US dairy glut leads to problem of spilled milk in some markets, as NAFTA brings other worries – CNBC

There’s a domestic dairy glut that’s so bad it’s led some American farmers to spill milk.

National milk production is increasing faster than the processing capacity. Another challenge facing the industry is total per capita consumption of fluid milk has been steadily falling for some time because of competition from other beverages and because the share of the nation’s total population who are children continues to decline.

“In Michigan and the Northeast, milk is being dumped,” said Gene Paul, legislative coordinator of National Farmers Organization, an Iowa-based organization which markets livestock, grain and milk for its members. “Milk is just being thrown away, because they just don’t have the processing capacity.”

Also contributing to the dairy glut is that average production levels are rising as more-productive cows allow big dairies to experience output growth.

Regardless, it comes as tough trade talk from President Donald Trump and threats to ditch NAFTA, the North American Free Trade Agreement, is causing worries for American milk producers. Mexico is a huge buyer of U.S. dairy products.

“Exports are a big component now of milk sales in this country,” said Peter Fredericks, a dairy specialist with the U.S. Department of Agriculture and administrator in the agency’s Northeast milk marketing area.

The USDA recently raised its milk production forecast for 2017, indicating that “increases in milk per cow more than offset a slower rate of milk cow expansion.”

“There are certain supply-and-demand imbalances going on,” said USDA’s Fredericks. “We’re not seeing rivers of milk being dumped. We’re not seeing farmers foreclosed on — that type of thing.”

Overall, U.S. milk consumption on average is rising between 1 and 2 percent annually but production is going up around 3 percent.

“We’re seeing the growth of these very large dairies that have good cows, they have good technology and they just keep producing more and more milk,” said Paul. “Production just continues to increase, and there’s no brakes on it. And cooperatives are almost encouraging production by paying volume premiums.”

American dairy farmers every year are producing about 3 billion more pounds of milk than the year before, according to a report released this month by CoBank. It found the available processing capacity, particularly in the Northeastern and upper Midwestern states, “has strained the ability of dairy cooperatives to fill the role of market balancers.”

In the Southwestern states, though, there’s less of a dairy glut and less pain being felt by the dairy producers.

“It is a regional problem but a serious problem,’ said Ben Laine, senior dairy economist at CoBank in Denver. “It has put pressure on pricing, especially in some areas like Michigan. It’s depressed prices in other areas whenever you’re forced to dump milk because you’re not able to process it.”

Last year, Michigan ranked No. 5 nationally in terms of milk production, with an estimated 97 percent of the state’s dairy farms family owned, according to the United Dairy Industry of Michigan, a trade group.

Surplus milk produced by the state is exported to meet demand in other states since Michigan produces more than enough milk to supply its own needs.

“We’re ‘nip and tuck’ on processing capacity,” said Ken Nobis, a dairyman in central Michigan and president of Michigan Milk Producers Association. “Our state’s production has grown very rapidly, and it’s grown faster than global consumption has increased.”

In some cases, skim milk is dumped because there is sometimes the capacity to take the butter fat out of it, which Nobis said is between 50 and 60 percent of the value of the milk product. That said, he’s still heard of “cases where everything was dumped.”

Yet it’s not all sour for the dairy industry.

Per capita consumption of dairy products in the U.S. as a whole has been increasing, helped by strong growth for butter and certain yogurt categories.

Whole milk also has been doing better in terms of sales growth than the overall fluid milk category. Also, more cheese products are being sold today and not just for hamburgers or meals but for snacks too.

Some research is indicating that dairy fat isn’t the health hazard that it was once considered. And in some cases it’s indicating that it’s good for you.

“For 30 or 40 years we’ve been under the gun of this fat consumption issue,” said Nobis. “We’re seeing increased consumption of the higher-fat items in dairy, like whole milk, butter and cheese.”

Some large dairy cooperatives are turning their attention to cheese plants or making investments to shift to faster-growing segments such as organic milk. USDA data released this week showed milk was the top organic agricultural production commodity last year, growing 18 percent in sales.

