agriculture

Press release:

Assemblyman Steve Hawley (R,I,C-Batavia) recently joined a number of his Assembly colleagues, requesting that the governor petition the federal government to make a federal disaster declaration for much of New York’s farming community. Due to the unanticipated early thaw in March and April that was followed by an extended frost period, many fruit crops in Western New York have been irreparably damaged. Statewide data collected by the Federal Farm Agency indicates that losses already meet the threshold for disaster assistance in many areas.

“Fruit crops in Western New York, and throughout the state, have been decimated by this year’s bizarre and destructive weather,” Hawley said. “Farmers who rely on the sale of grapes, apples, sour cherries, peaches, apricots and strawberries now have their livelihood hanging in the balance. Helping our farmers in this time of need is precisely what federal disaster funding was created for, and I sincerely hope the governor will petition the federal government to do right by New York’s agricultural industry.”

During some of the darkest days of the Civil War, President Abraham Lincoln wondered why agriculture, such a vital industry to the well being of the nation, was represented in the federal government by only a clerk.

At his prompting, Congress created the U.S. Department of Agriculture and 150 years ago today, the USDA was born.

The USDA now handles a wide variety of rural issues and is the primary conduit for a rural voice in the federal government. The USDA has a significant presence in Genesee County through its office on Liberty Street.

Local USDA staff celebrated the anniversary -- as USDA offices all over the nation did -- with cake, cookies and punch.

Photo submitted by David M. Klafehn.

Dean Norton, president of the NYS Farm Bureau, and Elba resident, provided the following statement on the Department of Labor's decision regarding proposed rule changes for children working on farms:

We at NYFB are extremely grateful for the public outcry over the regs that UDOL had proposed and appreciate the action by the farming community to make their collective voice heard on what would have been some very intrusive rules for farm families. It is refreshing to see that common sense was achieved in the withdrawal of the proposed rules.

As provided by Norton, here's the statement from the DOL:

“The Obama Administration is firmly committed to promoting family farmers and respecting the rural way of life, especially the role that parents and other family members play in passing those traditions down through the generations. The Obama Administration is also deeply committed to listening and responding to what Americans across the country have to say about proposed rules and regulations. As a result, the Department of Labor is announcing today the withdrawal of the proposed rule dealing with children under the age of 16 who work in agricultural vocations. 

The decision to withdraw this rule – including provisions to define the "parental exemption" – was made in response to thousands of comments expressing concerns about the effect of the proposed rules on small family-owned farms. To be clear, this regulation will not be pursued for the duration of the Obama Administration. Instead, the departments of Labor and Agriculture will work with rural stakeholders – such as the American Farm Bureau Federation, the National Farmers Union, the Future Farmers of America, and 4-H – to develop an educational program to reduce accidents to young workers and promote safer agricultural working practices.”

This is the fifth story in a six-part series about the 2011 winners of the Genesee County Chamber of Commerce awards.

As much as a good idea and toil played a role in growing Baskin Livestock from a company with four employees into one with 40, the word serendipity can't be left out of any story about Bill Baskin and Susan Blackburn.

The couple met because work brought them together.

The farm Baskin ran in Rhode Island forced him to find creative ways to feed his 700 head of cattle. The feed he used opened up a business opportunity in Western New York. The farm they bought in Batavia -- perfectly suited for their business, but not for dairy operations -- came available at the right time through a bank foreclosure. The location proved critically centered to a host of vendors and customers.

A combination of a business acumen and a bit of serendipity proved to be the right mix and today, Baskin Livestock is one of Genesee County's most successful ag businesses. It is, in fact, the Agriculture Business of the Year, according to the Genesee County Chamber of Commerce.

"It’s a great ag community with a lot of businesses that are more sophisticated and successful than we are," Baskin said. "I’m flattered to be considered in that group. It’s just, it’s humbling … just wow! It's a great feather in our cap."

Baskin grew up in Massachusetts with a father he describes as a "frustrated farmer." He ran a small farm and a owned a tire and fuel business. After college, Baskin moved to the Midwest where he worked as a hog buyer and later exported livestock.

When he returned to the East Coast, he took over 70 acres of rocky farmland -- pasture but no tillable soil to grow feed -- and ran 700 head of cattle.

"All you could see was rocks," Baskin said.

Blackburn was a Pennsylvania farm girl whose life goal was to be a veterinarian and work with cows and horses.

When she was offered a job in Rhode Island as the state vet, she took it.

"The problem was, I was working 110 hours a week and here was an opportunity for a state job that was 45 hours a week and a couple thousand dollars more in salary," Blackburn said.

Once in Pennsylvania, part of Blackburn's job was to travel to the state's farms and administer tuberculosis test on import/export cows.

The test requires injecting the cows on day one and checking the results on day three, and with as many cows as Baskin was bringing in and sending out, Blackburn was visiting the farm three and four days a week.

Working that close together gave them plenty of opportunity to get to know each other.

"We were friends way before we were married, and we stil are, that’s the amazing part," Blackburn said.

To feed his cattle, Blackburn contracted with a man who would drive a small truck to the McDonald's muffin and biscuit factory, collect all their day-olds and mistakes and deliver it to Baskin, who would convert it into feed.

"It was a hard job," Baskin said. "He had a small truck and he went in and loaded it all by hand. One day he got mad and he said, 'I only got one truck and it's hard work and blah, blah, blah. I'm going to quit.' I said, 'Well, Johnny, you might be wealthy enough and old enough to retire, but I'm not.' "

So Baskin got his own truck and driver and found a large bagel factory with waste to recycle into feed.

