MILK® Business Quarterly

Insider Strategy Tips for Top Performing Producers

Tue, 02 Dec 2025 20:39:52 GMT

Progress on the farm rarely comes from a single breakthrough. It comes from the everyday decisions that make a dairy run smoother, smarter and more sustainably than it did the year before. For three dairymen speaking at this year’s MILK Business Conference, Greg Bethard, TJ Tuls and Hank Hafliger, success isn’t accidental, it’s intentional.

These producers offer practical, hard-earned tips for other producers, sharing the strategies that have helped their dairies stay competitive, efficient and resilient in a fast-changing industry.

Invest In Technology That Pays Its Way
Technology continues to transform how dairies operate by offering tools that streamline processes and boost efficiency. For Tuls, the principle remains clear that every investment must deliver value.

“We’re always looking for ways to make our dairies run better,” Tuls says. “Right now, we’re testing three or four different systems to see what works best.”

Some tools use cameras to monitor cow movement and employee performance. Others combine data with DairyComp to spot trends and guide better decisions. But Tuls reminds farmers technology only works if you use the data.

“At the end of the day, it’s feeding your data back into your operation and doing something with that information. And it takes good people and managers to interpret it and really apply it on your farm,” he says.

For Bethard in Kansas, his perspective comes with decades of hindsight.

“I remember 30 years ago when I started out, a 1,000-cow dairy was huge. Back then, DairyComp and headlocks were your tools to manage that many cows,” Bethard says.

Today, his list of non-negotiables to manage a larger herd has grown. Sort gates, activity collars and meters in the parlor are all essential. The philosophy behind adopting new technology, though, hasn’t changed.

“I can barely use my cell phone, so I’m not really a technology guy,” he jokes. “I’m looking for anything that’s easy to use and lowers my cost to produce milk. The key is evaluating it and embracing what makes sense for us.”

For Bethard, every piece of technology has to prove its worth. When he evaluated activity collars on his dairy, the numbers spoke for themselves. Looking ahead, he plans to follow the same approach by avoiding flashy trends and focusing on tools that truly improve efficiency and animal care.

Measuring What Matters
Across all three dairies, success is powered by key performance indicators.

Tuls’ team in Nebraska leans heavily on people-focused metrics.

“One of the biggest KPIs we track is employee turnover,” he says. “When you have a strong, experienced team, it directly improves profitability, production and cow longevity.”

Feed efficiency is another cornerstone metric for Tuls.

“You can feed a lot of different products and make a lot of milk, but if you’re spending a ton of money doing it, it doesn’t help your bottom line,” he adds. “How cows convert feed into milk, that’s a huge deal.”

Bethard’s dairy approaches metrics through the lens of business sustainability. Their guiding number is their break-even cost with no milk price factored in.

“If we achieve that, really nothing else matters much,” Bethard says.

Operationally, they track a daily static variable margin: income over feed cost minus variable expenses.

“That margin is what pays for all the other fixed costs,” Bethard says.

It’s the heartbeat of the business, and the number he relies on to maintain a healthy, resilient operation.

Winning With People
For all three dairymen, success starts with people. Hafliger says that means creating a family atmosphere on his operation.

“These guys come to work in the middle of the night when it’s snowing outside,” he says. “They’re pulling calves and caring for cows in the toughest conditions. It’s important to treat them like family.”

Tuls agrees. Watching employees grow has become one of his greatest rewards.

“Three of our managers started as cow pushers, and now they’re running dairies,” he says. “That’s fun to watch. They really are family.”

Tuls says leadership means being present, listening, checking in and making sure people know their work matters.

“They’re working at your farm by choice,” he says. “You’ve got to convince them it’s a good place to be,” he adds.

Bethard sees culture as the cornerstone for his operation.

“Culture is what keeps the wheels turning,” Bethard says. “You can have the best systems in the world, but if your team doesn’t feel respected and connected, nothing works.

The Blueprint for Success
Across three states and three management styles, one message is clear. Great dairies do not achieve success by chance. They build it through careful adoption of technology, disciplined measurement and workplaces where people feel valued and motivated.

CEO Cliff Notes: 3 Lessons on Leadership and Life

Tue, 26 Aug 2025 14:00:00 GMT

So often, we see a leader in their prime. When they are sitting in a corner office as a CEO, or making deals on a major acquisition. But what we don’t see are the life experiences that put them on this path, let alone those that nearly derailed their journey.

