A Cooler of Hope

Larsen Farms recognized with MMPA Food Bank Legacy Award for bringing fresh milk, and a spirit of service, to families in need through Caritas Food Pantry.

Every Monday and Wednesday at noon sharp, the front door of Caritas Food Pantry swings open to a steady stream of neighbors seeking a little extra support. Just inside, the cowprint cooler stands illuminated beside the entrance, its shelves lined with half gallons of milk, made possible by the Larsen family.

For Deb, one of the pantry’s long-time volunteers, those cartons are more than inventory, they’re a statement of community care. “Sometimes a big family comes in with seven kids and we know they need an extra gallon of milk,” she says. Because of the Larsens’ weekly contribution, Deb knows they’ll have enough to meet that need. Those cartons may look ordinary, but for members in the community, they’re vital. They mean children can enjoy cereal without hassle, parents can add richness to casseroles and everyone who walks through these doors knows their community cares. The small acts, like donating a cartful of milk, make a dependable difference in people’s lives.

Recognizing the Need

Making a difference in people’s lives is at the root of what Caritas Food Pantry began doing more than a decade ago. As high school students needing volunteer hours, Lindsay, Leah, and Leta Larsen signed on to help, stocking shelves in Caritas Food Pantry’s original, tightly packed Scottville location. They quickly noticed the same handful of canned goods and powdered milk cartons on every visit.

“We started volunteering there and realized that all they were giving was powdered milk,” Lindsay recalls. “And we thought, ‘That really is a bummer.’” As children being raised on their family’s dairy farm in Scottville, Michigan, they knew that powdered milk couldn’t replace a cold glass of milk.

In that moment, the Larsens saw a clear gap: without refrigeration, fresh dairy was simply out of reach. That simple realization, born of stocking shelves shoulder-to-shoulder with pantry volunteers, set the stage for a partnership aimed at bringing fresh dairy out of the realm of nice-to-have and into a provided staple for families in need.

Taking Action

Once the Larsens saw the need, it took time and the pantry moving to a more spacious location in Custer, Michigan, for them to set to work making it happen. In 2019, Lisa Larsen, the family matriarch, took the lead, drafting a grant proposal that would fund both a commercial-grade cooler and the pantry’s first orders of fresh milk thanks to the United Dairy Industry of Michigan’s food pantry grant program.

“Getting that cooler was a big deal,” Burke Larsen, the girls’ dad and owner of Larsen Farms, said. “It felt like, okay, we’re really going to make this thing work.”

The cooler itself became a bit of a symbol, painted with cow print, hard to miss and always running. “Just seeing the cooler in there with the cow print is cool,” Lindsay said, smiling. “Everybody keeps track of the temperature and keeps it clean,” Burke noted. “They take care of it because they’re proud of it.”

From there, the routine was simple but steady. “Mom goes every Monday and buys milk and brings it to the food pantry,” Lindsay said.

The result? A once-empty wall of the pantry now holds one of its most valued staples. A grant may have started it, but the Larsens’ commitment has kept it going, turning a one-time project into an everyday source of support for families. The community response was immediate.

“Milk went like that compared to the powder,” Lisa said, snapping her fingers. “I know when they didn’t have it, people were like, ‘Where’s the milk?’”

The shift wasn’t just noticeable in the pantry’s inventory, it showed up in how families responded. “They’re so happy when they get it,” Lisa said. “There is a need for milk.” The pantry makes sure no one goes without. “They won’t refuse anybody,” she said.

For the Larsens, milk is more than a donation, it’s a connection to their own childhoods. “We grew up drinking milk every day,” Leta said. “A lot of kids don’t, especially in the summer when they’re not at school.” Supporting the pantry is a humbling reminder of how easy it is to take the basics for granted.

“Last night when you got in from planting and opened the fridge to grab the milk, and Mom said, ‘We ran out,’ you were like, ‘Oh, no’” Lindsay said to her dad. “We take for granted having milk in our fridge.”

And for the families who visit Caritas Food Pantry, that single half gallon can mean more than anyone realizes. “When you see somebody’s smile when they’re being handed milk, it’s pretty cool to be a part of that, giving that to somebody,” Lindsay said.

Showing Up

The addition of fresh milk at Caritas Food Pantry hasn’t just improved meals, it’s created lasting moments of joy for both volunteers and families.

“Three years ago, around Christmas time, there was a veteran that came through, and he cried when I handed him a gallon of milk,” Leta said. “He didn’t realize we had a cooler. He just couldn’t believe it and then just started crying.”

It’s one of many stories that remind the Larsens why this work matters. “Milk’s not in every food pantry,” Leah said, “but it’s in ours.” And it’s there because the family keeps showing up.

“During Christmas and Thanksgiving, they need more stockers,” Leta said. “That’s when we’ll go in and help.” Lindsay added, “We’re doing it because it’s the way we can help. We can’t always spend every Wednesday there for three hours, but this is something we can do.”

The need for milk is constant, especially for larger households. The Larsens are doing their part to help their community, and they were recognized for their efforts by the Michigan Milk Producers Association (MMPA) and the Food Bank Council of Michigan (FBCM) with the Legacy Award this spring. The award recognizes an MMPA member for their efforts supporting their local food pantry and the recipient farm receives a $1,000 donation towards their food pantry.

“We are very honored to get $1,000,” Lisa said. Burke was quick to add, “I know Kelly will turn it into $2,000,” knowing the pantry’s manager would stretch the funds to reach even more people.

Leaving a Legacy

While milk remains the cornerstone of the Larsen family’s support for Caritas Food Pantry, they’re already thinking about what could come next.

“Butter would make the most sense,” Lindsay said. It’s something the pantry volunteers have asked about because it’s an item that many recipes call for. Lisa acknowledges though, “Butter is expensive, but a lot of recipes call for it, even boxed mac and cheese.”

Still, the family is hopeful. Growth takes time and coordination, especially when it comes to handling perishable products. Their focus as dairy farmers is to think about sustainability not just in environmental terms, but in terms of sustaining people.

“We’ve got to promote our product and get it out there, to nourish people and grow the community,” Burke said.

And that starts right where they are: in a small town, with a milk cooler near the food pantry’s front door, stocked each week by a family who sees feeding their neighbors as part of their responsibility, and their legacy.

UDIM Food Pantry Grant Overview

The Larsens got started with dairy in their food pantry by helping Caritas Food Pantry utilize the United Dairy Industry of Michigan’s Food Pantry Grant to receive a cooler that can store dairy products. The grant is made possible by a partnership between the United Dairy Industry of Michigan (UDIM), Blue Cross Blue Shield of Michigan (BCBSM), Blue Cross Complete, and the BCBSM Foundation, with a shared commitment to reach more families in need.

Together, these organizations are working to equip Michigan’s food pantries with the tools they need to offer greater access to nutrient-rich dairy and fresh food options ensuring that every pantry visitor has the opportunity to bring home dairy foods.

Dairy farmers who want to support their local food pantry can utilize their checkoff programs to apply for grants. For Caritas Food Pantry, the UDIM Food Pantry Grant allowed them to receive a commercial refrigeration unit, strengthening their ability to store and distribute milk and other perishable products. In addition to the cooler, Caritas Food Pantry received personalized operational support and $250 in dairy match funding to help stock dairy products for their community.

Visit milkmeansmore.org to learn more about grant opportunities.

This article was originally published in the July/August 2025 issue of the Milk Messenger. Subscribe »

Quality Watch: Is your milking and cooling system prepared for summer?