“The dairy industry is a growth industry,” said John Wilson, a senior vice president of the Dairy Farmers of America, a Kansas-based dairy marketing cooperative that is owned by nearly 14,000 dairy farmers. “We’re very bullish on the opportunity that the U.S. dairy farmer has to feed the world.”

Indeed, the U.S. has relied on exports for the last several years to soak up the amount of extra production. But it’s becoming more challenging, and industry executives worry that trade friction could worsen the situation.

Exports currently represent about 13 to 14 percent of U.S. milk production, although it’s down from around 19 percent back in 2013-2014, according to the USDA. The figures include not only fluid sales but milk powder and cheeses.

“The export market is substantial but not at the level it was 3 or 4 years ago,” said USDA’s Fredericks. The strength of the U.S. dollar has an impact on demand for American milk products, and domestic dairy producers also must contend with more competition from other regions of the world, he said.

Mexico imported about $1.2 billion of U.S. dairy products last year, but the uncertainties surrounding NAFTA bring risks. Negotiators from the U.S., Canada and Mexico are scheduled to meet Saturday in Ottawa for a third round of talks to modernize the 23-year-old trade agreement.

The Asian market, including China and South Korea, also are major export markets for the U.S. dairy farmer. China backed off buying U.S. dairy products from the levels it had back in 2014 because of its own huge inventories but now appears to be purchasing again.

“What makes it challenging to build these massive [dairy] plants that we need in the upper Midwest is that we have these issues with global trade going on,” said Nobis. “We don’t see production or consumption growing that rapidly in the United States. So for dairy and most of agriculture, our expanding sales are going to be across the sea.”

Canada also imports U.S. dairy products, but some U.S. officials and dairy executives have charged the country with protectionist policies on dairy that are hurting American dairy farmers, particularly those in the border states.

“We’re hopeful that the [Trump] administration will be able to negotiate an improved NAFTA as it relates to dairy with Canada,” said Wilson. “NAFTA has worked very well for dairy in Mexico and for U.S. dairy solids being sold to Mexico. Canada dairy wasn’t part of the original NAFTA agreement, and we would like to see Canada play by the same rules that the U.S. and Mexico play by.”

American dairy producers are also facing more competition in the global market from dairy leading exporters such as New Zealand and Australia, as well as Europe. After the EU ended its milk quota system in 2015, production increased sharply, and now the 28 member countries together exceed U.S. dairy production.

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North Texas dairy part of raw milk warning, 1 sick –

PARADISE, Texas (AP) – Experts say people who consumed raw milk or raw milk products from a North Texas dairy could have contracted an infectious disease and need to take antibiotics.

The Centers for Disease Control and Prevention on Friday issued the brucellosis (broo-suh-LOH’-sis) warning involving K-Bar Dairy in Paradise, near Fort Worth.

The Texas Department of State Health Services says K-Bar Dairy has complied with state law and is cooperating after two cows tested positive for the bacteria.

CDC officials say anyone who consumed unpasteurized K-Bar Dairy products from June through Aug. 7 should take antibiotics to prevent infection.

One Texas woman has gotten sick. Officials are also contacting K-Bar Dairy consumers from Alabama, Arkansas, California, Ohio, North Dakota and Tennessee.

Brucellosis can cause fever, aches and fatigue. Long-term complications include arthritis, heart problems and meningitis.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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Organic Milk Powder Market: Global Industry Analysis (2012 – 2016) and Opportunity Assessment (2017 – 2027) – Markets Insider

NEW YORK, Sept. 7, 2017 /PRNewswire/ — Revenue from the global organic milk powder is estimated to be nearly US$ 1,816 Mn in 2017 and is expected to reach about US$ 3,060 Mn by the end of 2027. Sales revenue is expected to register a CAGR of 5.4% over the forecast period (2017–2027).

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Rising consumer demand for healthy and nutritious products in North America driving market growth

Growing demand for organic milk products is been witnessed more as compared to conventional milk products. The various beneficial attributes of organic products including freshness, quality, health and nutrition are contributing to the significant increase in sales of organic milk products. According to the USDA, the sales of organic milk products in 2016 were recorded to be 5.3% times higher as compared to 2015. Moreover, significant increase in imports of organic milk powder is being witnessed owing to the consolidation of the organic dairy industry. These trends are driving the organic milk powder market in the North America region.

