Market Incentive Leadership for Kentucky
Kentucky is a milk deficit state. More and more milk must be hauled into the area daily for processing adding cost to consumers, processors, cooperatives and dairy farmers.
KDDC created the Market Incentive Leadership of KY (MILK) Program to provide incentives to KY dairy farmers to produce more high quality milk within the state to minimize hauling cost and keep milk dollars in KY. The program requires dairy producers to utilize DHIA and financial business records, preferably, the University of KY Farm Business Management Program.
KDDC thanks the following milk marketing and purchasing groups for their strong support of KY dairy farmers and the KDDC MILK Program.
Dairy Farmers of America
Dairy Marketing Services, Inc.
Lone Star Milk Producers Cooperative
Maryland and Virginia Milk Producers Cooperative
Prairie Farms Dairy, Inc.
Dean Foods Company
2013 Program Criteria
MILK Program Qualifiersfor receiving incentive payment (.50 cents/cwt for a 5% increase and .75 cents/cwt for a 10% increase) on all milk produced on a monthly basis:
· Production 5% or 10% Increase in 2013 Above the 2011/2012 Average Base (Calculated Monthly)
· Quality SCC < 300,000- Average of all pickups for Month
PIC < 20,000 Pre- Incubation Count – Producer’s Marketing Agency Requirement
No Adulterated Milk for the Month
< 300,000 MonCC
· < 20, 0· Management Programs Participation REQUIRED:
Production Records – DHIA – A minimum of 6 qualifying tests in a rolling 12 month period on a DHIA approved program.
Financial Records ---- KFBM or Qualified Alternative.
MILK Program - Payout since Inception - $3,200,000 as of 3rd quarter, 2012.
206 Total Producers across the state participating
The program does not replace or affect existing incentives paid by Marketing Agencies in Kentucky.
Incentive Premiums Earned on Monthly Basis - Paid Quarterly in Separate Check
$15,000 MAXIMUM PER ELIGIBLE FARM PER YEAR
MILK Program Production and Business Records Requirement
In order for producers to receive premiums from the MILK Program they are required to utilize dairy production and financial business records. The purpose for this is to provide the information necessary to conduct an annual business performance analysis of their dairy operation.
The manual Analyzing Your Dairy Business by Bradley J. Hilty, Peter Tozer and Jeffrey Hyde, provides a detailed systematic approach to analyzing one’s dairy business by examining ten key performance indicators: five financial ratios and five herd performance indicators. As the authors state, “These indicators are comparable to the warning lights on the dashboard of a car. They can signal that something is wrong, but will provide little detail as to what the specific cause of the problems might be.” These records provide the “detail” needed to determine why a warning light is on.
Please take time to review the manual then ask yourself, “Is this something I need to be utilizing for my dairy business?” If the answer is YES, give KDDC a call. We are willing to help.
Contact Your KDDC Dairy Consultant to Sign Up