Milk Business Conference

The New Age of Beef-on-Dairy is Here

Mon, 12 Jan 2026 14:54:00 GMT

Not long ago, beef-on-dairy was viewed as a side experiment to add value to low-demand dairy bull calves. Today, it’s become a practical strategy for both the dairy and feedlot sectors, boosting dairy margins while giving feedlots a steady, predictable supply of cattle.

As the segment has grown, the conversation has moved from whether it works to how it can work better. That evolution was front and center during the 2025 MILK Business Conference , where dairy producers and feedlot managers came together to compare notes, share lessons learned and discuss where beef-on-dairy is headed next.

(Farm Journal)

From Skepticism To Standard Practice

For many dairy producers, the first step into beef-on-dairy was taken cautiously. Daniel Vander Dussen, a New Mexico dairy farmer, remembers pushing back when beef-on-dairy was first introduced on his farm.

“We started giving it a try in 2017, so we weren’t the first ones to do it. I actually pushed back against it at first,” he says.

At the time, the idea of using beef semen on Holstein cows felt counterintuitive, especially after years of genetic progress focused mostly on milk production. The turning point came when calf buyers began to weigh in on value.

“Our custom calf raiser came to us and said, ‘Look, no matter what, your beef-on-dairy calves are going to bring you more than that Holstein steer ever will.’ So as soon as we figured that out, we went to beef-on-dairy. And looking back, I wish I would have started doing it even sooner,” Vander Dussen says.

That same progression has played out on a larger scale for Tony Lopes and his family’s fourth-generation California dairy. Over the past seven years, Lopes has helped turn beef-on-dairy from a trial concept into a central part of the operation. Today, the family milks 5,000 cows across four locations, produces about 3,800 beef-on-dairy animals annually and sources more than 12,000 additional crossbred calves from outside dairies and calf ranches.

(Angie Denton)

“Beef-on-dairy was becoming the trendy thing to do, and it coincided with us going through an expansion,” Lopes says.

During the farm’s expansion, replacement needs were secured using sexed semen. Once the dairy had hit their target, they stopped using conventional semen altogether and leaned fully into beef genetics. Today, the program has evolved even further, with calves raised from day-olds, to 400-lb. weights and up to 700 lb. to 750 lb. before marketing.

“In seven years, we’ve gone from knowing nothing about the feedlot side of beef-on-dairy to making it an incredibly big piece of our operation,” Lopes says.

What To Consider

For dairy producers like Lopes and Vander Dussen, as beef-on-dairy has cemented itself in the market, success has shifted from simply creating a black calf to producing one that fits the needs of the entire supply chain.

Feedlots and buyers are looking for cattle that finish the way they’re expected to, and that begins on the dairy. Breeding decisions, early calf health and how calves are managed in the first weeks all influence how predictable those animals will be later. As the market continues to mature, producers who plan ahead and stay connected to their buyers will be better set up for the long haul.

Begin With The End In Mind

Value doesn’t start at the feedlot. It starts on the dairy. Lopes says long-term success comes from thinking about how calves will be evaluated down the line. Animals that meet buyer and feedlot expectations are easier to market and more likely to earn premiums.

“If there isn’t value after the calf leaves your operation, it’s going to be difficult to capture more,” Lopes says. “Producers need to understand what buyers value and plan for that from the start.”

Vander Dussen learned that lesson over time.

“At first, as long as you had a black calf, that felt like enough,” he says. “But we quickly learned that feedlots care about more than just color. I wish we would have pushed harder for higher genetics right away.”

(Angie Denton)

Lopes bases genetics and buying decisions on conversations and data that align with his cattle marketing goals, not just individual traits.

“The goal is predictability,” he says. “You translate performance into dollars and make decisions from there.”

That same thinking carries into the feedyard.

“Everybody has to win within the chain,” says Dr. Eric Belke, veterinarian and feedlot partner at Blackshirt Feeders in Nebraska. “When data and feedback are interchanged, it leads to more consistent cattle and more value for everyone involved.”

Feedlots Crave Consistency

Collaboration matters with feedlots now leaning heavily on beef-on-dairy programs like those run by Lopes and Vander Dussen. These operations provide a steady supply of calves that grow and perform predictably, giving feedlots the scale and reliability they need.

Belke says that need for consistency is exactly why Blackshirt Feeders was designed around beef-on-dairy cattle.