Increase in the number of certified organic dairy cows in the North America region

The organic dairy products industry is just two decades old in the U.S., despite having shown a significant increase in the count of certified organic dairy cows. According to the USDA, when organic dairy production started two decades ago in the U.S, there were only 6,000 certified organic dairy cows across the nation. However, there has been significant rise in this count. Yet another survey by USDA between 2002 and 2011 represented an increase of 255,000 organic milk cows in 2011 as compared to that of 67,000 organic milk cows in 2002. This count accounts for 3% of the total dairy cows. According to USDA, in 2012, 5% of the total U.S. dairy farms comprised organic dairy cows.

Lack of harmonisation between supply and demand scenarios hampering market growth in North America

Consumers in the U.S. have an increased interest in organic products. According to the Organic Trade Association, the U.S. organic dairy sector is estimated to account for US$ 6 Bn in sales in 2017, thereby reflecting increasing consumer interest for organic dairy products. However, the major constraint faced by the sector is the inability to suffice consumer demand through the available supply. Factors such as stringent regulatory norms prevailing in the U.S., growing consumer demand, and a transition period of three years for conventional dairy farms to get converted into organic dairy farms, are major challenges faced by diary producers, thereby hampering the growth of organic milk products.

Global Organic Milk Powder Market Attractiveness Analysis, By Type

The Whole Milk segment by type is expected to register relatively high CAGR during the forecast period. The Whole Milk segment is estimated to account for a relatively high value share of 53.6% by 2017 end and is anticipated to register a CAGR of 5.8% in terms of value over the forecast period. The Skimmed Milk segment is estimated to account for a value share of 26.2% by 2017 end, and is anticipated to register a CAGR of 4.7% in terms of value over the forecast period. Organic dairy processors are required to graze their cattle on organic pastures. However, not all comply with the prescribed standards. Hence, organic stakeholders such as the organic dairy associations have urged the USDA to enforce a policy for the use of pasture. In 2010, the USDA published a new policy to ensure the grazing of organic pasture by cows. These laws prescribed that the animals should graze during the grazing season and at least 30% of dry matter intake should be done while grazing pastures, and processors must have a pasture management plan so as to meet the feed requirements.

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NMPF: FDA Should Reject Vegan Petition to Alter Dairy Food Labels … – Dairy Herd Management

The National Milk Producers Federation (NMP) wants a petition filed by a vegan advocacy group to be rejected by the U.S. Food and Drug Administration (FDA).

The Good Food Institute (GFI) submitted a petition to the FDA in the spring requesting that manufactures of plant-based products could use “milk” on labeling. NMPF believes the requests by GFI are inconsistent with laws and regulations already established by FDA that state food labeled “milk” must come from an animal.

“GFI’s petition flies in the face of established law and common sense,” says NMPF President and CEO Jim Mulhern. “Nothing has happened in the last 20 years that makes it OK to combine plant or nut powders with water, sugar, emulsifiers, stabilizers, and other chemicals, and call it ‘milk.’ This request is wrong on its merits and is designed to further mislead consumers.”

Comments were filed with the FDA on Aug. 29 auguring that plant-based beverages using standardized dairy terms is an act to imitate milk and other dairy products. NMPF believes these non-dairy, plant-based products are trying to capitalize on milk and other real dairy products’ reputation as a healthy source of nutrition.

“Consumers do not understand that plant-based imitation ‘milks’ are not suitable replacements for the natural, nutrient-packed goodness of real milk,” says Dr. Beth Briczinski, NMPF’s vice president for dairy foods and nutrition. “GFI’s request would only exacerbate this misconception.”

In the comments NMPF points out that labeling non-dairy products with dairy terminology is misleading to consumers.

“Congress mandated standards of identity for milk and other dairy products more than 80 years ago.  GFI’s argument that it is now suddenly unconstitutional for FDA to enforce laws that have been on the books for eight decades makes no sense,” Mulhern says.  “In fact, the Supreme Court specifically affirmed in the Central Hudson case that the government may regulate commercial speech in a way that protects the public interest. Congress long ago determined that there is an important government interest in avoiding mislabeling of food products and misleading the public.”

