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Volume 25 • No. 9 • Sept. 2016

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1 California Dairy / September 2016

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Founder of Malcolm Media, Dan grew up in California agriculture on the family farm, working in livestock, almond and vegetable production. He also worked closely with his father in the manufacture of irrigation products. Dan has a BA in Political Science from CSU, Fresno. He has served as president of the San Joaquin Valley Chapter of the National Agri-Marketing Association.

Danny is the eldest son of Publisher Dan Malcolm, is an account executive and the trade show manager. He has

been around agricultural magazine publishing all of his life and has become a valuable asset in advertising sales.

Dan MalcolmPublisher/Editor

Danny Malcolm IIDirector of Sales

Call Danny at 559-298-6020 for all your California Dairy advertising needs!

Matthew MalcolmManaging Editor

Matthew grew up in the family ag publishing business and has been involved in most aspects of the operation from his youth. He has a strong interest and

educational background in horticulture. He has operated “Front Yard Farms” since he was a boy, producing and selling locally grown fruits and vegetables to friends

and other members of his community.

3 California Dairy / September 2016

Contents48

10121415

Metritis Diagnosis Considerations Economic Losses a Consideration

Milk Prices Spring ForwardSeptember Prices Continue on an Upward Trend

Dino the Dairyman in HanfordFinding the Sweet Spot of Efficiency

Finger Millet Shows Promise as Cattle FeedUses Less Water, Grows in Marginal Soils

Sugarcane Aphid Invades California SorghumPests for Every Crop… Even the Alternative Ones

Bovine Viral Diarrhea InfectionsIdentifying the “Immune” Gene

Departments 16 Marketplace/classifieds

Published By Malcolm MediaCalifornia Dairy, established July 1992, is published monthly by Malcolm Media, P.O. Box 626, Clovis, CA 93613-0626, (559) 298-6020 / FAX (559) 323-6016. (U.S. subscription rate $25 / international $75) It is mailed to California, Arizona, Nevada and New Mexico dairies and allied industries. Address all correspondence to California Dairy, P.O. Box 626, Clovis, CA 93613-0626. malcolmmedia.comAdvertising carried herein does not necessarily reflect the view of the publisher or the California DHIA and we reserve the right to refuse advertising that is inconsistent with our standards. Advertisers assume liability for all content of advertisements or any claims arising therefrom against the publisher or CDHIA. All rights reserved. Any reproduction without written permission is prohibited.

Volume 25 • No. 9 • Sept 2016

californiadairymagazine.com

Editor/PublisherDan MalcolM

[email protected]

Managing EditorMaTTHEW MalcolM

[email protected]

Dan claRKEPacific northwest correspondent

THERESa olIVEIRa-DRUMonDEnorth Valley correspondent

DaRl laRSEnTechnical correspondent

copy EditorscoRY DUERScH

MonIca MalcolM

Production ManagerMIcHaEl laWlESS

Malcolm Media • Ag Publishing

californiadairymagazine.comcows on the World Wide Web

About the Cover: Dino Giacomazzi and Family. Four Gen-erations worth!See story page 4.

Advertising (559) 298-6020Dan MalcolM

national Sales

DannY MalcolMDirector of Sales

PaUl EInERSonaccount Executive

SubscriptionsE-Mail - [email protected]

4 California Dairy / September 20164 California Dairy / August 2016

Dairying on the same land in Hanford that his forefathers have been farming for over

a century, it is no wonder why Dino Giacomazzi is keeping the family tradition of working in the dairy industry. He wants to ensure that his children can have the same opportunity. This can be difficult in the ever-changing political and economic environment that surrounds the industry, but Giacomazzi is determined.

Giacomazzi recounted his family history in the industry. “This farm was founded by my great-grandfather in 1893, who came from the Italian part of Southern Switzerland,” he explained. “He purchased this land from the Southern Pacific railroad and was the first to develop it; and we have been farming it ever since.”

He continued, “My grandfather, Fred, and his brothers worked with their father, Louis, for many years, starting their operation with only 30-40 milking cows. In the early days, Louis made butter and cheese from their milk, and brought it into Hanford on his horse-drawn buggy, selling it primarily to the

Chinese railroad workers, who were essentially the first settlers in Hanford. My grandfather and his brothers ended their partnership in the 1960s, each family to work on its own. My dad, Don, grew up working with his father, and I grew up working with my dad, who passed away in 2011. I manage the operation at present. My wife, Julie, and I have two sons (ages 9 and 4) who may someday continue the tradition if they choose.”

