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Fall excited about dairy's future Tuesday, September 23, 2003
Agri News staff writer
LITCHFIELD, Minn. -- Clint Fall knows the challenges upper Midwest dairymen face. He's seen companies and producers battle low prices and witnessed a decline in dairy operation.
However, the Minnesota native and general manager for First District Association in Litchfield remains optimistic about the area's dairy industry.
"We have feed, water and plants," he said. "We have an overall climate that's always been there to support agriculture."
First District shares that enthusiasm and commitment.
"That's my number one objective -- to protect the investment that the people have in this company," Fall said.
Like Bongards' and Associated Milk Producers Inc., First District has reinvested in its Minnesota dairy processing. FDA produces cheese in blocks and barrels. About 3 million pounds of milk is processed daily into cheddar, Monterey jack, colby and Swiss, Fall said.
FDA processes its byproduct, whey, into whey protein concentrate and whey permeates. After more extraction, the company can separate calcium used to meet dietary needs and a delactosed permeate sold to farms as "sweet energy" in TMR mixes. Leftover water from processing is used for washing equipment and heating. The self-sustained plant is squeezed into a three-square city block area.
The cooperative is able to meet its milk needs from within its member base, which includes 1,500 member-owners made up of 750 direct patrons and nine member-cooperatives with around 550 patrons. Producers operate farms that send 1 billion pounds of milk per year to the Litchfield plant.
FDA's plant is high-tech and encourages its workers to develop new product lines and processing. FDA employees developed their own computer network, have implemented new processes and were among the first plants to process whey into whey protein concentrates, Fall said.
First District is debt-free and has strong earnings, Fall said.
Yet he's realistic about the dairy industry. Minnesota has steadily seen production and cow numbers decline. Many dairy operations have owners nearing retirement with few children willing to take over.
"Minnesota is more focused on family dairies that might have 50 to 100 cows," he said. "It's like anything else -- it's going through a transition. Its become more of a business. Regardless of how big or small you are, farming is much more of a business."
Some producers want to expand but with low milk prices some lenders aren't able to help. Producers also face social issues with neighbors who might accept a 50-cow herd but not a 200-cow operation. |
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