. For nine years, in addition to his full-time teaching duties, he has been involved with the state hospitals in Danville, Harrisburg, Wernersville and Allentown, traveling hundreds of miles each week to help with the coordination of continuing education at each hospital. He has conducted seminars for staff, rotations for psychiatry residents and clinical consultations and delivered countless lectures at each of these hospitals. His outreach endeavors integrate teaching, service, administration and clinical care to support patients suffering from mental illnesses, their family members and staff at these facilities.


Pennsylvania dairy facts
  • 616,000 cows

  • Average number of cows per herd: 64

  • 9,700 commercial dairy farms (with 10 or more cows)

  • 10.9 billion pounds of milk produced annually

  • $1.7 billion farm value of milk, up from $1.5 billion in 1998

  • Pennsylvania ranks fourth nationally in milk production, with 10,931 billion pounds of milk from 616,000 cows. California is first, with 30,475 billion pounds from 1,466,000 cows; Wisconsin is second, with 23,071 billion pounds of milk from 1,365,000 cows; and New York is third, with 12,040 billion pounds of milk from 701,000 cows.

  • Pennsylvania has 47 percent of the dairies in the Northeast United States and 36 percent of the cows. (New York has 35 percent of the dairies and 41 percent of the cows.)

  • The average production per cow in 1999 was:
    California — 20,519 pounds per year
    Pennsylvania — 17,745 pounds per year
    New York — 17,175 pounds per year
    Wisconsin — 16,902 pounds per year
    United States — 17,764 pounds per year
    Northeast — 17,252 pounds per year

  • Pennsylvania wholesale milk prices for the 12-month period from March 1999 to February 2000 averaged $14.95 per hundredweight, which was 9.5 percent below the same time period a year earlier.

  • Production costs averaged $13.51 per hundredweight of milk for the 12-month period ending March 31, 2000. This is 1.9 percent more than production costs a year ago.
    — Source: USDA/Pennsylvania Ag Statistics Service, 1999

  • The milk from every 20 cows creates one full-time job.

  • Just a 2 percent growth in the Pennsylvania dairy industry creates 570 new jobs.

  • More than 17,000 people are employed on Pennsylvania dairy farms.

  • Another 12,000 people have jobs processing, transporting and selling milk. This number does not include the jobs of those who make and sell equipment and farm supplies.

  • In the last reporting year (1997), Pennsylvania farmers paid $351 million in labor costs and $160 million in property taxes.

  • Pennsylvania’s top 10 dairy counties are:
    Lancaster — 96,100 cows
    Franklin — 44,100 cows
    Bradford — 29,800 cows
    Berks — 24,000 cows
    Chester — 20,400 cows
    Lebanon — 20,300 cows
    Somerset — 19,400 cows
    Crawford — 19,000 cows
    Bedford — 18,600 cows
    Cumberland — 18,100 cows
  

U.Ed.OCE 01-8002/mkm/GSM