Steve Lehman, MMPA Raw Milk Compliance Manager

Milk cooling, along with sanitary milking procedures and clean equipment are the three keys to producing top quality milk. Providing top-quality milk and milk products to our customers has enabled MMPA to become a preferred supplier of raw milk and milk products across
the country. Milking procedures and equipment provide the “seed” for bacterial growth; compromised cooling magnifies the growth of bacteria that is present.

The Pasteurized Milk Ordinance (PMO) requires that milk be cooled to 50° F within 4 hours of the start of milking, and allows for an additional two hours to bring the milk to 45° F. The blend temperature must not exceed 50° F after the first milking. Keeping your mechanical cooling systems (compressors, chillers, and bulk tank interval timers) operating properly, along with maximizing well water pre-cooling enables these temperatures to be met while obtaining the maximum efficiency of energy used.

Cooling milk quickly to 36-38° F or less enables milk to be sent to high value and long-distance markets. While milk tankers are well insulated and cooling rinses are employed when practical, the milk still needs to absorb any heat remaining from tanker cleaning and storage in the summer sun.

Marc Roberts, Roberts Dairy Service Owner

Maintaining your milk cooling system’s efficiency is critical, especially when summer heat adds extra strain. Pre-cooling with well water can
significantly reduce the cooling load, removing up to 2/3 of the heat. To optimize this, flush the well water side of your pre-cooler to eliminate rust and mineral buildup that hinders heat transfer. Ensure all water lines to and from the unit are clear of obstructions caused by mineral deposits. Also, consider if your current milk flow rate exceeds your system’s capacity.

Regularly check refrigerant pressures and levels in your compressors. For water-cooled units, verify adequate water flow and a clean heat exchanger. Air-cooled compressors require clean condensers with straightened fins and unobstructed airflow. Ensure condenser fans and their controls are clean and functioning correctly. Many power providers offer rebates for cooling system tune-ups, so contact your local dairy equipment dealer for this service. Proactive maintenance ensures efficient cooling and protects milk quality during hot months.

Sudeep Jain, MMPA Director of Quality

Bacterial growth in milk depends on six factors: food, acidity, time, temperature, oxygen and moisture (FAT TOM). Milk drawn from the udder is around 101–102°F— which is also the optimum growth temperature for a variety of bacteria. Milk’s unique nutrient-rich composition (food and moisture), nearneutral pH (acidity) and dissolved oxygen make it a perfect environment for bacteria to multiply, potentially doubling every 20 minutes. To preserve the quality of milk, milk producers and processors must control the temperature by cooling the milk rapidly (time).

To maintain milk quality, rapid cooling to 36–38°F is essential. If not cooled quickly, harmful bacteria like Staphylococcus aureus can grow and produce toxins that survive pasteurization and cause illness. Spoilage causing bacteria may also grow,
creating off-flavors, lactic acid and a sour taste. Additionally, heat-stable enzymes like lipases and proteases can degrade fat and protein, reducing shelf life and affecting taste and quality.

Modern dairy processing emphasizes rapid cooling to prevent these issues, ensuring better flavor, functionality and shelf life. By controlling temperature and bacterial growth, milk producers and processors can maintain high-quality milk and dairy products.

This article was originally published in the May/June 2025 issue of the Milk Messenger. Subscribe »

Milk Minute: Getting More Dairy to More Consumers

By Corby Werth, MMPA Board Member and UDIM Board President

Hello! For those I haven’t had a chance to meet, I’m Corby Werth, a dairy farmer from Alpena, in northeast Michigan. I’ve been married to my wife Melissa for 29 years and we have two children, Annalee and Carson. We’re excited that this fall Annalee and her husband Mitchell will give us the title of grandparents.

I farm with my son, my brother and my dad. We milk 400 cows, raise 1,500 acres of crops, including corn, hay and soybeans. I am the 4^th generation and Carson is the 5^th on our farm and we’re committed to ensuring the next generation can farm, if they choose.

I have served on the Michigan Milk Producers Association board for 10 years. As a cooperative board member, that allowed me to see the other aspects of our dairy community. One that has become something I’m passionate about is dairy promotion, as I’ve served on the United Dairy Industry of Michigan (UDIM) board of directors for 15 years.

Through my time in dairy checkoff, I’ve also had the opportunity to serve on the national dairy promotion board. Those meetings have yielded some great conversations about the state of our industry across the country.

One theme that arises is how we need to think differently about dairy promotion. I’m proud to say that our team in Michigan does that, they are always looking for new ways to meet consumers on our behalf, in ways we can’t while we’re on the farm.

Another conversation point is that we need to ensure our promotion dollars are going further to meet more people. This conversation last year with my peers from Florida quickly took flight and led to UDIM board members and staff talking with and then forming a strategic partnership with Florida Dairy Farmers (FDF).

Earlier this year we officially launched our partnership, and the staff is busy connecting the organizations, learning from each other and implementing programs in both states.

In Florida, they see an influx of consumers with a population of 23 million and many more who visit each week. They are also seeing a decline in dairy farms. As a collective group, we will ensure that dairy promotion dollars are meeting those consumers who are making food purchases each day.

Through this partnership, we’re thinking about the result, how can we get more dairy to more consumers. This doesn’t have to follow traditional geographical boarders; it can involve areas that have more consumers than milk partnering with areas that have more milk with a consumer base that’s staying level.

In April we held our first Advisory Committee meeting to get to know the FDF board members, to learn about their state and to hear how staff are already working to bring our vision to life and continue telling the dairy story.

I encourage you to read the monthly promotion emails, read the quarterly updates mailed to each farm and sign up for text messages. If you’re not receiving these, please call the UDIM office at 517-349-8923.

This article was originally published in the May/June 2025 issue of the Milk Messenger. Subscribe »

2024 OYDC Finalists

David Krafft

Hometown: Frankenmuth, Michigan
District: 4

David Krafft is the fifth-generation farmer on his family’s dairy, Krafft Farms LLC, in Frankenmuth, Mich. Established in 1872, the farm is now operated by David and his father, who milk 120 Holstein cows using two robotic parlors. Guided by the mission to “work hard and be good at it,” David and his father aspire to expand their legacy by opening a creamery in Frankenmuth.

Q&A:

Q: What’s your favorite chore? Why?
Fetching cows. It is a peaceful walk through the barn where I get to hang out with over 100 of my best friends.

Q: What’s one practice you’d try on your farm if you knew it was impossible to fail?
I would put a week’s worth of food in front of the cows so that they always have food in front of them so that I don’t have to mix every morning.

Erich Lautner

Hometown: Traverse City, Michigan
District: 4

Erich Lautner is the fifth-generation farmer on his family’s farm, Lautner Dairy Farm, in Traverse City, Mich. Established in 1991, the dairy is run by Erich and his father, Terry, who milk 80 cows in a double-eight parallel parlor. Guided by a commitment to sustainability, the farm has turned its geographic limitations into opportunities by diversifying into the cherry industry. Looking to the future, Erich is dedicated to preserving the family legacy by ensuring his children have the chance to take over the farm and plans to expand their operations with the addition of a bottling facility.

Q&A:

Q: What’s your farms greatest achievement?
Staying strong through it all. My grandfather joined MMPA back in 1952 and back then he believed in what the CO-OP stood for. Two years after he received his 35-year letter he passed, and my father took over the operation and he received his 35-year letter last year. Currently we are the only dairy farm remaining in Leelanau County with many challenges with urban sprawl, but we have built an operation that fits where we are.

Q: Describe your farm management style in three words.
Adaptive, innovative, and calm.