Giacomazzi is proud to share that there are four generations of his family on the farm, including Lilia, his 103-year-old grandmother, who still lives in her home on the dairy. She actively enjoys life by attending many dairy functions and other community social events. Jackie, his mother, also has been the company bookkeeper for over 30 years. She also remains active in the dairy industry while serving on several committees including: the June Dairy Month Committee, Dairy Princess Committee, and the Kings County Dairywomen.

Jackie also helps the Kings County Dairy Herd Association by taking

photos for the annual awards for the top dairies in the county. Over the years, Giacomazzi’s dairy has scored high as one of the top ten dairy producers in the county for the amount of milk per cow; and this year they were recognized at the annual DHIA awards banquet for third place in the county, producing 27,000 lbs./cow. That number has increased significantly over the past few years.

How is this possible? Giacomazzi explained that there is no secret; he and his employees have made a commitment to cow comfort and nutrition and found a sweet spot of efficiency for the dairy. “We have really happy cows and we owe it all to our nutritionist, breeder and vet,” he said. “They give us great recommendations and our team executes them flawlessly. We wouldn’t be where we are today if all the members of our organization weren’t doing what is necessary to get the job done. You can have the smartest consultants in the world, but if your employees aren’t enrolled in the ideas, you will never achieve the desired results.”

Giacomazzi milks about 1,000 Holstein cows twice a day, in a flat barn with open lots. He does not use BST, and his cows are not registered. They have been AI selective breeding for the past 60 years, and have a well-established herd with great genetics. “Five years ago we eliminated bulls completely,” he stated. “So we are a 100% AI Herd.

He is grateful for a healthy herd and the land to be able to cover most of their forage needs. “We have an unconventional method of feeding our cows,” he said. “We are getting a lot of milk out of these cows on a high forage diet. We grow the feed, and have the land to support it, so we feed our cows a large amount of silage. We double crop the land with wheat and corn and feed

Dino the Dairyman in HanfordFinding the Sweet Spot of EfficiencyBy Matthew Malcolm, Managing Editor

Dino Giacomazzi is proud to be a dairyman, and hopes that California will continue

to be a sensible place to continue what he does best.

(continued on page 6)

5 California Dairy / September 2016

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our milk cows a blend of BMR corn and wheat silage year-round. The blended combination works well for us, so we are sticking to it.”

Giacomazzi also produces alfalfa, but it is not the highest quality because of the soil and environmental conditions on his land; so he is considering purchasing alfalfa and utilizing the land to grow more silage and forage, or perhaps planting nut trees. He has already planted some land to almonds a few years ago and has currently just begun harvesting his first crop. “We started growing almonds to diversify our sources of income and maximize the opportunity of our primary asset, which is land,” he shared. Almond trees are very different from cows, however; and he admitted that he has a lot to learn about growing them, but he has plenty of help from consultants.

Giacomazzi has the mentality of “if it ain’t broke, don’t fix it” when it comes to his current dairy ration. Although he has no current plans for any major changes on the dairy, he keeps his eyes

open for areas where he can improve efficiency without incurring any high costs (as current milk prices do not justify them). Other than his recent

investment in the almond industry, he is focused now on improving the breeding program on the dairy to increase conception/pregnancy rates for more replacements from which to choose. “We may start making the kind of selections you do with genomics, if we have a surplus of animals that we don’t need,” he said. “It would give us an opportunity we do not currently have.”

At this point, Giacomazzi keeps all of his heifers, so the dairy on average is

Four Generations on the Dairy

Paving the way for future generations of dairy producers

Dino(continued from page 4)

7 California Dairy / September 2016

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a little on the young side. In the future he would like to shoot for a higher lactation number with less heifers and

higher producing two to three average lactation cows in the herd. One of the difficulties is that summer breeding is

not easy with an open lot herd, especially when temperatures rise above 100 degrees Fahrenheit. So Giacomazzi’s employees are doing what they can to keep the cows cool.