Over the past few months, I’ve had the privilege of sitting down with some unforgettable leaders. Here is a snapshot of three simple, yet powerful, lessons on life and leadership:

1. “Don’t let anyone rob you of what you want to be.” - David Abbott, former CEO of Purina Mills

One such story that stands out is that of David Abbott. He spent more than 25 years of his career with the Purina Mills company, starting out as an intern and eventually becoming the CEO. From humble beginnings, Abbott grew up in from rural Vermont. He recalls leaving his small town to go to college, and learning later on that his school principal had told his parents he was not college materials. Abbott’s message rings true that others may discourage your dreams and ambitions, yet they do not control your future. “Stay true to yourself,” he adds.

Listen to the full podcast here:

2. “Make a decision and own it.” - Steven Landwehr, CEO, United Dairies

One of the most impactful lessons Landwehr learned as a young manager was the power of deciding. Delayed decision-making can lead to unclarity, frustration and confusion among a team. “Make a decision, own it, just recognize that it might not be the right decision, but you’re going to learn either way,” Landwehr says. “The important thing is you learn that you have to make decisions.”

Listen to the full podcast here:

3. “Identify good people, hold them accountable, and empower them.” - Manuel Soares, CEO, Milc Group

Soares believes people want to be held accountable, as well as have the freedom to make decisions. As a leader, empowerment means understanding that mistakes are inevitable and also necessary for the growth and development of the next leaders in an organization.

Listen to the full podcast here:

It’s Not Luck, It’s Intentional

Thu, 21 Aug 2025 14:00:00 GMT

Let’s talk about something that can really make a difference in your farming journey—professionalizing your farm. If the word professionalizing doesn’t resonate with you, then let’s call it being Intentional. Intentional about what?

As someone who works across all sectors in agriculture, it’s my humble opinion that dairy is the most complex. Yes you need great animal husbandry and good milk production, but there is more. So why do some farms tend to pull ahead over time? Why do some farms just have “all the luck?” It’s not luck at all, but rather intentional focus and execution in several key areas. These are my observations from working with many top farms. Here are some tips.

Building Strong Relationships
First things first, surround yourself with good people. Successful farmers know the importance of fostering collaborative relationships with bankers, accountants, landlords, family members, and employees. It’s all about creating a supportive environment where everyone can succeed together. These relationships are not just feel good, but built on respect and trust. Although the employees will never show up on a balance sheet, they get more attention than any other asset.

Heads Up vs. Heads Down Farming
While production is crucial, the best farmers look beyond the immediate tasks at hand. Heads up farming involves applying general business principles to agriculture, looking over the horizon, and creating a common vision. This approach includes attending peer groups and conferences, being proactive on the business side, and holding regular owner and manager meetings to manage conflict, review data, and solve strategic problems. Most everyone likes to drive tractors or work cows but the biggest challenges are often solved with a spreadsheet and some quiet time to think. On these farms, off the farm education and skill development is not only encouraged, its often a prerequisite to come back to the farm as an owner.

Maintaining Momentum
Top-tier farms avoid getting stuck in cycles of indecision or intra-family politics. They make decisions, implement changes, and keep moving forward. If a decision doesn’t work out, they reassess and try again. These farms don’t finger point or cry over spilled milk. They clean up the mess, correct the mistake, and keep moving. When a decision is made everyone gets on board even if it wasn’t their idea.

Scaling Business Systems
As farms grow, their management structures must evolve. What once worked for HR, financial reporting, equipment maintenance or data management often doesn’t work with 2x the cows. You can’t shove 2x the cows through a parlor at max capacity any better than you can shove 2x through your office, shop and support systems. When the cow numbers increase the rest of the system is intentionally increased as well.

Take these tips from across North America and determine if you need to professionalize as you scale up. All farms don’t have to reinvent the wheel and it’s not about luck. We can all borrow great ideas from each other.

Recognizing the Best in Dairy: Apply Now for the 2025 MILK Business Awards

Thu, 31 Jul 2025 15:53:32 GMT

In every successful dairy operation, there are standout individuals and teams who go the extra mile, whether it’s through smart innovation, passionate advocacy or exceptional work ethic. That’s why the MILK Business Awards were created to celebrate those people and shine a spotlight on the best in the business.