Ty & Tammy Spicher

Hometown: Paw Paw, Michigan
District: 2

Ty and Tammy Spicher are fourth generation farmers on Hood Farms Family Dairy, in Paw Paw, Mich. Established in the 1890s, the farm began milking cows in the 1940s and currently milks 480 Holstein cows in a parallel parlor. The Spichers are dedicated to “working together to ensure the production of high-quality milk.” They fulfill this mission by continuously evolving and improving with new technologies and efficiencies while maintain a focus on herd health, along with productivity.

Q&A:

Q: What’s your farms greatest achievement?
Having our farm in the family for over 100 years were the 4th generation in dairy farming.

Q: How can someone easily improve their milk quality?
Minimize stress to the cow, provide a clean environment, consistent milk routine and schedule and diet. It takes a team of people.

Ross & Markel Williams

Hometown: Homer, Michigan
District: 2

Ross and Markel Williams, sixth-generation farmers, operate Ross and Markel Farms LLC in Homer, Mich. Established in 1849, the farm currently milks 100 cows using two robotic parlors. Committed to producing high-quality milk and ensuring exceptional animal health, the Williams plan to uphold this mission as they expand their herd and explore potential diversification opportunities.

Q&A:

Q: What do you love about being a farmer?
I love being able to care for animals. It’s one thing that brings me the greatest joys in life. It is sometimes stressful but there is more you gain out of it, just between bonding with the animals.

Zach Steiner

Hometown: Creston, Ohio
District: 1

Zach Steiner works alongside his parents and brother, Christian, on Steinhurst Farms LLC, in Creston, Ohio. Established in 1959, the farm currently milks 675 Holstein cows in a double-ten parallel parlor. The Steiners are dedicated to maintaining healthy cows that produce high-quality milk. This commitment is reflected in their focus on employee care, clear communication of job expectations and always remembering they are a dairy farm first. Their future goals at the farm are to become the most efficient 700 cow herd with their current facilities.

Q&A:

Q: What’s your farms greatest achievement?
Our greatest achievement here at Steinhurst Farms over the short three years that I have been employed full-time has been our relationship with our employees. Our farm belief is that a healthy cow produces high quality milk, and that is only possible with exceptional handlers. My family strives to bridge the gap between owners and employees, and it starts with the way we all treat each other. The success in the milk tank will follow.

Q: Describe your farm management style in three words.
Consistency, Efficient, Grace

This article was originally published in the May/June 2025 issue of the Milk Messenger. Subscribe »

From Trans Am to Tractor

Tony Jandernoa still doesn’t quite understand how it all works. After decades of running a dairy, there are days he looks out across the fields or into the barns and just shakes his head, half laughing, half in awe.

“I don’t even know what I’m doing,” he said. “I don’t get how this all works, but it works, and man, it’s an amazing thing to watch.”

For Tony, the 2025 Michigan State University Dairy Farm of the Year, farming isn’t just a job, it’s a front-row seat to something bigger than himself. Every season, every cow, every crop reminds him that farming is an act of God. “What the dairy cow does for this Earth is unbelievable,” he said. “Nobody understands it, but I see it every day.”

Tony’s luck with having that magical view today wasn’t something passed down to him from the generation before. Before the cows, the fields and the long days, there was a kid with a fast car, a girl who swore she’d never marry a farmer and a leap of faith that would change everything.

The MSU Dairy Farm of the Year Award is the highest honor the MSU Animal Science Department gives to outstanding dairy farms across Michigan. As a recipient, Tony, pictured with his family above, was selected from a pool of nominees who have exhibited outstanding management of their dairy farm business and leadership in the Michigan dairy industry or their community.

Built on Grit, Fueled by Dreams

“When we first started dating, I was working at Federal Mogul, driving a Trans Am,” Tony said with a laugh. “Patti thought she found something right.” By the time they got married in 1987 though, he was laid off from his automotive job, the fast car had turned into an old clunker and cows entered the picture when he started working part-time on his neighbor’s dairy farm to make ends meet.

The same year Tony and Patti got married, they took the leap. It was $180,000 to buy 20% of the farm he’d been working on, the now Dutch Meadows Dairy in St. Johns, Michigan, and the beginning of Tony’s dairying.

“We didn’t have any money,” he said, still sounding surprised. “Patti was freaked out. She’ll tell you, she thought I was nuts.” But Tony’s advice to Patti was simple, “If it’s got you that nervous, just whack three zeros off. It’s $180. Everything else is just zeros.”

The “just zeros” mentality carried Tony forward. Never short of ideas or energy, he admits, “I was crazy. I had a lot of big ideas, and the only way they were going to happen was if I worked my butt off.” And that’s exactly what he did. He poured himself into the farm, chasing opportunities, pushing boundaries and betting big. As a first-generation farmer, it wasn’t about tradition, it was about building something. After all, “I got into this to make money.”

But in 2009, everything hit a wall. “We thought we were broke. Honestly, I wasn’t sleeping at night. We couldn’t pay the bills.” Desperate for answers, Tony brought in help to benchmark his farm’s financials to others of similar size in the region. “The results showed that we were doing better than I thought. That gave me the confidence to keep going.”

By then, Tony was two decades into dairy farming. The stakes were higher, and the risks felt heavier, but the passion was still there. He had a drive to expand his operation and with limited space to make it happen in the central part of the state, they purchased a corn field in Lake Odessa, Michigan, establishing another operation, Meadowbrook Dairy. Then, just seven years later, thanks to a connection he made when he began dairying, they purchased another dairy, in the St. Johns area, Berlyn Acres. Collectively across the three operations, Tony milks over 5,000 cows and farms 5,000 acres.

Getting Out of the Driver’s Seat

To him, the reason for his growth and success is obvious. “We hire good people and let them work.” With a grin, Tony added, “I don’t even know what they’re doing half the time. As long as the numbers look good at the end, I don’t care.”

That faith in people is one of Tony’s favorite parts of the job. “When you get people with a drive like that, they’re so much fun to be around. And that’s a lot of our success, to be honest. I love hiring people who want to prove they can do it. Watching them figure it out and watching that drive is fun.”

Tony focuses on building trust with his 75 employees. He rewards good milk quality, and his crew knows the benchmark goal is to be in the top 25%. “You keep me there and I don’t care how you do it.” It’s a hands-off approach that only works if you know how to hire the right people and respect them in turn. “People are incredible. If I had to do all this on my own, we’d have been gone a long time ago.”

These days, Tony calls himself the “head cheerleader.” And while he jokes about it, there’s truth behind the title. His nephew, Matt, took over the cropping side of the business a few years ago while his son, Kyle, runs the dairies, and his daughter-in-law, Mackenzie, manages the books. “Now I’m just the guy on the sidelines, trying not to get in the way,” he said. Then, with a smirk, he added, “I’m sure I’m still a pain in the butt.”

Letting go hasn’t been easy. In fact, Tony admits it’s the hardest thing he’s ever done. “I was used to being there, in the barn and in the fields. If something was getting done, it was because I was doing it. Then we built this new facility 40 miles away, and I had to change. I can’t just swing in and check on things anymore.”

While he’s in the process of transitioning his farm to the next generation, he acknowledges that he isn’t fully out yet. “Some days I catch myself laying it all out in my head, pricing projects, planning builds and I have to stop. I tell myself, ‘This isn’t your baby anymore. Get in the passenger seat.’ But man, that’s tough. Especially when it’s fun.”

Full Circle

Part of the fun is Tony representing his peers on the Michigan Milk Producers Association (MMPA) Board of Directors as the elected Vice Chair. He’s always believed in the value of connection between generations, farm sizes and people who care about doing things right. That’s what drew him to run for the MMPA board in the first place.