Overall, the California dairy industry is not in a growth mode and neither is Giacomazzi’s dairy. “We are just happy with where we are,” he expressed. “We just hope that California remains a sensible place to continue doing what we do best.” Giacomazzi does not just hope though; he has done his part taking action by being very involved in protecting his industry. He is the past president of the Kings County Farm Bureau and also served at the state Farm Bureau level as chair of the dairy committee and a member of the animal health & welfare committee. He has served on the national dairy committee with the American Farm Bureau and has represented California at the American Farm Bureau annual meeting as a delegate. He has participated with Western United Dairymen and the California Milk Advisory Board at various capacities through the years.

Awards from many years of dedicated service and leadership in the industry

(continued on page 18)

8 California Dairy / September 2016

What is metritis? Metritis is an inflammation of the

uterus after calving, characterized by an enlarged uterus with an abnormal, foul-smelling vaginal discharge and usually accompanied by other systemic signs of disease such as fever, loss of appetite or drop in milk yield. Most metritis cases occur in the first 14 days in milk (DIM) with a peak around 5 to 7 DIM. Cows that had dystocia, twins, stillbirth or retained fetal membranes (RFM) are at a greater risk of metritis. The incidence of metritis varies significantly across herds ranging from 10 to 25 %. The average cost per metritis case is estimated at $304 to $354. Economic losses are associated with culling, decreased milk yield, poor reproductive performance, treatment costs and discarded milk.

How can metritis be diagnosed on dairies?

There is no gold standard to identify metritis, thus, a combination of signs is used to diagnose this postpartum disease. Two of the following signs should be present: • Systemic signs of health disorders:

poor appetite, low production, and dull attitude.

• Fever: rectal temperature above 103°F.

• Abnormal vaginal discharge: wa-

tery, foul-smelling, and brownish.

Does fever always means metritis? Elevated rectal temperature in

postpartum cows is considered a sign of a health disorder, most likely associated with an infectious disease such as metritis. However, 45 to 70% of healthy postpartum cows can have at least one elevated temperature event during the first 10 DIM. Moreover, it should be taken into consideration that 22% of cows with signs of metritis can self-

Metritis Diagnosis Considerations By Arnau Espadamala, Pau Pallares & Noelia Silva-del-Rio, Veterinary Medicine Teaching & Research Center UCCE

when BT is ≥ 103°F. However, factors such as parity [primiparous cows have higher (0.4° F) BT] and season (higher BT in summer) should be taken into consideration when defining fever. In summer months, a BT of 104° F can be normal. Thus, it is recommended to check the BT of 4-5 healthy looking cows and add an additional 1.5 to 2° F to define the cut-off temperature for fever on hot days.

Based on our survey results from 45 dairies in the San Joaquin Valley, most herds have adopted ≥ 103° F as the cut-off for fever. However, 3 dairies used a lower cut-off point ( ≥ 102.5° F) for all cows, only for primiparous cows, or only during summer season.

T a k e h o m e m e s s a g e Metritis is diagnosed as a combination of signs. The observation of a single sign of a health disorder should not lead to treatment. Consider the season and lactation number of cows when defining fever. Ask your veterinarian for advice on postpartum health protocols and to train your fresh cow evaluators to properly identify metritis cases.

recover within the first 4 days after calving.

W h a t i s the cu t -o ff point of fever? In dairy cows, normal body tempera ture (BT) is 100.4° F to 102.5° F. Cows are c o n s i d e r e d to have fever

9 California Dairy / September 2016

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Sugarcane aphid has historically only been known as a pest of sugarcane. However, in 2013

farmers in Texas and Louisiana reported that this pest was now causing economic losses in grain sorghum and that traditional broad-spectrum insecticides were not providing control. By 2014 similar reports were received from at least 11 southern states from Texas to Florida, and by 2016 this pest has now moved west to California.

Sugarcane aphid can easily be distinguished from other aphid species due to their yellow color with black feet, tips of antennae and cornicles (tailpipes) that point upward from the rear of the insect. This is in contrast to greenbug and other aphid species in sorghum that have a greenish appearance. Host plants for sugarcane aphid include sugarcane, sorghum, sudangrass, sorghum X sudangrass hybrids, and the weed Johnsongrass (Sorghum halepense). It has not been found on corn.