This year’s application deadline is Aug 11 , and there are three opportunities for recognition:

The Young Producer Award
Are you, or do you know, a young dairy leader making a difference both on and off the farm? This award recognizes a producer 35 years of age or younger as of Aug. 1, who not only excels in their operation but is also a strong advocate for the industry through community and organizational involvement. If at least half your income comes from farming or related ventures, you’re eligible to apply.

Previous Winners:

The Leader in Technology Award
From precision feeding to data-driven herd health, dairy technology is evolving and so are the producers who adopt it. This award honors a dairy farm that has strategically implemented technology to improve ROI, labor efficiency and time management. Innovations can span anything from milking systems and nutrient management to genetics, automation and more.

Previous Winners:

The Employee of Excellence Award
Behind every great dairy is a team of outstanding employees who make daily operations possible. This award recognizes an exceptional team member, such as a milker, calf manager or feeding specialist, who plays a critical role in the success of the dairy. Nominations must come from the employer.

Previous Winners:

Why Apply?
In addition to national recognition, winners gain the opportunity to connect with top producers and industry leaders at the MILK Business Conference in Las Vegas. It’s a chance to share your story, represent your farm and inspire others across the dairy community.

Winners will be featured in MILK Business Quarterly magazine and will receive a trip for two to the 2025 MILK Business Conference, Dec. 2-3, in Las Vegas, including airfare, hotel and full registration.

Apply or Nominate by Aug. 11
Don’t miss your chance to be recognized for the impact you’re making. Whether you’re a young leader, a tech-driven operation or an employer who wants to spotlight your top team member, now is the time to apply !

Community-Fed and Family-Led: The Unique Story of Brey Family Beef

Mon, 28 Jul 2025 13:42:45 GMT

At Brey Cycle Farm in Sturgeon Bay, Wis., beef-on-dairy is just a small piece of the family’s 1,500 registered Holstein operation — but it serves a big purpose. What started as a way to help maintain the farm’s herd size evolved into something more meaningful — an avenue to give back to consumers, connect with the community and promote transparency on their 121-year-old operation.

Located in the scenic countryside of Door County, Brey Cycle Farm has been a family-run operation since 1904. Over five generations, the Brey family has lived by their mantra: “To learn and grow so that all may prosper.”

That sentiment remained strong when Tony and Moriah Brey returned to the farm in 2007 and started milking just 100 cows. By 2016, when Jacob and Lauren Brey joined the team, the herd had grown to 400 cows. With more family involved, the Breys knew staying competitive meant being open to new opportunities.

“Typically, we always focused on growing the herd. But there was a time frame where we were not sure which direction we were going to go,” Moriah Brey recalls. “So, the boys began using beef-on-dairy to help keep numbers steady.”

After using Angus semen on a few of their lower-end Holsteins, the family had a group of crossbred animals ready to go to market in the spring of 2020. Rather than send them to the sale barn, they saw an opportunity to process and sell the beef themselves.

“We had beef available and a desire to give back,” Brey says. “We started processing our own animals and put in a retail store right away. It’s a little red shed that sits near my driveway across the road from the farm.”

Not long after the launch of Brey Family Beef, the COVID-19 pandemic threw a wrench in their plans. However, unlike many businesses during the pandemic, Brey Family Beef prospered.

“During COVID, people would call ahead and we would run the beef out to their car. And it actually worked really well because people didn’t want to come in to touch, see or feel things. They wanted to keep their distance. I’d like to tell you we had this crystal ball and knew things would shut down and everyone would stop in our driveway to buy meat, but we didn’t,” Brey says with a laugh. “It all lined up and worked in our favor.”

(Brey Family Beef)

While the small retail store’s timing was lucky, the product spoke for itself. Demand for Brey Family Beef grew, and the family leaned into the momentum.

“Our Facebook page started to take off, and others heard about us by word of mouth,” Brey notes. “People started reaching out with questions — not just about the meat, but about the farm, how the animals were raised, what they ate and how we handled them. And that opened a door for us to really tell our story and help people understand what modern dairy and beef farming looks like.”

A Local Staple
One of the guiding principles behind Brey Family Beef has been keeping everything local, starting from the calves and extending all the way to the final product.

“All of the meat comes from our farm,” Brey explains. “Nothing comes from outside of Door County.”

Much like their dairy operation, the crossbred calves are born and raised on the farm, often alongside their dairy counterparts.

“We raise the calves and grow all of our own feed. Then, when the calves are old enough, they graze one of our pastures until they are fed a finishing diet. Everything comes from here on the farm,” Brey says. “It’s all connected.”