“I thought I could bridge the gap,” he said. “I could talk to the guy milking a hundred cows and the one milking 5,000.” Even now, as his own farm has grown, that commitment hasn’t changed.

When Tony talks about dairying, it’s obvious that it’s not just a job, it’s a way of life that still fills him with awe. “We’re the most sustainable industry there is,” he said. “We feed cows waste products. They give us the healthiest food on earth. Then we take their manure and feed the ground, and it just keeps going in a circle. How much more sustainable do you want?”

But more than anything, Tony’s proud of what he’s built together with the people who’ve grown up alongside the farm, who showed up hungry to learn and who stayed and made it better. He’s proud that he no longer has to be the driver, and that someone else who he believes in has taken the wheel.

“I’d love to look down someday and see that it’s still successful,” he said. “That we created something worth handing off. That we did it right.”

And if it all still feels a little unbelievable? That’s the beauty of it.

This article was originally published in the May/June 2025 issue of the Milk Messenger. Subscribe »

Sustainability Spotlight: Goedel Dairy Farm

MMPA is committed to cooperative social responsibility and sustainable business practices throughout our entire supply chain. At the farm level, MMPA members are also on a sustainability journey. We’re checking in with a handful of member farmers leading the charge with this sustainability spotlight series.

Pictured Mason and Dean Goedel

The Goedel family is committed to farming for the long haul and they’re making all the right moves to ensure their dairy remains a sustainable, generational business.

Dean Goedel represents the third generation on Goedel Dairy Farm. He works alongside his son, Mason, his brother and two nephews to carry forward the legacy his father built. Soon, a fifth generation might join the team, with Dean jokingly noting that even his two-year-old grandson is “almost ready to start working.”

“Generational is what we are after,” stated Dean. “My son, Mason, and I both decided we wanted to stay on the farm so this January we made the decision to transition ownership from my father.”

Within the rolling hills of Fresno, Ohio, the Goedels milk 420 cows and farm 650 acres of corn, triticale and alfalfa. They’ve found their sweet spot, growing just enough feed to match their herd size. With land prices climbing as high as $18,000 per acre, expanding their acreage isn’t financially viable.

“We’re lucky my father purchased 350 acres about five years ago,” Dean shared. “If he hadn’t, we probably wouldn’t have a chance here.”

Instead of chasing growth, Dean and Mason are focused on maximizing efficiency and making every acre and every cow count.

Dean explains, “Sustainability to us is not about getting bigger and bigger. It’s being the most efficient with what we have and making sure what we have pays.”

Their approach includes several facility improvements that are already paying off. One major change was switching stall bedding from mattresses with sawdust to sand bedding.

“We had mattresses with sawdust bedding in our stalls, but when those needed replaced, we decided to try sand. We tore everything out back down to the cement and then we went with a three-inch pipe across the back and that’ll hold about 5 to 7 inches of sand in the stall,” Dean explained. “It has made a huge difference in our facility. We’ve gained 5 pounds in milk production, breeding is better than ever, somatic cells count, a common milk quality indicator, is the lowest we’ve ever had, and butter, fat and protein are at the highest we’ve ever had.”

Though sand bedding requires more labor, it’s dug out three times a year, the payoff in cow comfort and productivity is clear.

“You can see the night and day difference in the summer,” Dean said. “The cows are just more comfortable. And that’s everything. If they’re not comfortable, they’re not happy and they won’t produce well. What I’m most proud of is how well we take care of our cows.”

Beyond bedding, the Goedels have added sprinklers to the barns and holding pens and plan to install additional fans. They also prioritize low stocking densities, ensuring their dry cow pens never exceed 90% capacity.

Two years ago, they implemented the CowManager system, a move that’s had a big impact.

“Conception rate has risen 10%, heat detection has increased 20%, cows get treated for illness quicker and we are saving money not using tail chalk to detect for heat detection anymore,” said Dean.

Sustainability efforts extend to the fields as well.

Mason notes, “We are doing more soil testing to better know how much fertilizer to apply, and we are using manure as our main fertilizer.”

The Goedel’s are also double cropping, utilizing dry dams and repairing a diversion ditch and planting a variety of native grasses that are pollinator friendly flowers. All of this is in an effort to reduce soil erosion, which is especially necessary for their hilly landscape.

Dean also maintains 25 honeybee colonies across the farm’s woodlands, noting, “We’re not the only living things on this land, there are others we need to live in harmony with.”

The colonies are spread across the Goedels woodland where the trees provide ample amounts of pollen for the bees to produce their honey. The trees that surround the farm also play a role in their sustainability efforts. Dean keeps a catalog of all trees and carefully selects which ones can be logged, treating the woodland as a renewable crop.

“The trees are a crop that we take off the farm and the profits go back into the farm. If managed properly, they can be a generational crop that provides a generational income.”

To ensure financial stability Dean forward contracts both his inputs and his outputs.

“MMPA has a great forward contracting program that I use to lock in at least 20% of our production,” he said. “We also utilize the Dairy Revenue Protection when it makes sense. To lock in all our commodities and inputs we work with a marketing firm out of Wisconsin. I know it costs a little bit of money, but someone that’s good at it will make that money back.”

Whether it’s crop planning, animal care or financial strategy, the Goedels are making smart, forward-thinking decisions to sustain their farm for generations to come.

“Everybody’s always saying that the big guys are eating the small guys up,” Dean said. “But really, it’s the fast ones that are eating the slow ones up. If you’re not keeping up with change, you’re falling behind. Nobody likes change, but it is inevitable so you might as well embrace it and use it to move forward.”

KEYWORD

Diversion Ditch: A narrow channel with a supporting ridge on the lower side, constructed across the slope on steeply sloping land. A diversion ditch helps control erosion on steep cropland by diverting runoff to a stable outlet.

Forward Contracting: Forward contracts are those purchases based on the Chicago Mercantile Exchange (CME) and/or other “futures” type pricing mechanisms where the price is available for months in the future and a price can be locked in at any time based on those prices. Forward contracts can also be those transactions where a price is negotiated for delivery for 31 or more days out.

SOURCE: U.S. Department of Agriculture

FARM

Goedel Dairy Farm
Fresno, Ohio

HERD

420 milking cows

LAND

650 acres of corn, triticale and alfalfa

VERIFICATIONS

FARM* Animal Care

This article was originally published in the May/June 2025 issue of the Milk Messenger. Subscribe »

CHARGE

By Doug Chapin, MMPA Board Chairman

MMPA’s Annual Meeting theme this year was CHARGE. It’s fitting because we’ve seen a lot of change in the past year, not only as a cooperative, but in today’s customers and consumers. As a result of our own evolution, MMPA is ready to charge ahead.

To begin, I want to highlight some of the exciting progress within MMPA. This year we are pleased to be able to implement our base capital program with no changes to the current capital retains investment amount. The ability to implement the program is made possible through our cooperative’s strong financial position. This program ensures we continue to have the resources necessary to invest in our future, support our members and remain agile in a constantly changing marketplace.

This year, we saw investments into our plants that included not only the ultrafiltered technology expansion in Constantine and the innovative use of technology at the Canton plant to meet the needs of the Amul milk sales, but the replacement of the old and outdated tower dryer put into the Ovid plant which was a massive team effort. I’d like to thank the team that works on our behalf for all their efforts on the various initiatives we are involved with.

Our industry continues to have its challenges. Highly Pathogenic Avian Influenza is a concern that arose less than a month after last year’s Annual Meeting and continues to impact dairy herds in new ways. We’ve been working closely with industry leaders to stay ahead and ensure the safety of our farms and milk supply.

