Brief Summary of Minutes of Annual Meeting

1. Gauthier, as vice-chairperson, called the meeting to order at 2:00 p.m. as the chairperson, Jodie Pennington, was experiencing a flight delay. Herndon volunteered to take minutes. 2. Nickerson announced that this would be his last meeting as administrative advisor as he was returning to faculty rank status from administrative status. Nickerson distributed copies of his 2007 evaluation report of S-217 that was being reviewed by the Southern Advisory Committee #2 (SAC-2) in Reno, NV. He indicated that the request for renewal of the SERA-15 project would have to be submitted to either Terry Kiser at Mississippi State or David Morrison at LSU Agricultural Center by October 2008. Rogers indicated that he had a file copy of the last renewal document for SERA-15. He indicated that a copy would be sent to all committee members for review and revision. The cumulative feedback would be incorporated into the request for renewal that would be forwarded to the committee advisers before October 2008. 3. Nickersons report to members of Southern Advisory Committee #2 which met in Reno, Nevada was delivered on January 29, 2008 (Attachment 1). Nickerson noted that the major activity of the SERA-15 committee was the annual Southern Dairy Conference (SDC). He observed that the SDC provides for meaningful interactions between and among extension and research faculties, milk industry personnel, regulatory agency personnel and other representatives of various clientele groups. His recommendation was to continue the SERA-15 project with a continuing focus on the issues facing the Southern dairy industry and to seek input from stakeholders in prioritizing project objectives and activities. 4. Sue Mosley, the Market Administrator for Federal Orders 5, 6 and 7, distributed a handout synthesizing the status of outstanding federal order hearings. These hearings are identified in Attachment 2 and include a May 2007 hearing regarding Temporary Adjustments to Class I Prices in the Appalachian (5), Florida (6) and Southeast (7) Federal Milk Market Orders; a December 2006 Hearing on Class I/II Milk Price Formulas; multiple hearings on the Class III/IV Price Formulas; a Recommended Decision: Fluid Milk Product Definition; and a request for a hearing to Expand the Pacific Northwest Order. 5. Geoff Benson distributed an executive summary of Preliminary Results of a 10-State Dairy Survey. The survey was conducted in February and March of 2007 and had a 64% response rate. The results suggest that past trends of declining farm numbers and total milk production throughout the South are likely to continue unless there are significant changes in the economic environment. The major problems associated with that economic environment included (1) milk price volatility, (2) cost of production, (3) long run price trends, and (4) cash flow problems. Survey respondents desired a greater understanding of federal milk market orders and of their milk checks. A strong desire for enhanced communications between producers and marketing agencies whether it is a coop or marketing board was clearly expressed particularly on such issues as paying for balancing the market and fulfilling full supply contracts. There was a recognition that maintaining or growing the southern dairy industry will require an enhancement of regional competitiveness through rules changes in federal orders that enhance regional prices relative to national prices, federal and state programs to enhance the viability of farms and the creation of state initiatives to assist dairy farms. Both the land grant universities and the cooperatives bear responsibility for creating and disseminating information about marketing and policy alternatives that would facilitate decision making at the farm level. 6. Benson also distributed a draft copy of a letter to be sent to dairy farmers about a program to collect and publish monthly mailbox milk prices from major dairy production areas in Georgia, Kentucky, Tennessee, North Carolina, South Carolina and Virginia. The purpose of the program is to address an absence of readily available information about mailbox milk prices within and between these major dairy production areas. Monthly price data would be collected from two producers supplying each major handler in a milk production area. Both producers and handlers would be anonymous. Handlers would be identified by a number or code. The information gathered would be published on an extension regional dairy website maintained at the University of Tennessee. If the program proves successful and resources became available, other production areas would be added. The objectives of the program are to (1) create comprehensive and verifiable information so as to minimize the confusion and conflict which now exists in the industry, (2) to monitor the effects of changes in federal order rules, national dairy policies and market conditions, and (3) to provide data for research on milk marketing and dairy policy issues. 7. Upon arrival, Jodie Pennington assumed chairmanship duties from Gauthier. Pennington observed that there would be a dinner meeting hosted by Dairy Farmers of America employees Sonia Fabian, Bob Shipley, and Frank Johns. 8. Pennington presided over a discussion in which members from states who had enacted legislation or were sponsoring programs to benefit dairy farmers identified those programs and their specific provisions. Gauthier outlined the major provisions of the Louisiana Dairy Farmer Tax Credit/Refund program. He identified the South Carolina program as the forerunner of the Louisiana program. Herndon provided an update of a Mississippi initiative Gary Rogers identified three Tennessee programs. 