That local loop extends to their beef finishing program as well. Even the processing is done close to home. By keeping every step of the process local, the Breys maintain full oversight of their product’s quality and consistency.

That local pride shows up in creative ways, too. The Breys recently partnered with a nearby cherry farmer to craft Door County cherry-and-cheddar-flavored beef sticks and summer sausage — a flavorful nod to their region and a testament to what can happen when local producers come together.

“We’re proud to keep it all here,” Brey adds. “It’s not just about raising good beef. It’s about doing it in a way that stays true to who we are and where we come from.”

(Brey Family Beef)

The Devil is in the Details
From the start, building a direct-to-consumer beef business was a family effort. Jacob and Tony focused on the cattle while Moriah and her sister-in-law, Lauren, took charge of customer outreach, marketing and day-to-day operations. With demand for their local products continuing to rise, it became clear that staying successful would require careful planning and collaboration.

“I’d run spreadsheets on what it cost to raise the animals, factor in what we needed to make and create a blend price for the products,” Brey explains. “When you’ve got a different amount of hamburgers, steaks and roasts that come from each cow, you have to do the math to make it all pencil out.”

That attention to detail extended beyond the spreadsheet. While some customers preferred to order quarters or halves in advance, others wanted the flexibility of shopping by the cut. To meet both needs, the Breys introduced more customer-friendly options — including preorders, customized beef bundles and seasonal holiday boxes.

“We wanted people to feel like they had choices,” Brey says. “Whether someone’s looking for a quarter of beef or just a few steaks for the grill, we try to make it easy.”

On the marketing and digital side, Lauren took the reins.

“Lauren works full time for Farmers for Sustainable Food, and she had great contacts and a good sense of how to build a brand,” Brey says. “She got our website off the ground, keeps it updated, manages plugins and hosts the online store. It’s all very user-friendly thanks to her.”

(Brey Family Beef)

Beef That Brings People Together
At Brey Family Beef, success goes beyond the amount of beef sold. From the beginning, the business has been built around people — placing value not only their customers, but also their employees and the broader community.

“All of our employees get beef at half price for their families,” Brey says. “We also give a lot away. It helps us meet people in the community and take care of the people who take care of the cows.”

Beyond taking care of their employees, Brey Family Beef often shares beef sticks during tours and community events and provides samples to local schools — reinforcing their belief that food is a powerful tool for connection and community building.

“People want farm-to-table. They want to know their farmer,” Brey says. “And we can provide that while also educating them on how we farm and why. We always emphasize that all sizes of farms are acceptable. There are lots of different ways to do things well.”

Currently, no major expansion plans are on the horizon. But the Breys remain open to small improvements and evolving needs. Rather than trying to fast-scale their retail beef brand, they have chosen a steady, intentional pace.

“We’re content with where we are at for the moment,” Brey says. “It checks the boxes for us. It gives us a way to give back, meet people and offer a product we’re proud of.”

That balanced mindset also extends to pricing.

“Right now, we’re probably priced lower than the grocery store, but it balances out,” she says. “And when the market dips, our loyal customers stick with us. That means a lot.”

In the end, Brey Family Beef may be just one piece of their broader farm operation — but it reflects the heart of who they are.

“It’s a small part of the big picture,” Brey reflects. “But it’s one that lets us share who we are and why we do what we do. That’s what makes it worth it.”

Reset, Refocus and Recharge at the 2025 MILK Business Conference

Mon, 23 Jun 2025 17:27:45 GMT

The days are long, the heat is intense and the to-do list never seems to end. That’s why now is the best time to plan your year-end breather and business reset. And there’s no better way than by joining us December 2-3 at the Paris Hotel in Las Vegas for the 2025 MILK Business Conference.

This two-day event is built for progressive dairy producers ready to elevate their business and move their operation forward. From market volatility and beef-on-dairy innovation to labor, technology and sustainability, we’re tackling the issues that matter most to modern operations. You’ll hear from leading experts, gain practical takeaways and connect with producers who share your goals and drive.

What to Expect
Last year’s conference drew a record crowd representing more than 1 million cows. This year promises even more — more networking, more insight and more energy.

The 2025 agenda is packed with sessions designed to sharpen your competitive edge and prepare your operation for the road ahead. You’ll walk away with real-world tools, innovative ideas and a renewed sense of direction.