In addition, the new administration brings challenges and opportunities. There is a need for a legal workforce, access to trade and new markets amid the current tariff conversation, WOTUS and regulatory clarity, and of course the need for a new Farm Bill. We’re thankful for our partnership with groups like the National Milk Producers Federation (NMPF) who work in Washington, D.C., lobbying on our behalf to ensure that dairy’s voice is heard on these critical issues.

It’s thanks to the work of NMPF and others in the dairy industry, including several of our own members, that the USDA will soon be implementing the Federal Milk Marketing Order modernization. It’s a significant step toward ensuring fair pricing and stability in the dairy markets. This achievement reflects years of hard work and collaboration, and I believe it positions us to face future challenges with strength and confidence.

This past year has been one of progress and resilience —all fitting as we focus on our theme, CHARGE. As a cooperative, the success of our organization this year is a direct result of member involvement. Our cooperative’s strength relies on members for their continued commitment to MMPA and our mission, including young farmers who have a future in our organization and our long-time members who provide the stability and wisdom that come with many years in the business. Thank you for being involved in your cooperative.

This article was originally published in the March/April 2025 issue of the Milk Messenger. Subscribe »

MMPA members and guests gather to celebrate association’s success

After years of evolving and orchestrating change, the Michigan Milk Producers Association (MMPA), is determined to take initiative, seize opportunities and partner with others that move us forward.

MMPA members and guests gathered in Novi, Michigan, for the 109th Annual Meeting on March 19 to learn how we’re harnessing the power of collaboration to bring groundbreaking projects to fruition and explore innovations that maximize value for our members.

From pioneering partnerships to expanding production capabilities, attendees learned our focus remains on producing high-quality, award-winning dairy products. This year, MMPA’s accomplishments are a result of the strategic decisions we’ve made in the past, positioning us to meet the challenges of today and the possibilities of tomorrow. As we look to the future, MMPA is ready to charge ahead, led by our members, employees and partners, all with the same determination and focus that has guided us through more than a century of success.

“Our cooperative’s strength relies on young farmers who have a future in our organization, our long-time members who provide the stability and wisdom that come with many years in the business, and members who are working in their communities to help supply dairy to those less fortunate, ” said Doug Chapin, MMPA Board Chairman.

During the Annual Meeting, MMPA Outstanding Young Dairy Cooperator ﬁ nalists, members reaching 35 and 50 years of membership, the MMPA Top Quality Award winner and the Food Bank Council of Michigan Legacy Award winner were recognized.

Aaron Gasper, MMPA Director-At-Large, recognizes Joe Diglio, Tony Jandernoa and Doug Chapin for their recent state and national awards.

Member Recognition

Outstanding Young Dairy Cooperators

2024 Outstanding Young Dairy Cooperator

Ashley Kennedy, Bad Axe, MI

2024 Outstanding Young Dairy Cooperator Runners-Up

Jake and Lauren Buning, Falmouth, MI

2024 Outstanding Young Dairy Cooperator Finalists

• David Krafft, Frankenmuth, MI
• Erich Lautner, Traverse City, MI
• Ty and Tammy Spicher, Paw Paw, MI
• Zachary Steiner, Creston, Ohio
• Ross and Markel Williams, Homer, MI

MMPA Top Quality Award Winner

Koppenol Dairy Farm of Coopersville, MI

Food Bank Council of Michigan Legacy Award Winner

Larsen Dairy Farm of Scottville, MI

Milestone Members

35-Year Members

• Shauna Weil, Goodrich, MI
• David & Michael Clark,
Mount Pleasant, MI
• David Dezeeuw, Falmouth, MI
• Michel Martin, Wakarusa, Indiana
• Max Finkbeiner, Saline, MI
• Mark & Becky Iciek, Gladwin, MI
• Eric Frahm, Frankenmuth, MI
• Tom & Jack Jeppesen, Stanton, MI
• Thomas Wing, Bellevue, MI
• Perry Lehman, Middlebury, MI
• Kevin Cole, Bancroft, MI

50-Year Members

• John Bennett, Prescott, MI
• Steve Denning, Jonesville, MI
• Paul Powell, Williamston, MI
• Joseph Zbytowski, Alpena, MI
• Donald Hooks, Breckenridge, MI
• Sherwin Wilson, Stephenson, MI
• Larry Nielsen, Coral, MI

Trifecta of Success

At the beginning of fiscal year 2024, MMPA kicked off the year with some big wins. Sarah Michalek, MMPA Sustainability Manager was recognized with The Nature Conservancy’s Conservation Excellence Agribusiness Award, a testament to MMPA’s leadership in sustainability. Then, Dave Davis, the plant manager at MMPA’s Constantine plant, was honored with the Michigan Dairy Industry Service Award for his years of dedication to dairy. In October, MMPA butter took first place at the World Dairy Expo – proving once again that the quality milk we produce on our farms makes MMPA products among the best in the world. Those wins were just the beginning. Over the last year, there was an unprecedented trifecta of success – three of MMPA’s leaders earning top honors on the state and national stage.

First, MMPA Board Chairman Doug Chapin was named Farmer Communicator of the Year by the National Milk Producers Federation to recognize his efforts for sharing dairy’s story to foster a deeper understanding of the challenges and opportunities faced by dairy farmers. Doug’s passion and advocacy make him a powerful voice for dairy farmers, and this award is proof that people are listening.

Last month, the Michigan State University Department of Animal Science announced MMPA Board Vice Chairman Tony Jandernoa was named the 2025 Dairy Farm of the Year! The award is presented annually and is the highest honor the department gives to outstanding dairy farms across Michigan. The success of Tony’s operation is a reflection of the innovation, quality and dedication he brings to the board room.

And last but certainly not least, MMPA President & CEO Joe Diglio was named the 2025 Robert B. Engel Farmer Co-op Manager of the Year at the recent National Council of Farmer Cooperatives Annual Meeting. NCFC represents a wide range of cooperatives throughout the United States and created the award to recognize outstanding achievement and commitment to cooperative principles by co-op managers across the country. This is one of the highest honors in the cooperative world, recognizing Joe’s vision, leadership and commitment to making MMPA stronger than ever.

“I’m proud of what we’ve been able to do this last year and I’m excited about the future. That’s why we’ve coined this meeting CHARGE, because we are in charge. We’re not only in charge of the destination that we’re taking our business and the products that we produce, but we’re taking charge of the direction we want to go,” said Joe Diglio, MMPA President & CEO.

2024 in Review

MMPA breaks ground of America’s lowest carbon dairy ethanol plant

MMPA is leading the way in sustainability with the construction of America’s lowest carbon dairy ethanol plant in Constantine, Michigan. This groundbreaking Dairy Distillery Alliance project is designed to transform permeate, a byproduct of ultraﬁltered milk production, into one of the world’s lowest carbon-intensity ethanol.

MMPA partners with the world’s largest dairy cooperative

In 2024, MMPA partnered with Gujarat Cooperative Milk Marketing Federation (GCMMF), the world’s largest dairy cooperative, to introduce Amul branded ﬂuid milk products to the U.S. market. The collaboration brings together MMPA’s unique technology capabilities and high-quality member milk with the Amul brand’s rapidly growing and well-known, international reputation for premium dairy products.

MMPA takes stake in GoodSport

MMPA took a brand equity stake in GoodSport, a revolutionary sports drink that transforms milk permeate, a dairy byproduct, into a natural, hydrating beverage. Founded by Michelle McBride, GoodSport extracts electrolytes and carbohydrates from milk, providing a healthier alternative to traditional sports drinks. MMPA’s role as an early supplier of milk permeate has evolved into a strategic partnership aimed at driving innovation in the dairy industry.