Sugarcane aphids intercept nutrients intended for the development of leaves and grain heads by feeding on plant sap. Heavy infestations can kill leaves, stunt growth, and reduce the size and quality of grain heads. Honeydew and

sooty mold on leaves can compromise photosynthesis and may also reduce harvest efficiency by gumming up harvest equipment.

Populations of sugarcane aphid can build very quickly. Informational resources from Texas A&M Extension report that in one location field populations went from 50 to 500 aphids per leaf over a two-week period. Adult aphids (all females) give live birth to nymphs that can develop into

Sugarcane Aphid Invades California SorghumPests for Every Crop… Even the Alternative OnesBy UCCE: David Haviland, Pete Goodell, Larry Godfrey & Jeff Dahlberg

adults within about five days and live for approximately four weeks during summer conditions. Aphids are usually wingless until population density is

Sugarcane aphid

11 California Dairy / September 2016

high, at which time some of the offspring begin to develop wings (alates) to disperse to new feeding locations.

Successful management programs for sugarcane aphid have been developed in Texas and other southern states for grain sorghum. In grain sorghum pest control advisors monitor weekly until aphids are found, and then twice a week until a threshold of 50-150 aphids per leaf is reached. Once a threshold is reached growers rotate between the insecticides flupyradifurone (Sivanto 200SL or Sivanto Prime) and sulfoxaflor (Transform WG, Section 18 Emergency Exemption labels that are NOT available

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in California). In southern states these insecticides provide good control of the aphids while maintaining parasitoids and natural enemies, such as predatory midge larvae, that provide biological control.

Until more information is available for silage sorghum, California forage sorghum growers should do their best to adopt a modified version of the grain sorghum guidelines from other states. 1) Monitor at least weekly for sugarcane aphid. 2) Consider a tentative treatment threshold of 50 aphids per leaf if there is more than one month before harvest and a tentative treatment threshold of 150 aphids per leaf if there is less than

Organophosphate insecticides should be avoided because they are not effective on sugarcane aphid and can kill natural enemies, such as this predatory midge larva found commonly in a sorghum field in Tulare Co

4 weeks before harvest. 3) Do not treat with chlorpyrifos or dimethoate. They have poor efficacy on sugarcane aphid and negatively affect natural enemies. If a treatment is needed, consider Sivanto 200SL or Sivanto Prime (PHI- 7 days for forage, 21 days for grain, stover or straw). Sivanto products are more expensive than traditional organophosphates, but can be effective and do not disrupt biological control. Applications can be made by ground or by air, though ground applications are likely to be more effective. 4) If heavy aphid populations are limited to field edges, consider destroying the infested edge, treating only the edges, or doing early harvest to field margins. If plants throughout the field are covered with honeydew and sooty mold, avoid insecticide treatments and consider early harvest.

Growers and researchers are currently watching sorghum fields to learn about how this pest is going to behave in California and determine how honeydew will impact harvest operations. Efforts are also underway to determine which insect predators naturally feed on sugarcane aphid, and to see if parasitoids of greenbug and other aphids may also attack this new species. The goal is to gather as much information as we can over the next couple of months to help us be better prepared for this pest during the 2017 production season.

12 California Dairy / September 2016

Agricultural Research Service (ARS) scientists are trying to save water in one of the fastest

growing dairy regions in the United States. They hope to encourage dairy producers to use a drought-tolerant crop the same way it’s sometimes used in India—as cattle feed.

Dairy production is increasing in the Southern High Plains region of west Texas and New Mexico because of the favorable climate and available land. Most dairy producers use corn silage as a feed component. West Texas also has a high concentration of beef cattle, which are largely fed corn grain. But growing corn uses more water than some other crops in the region. Since the

Finger Millet Shows Promise as Cattle FeedBy Dennis O’Brien, USDA, Agricultural Research Service

13 California Dairy / September 2016

region’s water for irrigation comes from the Ogallala Aquifer, which is being stretched beyond capacity, conserving water is important.

Prasanna Gowda, an ARS agricultural engineer, knew that dairy cattle in his native India are raised on finger millet (Eleusine coracana) forage. Studies in India, where finger millet grain is used to make breads, porridge, and baby food, show that it uses 10 to 20 percent less water than sorghum and grows on marginal land. It also has methionine, an essential nutrient that helps dairy cattle digest feed, wean healthier calves, and produce more milk.