Featured speakers include:

Krysta Harden, president & CEO of the U.S. Dairy Export Council: An Update from USDEC
Stephen Cain, National Milk Producers Federation: Navigate Uncertainty: Dairy Industry’s Path Forward
Greg Bethard, High Plains Dairy: Transform Your Future: Insider Strategy Tips from Top Performing Producers

Plus:

Panels on labor, beef-on-dairy, policy and sustainability
Strategy insights straight from leading producers
Live taping of U.S. Farm Report with Tyne Morgan

MILK Business Awards
We’re also celebrating the dairies that have taken their operations from good to great. Applications are now open for the 2025 MILK Business Awards, honoring innovation, efficiency and leadership in dairy. Winners will be recognized live on stage in Las Vegas. But don’t wait — nominations close August 1.

Last year’s award winners included:

The 2024 MILK Business Conference award winners have been revealed, and they are set to be honored at the prestigious event on December 10-11 at Caesar’s Palace in Las Vegas.

(Lindsey Pound)

Don’t Miss Out
And yes, the fan-favorite Dairy DARTY is back. What’s a Dairy DARTY? A Day Party! Join us for an afternoon of networking, games and fun. Meet other dairy producers while enjoying the beautiful Paris Hotel pool deck with food, drinks and sunshine. You work hard — you deserve to celebrate!

Between the insights and the atmosphere, this is more than just another conference, it’s a chance to close out the year with momentum and purpose.

Don’t wait - early bird rates won’t last. Register today and learn more at MilkBusiness.com!

A New Era for Nebraska: First Dairy Plant Breaks Ground in Over 60 Years

Thu, 19 Jun 2025 21:42:48 GMT

A new chapter in Nebraska agriculture began Wednesday as DARI Processing, LLC officially broke ground on the state’s first new dairy processing plant since 1963. The $186.3-million facility will be located on a 40-acre site within the Seward, Neb., Rail Campus and is expected to be fully operational by the first quarter of 2027.

Once complete, the plant will process approximately 1.8 million pounds of milk per day, using aseptic, ultra-high-temperature processing to produce shelf-stable dairy products. These products, which are designed to have up to a 12-month shelf life without refrigeration, are positioned to support markets with limited cold storage access, such as food banks, schools and global export channels.

“This is really just a transformational project for Seward, and really for the county, region and the state,” says Jonathan Jank, president and CEO of the Seward County Chamber and Development Partnership.

DARI Processing, LLC is owned by the Tuls family, longtime Nebraska dairy producers and the largest dairy operators in the state. With this project, the family is taking the next step in vertically integrating their operation and keeping more of Nebraska’s milk in-state.

“Building this plant will help keep 30% of the state’s milk production from being processed elsewhere and creating more jobs here in the state,” says TJ Tuls, CEO of DARI Processing, LLC. “By keeping Nebraska’s milk in Nebraska, we will reduce the amount of miles that trucks haul around milk, reduce fuel usage and reduce the overall carbon footprint.”

He also notes the broader opportunity this facility presents.

“This isn’t just about our family or our farm — it’s about building a sustainable future for Nebraska dairy,” Tuls says. “It’s about creating a better path forward for farmers, families, and the next generation who want to stay on the land.”

While Tuls Dairies will supply a large share of the milk, the plant will also rely on additional producers throughout the region.

“Their existing dairies will supply a good percentage of it, but not all of it,” Jank says. “We think this opens up a big opportunity for farmers in the region, and some may even consider expanding as a result.”

The site itself is also a strategic part of the equation. The Seward Rail Campus has been in development since 2009, and food processing has always been at the top of its target list. The vision is finally becoming a reality.

“At our core, Seward County is agriculture,” Jank says. “We have a lot of great farmers, not just in corn and beans, but also livestock and dairy. This project fits perfectly.”

Jank also emphasizes that local and state-level coordination is what helps get a project like this across the finish line.

“The Tuls wanted to vertically integrate in the market,” Jank says. “They were looking for about a 40-acre site, and we had it for them. Ultimately, we were able to help coordinate the rest of the logistics around extending road and utilities and making sure that everything else fit from a dollars and cents standpoint, to make them profitable here in the community.”

And the timing couldn’t be better. The dairy industry in Nebraska has been seeking greater processing capacity to support in-state milk production, and this facility helps fill that gap.

“There’s a Grow Nebraska Dairy team that’s been working hard to bring processors to the state,” Jank says. “Ultimately, the Tuls family took it upon themselves to become that processor, and now we’re seeing the result.”