“Our feedlot was really built for feeding beef-on-dairy animals,” Belke says. “Right now, we’re at a capacity of 100,000 head, and we’re under construction. Next year, we’ll be at 150,000 head. By the end of 2027, we’ll be at 200,000 head. Currently we have about 87,000 head on feed, and over 90% of those are beef-on-dairy animals.”

As beef-on-dairy enters a new era, feedlots like Blackshirt Feeders are looking more toward dairies to keep their pens full. Belke says the year-round flow of cattle sets beef-on-dairy apart from traditional procurement models that are heavily influenced by seasonality.

(Angie Denton)

“The reason this closed loop system really works is because we can grow cattle at scale. We needed a very large and consistent supply chain,” he explains. “Historically, in the feedlot world, there has been a lot of seasonality. With the beef-on-dairy population, we have a very consistent flow of cattle throughout the year.”

Consistency also shows up in performance, driven by genetic design and selection.

“Consistency is key, not just in the flow of cattle, but also in the consistent and predictive outcome of the cattle,” Belke adds. “What we’ve done genetically is work with dairy farmers to design sires that ultimately create extremely similar offspring.”

That focus on genetics and uniformity has helped feedlots manage risk and improve efficiency. Tony Bryant, director of nutrition, research and analytics at Five Rivers Cattle Feeding, says these animals are helping feedlots fill supply needs today and will continue to do so efficiently in the future.

“The cattle supply has been challenging for us trying to keep these yards full, and part of that is just the nature of the cattle cycle. But the other part of it is drought and the closure of the border. So, the beef-on-dairy cross animals really help us and the whole industry, especially from a cattle supply standpoint,” Bryant adds.

Bryant says improvements in genetics and faster access to data are helping feedlots get cattle that perform predictably, making it easier to manage costs and hit marketing targets.

“Beef-on-dairy has come a long way in a short time, with data coming back faster and the cattle getting better because of it,” he adds.

With the native beef herd continuing to shrink, both Belke and Bryant say the reliable supply and more predictable results of beef-on-dairy cattle have become critical tools for feedyards looking to secure cattle and manage risk year-round.

Predictability Built on Relationships and Data

As beef-on-dairy moves into its next phase, predictable outcomes are coming from stronger partnerships. Partnerships now begin at breeding, with dairies and feedlots working together to reduce uncertainty down the line.

“We start with the dairy before the calf is born,” Belke says. “Once the calf arrives, we make an offer based on the current market. Then we get the data that goes along with that calf. In return, the dairy producer gets a credit back to the semen company that is more than the original cost of the semen. So, they receive day-old market value for the calf, plus more than their semen cost covered, and we get the calf.”

That early coordination creates value on both sides. Dairy producers are paid fairly and rewarded for their breeding decisions, while feedlots gain calves with known genetics and management history that can be tracked from birth through finish. Just as important, that data follows the animal through the supply chain.

“All of this data goes back to help us make smarter decisions for the next generation,” Belke adds.

Bryant says that feedback loop is becoming essential as programs scale and risk management becomes more complex. With calves sourced from many dairies, knowing how animals were bred, fed and cared for early in life makes a difference.

(Angie Denton)

“Our objective is to build relationships with the producer, their nutritionist and their vet so we can synchronize the program as best we can,” Bryant says. “It is slower than we would like, but it is worth it.”

As those relationships deepen, data is becoming the backbone of decision making. What started as basic record keeping is evolving into a system that actively guides breeding, calf care and marketing decisions.

“The more we know about these calves before they arrive, the better we can manage growth, feed efficiency and overall performance,” Bryant says.

Rather than just sharing information after the fact, producers and feedlots are beginning to use data in real time, predicting outcomes before calves leave the dairy and adjusting programs accordingly.

“When you track calves from birth through harvest, you can actually see how dairy decisions show up later,” Belke adds. “It helps everyone stay on the same page and make better choices.”

Looking ahead, transparency and collaboration are becoming part of doing business. Operations willing to share information and act on it are creating more consistent outcomes and setting the direction for where beef-on-dairy is headed next.

A Defining Shift

What began as a way to add value to unwanted calves has evolved into an integrated system shaped by genetics, data and collaboration. For dairies, it offers a way to strengthen economics during volatile markets. For feedlots, it provides dependable supply and predictable performance in an increasingly uncertain cattle landscape.