Gowda and his colleagues in Bushland, Texas, selected five types of finger millet from the ARS Plant Genetic Resources Conservation Unit in Griffin, Georgia. They chose types that would mature in the Southern High Plains’ 4-month growing season and would produce the most plant material (or “biomass”) as potential silage.

The researchers grew the finger millet varieties in Bushland for 120 days. They selected plants of each variety and sent them to a commercial laboratory for analysis of crude protein, fiber content, and other nutritional qualities. They compared finger millet’s nutritional qualities to those of corn and sorghum grown in neighboring plots. Forage sorghum is sometimes fed to cattle and uses less water than corn, but it has fallen into disfavor because it provides

less energy than corn.Gowda found that finger millet had

higher levels of potassium, twice as much calcium, and four to five times as much phosphorus as corn, and comparable levels of protein, fiber, and total digestible nutrients. (Calcium and phosphorus deficiencies can reduce appetite and growth in dairy cattle and lower milk production.) Finger millet also used less water than the corn and sorghum, but it produced lower forage yields.

The results show that finger millet

could be fed to dairy cattle as a supplement to corn and could save water in areas where water is limited.

“We don’t see finger millet completely replacing corn, but adding it to the diet of dairy cattle could provide them with the nutrition they need and reduce the overall need for water,” Gowda says. He plans future studies on the milk quality of dairy cattle fed finger millet, how much biomass finger millet produces in the region’s climate and soils, and exactly how much water finger millet could save in the region.

14 California Dairy / September 2016

Released August 10, 2016

CLASS 2: EQUIVALENTAugust and September 2016 .TWC REPFNS .BLTAF .BL

14.30$0.6536$2.4599$ainrofilaC nrehtroN14.53$0.6803$2.4599$ainrofilaC nrehtuoS

CLASS 3: EQUIVALENTAugust and September 2016 .TWC REPFNS .BLTAF .BL

14.25$0.6479$$2.4599ediwetatS

CLASS 4a: EQUIVALENTJuly 2016 LB. FAT .TWC REPFNS .BL

14.23$0.6278$2.5061$ediwetatSCLASS 4b: EQUIVALENTJuly 2016 LB. FAT .TWC REPFNS .BL

14.67$0.6780$2.5061$ediwetatS

CLASS 1: EQUIVALENTFor September 2016 LB. FAT .TWC REPDIULF .BLFNS .BL

$18.12$0.0232$0.8411$2.5023ainrofilaC nrehtroN$18.39$0.0263$0.8411$2.5023ainrofilaC nrehtuoS

Statewide Average CWT Price: Based Upon Production $18.13 Based Upon Utilization $18.26

COMMODITY MARKET PRICES: $ PER LB.

Chicago Mercantile Exchange Grade AA Butter - Daily Simple Average (July 26th and August 10th) $2.2175Chicago Mercantile Exchange Block Cheddar Cheese - Daily Simple Average (July 26th and August 10th) $1.7606California Extra Grade & Grade A Nonfat Dry Milk - Weighted Average (For Weeks Ending July 29th and August 5th) $0.7949Western Dry Whey (Mostly) - Simple Average (For Weeks Ending July 29th and August 5th) $0.2788

$18.5926

The October 2016 Class 1 prices will be announced no later than 4:00 p.m. on September 9, 2016. The October and November 2016 Class 2 and 3 prices will be announced no later than 4:00 p.m. on October 3, 2016.The August 2016 Class 4a and 4b prices will be announced no later than 4:00 p.m. on September 1, 2016.

COMMODITY REFERENCE PRICE FOR SEPTEMBER CLASS 1 PRICING:

As summer turns to fall, thank goodness that is not what milk prices are doing; and hopefully

the upward trend continues. After a several month free-fall of milk prices, they finally began to rise last month, and the trend is continuing in September. September minimum prices for Class 1 milk rose from $16.37 to $18.12/CWT in Northern California and from $16.64 to $18.39/CWT in Southern California. That is a $3.25 increase in the last two months. This brings the statewide average from $16.38 to 18.13/CWT based on production and from $16.52 to $18.26/CWT based on utilization.