NMPF shares in the comments to FDA that countries have resolved the problem with incorrect labeling. There are brands of “almondmilk” in the United States that do not use that term on their products sold in Canada or Europe.

“We have the same standard as the European Union, the United Kingdom and Canada when it comes to labeling plant-based dairy imitators,” Mulhern says.  “The only difference is that the FDA does not enforce that standard, while regulators in other nations do.”

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Feds urged to settle feud over what constitutes milk – Palestine Herald Press

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WASHINGTON — Marilyn Hershey hates it when asked if she prefers almond milk in her latte at a coffee shop in Chester County, Pennsylvania.

“Absolutely not,” she replies. “Sometimes, they’ll get a sermon about why I want whole milk.”

Her objection is home grown. Hershey is a fourth-generation dairy farmer, whose milk product comes from the udders of cows, not plants or nuts. And she wants it to stay that way.

Yet coffee shops, supermarkets and other outlets increasingly feature cow milk alternatives made with extracts of almond, soybean, coconut, rice and other plant-based products.

America’s dairy farmers want the U.S. Food and Drug Administration to step in and stop what they call misuse of the word milk by alternatives. They argue too many consumers falsely believe they are buying real milk and its nutrients.

“More imitators want to use milk’s good name” to sell their product, complained Chris Galen, spokesman for the National Milk Producers Federation, adding that alternatives deliberately sow confusion.

“Why else would they sell it as milk?” he asked.

Hersey agreed. She said she meets people who think almond milk is almond-flavored cow milk.

The federal Food Standards Code defines milk as “the mammary secretion of milking animals.” But the code and the FDA also allow non-animal products to use the term as long as the derivative of their alternative milk is clear to consumers. That includes pointing out that the main ingredient is filtered water.

Members of Congress from dairy states have weighed in on the long-running feud over what constitutes milk in America.

Republican Congressmen Tom Marino and John Kato of Pennsylvania, and GOP Congresswoman Elise Stefanik from upstate New York have urged the FDA to strictly enforce the definition of milk and crack down on the alternatives. .

Michigan Democratic senators Debbie Stabenow and Gary Peter are co-sponsors of a bill introduced by Sen. Tammy Baldwin, D-Wisc., making it illegal to describe a product as milk if it does not come from a “hooved animal.”

The result is a conflict that pits the dairy industry against the plant-based milk industry, which generated $1.4 billion in sales last year, according to the U.S. Department of Agriculture.

They content it is ridiculous to say they’re confusing consumers into thinking soymilk or almond milk comes from cows, pointing to their labels describe the percentage of extract and filtered water in alternative products. They also say Americans want non-dairy choices for health and humane reasons.

People buy those products precisely because they’re lactose intolerant, are gluten-free or are simply looking for an alternative to real milk, said John Cox, executive director of the Soyfoods Association of North America.

In a letter opposing Baldwin’s bill, the association told Senate leaders it surveyed 814 grocery shoppers last year, and not one thought soy mile contained cow milk. Three-fourths of the respondents offered that the main ingredient in soy milk is soybeans.

Producers should be able to use the term milk to let customers know it can be added to cereal or in coffee in the same way regular milk can, said Jessica Almy, policy director for the nonprofit Good Food Institute.

The institute works with startups creating new plant-based substitutes to meat and dairy products for environmental and health reasons.

Barring companies from using the word milk, would violate their free speech rights, the institute wrote the FDA. And, it added, if the agency rules against alternative milk producers, a lawsuit could well challenge the decision.

For the dairy industry, the debate is critical to survival as milk is no longer a staple of most meals. Americans are drinking 37 percent less cow milk than they did in 1970, according to Agriculture Department data.

“People used to drink milk when they sat down at dinner, but now they go get fast food or Subway,” said Jayne Sebright, executive director of the Center for Dairy Excellence, an advocacy group for Pennsylvania’s dairy industry.

To compete with beverages like sports drinks, dairy companies are creating milk fortified with proteins, and introducing new bottles that keep milk colder longer, she said.