As native beef numbers remain tight and pressure mounts across the supply chain, beef-on-dairy is proving to be more than a trend. It’s the new normal. Producers who plan ahead, build strong relationships and think about the whole system are the ones seeing the benefits.

New Research Exposes Stagnant Biosecurity Efforts in the U.S. Dairy Industry

Tue, 02 Dec 2025 19:20:34 GMT

When it comes to biosecurity, U.S. dairy farmers are more reactive than proactive and some neglect the basics, making operations vulnerable to evolving disease threats, according to new research released Tuesday at MILK Business Conference .

The study found farm hygiene and herd health aren’t top of mind on all farms and one-third of farms don’t proactively review their biosecurity plans indicating a potential lack of ongoing commitment or adaptation.

There is a silver lining: More than 70% of large dairies say they are already working on improvements, meaning some in the industry are prioritizing biosecurity.

The recent research conducted by Farm Journal, which surveyed more than 300 dairy producers, looks at trends and potential vulnerabilities that might be affecting dairy farms nationwide. As disease challenges such as highly pathogenic avian influenza (H5N1), New World screwworm (NWS) and bovine spongiform encephalopathy (BSE) continue to mount, biosecurity remains a critical concern for the industry.

“We need biosecurity efforts to be more impactful at the ground level. Not only to prevent major outbreaks, but to even protect employees and families from the things being taken home every day,” says Kirk Ramsey, Neogen’s professional services veterinarian who reviewed the biosecurity survey results.

Biosecurity Plans Lag Behind Threats

The survey reveals even among farms with established biosecurity strategies, commitment to reviewing and adapting these plans is lacking. While 68% of farmers with at least 250 dairy cows report having a biosecurity plan, 34% admit they do not review their plans regularly.

(Farm Journal)

On a positive note, 72% of dairy operators with 250-plus cows report they are currently making improvements to their biosecurity versus 58% of smaller dairy operators. Those producers are making improvements for a host of reasons, including recent on-farm or neighboring farm disease outbreaks, veterinarian recommendation and government or regulatory authority guidelines.

One respondent shares because their farm is a “closed herd” they’re not making any improvements to their biosecurity plan. All of this hints at a broader problem: Ongoing biosecurity practices might not be keeping pace with evolving threats.

Back to the Basics With Farm Security

The survey also uncovers significant gaps in fundamental farm security. More than 20% of surveyed dairies neglect to secure access to barns and animal housing. Monitoring or restricting visitor access is also a blind spot for 16% of producers, and only 33% of producers use camera surveillance to oversee their facilities. Additionally, 38% fail to control or limit access to areas where feed is stored or provided.

(Farm Journal)

Gaps in Hygiene and Herd Health

When it comes to farm hygiene and animal health practices, 72% of larger dairy operations have hand-washing stations included in their biosecurity protocol, and 75% use separate equipment for handling feed and manure. Even though more than half of respondents use technology, such as herd activity monitoring systems, to help identify sick animals, the overall picture suggests room for improvement in daily hygiene and health protocols.

(Farm Journal)

Training and Education Should Be Proactive

The approach to biosecurity training also calls for reform. The findings show a reactive pattern, with 32% of farms providing training only in response to biosecurity issues, while another 30% conduct quarterly meetings. These figures reveal substantial portions of the industry lack consistent, proactive staff education, an essential pillar of effective biosecurity management.

Chief Science Officer Jamie Jonker, Ph.D., with National Milk Producers Federation says biosecurity on dairy farms is a continuous process that requires proactive updates and employee education to keep pace with evolving disease threats.

“The National Dairy FARM Program offers comprehensive biosecurity materials and evaluation tools as well as certified FARM Biosecurity evaluators who can draft tailored plans and guide training to ensure consistent implementation,” he says. “Leveraging these resources helps producers stay ahead of risks and maintain a strong, resilient operation.”

(Farm Journal)

Cybersecurity: An Emerging Concern

Beyond biosecurity, the increasing reliance on technology introduces cybersecurity challenges. Only 29% of farmers have collaborated with cybersecurity experts to protect their farm systems and data. As farms grow more technologically interconnected, safeguarding digital infrastructure is an emerging need.