September Class 2 and 3 milk remain at the increased minimum values of $14.30/CWT in Northern California and $14.53/CWT in Southern California. Class 3 also rose from $12.93 to 14.25/CWT statewide in August and will

This Fall—Milk Prices Spring ForwardSeptember Prices Continue on an Upward Trend

continue there this month. August minimum prices for Class 4 milk will not be announced until September 1st; however, July prices continued to rise above the seemingly endless pit they had fallen into earlier this year. Minimum values for Class 4a milk jumped statewide from $13.51 to $14.23/CWT in June. Class 4b also increased from $13.03 to $14.67/CWT in July statewide. (See table for more details on milk pricing)

James Williamson, dairy analyst at Rabobank pointed out that because California dairies are responsible for about 40% of U.S. dairy exports, they were the first to feel the pain of lower global milk prices this year (relative to other U.S. producers). “They will also likely be the last of the U.S. producers to feel any relief provided by upward movement in global dairy

prices because, over the last ten years, they have received an average of USD 1.85 per CWT less than the US All Milk price,” Williamson shared. This is in part due to the surplus of milk in the State, relative to population, compelling producers to ship their products east of the Mississippi—where 75 percent of the population currently resides—or abroad. The other part of the equation is the California minimum component prices relative to other dairy producing regions, specifically with regard to whey pricing.

U.S. prices will continue to suffer with the surplus of dairy products on the global market. The strong dollar (combined with domestic price premiums) weakens California dairy processors’ export competitiveness, leaving many processors with no choice but to store their products. Rabobank expects that prices will begin to slowly climb towards the end of 2016, but will remain a long way from the lofty prices of 2014. Some of the reduction in prices will slowly be relieved as China and other developing markets continue to creep back into the market. However, continued sanctions against Russia

James Williamson

15 California Dairy / September 2016

remain a burden to European exporters and hinder their ability to reduce surplus accumulating in European inventories. With lower milk prices causing 5 out of 7 of the world’s exporters to reduce milk supply, the market waits with bated breath for European and U.S. supply to apply the brakes. Rabobank believes this rebalancing is already in motion and dairy producers should slowly see a recovery in global prices toward the end of the year and into 2017. Relief could be felt sooner if there is a supply-side shock or if an unanticipated increase in demand materializes.

Bovine viral diarrhea virus (BVDV) infections cost cattle producers $50 to $100 per

head of cattle. Most BVDV vaccines require multiple doses, and that increases production costs. Decades of vaccination and voluntary programs aimed at controlling the virus have reduced the disease’s prevalence but have not eliminated it in the United States.

Animal scientist Eduardo Casas and his colleagues at the Agricultural Research Service’s (ARS) National Animal Disease Center in Ames, Iowa, conducted a study to find genes associated with BVDV infections. “We want to identify these genes so that we may be able to avoid infection in the first place,” says Casas. “We suspect BVDV is involved in suppressing the immune system by influencing the gene

The Genetics of Bovine Viral Diarrhea InfectionsBy Sharon Durham, USDA Agricultural Research Service

products, or proteins, so there may be an opportunity to counteract this effect.”

BVDV disease is caused by a genetically variable group of viruses. BVDV infections can be transient or

persistent. Compared to unaffected cattle, persistently infected cattle grow more slowly and have

difficulty reaching commercial weights. Worse, they are sources of BVDV infections for their herd mates, causing major losses for producers.

“Persistent infection begins when a fetus is infected during the early stages of development, resulting in a calf that is immune tolerant and sheds a significant amount of virus,” says Casas. BVDV infection in later stages of pregnancy can result in abortions and stillbirths. BVDV

can also suppress the immune system of calves and adults, resulting in infections with other viruses or bacteria.

The objective of Casas’ study was to identify genes important in the animal’s immunological defense. The research team compared the genomes of persistently infected cattle with those of unaffected cattle and found 16 regions of the genome that had differences. Of the 16 regions, 7 showed significant BVDV association.

Immunity genes in these regions allow the animal to defend itself and function normally. Identifying the regions and the genes in them can lay the groundwork for future studies to understand how the virus suppresses host immune functions and causes infection and disease. By understanding which genes in the host are influenced by the virus, it may be possible to counteract the effect of the virus and reduce or eliminate the impact of BVDV in U.S. cattle.

