Quick: name a critical Wisconsin industry that is a) looking to expand; b) adding jobs; and c) not seeking any bailout money during these challenging economic times.
If you said the dairy industry, you’d be right. At a two-day conference in Green Bay hosted by the Dairy Business Association of Wisconsin, the industry’s optimism shone in sharp contrast to the bleak mood pervading board rooms and the halls of state government.
More than 450 dairy operators, industry vendors, animal health and nutrition experts and environmental consultants gathered at Lambeau Field on Jan. 28-29 to focus on the competitive opportunities for the industry. According to the Wisconsin Milk Marketing Board, Wisconsin’s dairy industry generates $20.6 billion a year for the state’s economy and accounts for more than 40 percent of the 420,000 jobs in the agricultural sector.
Laurie Fischer, executive director of the Dairy Business Association of Wisconsin, said she believes that impact will grow as more of her members implement major expansions.
“Wisconsin’s economy benefits from dairy businesses of all sizes, but among our larger producers, there is a strong desire to expand in order to continue competing both nationally and internationally,’’ Fischer said. “Economies of scale with the larger farms allow for greater investments in environmental technology, cow comfort, energy efficiency and the skilled workforce needed to manage these businesses.’’
The state is now home to at least 10 dairy farms that milk 3,000 to 5,000 cows, while other states such as California are home to farms milking 15,000 to 20,000 cows safely and within environmental regulations. Wisconsin’s regulatory framework for the dairy industry was a focus of discussion at the industry conference, where owners and industry operators shared tips on planning and executing farm expansions.
Greg Squires, manager of Dairy Enterprise Services and a national consultant to the industry, told attendees one of the best-planned expansions he has been involved with required about 2 1/2 years of work before the first cow was milked. Producers need to take into account the time it will take to gain as many as 30-plus public permits and approvals, depending on the project.
David Crass, a partner in the Madison office of law firm Michael Best and Friedrich, said the complex and changing nature of environmental and other regulations means producers considering an expansion need more detailed research than ever before. In Wisconsin, farms with more than 700 cows are held to the highest regulatory standards and must carefully document their impact on air, water, traffic and soils and submit a detailed nutrient management plan for manure application.
John Roach, an industry consultant from Seymour who develops nutrient management plans, said the state Department of Natural Resources requires plans to include soil monitoring to ensure that groundwater and surface water remain protected. Large farms also must provide detailed engineering documentation regarding construction of manure and wastewater management and storage facilities.
Fischer said members of the Dairy Business Association welcome a regulatory environment that is timely, predictable and transparent. The association is currently working with DNR to expedite the permit process so that producers can better plan their expansion timetable and get down to the business of hiring and training workers to care for the larger herd sizes.
“Wisconsin’s dairy producers are eager to invest in the future and in doing so, create very real benefits for the environment and for our rural communities,’’ Fischer said. “Today, the resiliency of the dairy industry is a bright spot in our economy and our producers strongly believe there is even greater potential in the years to come.’’
— Sereno, former business editor of the Wisconsin State Journal, is a senior manager at Wood Communications Group in Madison. E-mail jenny.sereno@wcgpr.com or call (608) 770-8084.