Contact Washington reporter Kery Murakami at

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US Milk Producers Chief Criticizes Canadian NAFTA Stance on Dairy – DTN The Progressive Farmer (registration) (blog)


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Yak dairy products find market in China – The Kathmandu Post

Aug 7, 2017-

Dinesh Ghale of Tipling in Dhading district spends most of his days attending to his herd of yaks.

Yak farming has been his family profession and he has not been able to abandon it.

Throughout the day, Ghale takes his yaks to the grazing field, extracts milk from the animals and produces dairy products such as paneer and traditional cheese known as chhurpi. 

Ghale owns a herd of 35 yaks of which, nine produce milk. Milk generated by these animals is adequate to produce various dairy products, which are not only sold in the country but in bordering Chinese town of Kerung as well. 

“I earn around Rs50,000 to Rs80,000 per month by selling dairy products,” Ghale says. “This income is enough to send my kids to school and cover other household expenses.” 

Most of the land in Ghale’s village is not arable. This has prompted most of his colleagues to flee to the Gulf and Malaysia to do menial jobs.

But Ghale is gradually setting an example in the village by demonstrating foreign employment is not a panacea for improvement in income level.

Many youths of Tipling, Sertung and Lapa in northern Dhading and neighbouring Rasuwa district have lately embraced yak farming as a profession.

And like Ghale most of these yak farmers produce butter, cheese, paneer and chhurpi from milk generated by yaks. Most of these dairy products are later sold in Kerung.

Income generated from sales of these dairy products has helped locals of Dhading 

and Rasuwa to raise their living standard.

Yak farming, however, was not always a lucrative job. In the past, many farmers had to throw away milk due to low domestic demand.

Things changed only after demand for yak dairy products started going up in the bordering Chinese town of Kerung.

This has helped dairy farmers to fetch good prices for their products. Today, a litre of yak milk, sells for Rs50.

As the demand for yak dairy products is going up, those with savvy business acumen have even established dairy factories.

Those producing dairy products at a mass scale generate an income of Rs300,000 to Rs600,000 a month.

“Establishment of dairy factories has provided a new market for yak farmers to sell their products,” Aaiti Maya Tamang, a local of Tipling, said. 

All these developments have encouraged more people to adopt yak farming. Yet problems have started cropping up, threatening the sustainability of the business.

For instance, farmers are now facing shortage of grazing fields. To address this problem, the government must train farmers to grow suitable grass that can be used as fodder for yaks, locals said.

In this regard, the government’s Livestock Service Office has introduced a programme for development of grazing fields and improvement of yak sheds in northern Dhading. 

“A budget of around Rs2.3 million has been earmarked in the current fiscal year for this purpose,” Devendra Bhagat, chief of the Livestock Service Office, said. 

Published: 07-08-2017 08:49

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Billy Ray Brown's local dairy farm has been providing milk the old fashion way – Oxford Eagle

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Oxford Eagle

Billy Ray Brown's local dairy farm has been providing milk the old fashion way
Oxford Eagle
As their output has grown over the years, Brown Family Dairy products have found their way onto shelves all across North Mississippi. In Oxford, customers can find their milk at local businesses like Larson's Cash Saver, Lindsey's Chevron, Chicory

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Quality Mark to increase consumer trust in Indian dairy products –

It was unveiled today by Shri Radha Mohan Singh, Hon’ble Union Minister for Agriculture & Farmers Welfare at Krishi Bhavan, New Delhi.

The Minister also awarded certificates to 14 manufacturing companies for adopting food safety and quality management systems for milk and milk products and adhering to Quality Mark parameters.

Competitive edge

The minister said the Quality Mark will provide dairy cooperatives and producer institutions a brand identity and a competitive edge.

“This will also contribute to building consumer confidence in dairy cooperative brands,” Minister Singh said.

The Quality Mark is aimed at bringing about improvement in the value chain from producer to consumer, to ensure availability of specific standard quality milk and products.

Management committee

He added an 11-member management committee will oversee the activities of the Quality Mark.

