Complete convention address of CEO John Meyer
HOLSTEIN ASSOCIATION USA, INC.
2009 STATE OF THE ASSOCIATION SPEECH
SACRAMENTO, CALIFORNIA
John M. Meyer
June 23, 2009
Mr. President, members, and guests, it is my pleasure to present you with the state of the Association address. Thank you for taking the time to attend this meeting, and convention.
Let me take this opportunity to congratulate the California Holstein Association for arranging such a fantastic convention! Please join me with your show of appreciation to our California friends.
While 2008 was a year that will be remembered for its worldwide economic turbulence, Holstein Association member activity was strong.
Registrations, the core of the Association’s business, totaled over 348,000, which is one of the highest totals in the history of the Association. Registration activity was 10 percent higher compared to 2007, and 20 percent higher than it was five years ago.
The Holstein COMPLETE Program, now in its sixth year, continues to expand. The number of animals enrolled in COMPLETE increased by 15 percent, and the number of herds enrolled increased by 8 percent in 2008 compared to 2007.
Holstein Association Classifiers were busy, as they scored over 235,000 cows in over 5,600 herds which represents a 9 percent increase in the number of animals classified and a 10 percent increase in the number of herds. The Sire Evaluation for Type (SET) Program grew as well, with Classifiers evaluating five percent more cows in four percent more herds compared to 2007.
In 2008, we also saw solid increases in the number of animals and herds enrolled in TriStar, and the number of Official Holstein Pedigrees issued. Conversely, we saw decreases in the number of Holsteins transferred, total active adult memberships, and new adult and new junior memberships.
I cannot thank the Board of Directors enough for the commitment, counsel, and wisdom they have imparted for the betterment of the Holstein Association. Special thanks are due to President Doug Maddox for all he has done to enhance the credibility and help bring greater exposure to everything we do. Doug’s big-picture thinking and can-do attitude have helped to better the Association strategically and make the organization more diverse than ever before.
Those of you who know Doug well are aware that he had some of his own challenges to deal with in 2008. Through it all, Doug never missed a beat, and remained the eternal optimist. I can tell you, from what I know about Doug, he has never had a bad day. Again, Doug, thank you for everything.
You, the members of this Association, are to be commended for the endurance, perseverance, and resilience you have maintained through the volatile producer milk price roller coaster ride. In the last four years, we have seen the U.S. All-Milk price average fluctuate between $20.50 and $11.50. Each of you in this room knows how much your last milk check was, but I would guess no matter where you are from, it did not cover your cost of production.
The current system of pricing milk in the United States is directly affecting the economic well-being of Holstein Association USA members all across the country. We know there are some who choose to bury their head in the sand about the reality of this problem and hope that this too shall pass. I am concerned if something is not done soon, we will continue with the harsh weeding out of dairy farms of all sizes across the United States like this country has never witnessed.
Many of you probably know of Gary Genske, a CPA and dairy producer who writes a national dairy perspective column. Recently he wrote this in response to current dairy prices:
“If this situation does not change soon, it is my opinion that at least one third of all dairy farmers in the country will go out of business and eventually be absorbed by the strongest two thirds of dairy farmers. It is my opinion that if this system continues, in a couple of decades, only a few hundred dairy farmers will be left in the entire country.”
My prediction is that those few hundred dairies or less will have no more than two or three organizations to sell their milk to. It looks as though there are some milk producers and milk processors who appear to be willing to engage in a game of ‘last dairyman and last processor standing’.
Later today you will hear more about the Holstein Association’s Dairy Price Stabilization Program. As we emerge from the convention this week, I urge all of you to be proactive at the national, state, and local government levels, as well as within the organization you sell your milk, to do everything you can to support the Holstein Association’s program to stabilize milk prices. We are all in this together and you can be assured that the Holstein Association will do everything possible to help you and your families receive more equitable and predictable pricing for the milk you produce.
Thank you very much.