9. A round-table identification of developments that are going on in each state resulted in the following: a. Bannon (Alabama) reported a continuing loss of infrastructure; b. Virginia reported that (i) some optimism has been associated with the increases in milk prices, (ii) they currently have 720 dairy herds, and (iii) there is a long term decline in dairy cow numbers. The value of a dairy cow to a beef cow is 25 to 1. c. Georgia reports that Joe West is the Assistant Dean at Tifton. d. Herndon (MS) reported that Louisiana and Mississippi have, through the efforts of Gary Hay, merged their Dairy Herd Improvement Programs (DHIP). Individuals responsible for the merged program have started a dialogue with Alabama with regards to a merger. Herndon observed that Mississippis initial tax credit proposal evolved first into a grant for the poultry industry and then into the present transportation loan program. The major provisions of this program provide for up to a $20,000, no interest loan for eight years. He had the responsibility for processing 107 applications totaling $108 million in loans. e. Harris reported that Clemson has hired Tina Horn as a dairy extension agent. f. Pennington (AR) reported that Arkansas had gained one dairy farm in 2007 when prices were high, but net herd numbers had declined. He indicated that their Dairy Stabilization Board is experiencing slow progress in making decisions. The Board is a good board but has to reconcile the views of consumers, processors, retailers and dairy farmers. There is a concern regarding a stalemate created by a banker who wants a dairy stabilization board and a processor who doesnt want Arkansas to withdraw from the Federal Milk Market Order System. g. Anderson (TX) reported that Texas had added 15,000 cows during 2007. h. Dan Webb (FL) reports that the last new permit for a dairy farm issued in Florida was five years ago. The costs of complying with the environmental regulations are the major deterrent to the expansion of the dairy industry. A second deterrent is the cost of land. Florida has been losing cows particularly since the lost of rBST. Webb also reported that three coops had come together to form SMI and go into processing which angered traditional milk processors. i. Lane Ely reported that there has been a major turnover in the Southeast Dairy Group and they are now looking at large herds. j. Tennessee reported that they have no tax rebate program, but they do have three cost share programs: i. a producer diversification program that is open to anybody in Tennessee. Under this program, the state pays 30-50% with a maximum of $15,000. ii. Genetic improvement or equipment enhancement program which contributes up to $1,000 for a producer to enhance his equipment. iii. A hay storage program open to all of animal agriculture and for which the legislature appropriated $30 million dollars. k. It was observed that some states provide drought management and assistance. A one-day drought awareness conference is planned for February 19, 2008 in North Carolina. l. Sue Mosley reported that the Public Manufacturing Plant was the largest user of water in Georgia and that it uses more water than all the households in Georgia. Furthermore, one million birds/hour or nine billion chickens per year are processed in the U.S. m. Benson (N.C.) distributed a flyer entitled Dairy Advantage describing a program to stabilize and grow the North Carolina dairy industry. n. On behalf of a Dairy Executive Committee affiliated with Dr. Basil Eastwood, a retired CSREES dairy contact person, a Dairy Extension Committee Report was distributed. This report is designed to summarize the reported activities of dairy extension personnel from throughout the United States. 10. General guidelines were established for the administration of future Southern Dairy Conferences (SDC). a. Speakers from institutions normally will not be paid for travel by the SDC. Travel expenses for speakers whose organizations or who themselves cant pay for their travel will be reimbursed by the SDC. Such payments are to be minimized so as to hold down present and future registration fees. Travel expenses should be discussed with the speaker at the time of the initial contact. The Executive Committee is to discuss exceptions to the policy and recommend appropriate actions. b. There was a question of whether the registration fee for speakers would be waived. The decision was left to the Executive Committee, but all speakers whose expenses are being reimbursed by their organizations are generally expected to pay the registration fee. c. All SERA-15 members will pay the registration fee unless retired and/or have no funds available from their institutions. d. The hotel generally provides two complementary rooms to the SDC. These rooms will be offered to speakers whose expenses are being reimbursed. e. This year Alltech is providing the SDC with $1,000 of Kentucky Ale and underwriting the cost of the SDC Happy Hour on January 30, 2008. The general policy of the SDC with respect to sponsors is that they must be brought before the overall committee and approved by the Executive Committee. f. At the present time, the University of Georgia is holding $4,000 in an account for the SDC. g. The University of Georgia Conference Center is currently charging the SDC $5.00 per paid attendee for administrative expenses. 11. The dates for the next SERA-15 meeting and for the 2009 Southern Dairy Conference (SDC) were set for January 27-29, 2009 unless there is a conflict in which case February 3-5, 2009 will be the alternative date. Gauthier assumed duties as Chair of the 2009 SDC/SERA-15 at the close of the 2008 SDC on January 31, 2009. Bennett Cassel from Virginia Tech was elected vice-chairman for the 2009 SDC-SERA-15.