The impact of the new facility is expected to ripple through rural communities, offering economic and generational opportunity for family farms.

“This really is a game changer for the dairy industry in our state,” Jank adds. “We’re hoping this facility gives the next generation of farmers a reason to come back to the farm because there’s now a processor close to home.”

Governor Jim Pillen, who attended the groundbreaking event, calls the project a huge win for Nebraska agriculture. The facility is expected to create around 70 new jobs and help keep more value-added production within the state’s borders.

“Nebraskans raise the finest crops and livestock in America,” Pillen says. “Instead of shipping these commodities out of state, we can add value to them right here in Nebraska. I commend Todd and TJ Tuls for constructing a dairy plant to capture the full value of milk from local dairies.”

Jank sees the facility as proof of what’s possible when vision meets partnership.

“Economic development is a team sport,” he says. “None of this happens without a developer willing to invest, but there are also countless partners — community leaders, utility providers, state officials and others — who step up to make this project possible.”

Your Next Read: Growing Pains and Big Gains: A Wisconsin Dairy’s Fast-Paced Journey From 70 Cows to 700

Tariffs Cast Chilling Effect Over Whey Sales

Thu, 08 May 2025 18:16:37 GMT

The U.S. trade war with China continues despite recent comments from President Donald Trump and members of his administration that suggest the U.S. could cut its current 145% tariff rate on goods from China by 50% or more. While these comments buoyed markets initially, an official from China’s Commerce Ministry called on Trump to eliminate tariffs altogether if he wants to negotiate with China.

Sarina Sharp, analyst with the Daily Dairy Report, says, “the damage high tariffs can do is very real. In the dairy complex, whey and lactose prices could be hardest hit. In fact, tariffs are having a chilling effect on both international and domestic whey sales. China is already turning to other suppliers for whey and lactose.”

In 2024, China bought 38% of all U.S. dry whey product exports and 25% of U.S. lactose exports, according to data from USDA. While early in the trade war, China granted tariff exemptions for U.S. lactose and some whey products, Beijing allowed those exemptions to lapse on Feb. 28. Today, China’s tariff on whey remains at 127%. Tariffs on food-grade whey protein concentrate are 140% and taxes on U.S. lactose products range between 130% and 135%.

“Any product that left the United States before April 9 and arrives in China before May 13 will not face these punitive border taxes, so it could take time for monthly trade data to confirm a setback in U.S.-China dairy trade volumes,” Sharp says. “Ahead of the tariffs, Chinese buyers stepped up imports of American whey products, and in March, Chinese imports of U.S. whey reached a nine-month high.”

Damage from the trade war has extended far beyond imports. Relations between Chinese buyers and American suppliers have soured, Sharp says.

“Amid growing anti-American sentiment, Chinese hosts have rescinded invitations to trade shows, and even the least patriotic buyers will eschew U.S. dairy products under the new tariff rates,” she adds.

China has turned to Europe as an alternative supplier, and as a result, European whey prices have been climbing, while U.S. prices have weakened. USDA’s Dairy Market News recently noted that U.S. buyers of whey feel a general lack of urgency to purchase whey because they are, “aware of the potentiality of more dry whey loads remaining,” in the U.S. In other words, buyers believe the steep slowdown in sales to China will provide plenty of opportunities to snap up whey at cheaper prices down the road, Sharp says.

The loss of whey exports is already having a negative impact on U.S. dairy producers’ milk checks, according to Sharp.

“Some dairy producers are buying liquid whey from cheese plants at steep discounts to feed to their cattle,” she adds. Before the tariffs, that whey was dried and shipped to China.

“As cheese and whey production climb, the U.S. dairy industry will need to maintain or grow exports to keep inventories in check,” she says. “If the U.S.-China trade war drags on, exports will suffer and whey and lactose values will likely drop again.”

Your Next Read: Economists Fear Trade War Will Push Agriculture Deeper Into a Recession

RFK Jr.: Friend or Foe to the Dairy Industry?

Thu, 27 Feb 2025 15:49:11 GMT

Robert F. Kennedy Jr.'s confirmation as Secretary of Health and Human Services (HHS) has sparked a lively debate in the dairy industry. While some see his “Make America Healthy Again” stance as a win for dairy products, others worry about his controversial views on raw milk and ultra-processed foods.

The big question is — will RFK Jr. be a friend or foe to the dairy industry?

