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Michigan’s Dairy IndustryKen Nobis, MMPA President
ONE CENTURY STRONG
1,200DAIRY FARMS
5 Billion LBS. OF MILK
Integrity Leadership Progressive CommunityQuality
Products made at Ovid & Constantine Plants: Butter, Cream, Condensed Milk, Dry Milk Powders, and Specialty Blends.
Middlebury Plant:
Colby, Monterey-jack and Cheddar type cheeses.
MMPA Locations
MMPA Fluid customers
MMPA Customers
Michigan’s Dairy Industry• Ranks 5th nationally
• Dairy is the top ranking segment of Michigan’s agriculture industry.
• Dairy contributes over 20% of Michigan’s cash receipts for Agriculture.
• Represents more than 5.0% of total U.S. milk production.
Top Ten Dairy States
1. California 40.5 billion lbs. -1.0 %2. Wisconsin 30.1 +3.83. New York 14.8 +4.84. Idaho 14.7 +3.95. Michigan 10.9 +6.06. Pennsylvania 10.8 +0.27. Texas 10.7 +4.68. Minnesota 9.7 +2.29. New Mexico 7.7 -1.510. Washington 6.7 +0.7
Number of Dairy Cows & Total Annual ProductionMichigan 2000 - 2016
4,000
5,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
100
200
300
400
500
600
700
800
900
1,000
1,100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016dairy cows milk production
Thousand
Milk production in Michigan has increased 90.6% since 2000 while cow numbers have increased 39.7% during this time.
Million pounds
Milk Production Per Cow- Top 10 States - 2016
State Milk Produced Per Cow1. Colorado 25,980 pounds
2. Michigan 25,957 pounds3. Idaho 24,647 pounds
4. New Mexico 24,479 pounds5. Arizona 24,429 pounds6. Washington 24,094 pounds7. New York 23,815 pounds
8. Iowa 23,634 pounds9. Wisconsin 23,552 pounds
10. Nebraska 23,317 pounds
•Agricultural Land•Climate•Water• Infrastructure•Access to Population Centers
The Michigan Advantage
The Michigan AdvantageAdvances in genetics, nutrition, herd management, and technology innovation have led to greater efficiency in the dairy industry.
$15.729 Billion
Economic Impact
$3.148 billion Dairy Farming
$7.478 billion Dairy Processing
$5.103 billion Wholesaling/Retailing
Dairy’s Economic Impact to Michigan’s
Economy
Source: Michigan State University Product Center, Dec. 2016
U.S. MILK PRODUCTION
15.00
15.50
16.00
16.50
17.00
17.50
18.00
18.50
19.00
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2014 2015 2016 2017
Bill
ion
Lbs.
February = +2.3% (adjusted for leap year)Calendar Year 2016 = +1.8%
STATE MILK PRODUCTION
600
650
700
750
800
850
900
950
1,000
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
2014 2015 2016 2017
Mill
ion
Lbs.
February = +4.8% adjusted for leap year. Calendar Year 2016 = +6.0%
2016 State Increases (In Millions)State Pounds Percent +/-
Ohio 39 +0.7%Michigan 615 +6.0%Indiana 126 +3.1%Wisconsin 1,093 +3.8%Total 1,873
Four states represented 49% of increase in milk production in the U.S. in 2016.
MMPA Expansion Efforts Since 2008
• Ovid Plant expansion completed in 2010 allows processing of 60% more milk.
• Expanded Ovid wastewater treatment system • Added a new whole milk powder packaging system to expand shelf life of product
• Installed a new butter churn.• Added a second separator at Constantine plant. • In July 2014, MMPA and Foremost Farms USA formed a strategic alliance and have invested $10 million into the MMPA Constantine plant to install reverse osmosis (RO) technology.
+ 4.2 Million Pounds of Milk/Day
MMPA Expansion InvestmentImpact on Processing Capacity 2008 vs. 2016
4Million
Pounds/Day
2008
8.2 Million
Pounds/Day
2016
Michigan's Dairy Industry
Evaluation of further dairy expansion opportunities underway.
Current processing capacity within the state will need to be expanded to accommodate milk production growth.
Increased Demand for Milkfat
• Revised views on impact of dietary fat consumption on cardiovascular health and obesity has led to growth in consumption of milkfat in the U.S. domestic market
• Butter • Fluid whole milk• Yogurt• Cheese• Other products
Cheese Plant
Exploration of Joint Ownership of Cheese Plant
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