The committee members include a representative from India’s DAHDF Department of Animal Husbandry, Dairying & Fisheries); managing directors of four federations representing the regions; a representative from the FSSAI (Food Safety and Standards Authority of India); and two experts in dairying.

Dairy producers are able to apply for the Quality Mark on their products, subject to adopting food safety and quality management systems for their products.

Shri Sudarshan Bhagat, Hon’ble Union Minister of State for Agriculture and Farmers Welfare, said the operations of participating dairy companies will be monitored and validated.

Assessment procedure

The assessment is a two-step process involving pre-assessment and a final assessment.

The pre-assessment covers the village-level procurement and processing infrastructure availability, training manpower and retail sales.

Dairy facilities scoring more than 70% in the preliminary assessment are considered for final assessment.

Shri Dilip Rath, chairman, NDDB added the award of a Quality Mark is valid for three years, subject to maintenance of quality, food safety standards and compliance with terms and conditions of the agreement.

A surveillance audit for checking compliance will be held annually.

Areas for improvement

Since the roll-out of the initiative last year, the NDDB received 55 applications from cooperatives across India.

Of these, 14 units have so far successfully cleared the two-stage assessment process.

The remaining 31 dairies were informed about areas of improvement to meet the standard, and have been given from six to nine months to comply.

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Dream comes true for county dairy princess – Allied News

Jocelyn Snyder, Greenville, was crowned the 2017-2018 Mercer County Dairy Princess at the annual county pageant. She is the daughter of Paula Snyder and the late Todd Snyder.

The 2016-17 Mercer County Dairy Princess, Josie Canon, crowned the new princess as one of her last duties while serving the Mercer County dairy industry.

Becoming the dairy princess has always been Snyder’s goal. She has participated in the dairy princess program since age 4 when she served as one of the flower presenters.

Through the years she shared her enthusiasm for dairy promotion and the dairy industry through her work in the dairy princess program.

In her speech, Snyder shared the challenges she and her family have operating their small dairy farm. Her mother, sister and she operate the farm.

Snyder talked about being in charge of calving at the farm and the details that she and other dairy farmers need to know to care for cows giving birth and for the care of newborn calves.

She is looking forward to sharing her passion for dairy over the next year.

Her skit portrayed Goldilocks raiding the refrigerator in a dairy farmer’s kitchen.

There she found just what she needed to get her serving of three dairy products a day.

“Don’t forget, get your three dairy a day,” Snyder told the audience.

2013- 2014 Pennsylvania Alternate Dairy Princess Brooke George served as master of ceremonies for the program that included a song by the Dairy Darlings; skits by the Dairy Delights; speeches by the Dairy Maids and a multi-media presentation by the Dairy Ambassador.

Dairy Darlings are: Lydia Hill, daughter of Troy and Michelle Hill, Sandy Lake; Grace Kaufman, daughter of Paul and Brandy Kaufman, Greenville; and McKinleigh Mase, daughter of Garrett and Maggie Mase, Cochranton.

Dairy Delights are: Abigail, Grace and Ruth Brownlee, daughters of Bill and Lynde Brownlee, Transfer; Katelyn Kaufman, daughter of Paul and Brandy Kaufman; and Makenna Mase, daughter of Garrett and Maggie Mase.

Dairy Maids are: Emma Devine, daughter of John and Diane Devine, Volant; Rebekah Leise, daughter of Pete Leise and the late Elaine Leise, Greenville; Kalle Prinkey, daughter of Kevin and Carrie Prinkey, Hermitage; Ashlee Riley, daughter of Dan and Kristine Riley, Greenville; Hannah Sturgin, daughter of Raymond and Paula Sturgin, Fredonia; and Callie Whiting, daughter of Maggie Whiting, Pulaski.

Dairy Ambassador is: Rachel Welch, daughter of Chad Welch and Diane Ealy, Sharpsville.

The dairy princess will participate in the annual state dairy princess seminar in July and will compete for state dairy princess in the fall.

Throughout the summer she and other dairy pageant participants will appear in parades, serving ice cream at festivals and fairs and promoting dairy products and the dairy industry around Mercer County.

Carol Ann Gregg is a freelance writer focusing on agriculture and business.

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