MMPA launches new Dairy Care Academy Spanish milking practices module

MMPA’s Dairy Care Academy (DCA) launched a new Spanish milking practices module as part of its comprehensive animal care training program. This initiative is designed to support farm owners and employees in meeting the Farmers Assuring Responsible Management (FARM) program training requirements, as well as enhancing their knowledge and skills in dairy farm management.

MMPA expands ultraﬁltered milk capacity

In 2024, MMPA expanded their ultraﬁltered milk production capacity at the Constantine, Michigan, facility. This strategic investment underscores MMPA’s commitment to meeting evolving consumer demands while driving value for our members and partners. With its high-protein and low-sugar attributes, ultraﬁltered milk is in growing demand and MMPA is positioned to deliver a higher-quality product tailored to meet customer needs.

This article was originally published in the March/April 2025 issue of the Milk Messenger. Subscribe »

Quality Watch: How can you keep safety in mind during planting season?

Deb Gingrich, MMPA Member Services

Agriculture is one of the riskiest industries for workplace injuries and fatalities, making farm safety a top priority. Implementing routine safety practices helps reduce risks year-round and reinforces precautions during high-risk seasons like planting and harvest.

Here are some easy steps to enhance farm safety:

Employee meetings – Routine safety meetings are essential, especially during planting and harvest when there are additional people and non-typical activity around the farm.
Safety vests – Safety vests or safety colored clothing is an easy way to keep everyone on the farm visible, both on the ground and in the equipment.
Equipment conditions and inspections – Check that lights work, guards are in place, machinery is kept clean and tidy to help reduce fire risk, and slow-moving signage is affixed and visible on all equipment on the farm.
Community notification – Placing safety cones and/or signage at farm and field driveways to help alert traffic to the increased activity. If your farm is active on social media, let your community know when you are in the fields and to expect large equipment on the roads.

Additionally, consider completing the FARM Workforce Development evaluation to gather more insight on industry best practices and gauge where your farm is at. Please contact Rachel Brown or me if interested.

Trent Stoller, MMPA Member

Safety is a top priority on our farm, and we take a proactive approach to ensure every team member is well-trained and prepared. From the start, all employees complete animal handling training during orientation and receive annual retraining. To keep safety top of mind year-round, team managers lead monthly discussions on key safety topics, reinforcing a strong safety mindset. Employees can also access previously discussed safety resources anytime through QR code posters placed around the farm.

We have also integrated technology to streamline safety and accountability. QR codes are posted throughout the farm, allowing employees to access daily task lists, which include preventative maintenance on equipment. Once tasks are completed, employees check them off, and the data is recorded in a master spreadsheet that I review to monitor progress.

Each week, our management team reviews any injuries or near misses to ensure we learn from every incident. While all employees wear safety vests to enhance visibility, accidents can still happen. That’s why discussing safety incidents openly allows us to identify risks and implement preventative measures. By combining structured training, technology, and regular safety discussions, we are committed to fostering a safe and efficient work environment for everyone on our farm.

Dale Hall, Firefighter

Having an emergency plan in place before an emergency occurs is essential. Your farm staff needs to know what to do, but it’s equally important that first responders are familiar with your farm. Knowing the layout of your properties can speed up the emergency response and save critical time. Farms can present unique hazards to first responders that they may otherwise not be familiar with. This is why it is important that fire departments and farms work together to create a plan for potential emergencies. If you don’t have a plan with your local fire department, you should reach out, and invite them to come tour your facilities and then sit down to create a plan. These plans can then be stored by the fire department for their firefighters to have access to at any time. Alternatively, some farms have attached a waterproof container to a power pole near the entrance to store these plans. Additionally, not all fire departments have the same capabilities, so it’s important to determine in advance whether your farm has potential hazards that your closest fire station may not be equipped to handle.

Consistency is Key: Koppenol Dairy Farms Named MMPA Quality Award Winner

Koppenol Dairy Farms’ dedication to routine excellence and passion for producing high-quality milk have been the driving forces behind their success, earning them the MMPA Top Quality Award in 2024.

We all know cows thrive on consistency, and nobody understands that better than Al Koppenol of Coopersville, Michigan, a now three-time MMPA Top Quality Award Winner. Since 1982, Al has maintained the same best practices—ensuring his herd receives the highest level of care day in and day out.

Al was born into farming and has never left. His father bought the farm in 1945 and grew his herd to 45 cows by the time Al graduated high school. “I graduated in 1972’ and then ten years later Deb and I took over the dairy farm. So, I never had an outside job other than on this farm.”

For the Koppenol family, farming is more than a job—it’s a way of life built on hard work and togetherness. Al’s wife, Deb, has long cared for the calves, while their daughter, Robin, assists with milking and has taken over bookkeeping. Longtime farmhand Ken Raterink, who started in high school, has also been a key part of the team. Now, the next generation is helping, with Al’s grandsons working in the parlor.

“It’s nice having my grandkids around,” Al shares. “They all live close by, and some help with milking or will ride along in the tractor. I really enjoy spending this time with them.”

As far as Al’s role, he is up at 2:30 a.m. milking all 200 cows in their 10 stall tandem parlor and then again twelve hours later for the afternoon shift. Being hands on and really knowing his cows is much of what Al attributes to his impressive overall average 48,750 somatic cell count, a common milk quality indicator, in 2024.

“He touches the cows at least once, if not twice, a day seven days a week,” explains Robin. Al adds, “It is something in my blood, my DNA, there are certain people who can tell every car apart from the other, but I can tell my cows from the other.”

A Labor of Love

Since childhood Al has always preferred tending to the cows over spending time in the field. His unwavering dedication to their care is a true reflection of his passion for dairy farming.

“As a kid, I would sit and watch a cow eat, then give her more hay. It was neat, you know? Watching her turn that food into milk, and then she would birth a baby calf—it’s a miracle.”

For the Koppenols, dairy farming is more than a livelihood. Through the challenges and daily demands, they find strength in each other and the values that keep them going.

“It’s a hard job and some days can be monotonous,” Al admits. “That’s why you have to enjoy what you’re doing. If you don’t, you won’t want to come back tomorrow. Making money keeps us going, but money isn’t everything, you have to love the work.”

Despite his dedication, Al doesn’t take full credit for the farm’s success. For the Koppenols, faith is at the core of their journey, providing strength and guidance through the challenges of dairy farming.

“I don’t know if I want to take credit for everything, I feel it’s the Lord’s blessing. Good health has been a real gift, keeping me motivated. And I certainly don’t mind working. I love where I work, I love where I live and sometimes, I even get along with my kids,” Al jokes.

Milk Quality Practices

The Koppenols’ outstanding milk quality isn’t just about what they do, but the consistent routine they follow to achieve it.

“The routine, doing it as close to the same as possible every day and paying attention. When you have to do it seven days a week, sometimes you’d like to cut some corners and I say that we never do,” Al explained.

From birth they focus on herd health. Their calf barn allows Deb to closely monitor calf health and treat any sickness right away.

“The calf barn is nice as it has helped us work towards better health in our youngstock. When we first got married, Deb fed in hutches outside. In the barn Deb feeds in now, it’s as cold as outside, but there’s no wind and it’s a covered building with lighting. It is much easier to walk through the barn and catch a sick calf and treat them quicker than when they were in the hutches.”

In the freestall barn there are alley scrapers to more frequently clean manure and mattress beds topped with lime and sawdust.