Dairy Employee Milking Parlor_Reuters

(Reuters Marketplace - DPA Pictures Alliance)

RFK Jr.: Catalyst or Controversial Figure?
RFK Jr. has emerged as a polarizing figure whose name is now associated with a broader call for re-evaluating nutritional policies. His willingness to challenge long-standing dietary guidelines — particularly the vilification of fat — has put him at the center of a broader push to rethink what’s truly “healthy.”

While some see his rhetoric as a much-needed shake-up that could benefit both dairy producers and consumers, others worry his controversial positions could lead to increased regulatory uncertainty and public health risks.

Newly appointed Secretary of Agriculture, Brooke Rollins, recently sat down with Farm Journal at the Top Producer Summit and shared her thoughts on RFK Jr.’s impact on agriculture.

USDA Secretary Brooke Rollins headlined the opening of the 2025 Top Producer Summit in Kansas City, Mo. Moderating the discussion was Kansas Senator Roger Marshall.

(Rhonda Brooks)

“I know there’s a lot of concern in the community, and I understand that with the confirmation of Secretary Kennedy, RFK Jr., at HHS. Some of the things he has said in the past, I know, if implemented, would be devastating for a lot of our farming community,” Rollins said. “I believe, though, and maybe it’s the optimist in me and in the relationship that he and I have built, I have found him to be extremely reasonable.”

Despite concerns about Kennedy’s past statements, Rollins remains hopeful that open dialogue and collaboration will help navigate any policy disagreements.

“I believe he was very truthful and sincere when he said we will work this together. Will we have disagreements? Probably so. But when we do, we just take them to the President,” she Rollins said. “There may be a few of those [disagreements] in the coming months and years, but I am more confident than ever before that he understands the implications — at least a lot of them — of what would happen if some of these more bold ideas of his would get implemented.”

While policy clashes are inevitable, Rollins sees Kennedy’s appointment as an opportunity to drive important discussions — particularly on issues such as childhood obesity and nutrition policy.

“I think what Secretary Kennedy represents is a new day in America,” Rollins said. “We have a chronic childhood obesity disease issue in this country, and his focus on nutrition is really important. I’m looking forward to working with him on things like the food stamp program and the nutrition programs out of USDA. We’re going to be forced to work together, whether we want to or not, on dietary guidelines and other things. There’s a lot of work ahead between the two of us, but I remain optimistic we will get to the right place for our ag community.”

Kennedy’s Stance on Raw Milk
Kennedy has said he only drinks raw milk , and his recent endorsement of raw, unpasteurized milk has raised eyebrows among public health officials and industry leaders. He has criticized the Food and Drug Administration (FDA) for its stringent regulations against raw milk. In fact, Kennedy has referred to the FDA’s regulations on raw milk as part of the agency’s “war on public health.”

However, the FDA and numerous health experts warn consuming raw milk poses significant risks, including exposure to harmful bacteria that can lead to serious illnesses. Promoting raw milk could potentially result in increased health incidents, tarnish the dairy industry’s reputation and invite stricter regulatory scrutiny.

His Case for Whole Milk
While Kennedy’s positions on raw milk have sparked debate, his views on nutrition align with those advocating for a return to full-fat milk. The push for whole milk in schools — a movement that recently saw bipartisan support in Congress — has gained traction, with many arguing milk fat is not the enemy it was once made out to be.

Whole Milk

(Canva)

“Fat in milk is not a health risk,” noted Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF) , during a recent Farm Journal Unscripted podcast, “The majority of both parties in the House of Representatives recently agreed we need to get whole milk and 2% milk back in our schools in this country. I mean, I can’t think of something that’s more make America healthy again than this topic.”

RFK Jr.’s support of whole milk comes at a time when fluid milk is experiencing a resurgence, signaling a shift in consumer preferences toward full-fat dairy products.

“Last year, for the first time in 30-some-years, fluid milk consumption is actually on the uptick in the United States,” Doud said. “I think this whole conversation [on whole milk] is causing consumers to turn a corner — and we have to help them understand whole milk is not a bad thing. It’s something us farm kids have known forever.”

A Return to Fat and Flavor?
For decades, dietary guidelines steered consumers away from fat. However, that narrative is shifting. RFK Jr. has positioned himself as an advocate for real, minimally processed dairy products, arguing foods such as butter and whole milk have been unfairly demonized for decades.

Butter

(Canva)

Supporters argue the full-fat versions of milk and butter not only taste better but also provide essential nutrients being lost in a sea of processed alternatives.