The insights from Farm Journal’s recent research paint a clear picture for the U.S. dairy industry: In an era of escalating disease threats such as H5N1 and NWS, a reactive or static approach to protection is no longer sufficient. Ultimately, this research serves as a pivotal reminder that biosecurity and cybersecurity are not one-time tasks, but dynamic, ongoing processes demanding continuous review and proactive management.

“Improvements in biosecurity will require a paradigm shift in how we see our individual operations’ vulnerabilities,” Ramsey says. “I believe there are some misconceptions around what biosecurity looks like. For many, it’s thought of as Tyvek suits and face masks, not clean boots and coveralls, and shower-in-shower-out facilities, not limited-farm entry. There are simple ways to create biosecurity plans into every operation, and there are experts in our industry building innovative solutions to the complexities of the cattle industry.”

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

Thu, 31 Jul 2025 16:41:41 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 !

GenoSource Has Grown Into One of the Most State-of-the-Art Dairies You'll Find in the U.S.

Wed, 08 Jan 2025 20:34:33 GMT

The Milk Business Leader in Technology Award is given to a farm that focuses on the implementation of technology to improve dairy operations in terms of ROI, labor, time management, etc. GenoSource was named the 2024 Milk Business Leader in Technology Award Winner during the 2024 MILK Business Conference in December.
_______________________________________________________________

At first glance, these two might just look like typical business partners, but peel back the layers, and it’s clear Tim Rauen and Kyle Demmer are more than just that.

“We’re coworkers, we’re partners and we’re best friends,” says Kyle Demmer, COO of GenoSource. “Pretty much everything we do, we kind of bounce ideas off each other and just feed off each other.”

Tim Rauen, CEO of GenoSource, and Kyle Demmer, COO of GenoSource, give a tour of their facilities where they milk 4,000 cows milk in a 90-stall rotary parlor. Their cows are milked 3x/day and average 90 lbs/day with a 4.5% Butterfat and a 3.5% Protein.

(Mike Byers )

It’s a partnership in every sense, but the dairy is also anything but typical.

GenoSource all started with a dream a decade ago; a dream to have a company created by dairy producers for dairy producers. The vision seemed simple but was complex in reality. The dairy farmers wanted to create a modern cow but one that excelled in a freestall environment, had fewer health issues and could convert feed at an efficient rate.

“And now we’re 10 years into this partnership and GenoSource, and I don’t think anyone would change a thing about it,” says Tim Rauen, CEO of GenoSource.

The partnership now involves 8 families, whom all have a love for Holsteins and share a goal of creating a more sustainable future for the next generation.

(GenoSource)

An Early Believer in Genomics
A decade into the partnership, GenoSource has grown into more than these families ever imagined. The partnership now involves eight families, who all love Holsteins and share a goal of creating a more sustainable future for the next generation.

“Being an early believer in genomics, I followed technology, graduated college in 2008, and I told myself we got to follow technology; we’ve got to lead technology for the industry, and we drove right into it,” Rauen says. “We had a lot of naysayers that said, ‘Hey, this isn’t going to work. You shouldn’t go this direction,’ but we did. We put our foot on the gas, and we put the hammer down with it.”

To achieve the highest possible results, GenoSource prides their operation on the integrity of their day-to-day work, their capability to fill the next industry-leading demand and the philosophy of breeding a more profitable cow by investing in some of the world’s greatest genetics. GenoSource believes that genetic advancement is what will help develop the ideal cow for the future.

(Russ Hnatusko )

By homing in on the genetics early on with genomic testing, it’s their ability to grasp onto a plethora of technologies that’s taken this dairy to the next level.

“From a genetics standpoint, we took the herd that we bought, we put embryos into them and ran an extensive embryo program from day one to roll the herd over to the kind of cows we believed in milking,” Rauen says. “We were milking 2,200 cows at the time, and when we came in to it, we were milking about 70 lb. per cow with a 3.4% butterfat and a 2.8% protein. So since then, we’re at 95 lb. per cow. We’re at a 4.6% fat in a 3.5% protein.”

A Growth Mindset
GenoSource expects to be milking 4,800 cows by next summer, as GenoSource excels at improving genetics, cow comfort, nutrition and management, all through technology.