Al explains, “I do not like sand with the machinery, and so that’s why we stayed away from it. Sand is probably your best bedding as far as not passing mastitis along. We’ve had success by maintaining the mats with sawdust. Every day we broom the back third or half of the stall and put a little lime and sawdust down.”

Labor consistency in the parlor has been key to detecting mastitis early.

“We have four milkers, other than myself, that I have provided on-farm training to ensure they can quickly identify signs of mastitis,” states Al. “Having the same team in the parlor, familiar with our cows and knowing what to look for, has made a big difference.”

While his tried-and-true practices are routine now, Al has experimented with many approaches in the past that didn’t work as well. He recognizes that every farm is different and what works on one farm may not work on another.

“Take advice and be open minded,” Al suggests. “What works for me doesn’t always work for the neighbor. That’s the funny thing, farming is unique and individualized.”

This article was originally published in the March/April 2025 issue of the Milk Messenger. Subscribe »

Milk Minute: 2024 In Review

By Doug Chapin, MMPA Board Chairman

2024 was a year that will be remembered as a good year for producers and a strong and exciting year for MMPA. It also had its challenges.

We started 2024 with a one-year extension to the 2018 Farm Bill. The goal was that Congress could get agreement on a new Farm Bill during the year, but that failed to happen, and we ended the year with another one-year extension. With assistance from the National Milk Producers Federation (NMPF), we will definitely be monitoring the eﬀorts for a new Farm Bill next year.

The eﬀorts to modernize the Federal Milk Marketing Order have also finally reached the finish line. Assuming the new order is approved we will be operating under the new system the second half of 2025. This culminates several years of work and diligence by both NMPF and MMPA staﬀ.

The H5N1, or avian flu, was not on anyone’s radar when the year started. This virus in dairy cattle is new and has been found in 19 states all across the country. MMPA has cooperated with both the U.S. Department of Agriculture and Michigan Department of Agriculture and Rural Development to aid in learning more about the virus. We continue to learn about the virus and recognize that it is an issue that continues into 2025. The one thing we know for sure is that pasteurization works and our products remain safe for consumers.

At MMPA our success in 2024 was built on our actions in the past few years. With the momentum of a new member governance structure, the release of a sustainability report and the recognition of our members’ impressive milk quality, our strategic initiatives have clearly changed us for success in 2024 and the future.

One of the most memorable moments for MMPA in 2024 was the groundbreaking of the Dairy Distillery Alliance at our Constantine, Michigan facility. MMPA leadership, Board members and government leaders at the local, state and federal level gathered to celebrate the groundbreaking of America’s lowest carbon dairy ethanol plant. Dairy Distillery Alliance signifies an important commitment to sustainability by MMPA and is attracting attention in the industry.

Another groundbreaking partnership we announced this year was with Amul, a brand owned by the largest cooperative in the world. We worked to bring Amul branded fluid milk to America through this partnership and today their sales continue to grow, adding milk volume and pushing into new markets. This relationship was only possible because of Superior Dairy’s unique bottle filling technology and expertise at the plant. This has been an exciting partnership, we are looking forward to seeing what is next!

In 2024 we also expanded our ultrafiltered (UF) milk processing capacity at our Constantine, Michigan plant. UF milk is highly sought after in today’s consumer environment because of its high protein, low sugar attributes. MMPA is uniquely positioned to serve the market thanks to our commitment to quality and the eﬀorts of our sales team.

All of these projects are the result of continuing to build relationships with customers and understanding their needs, and sharing some of their goals. Our members provide us with high quality milk and capital that help us meet not only our customers needs but our member owners as well.

2024 was a year that the milk supply remained tight and provided opportunities. It would of been easy to take the win that the marketplace was oﬀering. We were not complacent and content with a short term win. MMPA continued to push on projects that will oﬀer us wins into the future.

We know that 2025 will bring new challenges to the dairy industry. Some may be expected, such as market changes and continued eﬀorts on the avian flu, and some will be unexpected and unknown today. Either way our team at MMPA is prepared to deal with the challenges, to oﬀer solutions and chart MMPA through it. Our team headed by President & CEO Joe Diglio remains committed to the future of MMPA and the success of its members.

This article was originally published in the January/February 2025 issue of the Milk Messenger. Subscribe »

The Lowdown on FMMOs

The modernization of the Federal Milk Marketing Order (FMMO) has been making dairy news headlines for over a year now. With debates surrounding make allowances and “higher of” Class I milk mover, the modernization effort is fraught with market lingo and regional complexities that can make it challenging to understand. Let’s revisit the basics of FMMOs to understand how the recommended changes the U.S. Department of Agriculture (USDA) has put forward could impact the dairy industry.

Introduction to FMMOs

What are FMMOs?

Federal Milk Marketing Orders (FMMOs) are government regulations that dictate the buying and selling of milk between dairy farmers and dairy processors. Authorized in 1937 by Congress as part of the Agricultural Marketing Agreement Act, they were introduced to stabilize milk prices, ensure fairness for dairy farmers and processors in the market, and encourage milk production that met consumer demand.

Why were they created?

During the Great Depression, dairy farmers faced low milk prices and limited bargaining power, as milk processors controlled the marketplace. The perishability of milk and farmers’ need to find a home for their product, left processors with an unfair advantage in the marketplace. Additionally, most milk production at the time was from farms milking a handful of cows, so there were many smaller farms selling milk to just a few milk processors. At the time, many of the farmers were producing Grade B milk and there was a limited supply of Grade A milk that could be used for bottling. This, coupled with the seasonality of milk production, created supply issues for consumers at the grocery store.

FMMOs addressed this imbalance by setting minimum prices for milk and creating rules that leveled the playing field. This ensured farmers received fair pricing for their milk while guaranteeing consumers had a consistent supply of bottled fluid milk. Over the years, FMMOs have evolved, consolidating from nearly 70 local orders to the 11 regional orders we have today. These changes reflect the growth of the national dairy market and its shift toward regional and national distribution.

How FMMOs Work

FMMOs do not set minimum retail prices for consumers, do not guarantee a profitable price is paid to farmers and do not set dairy production requirements or determine milk quality standards. Instead, the FMMO system ensures that milk pricing is fair, transparent and stable for farmers, processors and consumers. Here’s how it works:

Milk Classes

Milk is categorized into four classes in the FMMO based on its end use, with different prices assigned to each:

Class I: Fluid milk used for drinking, including eggnog and buttermilk (typically the highest-value category)
Class II: Soft products like cream, ice cream, yogurt and cottage cheese
Class III: Hard cheeses, cream cheese and whey (often the largest class of milk utilization)
Class IV: Butter and powdered milk (typically the lowest-value category)

The classification system ensures that milk intended for higher-value products provides higher returns to farmers.

Pooling and Depooling

Pooling

Pooling ensures that farmers are paid a uniform blend price regardless of whether their milk is used for fluid consumption, ice cream, cheese or butter. Monthly, dairy processors report how much milk they purchased and its end use to a regional market administrator. The total revenue from all milk sales is then totaled (or pooled) and the average price (or uniform blend price) is distributed to dairy farmers.

This system guarantees that farmers are compensated fairly, no matter where their milk ends up, and creates stability across the market. In the FMMO, adjustments, such as location differentials, account for the cost of moving milk to specific areas and encourage Grade A milk to move to areas with higher population densities, ensuring supply meets consumer demand. The location of the processing plant and its proximity to population densities determines the Class I differential charged to the plant.