The major activity of the SERA - 15 Competitiveness and Sustainability of the Southern Dairy Industry has been the Southern Dairy Conference which follows the SERA - 15 meeting. The Southern Dairy Conference is a forum that provides educational and research information among extension and research faculties, milk industry personnel, regulatory agency personnel, and representives of various clientele groups. 34th ANNUAL SOUTHERN DAIRY CONFERENCE January 30-31, 2008 The Westin Atlanta Airport Hotel Atlanta, Georgia Sponsored by Southern Land Grant Universities University of Arkansas Louisiana State University Auburn University Mississippi State University Clemson University North Carolina State University Oklahoma State University University of Florida University of Georgia University of Tennessee University of Kentucky Texas A&M University Wednesday, January 30, 2008 Presiding: Jodie Pennington, University of Arkansas 9:30 am National Dairy Situation and Outlook Bob Cropp, University of Wisconsin 10:15 am Farm Bill and Dairy Policy Developments Scott Brown, University of Missouri 11:00 am U.S. Dairy Trade and Class III/IV Pricing Bob Cropp, University of Wisconsin 11:30 am Immigration Reform: Status and Outlook Stefphanie Gambrell, American Farm Bureau Federation, Washington, DC Presiding: Steve Nickerson, University of Georgia 1:15 pm SUDIA Update: Enriching Milk with Omega-3's Cheryl Hayn, SUDIA General Manager Gail Barnes, DMI, Rosemont, IL 1:35 pm Dairy Product Innovations P.D. Stroup, Nestle Business Services, Glendale, CA 2:15 pm Future of Dairy Industry in the Southeast U.S. Sonia Fabian, Chief Operating Officer, Southeast Area Council of Dairy Farmers of America, Knoxville, TN Presiding: Bill Herndon, Mississippi State University 3:20 pm Value of Milk Quality Tests for Predicting Shelf Life Dr. Rob Ralyea, Cornell University 3:50 pm Panel Discussion of State Legislation Supporting Dairy Industry Louisiana: Ron Harrell, LA Farm Bureau Mississippi: Bill Herndon, MS State University, MS Milk Producers Transportation Cost Assistance Loan Fund Tennessee: Gary Rogers, University of Tennessee Arkansas: Jodie Pennington, University of Arkansas North Carolina: Geoff Benson, NC State University, The NC Dairy Industry Stabilization and Growth Program Texas: David Anderson, Texas A&M University South Carolina: Hal Harris, Clemson University (retired) Thursday, January 31, 2007 Presiding: Geoff Benson, North Carolina State University 8:15 am What Can USDA Data Tell Us About the Competitiveness of Dairying in the South? Jim MacDonald, USDA/Economic Research Service, Washington, DC 8:55 am Review of Florida/Georgia Dairy Business Analysis Project Albert DeVries, University of Florida 9:15 am NMPF Federal Milk Marketing Order Task Force: An Update Jim Tillison, Chief Operating Officer, National Milk Producers Federation, Arlington, VA 9:45 am Status of Dairy Production and Flow of Milk in the Southeast Region Sue Mosley, Atlanta Federal Milk Market Administrator Presiding: Wayne Gauthier, Louisiana State University 10:45 am Bio-energy Revolution and Its Impact on Dairy and Agricultural Sectors David Anderson, Texas A&M University 11:30 am Discussion and Wrap Up ... Evaluation Wayne Gauthier, Chair for 2009 Southern Dairy Conference, Louisiana State University

To view the proceedings of the Southern Dairy Conference: http://www.southeastdairyextension.org/SDC%202008%20program01.html