“On the genetics side of things, I look at genomic testing, I look at IVF work,” Rauen says. “Then, I go into cow comfort. We utilize the tunnel ventilation side of things. I go into the parlor. There’s many tools inside the parlor that the technology has advanced over the years. And then on the management side, there’s many things from the database side of things and monitoring tools that are cow monitoring collars. There’s multiple levels of that. So, all four of those have many, many layers of technology, and I don’t think you can ignore any of those. And you just got to look at all of them and see how you can improve the herd.”

Barns Packed With Technology
Their barns are also packed with technology. The dairy installed tunnel ventilation and smart control in 2021, as the dairy was forced to rebuild after the devastating derecho tore through their farm in august of 2020.

“Prior to the derecho, we were looking at putting tunnel ventilation in,” Rauen says. “We were looking at adding another barn to the facility as we want to grow and melt more cows. And it was that time where when we had to do that remodel, it pretty much forced our hand and said, ‘Hey, let’s go get tunnel ventilation done to our barns.’”

The team decided to expand the barns to add additional rows, which Rauen says was a big change. And while it was frightening financially to make that decision, he’s glad they did.

New construction across GenoSource are signs of more progress underway today, with GenoSource in the middle of putting in a new methane digester, a new maternity barn and a dry cow calving facility.

(Mike Byers )

New Construction: Signs of More Progress Underway
Today, new construction at their dairy is a sign of more progress underway, with GenoSource in the middle of building a methane digester, as well as a new maternity barn.

“We’re also building a new dry cow calving facility. We feel it’s so important when these cows come out day one that everything’s done properly from the cleanliness to colostrum. And also taking care of that cow, so she’s ready to make milk for a full lactation,” Rauen says. “The barn is going to be fully ventilated and have a sprinkler system. There’s a lot of new ideas we’re putting into those facilities, because we’re always looking for ways to increase the cow comfort side of things.

With technology at their fingertips, GenoSource is constantly monitoring their operations.

(Russ Hnatusko )

Work Smarter, Not Harder
The progress hasn’t always been easy, but just look around GenoSource’s state-of-the-art facility, and you can see those investments are paying off.

“Sometimes you need to work smarter, not harder,” Demmer says. “We have the smart sort gate, we have the collars; it makes a lot of people’s jobs a lot easier, and you can be way better at your job.”

With tech like Farmfit, which helps them constantly monitor their animals, it’s that technology that helps the dairy produce a better a better environment for the cows, and it also helps them retain employees.

“Three years ago, we used to lock every all the cows up and give repro shots, vaccines, breed everything out here in the barns,” Demmer says. “Now, we never lock the cows up. We put them in the sort gate and let the cows come to us. As far as injuries and employee safety, it’s all huge. You don’t have to worry about chasing the cows around. I think there’s a huge cost savings, too, and it’s way safer for the cows and the people.”

Cow Comfort is Key
GenoSource has created an environment where these cows are content, which might be the biggest sign of success any dairy can have.

“Some things that excite me the most are the cows are happy,” Rauen says. “So, when you have happy cows, they help pay the bills, and you can come out here 365 days a year, and cows are out here making milk. I always have the motto, ‘you take care of the cows, they’ll take care of you.’”

A dairy that knows no limits, it’s embracing technology that’s allowing GenoSource create new opportunities on their farm.

“Honestly, technology helps you get through some of those challenges, and we’re able to pull the data from different things,” Rauen says. “I think we’re ready for the next 10 years.

That is why GenoSource is the 2024 Milk Business Leader in Technology Award winner.

Chris Szydel Started Out a Milker. Now, He's a Leader in Technology at Wisconsin's Largest Family-Owned Dairy

Mon, 26 Feb 2024 20:48:46 GMT

2023 Milk Business Leader in Technology Award Winner – Chris Szydel

It’s another busy day at Pagels Ponderosa Dairy in Kewaunee, Wis.

“We try to make everything as comfortable for our people and for our animals as possible,” says JJ Pagel, CEO of Pagel Family Businesses.

This is a mantra the family has been following since the early days of the operation.

“In 1946, our grandfather returned from World War II and him and our grandma borrowed some money from a neighbor and started (the farm) with eight cows, some pigs and some chickens,” JJ says.

Today, the family milks thousands of cows across multiple locations. And technology is a big part of their day-to-day.

“Our dad and our grandfather were both very aggressive when using technology,” JJ adds.