Depooling

Depooling is also a part of FMMOs and is often controversial because it allows a processor to decide to temporarily remove milk from the FMMO revenue pool. While pooling ensures farmers receive a uniform blend price based on all milk sold within the market, depooling allows certain processors to bypass this system when it’s financially advantageous for them. For example, if a processor primarily produces cheese and the Class III price is expected to be significantly higher than the blend price, they may depool their milk to avoid owing additional revenue to the pool.

Depooling often lowers the blend price farmers receive, but dairy farmers who belong to cooperatives that own processing plants do not face the same disadvantages because cooperatives can also depool to remain competitive in the marketplace. Depooling is highly regulated with restrictions designed to discourage frequent depooling and maintain fairness across the system.

Minimum Pricing

Rather than establishing fixed prices for dairy products, the USDA uses a three-step approach, known as the three C’s, to calculate the minimum price for milk each month:

Step 1: Commodity Pricing: The USDA surveys wholesale prices for key dairy commodities, including 40-pound cheddar blocks, 80% butterfat butter, nonfat dry milk and dry whey. Commodity pricing is also influenced by make allowances, which account for the production cost of converting raw milk into finished dairy products. Make allowances help processors cover operating expenses by factoring in the costs of labor, packaging and energy to manufacture the products.
Step 2: Component Pricing: Using the commodity prices, the USDA calculates the value of milk components: protein from the cheese price, butterfat from the butter price, nonfat solids from the nonfat dry milk price, and other solids from the dry whey price. Component pricing is also influenced by yield factors, which estimate how much finished product can be produced from each component. Yield factors link milk pricing to the actual value of milk components, ensuring that minimum prices are aligned with the efficiency of dairy production. For example, if new genetics or better feed management increase the protein levels in milk, processors may extract more cheese from the same volume of milk, raising its value.

Step 3: Class Pricing: The component prices are combined with fixed formulas to calculate the minimum prices for each milk class. Class II is set by butterfat and nonfat solids pricing; Class III is set by protein, butterfat and other solids pricing; and Class IV is set by butterfat and nonfat solids pricing; and Class I pricing is set by the Class III and Class IV pricing using the Class 1 milk mover, which will be the “higher of” Class III or Class IV for most milk after the modernization is implemented in the future. Today, the Class I milk mover is based on the “average of” Class III or Class IV.

Minimum pricing, along with its support from yield factors and make allowances, ensures fairness in the marketplace while stabilizing the dairy market, benefiting farmers, processors and consumers.

Why FMMOs Matter

FMMOs play a critical role in supporting the entire dairy supply chain, from farm to fridge.

For Farmers: FMMOs provide fair compensation to farmers by setting a minimum price that processors must pay for milk, ensuring dairy farmers are not underpaid for their products. They also provide price stability by pooling revenue and stabilizing prices, protecting dairy farmers from severe price swings in the marketplace. FMMOs also establish rules for payment schedules, ensuring farmers are paid twice a month, and they oversee milk testing and weights to ensure milk is accurately measured and payments to farmers are fair.
For Processors: Processors benefit from FMMOs because they level the playing field. Since FMMOs require all processors in the region to pay the same minimum prices for milk, it prevents unfair competition and prevents larger processors from undercutting smaller processors by negotiating lower milk prices. FMMOs also provide processors with the price they will need to pay for certain classes of milk in advance of when they purchase the milk, which allows them to more effectively plan for future expenses.
For Consumers: Consumers benefit indirectly from FMMOs through enjoying stabilized wholesale pricing that keep retail prices reasonable, and through receiving a steady milk supply that ensures milk and other dairy products are readily available on grocery shelves.

FMMO Challenges and Recent Developments

Regional Differences

FMMOs must account for varying costs of production across regions. For example, farmers in Colorado, who import much of their cattle feed, have higher production costs than those in the Midwest, where feed is often grown within miles of the farm. It’s challenging to ensure pricing that adequately reflects these regional differences.

Debate Over “Higher Of” or “Average Of” Pricing Methods

One ongoing issue is the debate between using the “higher of” or “average of” Class III and Class IV prices to calculate the Class I base price. While the “higher of” method benefits farmers by setting prices at the most favorable level, the “average of” method simplifies long-term contracting for processors. This debate was fueled during the COVID-19 pandemic, which saw a spike in Class III pricing that was estimated to cost dairy producers over one billion dollars under the “average of” pricing system.

Modernization Efforts

Recent adjustments aim to modernize the FMMO and address outdated aspects. USDA’s recently proposed changes are focused on five key areas:

Milk Composition Factors: Updating milk composition factors to reflect the higher protein, other solids and nonfat solids content of milk produced today.
Surveyed Commodity Products: Removing the 500-pound cheddar cheese barrels from commodity price calculations and relying on 40-pound block cheddar cheese instead to more accurately reflect today’s commodity market.
Make Allowances: Increasing make allowances to more accurately reflect today’s cost of production for dairy products.
Class I Pricing Calculation: Reverting to the “higher of” pricing model for most Class I products, excluding extended shelf-life products. Excluding extended shelf-life products addresses those processors needs for long-term contracting, which the “higher of” pricing model complicates.
Class I Location Differentials: Increasing Class I location differentials, which are added to the Class I mover to determine the full Class I price in specific U.S. counties, including those in the Great Lakes region, to better account for transportation costs to population centers with higher market demand.

These updates ensure FMMOs remain relevant and reflective of today’s dairy industry and market conditions.

The Future of FMMOs

As the dairy industry evolves, FMMOs must adapt to remain relevant to the industry. With a growing reliance on exports, FMMOs will need to integrate with global trade practices that allow American dairy products to compete internationally. In addition, with changing consumer preferences that favor ultrafiltered milk and extended shelf-life products, milk classification and pricing will need to be flexible.

Today’s modernization efforts have also proven that it’s critical that the FMMO continues to be updated in the future. Historically, FMMO reforms have been infrequent which have led to outdated policies that don’t always reflect current market realities. Despite the imperfectness of FMMOs, they continue to support a stable, fair and efficient dairy market that benefits the entire supply chain, from farm to fridge.

How will the changes to the Federal Milk Marketing Order affect dairy farmers in the Great Lakes region?

By Carl Rasch

When a milk marketing order is amended, the USDA is required to perform a regulatory economic impact analysis. It is standard practice to assess the potential effects of proposed changes for producer prices, handler costs, and consumer prices. Such an analysis was performed by the USDA’S Agricultural Marketing Service (AMS) and was published along with the final decision that producers voted on.

The AMS analysis concluded that all 11 federal order markets would have benefitted from these price formula changes during the 5-year period of 2019 – 2023 to varying degrees. The impact on an individual marketing order will depend on the utilization of producers’ milk supply in each market. Specifically, for farmers in the Federal Order #33 market, which encompasses much of the Great Lakes region, AMS has estimated an increase in the price paid to producers of $0.50/cwt.

Additionally, the dairy producers who belong to cooperatives like MMPA who own and operate production facilities should benefit from the updates to the make allowances. As owners of those production facilities, MMPA and its members will see improved operating margins at those plants due to increased make allowances. The increase in make allowances will allow our plants to retain more of the sales price of the products being produced in order to compensate for labor, utilities, packaging and maintenance costs which have increased significantly since 2006. Failure to recover all of those costs recently has negatively impacted cooperative members’ milk checks.

In total, these proposed changes better reflect current marketing costs experienced by both dairy farmers and processors. These changes are expected to increase producer revenue, ensure that milk is delivered to the Class I market when and where it is needed, and contribute to orderly market conditions.

This article was originally published in the January/February 2025 issue of the Milk Messenger. Subscribe »