As California dairy prices are more reflective of the export market relative to other states, most dairymen will have to continue to wait for the market to rebalance itself—which will take time as processors will need to work through their surplus stocks. Subsequently, the State’s herd is shrinking, and has been since 2010. From 2014-2015, the herd, and total production respectively, decreased by 2.3 percent and 4 percent. A further 1.5 percent decline in the 2016 total herd size would reduce it to 1.72 million cows—the lowest since 2004. Combining this with lower quality inputs, California’s total milk production could be reduced by 3 percent, to 39.2 billion pounds, in 2016. Rabobank’s forecast suggests that prices will be below breakeven for a majority of producers through 1H 2017. Since prices are expected to remain below breakeven in the near term, dairies with the lowest fixed costs structure will overcome this current downward cycle.

16 California Dairy / September 2016

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17 California Dairy / September 2016

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18 California Dairy / September 2016

Although his priorities now are more focused on raising his children, he still tries to maintain relationships with industry groups and politicians in the area; however he has expressed his concerns about the lack of unity in the industry. “In California, the political deck is stacked against farmers and dairymen.” he said. “Our only hope is for unity within the industry. It is time for the California dairy industry to consolidate its organizations and speak with one voice. We have become an irrelevant political minority, and we only hurt ourselves with the division that has plagued us for decades. We need to get to the bottom of our differences, including with the cheese processors. Many of us are so focused on Class pricing, we’ve paid little attention to some serious issues like SGMA, Green House Gas regulations, and labor issues. We are really getting clobbered from both ends.”

Giacomazzi also says that California politics is “pay to play”. “We are competing with unions and environmental groups that spend tens of

millions of dollars in Sacramento.” he said. “It’s like we are bringing a shovel to a gun fight. Farmers, ranchers, and dairymen need to consider that funding Ag based Political Action Committees is part of the cost of doing business in California. If we can turn a few liberal districts into moderate democrat districts, we might be able to fight back

and gain a little ground.”“Fortunately, it looks like the

industry is moving in the right direction, but we have a long way to go.”

In spite of the industry-wide struggles, Giacomazzi is optimistic that the industry will get its act together and his children will be able to have a future as California dairy producers.

AI selective breeding for the past 60 years has led to great genetics on the dairy

High producing cows on a high forage diet. Giacomazzi’s dairy has been around since 1893.

Dino(continued from page 6)

19 California Dairy / September 2016

Matthew Malcolm

Managing Editor, California Dairy Magazine

Easy access to Dairy Industry Information on californiadairymagazine.com

• Dairy News• Link to Milk Price Bulletins• Dairy Industry events• Link to Weather and Ag News

through CaliforniaAgNet.com

and

www.californiaAgNet.com

See the latest video ag reportswith Matthew Malcolm

Now Featuring a Video Series on Genomics from

the World Ag Expo.

20 California Dairy / September 2016

THE

VALUE IS

EASY TO SEE

GRASTA573 - One Way Ad - CA Dairy - 8.5”x11” - 4c - 7.12.16 - OPTION 2

*IADP: Intestinal Available Dietary Protein (CPxRUPxRUP-Dig)

: From NRC 2001

: University of Minnesota, 3-Step Process : Best Buy

: From ADSA., 2005, Stern et al., University of Minnesota

Soy Best® High Bypass Soybean Meal with Gums can help keep production high, making your herd more profitable long-term. With its digestible bypass protein, elevated phosphatidyl-choline (the natural methyl-donor) from added gums and its great taste, Soy Best helps balance the ration like no other rumen-protected protein source.

For rations in need of more lysine, use Soy Best® “L”. It’s Soy Best with rumen-protected lysine mixed right in!

According to research, these two products give you more metabolizable protein, lysine and methionine per dollar spent than other protein sources.

INGREDIENT CP %DM

RUP %CP

RUP %Digest

Lys %RUP

Met %RUP $/Ton Cents/g

IADP*Cents/gMP Lys

Cents/gMP Met

Soybean Meal 53.8 42.6 67.5 6.29 1.44 $410 0.29 4.6 20

Soy Best® 49.1 73.3 83.8 6.26 1.57 $440 0.16 2.6 10

Soy Best® “L” 48.8 73.3 83.8 9.37 1.53 $561 0.21 2.2 13

Canola Meal 37.8 35.7 58.1 5.62 1.87 $325 0.46 8.1 24

Blood Meal 95.5 77.5 55 9.12 1.18 $850 0.23 2.5 19

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