Veterinarian Don Niles, head of dairy operations at Pagel Family Businesses, has worked with the Pagels since 1983.

“I love standing up here on the platform watching the rotary go around and seeing the cows getting milked and chewing their cud. Anytime a cow is just standing there relaxed and chewing her cud you know she is feeling good. And that makes you feel good,” says Dr. Don Niles, head of dairy operations at Pagel Family Businesses.

“John and I would start traveling around the country to go look at dairies, equipment and other things we might utilize to modernize our dairies here in Kewaunee county,” Don adds.

From the beginning, the goal and the dream of John Pagel was to be the best.

“We wanted to grow and we wanted to make our farm one of the top in the country. So, what we did is we learned from the best people in the industry to do the best job we could do to take the best care of our cows,” said John Pagel in 2017 when he was a finalist for the Top Producer of the Year.

One year later, John and his son-in-law, Steve Witcpalek, along with an airplane pilot, were lost in a plane crash in Indiana. While John is no longer here, his vision for the farm and his family lives on.

“The one thing John helped to teach us and that we are able to carry on is putting the cows first and taking the best care of the cows that we can,” says Chris Szydel, herd manager and this year’s Milk Business Leader in Technology award winner.

Szydel joined Pagels Ponderosa as a nighttime milking technician in 1995. A decade later, he was promoted to herd manager and now manages both the Pagel Ponderosa and Hilltop Farm dairies, overseeing three different parlors and 65 employees.

“Anything that will reduce stress and make [the cows] more comfortable is the key for us,” Szydel says.

That means reducing headlock times, giving cows more time to walk and lay down, utilizing comfortable flooring, rubber mats and clean bedding.

“In the past, we would have people outside to separate the cows that [needed attention.] Now [we have] sort gates and can type into Dairy Comp system, that talks to SCR which talks to the sort gates, and we’re able to automatically separate the cows that we need,” Szydel says.

A system built by Parlor Boss and SenseHub work together in the rotary to allow the team to perform many herd management tasks while the cows are being milked.

“When we started with the SCR collar technology, within three weeks Chris said, ‘Alright JJ, we’re getting rid of spray paint.’ I was like, let’s not get the cart before the horse. And he said, ‘It’s the only way we’ll know if it works,’” Pagel recalls.

“The technology is doing a great job of letting us know which cows need attention,” Szydel says. “If a cow is coming into heat, the technology lets us know that. If a cow is not feeling well, the technology is going to let us know that. And it gives us the information in real time.”

Out in the barn, temperature control systems help optimize temperatures to help keep cows cool and fly free.

“We have people from all over the country and all over the world that come here, and we like to help educate the people that stop by the dairy and let them know what’s working for us and what isn’t. We try to be honest with them and share the technology,” Szydel says.

Constantly looking at technology in other industries is also helping the team to innovate. They recently implemented a pulse, needle-free injector from the swine industry. They looked at wastewater treatment plants in city municipalities. They also tried a bedding dryer from the sawmill and wood industry.

“It’s very, very cool to see as hard as the guys and gals on Chris’ team work to see them get recognition for all the things they do. Because for the hundred things they do right, there’s always some things that happen and go wrong. But they’re always willing to put themselves out there and try, and they go all in,” Pagel says.

“When we do the work day-in and day-out, you tend to think that it becomes pretty routine. But when we have opportunities like this and receive an award, it tells you that it’s special here,” Niles adds.

Pagels Ponderosa is indeed a special place with a special bond. And they’re willing to attempt the unknown.

“I see a little bit of John in everything that goes on here still,” Niles remarks.

Congratulations to Chris Szydel and the team at Pagels Ponderosa Dairy, winners of the 2023 Leader in Technology Award.

For more on the MILK Business Conference Award winners, read:

What is the Biggest Challenge in Animal Agriculture? The Answer Might Surprise You

Mon, 05 Feb 2024 17:06:38 GMT

The list of challenges facing animal agriculture is complex and multifaceted. This is what Dr. Robert Hagevoort from New Mexico State University Dairy Extension shared at the 2023 Milk Business Conference in Las Vegas.

Hagevoort summarized that the top concerns of leading dairy processors include price volatility, disparate sustainability initiatives, emission accounting methodology, aligning supply and demand to include the world demand and labor availability. Although he discussed several other more persistent and emerging challenges for animal agriculture.