“We had this whole conversation decades ago that eggs and bacon and butter were bad for you. I don’t know how we got off on this, whether it was the dietary guideline conversation, but I think it got totally off track. I agree with [RFK’s] notion that we have to get this realigned again.”

This shift in perspective comes at a time when butter consumption, both in the U.S. and globally, is on the rise.

“Look at butter consumption in the U.S. and in the world — it has been a driving force for dairy,” Doud noted. “We have completely changed dairy production in the U.S. for more solids and more butterfat. The demand for it is there.”

The Limits of Kennedy’s Influence
While RFK Jr. is a strong advocate for rethinking nutrition policy, his ability to directly influence federal dietary guidelines is limited. Although his position at HHS allows him to push for changes, the authority to revise the nation’s Dietary Guidelines ultimately lies with USDA, not HHS.

Nina Teicholz, author of “The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet,” recently touched on this during a podcast with NMPF .

“There’s a lot of support for changing our nutrition policy in various ways, in ways I consider to be good,” Teicholz said. “I know there’s support for bringing whole milk back to schools, and I think that will be supported by Bobby Kennedy. But really his whole focus of control is going to be about drugs, healthcare, all of the domain of HHS. And the action on food and dietary policy is going to happen at USDA.”

Friend or Foe?

RFK Jr. Swearing In

(Photographer: Jason C. Andrew/Politico)

So, will RFK Jr. be a friend or foe to the dairy industry? The answer isn’t entirely clear. On one hand, his push for whole milk and full-fat dairy products aligns with what many in the industry have been advocating for, especially with growing support for bringing these options back into schools. On the other hand, his stance on raw milk and some of his broader views on nutrition policy could bring some challenges and uncertainty.

One thing is for sure though – RFK Jr. is shaking up the conversation about food, health, and nutrition.

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Dry Products Put More Pressure on Latest Milk Price

Fri, 21 Feb 2025 14:00:00 GMT

After a period of substantial volatility, both spot prices and futures markets have settled down. There have been numerous days of light trading volume as traders did not have much to get excited about. Unfortunately, spot prices have not been trending higher. The substantial areas of weakness have been in dry whey and nonfat dry milk. This weakness has had a significant impact on milk prices.

The spot dry whey price has been under steady pressure. The price peaked on December 13, 2024, at 79.25 cents per pound. The close of spot trading on February 14^th was 55.50 cents, a decline of 23.75 cents reaching the lowest price since August 28, 2024. That reduced the Class III price by $1.4250 per cwt. Every one-cent decline in dry whey correlates to a 6-cent decrease in Class III. That is one of the main reasons why Class III futures have not been able to increase even though cheese prices have risen.

Dry whey reached a level at which some end users have sought alternatives due to the high price. Buyers of dry whey are accustomed to contracting dry whey for months in advance. Once they look for and find alternatives, they will contract those supplies for months in advance. Dry whey demand slows, resulting in the price decline. The market tends to overcorrect to the downside as it takes longer to regain buyer interest. They are not quick to rebuy dry whey supplies due to the alternative products already on the books. Once prices fall back to lower levels, demand will eventually be stimulated.

Nonfat dry milk has moved similarly. The price peaked on November 14, 2024, at $1.4050 per pound, and closed at $1.28 per pound on February 14^th, a decline of 12.50 cents. This is the lowest price since August 22, 2024. The decline is not quite as much but it does have a substantial impact. Each one-cent decline in the nonfat dry milk price correlates to a decrease of 8 cents in the Class IV price. Thus, the decline has reduced the Class IV price by $1.00 per cwt.

Class IV futures have fallen significantly over the past three weeks from the weakness of nonfat dry milk and the butter price. This has moved Class IV futures nearly in line with Class III futures where they have not been in a few years. Milk futures do not show much of a price fluctuation throughout the rest of the year. It is unlikely it will remain that way as the supply/demand balance may change. However, the uncertainty of tariffs and the impact they can have on international demand will keep uncertainty in the market.

Robin Schmahl is a commodity broker with AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Robin’s office is located in Elkhart Lake, Wisconsin. Robin may be reached at 877-256-3253 or through the website www.agdairy.com .

The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is risk of loss in trading commodity futures and options on futures. It may not be suitable for everyone. This material has been prepared by an employee or agent of JSA and is in the nature of a solicitation. By accepting this communication, you acknowledge and agree that you are not, and will not rely solely on this communication for making trading decisions.