Sustainability “I think the [dairy] industry is doing a really nice job in terms of coming to grips with sustainability and moving forward and looking from a self-motivated reason in terms of efficiency. Anything we can do to reduce our carbon footprint and make sure carbon doesn’t go into the atmosphere is a good thing.”
Animal Welfare “As an industry, we’re looking at cows very differently. Animal Welfare does not live in a vacuum. It’s something that we do with our employees. The result of us working with our employees, making sure those animals are fed well, treated well and all those different things. Yes, it’s a challenge, but it’s something we’re well aware of and moving in the right direction.”
Global Food Security “Global Food Security is a challenge. If you look at the amount of food that is currently being wasted (around 40%) and we find answers to infrastructural problems…then we’re working in the right direction.”
Antibiotic Resistance “The way the industry is working, and the way we are now treating our cows, we are doing our due diligence to do the right thing. I think we’re also moving in the right direction. It’s not to say that we don’t have challenges or issues.”
Consumer Preferences and Awareness “We’re certainly dealing with the new influx and the challenges associated with all these plant-based and fake protein foods that are out there. But I think at the end of the day, the need for animal proteins is going to prevail in that department.”
Technological Advances “There’s a tremendous amount of advancement and trends of technology that we’re implementing, and we’re moving more and more in that direction.”
Regulatory and Trade Issues “There’s no doubt that we currently have a challenge with regulatory and trade issues. We’ll always deal with those.”

Hagevoort also highlights rising input costs and labor shortage as worries that not only keep producers up at night, but as real concerns impacting the industry.

“Just look at the last year as an example with extreme feed prices, high labor costs, and very high cost of production,” he says. “And then the labor shortage is a serious threat to an industry from a sustainability perspective. If you’re not economically sustainable, you won’t be around to do all the other ones. So, economic sustainability is the first pillar for sustainability.”

Producers say Labor Management is Their Biggest Issue

Aside from feed and milk prices, Hagevoort says labor is a producer’s biggest issue.

He shared a September 2023 Wall Street Journal article which stated, “Work experts have warned for years that the combination of baby boomer retirements, low birthrates, shifting immigration policies and changing worker preferences is leaving U.S. employers with too few workers to fill job openings. While the labor market is softening, none of those factors are expected to change dramatically in the coming years.”

Hagevoort says this magnifies the importance of talent management and ultimately looking within to develop talent.

“We need to change from what is referred to as the hunter and gatherer environment where we hired a guy with the right talent to maybe home-grown philosophy,” he says. “How much money are we leaving on the table by not taking advantage of talent either undetected or underdeveloped in your operation?”

Hagevoort says there isn’t much producers can do about labor availability.

“The question is how much money are you leaving on the table by not getting 100% on your employees,” he asks. “We want to make sure they are willing to give you their 100% because that is the best ROI you can create in your business.”

The shift the dairy industry has seen means owners and managers are now managing people, not cows.

“Yet, they were raised to be cow managers,” Hagevoort says. “They went to school to learn about dairy and farm management. They did not learn how to manage people.”

Training Challenges

The challenges producers face training employees on dairies have increased because of several factors, including low literacy, a non-English speaking workforce, a high employee turnover rate, limited to no internet connectivity and limited computer/IT resources.

Hagevoort says his general observations and findings is that the employee workforce has drastically changed over the last decade.

A large majority no longer come from an ag-background.
The large majority have no experience working with large animals or equipment.
60% of employees are at a 5th-grade level education or below.
High level of illiteracy or low reading comprehension level.
Very high level of labor turnover on dairies, especially in the first 6-12 months.
Shift in typical workforce make-up to more Central Americans.
Different culture - indigenous (Mayan) vs. Hispanic.
Different language (K’iche vs. Spanish).
Different body stature/build.

Hagevoort encourages you to ask yourself, ‘What does all of this mean for productivity, results and performance metrics?’ He reminds producers that labor is not only the main challenge, but that managing people is far more difficult than managing cows.

“Most owners and managers are at a total disadvantage,” he says. “They are great cow managers.”

Two things Hagevoort shares successful owners do is get out of their comfort zone and purposely focus more on leading people.

“If that is not in your personality, then hire somebody excellent to help do that,” he says.

Click on Extension Dairy Home (nmsu.edu) for more information on the U.S. Dairy education and Training Consortium.