The manager of that factory was then moved to the company's West Seneca plant, which didn't have a good waste-recycling operation.

So he contacted Baskin, who arranged to start a business in Western New York that would be run by a friend's brother.

Once the contracts were signed and the equipment bought, the would-be employee backed out.

"I told her, somebody has got to go take care of this thing and one thing led to another," Baskin said.

Once the couple bought the farm on Creek Road in Batavia, they were able to build facilities that could accommodate recycling tons of bakery waste into feed, with 40 or 50 truck trips a day of waste coming in and feed going out.

Baskin Livestock collects waste from more than 40 bakeries and ships out to feed companies all within about a 400-mile radius of Batavia.

According to Baskin, the amount of feed the facility produces annually replaces the need for about 16,000 acres of corn.

The process involves taking waste bakery products -- it might be a poorly mixed batch, or returns, or just factory rejects (Lay's Potato Chips rejects any bag that is as much as one chip too heavy or one chip too light).

The waste is dumped into a giant warehouse -- twice the size of a football field -- with a floor 10-feet below ground level. The wet material (uncooked dough, typically) needs to be dried out. The product is then all mixed together, dried further, churned and chopped and then moved to the loading dock for shipment to feed mills, which sell it to farmers.

The timing of pick up and delivery is critical, Baskin said.

"You don't show up when you're supposed to show up and they get backed up, you could potentially shut down a plant with 300 or 400 employees," Baskin said.

To keep his trucks running, Baskin runs his own repair and machine shop, with workers doing basic maintenance on trucks and heavy repairs.

The farm -- originally 874 acres, now more than 1,700 -- also runs 995 head of cattle locally, plus as many as 5,000 more at other locations. The cattle are raised as replacement heifers or meat cattle available locally or for export to places such as Turkey, Russia and Mexico.

Blackburn thinks the business her husband has been able to build is pretty amazing.

Often, Blackburn said, when people find out she's a vet, the common response is, "I've always wanted to be a veterinarian.

"Well, how many times have you heard that," she added. "But I say to them, anybody who can read and has great retention and pays attention can be a veterinarian. But what my husband does, not very many people can do, because he has it all just come out of his head."

A lot of the credit, Baskin said, goes to his employees, who all know their jobs very well.

"The other thing I preach is that I can be here working with you 12, 15 hours a day, side by side, but in 15 years, we're not going to have any business," Baskin said. " I need to be out growing the business and I'm depending on you guys to do the work."

The feed mill is in operation non-stop from 9:30 Monday morning to 9:30 Friday night.

If a business isn't growing, Baskin said, it's shrinking. It's never staying the same, so he's always looking for new opportunities and ways to grow.

Three years ago, they added 20,000 square feet of office space and this summer, they'll add another 5,000 square feet.

Customer service is the name of the game, Baskin said. He lives by and teaches his employees, "The customer is always right."

He prides himself on fixing problems and being able to get along with people others might find difficult.

It's a trait, he said, he picked up while working for his father.

"I fixed all my father's problems," Baskin said. "My old man'd get in a business deal, somebody get pissed off at him. I’d go fix it. I’d go talk to them. I’d go smooth it over. I’d go talk them into ... whatever."

These days, Blackburn doesn't do much vet work -- some here and there -- she's busy helping Bill with his business. She said he's the big-picture guy and she handles a lot of the details.

"Being a veterinarian is a great job, but I like helping my husband out more than I like the ego gratification of going in and telling somebody about heartworm medicine," Blackburn said.

Bill and Susan have a 17-year-old daughter who may some day join the family business, but Bill wants her to experience a little more of life first -- go to college, work for somebody else, see the world from a different perspective.

"I told her, you’ve got to want it," Baskin said. "If you want it, fine, I’ll show you everything. I’m not going to force you to do this."

To be successful in farming, Baskin said, you've got to love it.

He recalled being there for a family gathering during his first marriage and going into the bathroom to wash up for dinner a minute after his brother-in-law had done the same.

"I'm in there and he comes flying in, 'my watch, my watch, my watch,' and I said, 'what's the big deal about your watch?'

"He was a computer engineer for Hewlett Packard, big money in those days. He said, 'In my office, I don't have a clock. If I don't have my watch, I don't know what time it is. If I've got to sit there a minute past four o'clock that just makes me bananas.' He says, 'At four o'clock, I'm going home.'

"So I told my wife at the time, I said, 'You know, you don't like my work. You don't like the smell, you don't like the dirt and you don't like the people and you don't like the cows, but if I had to have a job where I just prayed for four o'clock coming, regardless of what I'm getting paid, it ain't worth it in my opinion.'

"I like the people," Baskin concluded. "I like the dirt. I like the cow business."

Baskin loves it, but he also knows serendipity played a role in what he's achieved in business and at home.

"I was lucky to find her (Susan), lucky to find this place, lucky to find a few opportunities along the way," Baskin said.

"I have no regrets," he added. "I've made a lot of friends, had a lot of fun. If you do what you like and have good people around you, and you're able to go home to a couple of people who love you. Life is good."

Last October, Empire Tractor moved to a new location at 5072 E. Main St. Road and has taken the past few months to get settled into the new, larger facility.  Today and tomorrow, Empire Tractor is holding a grand opening and open house.

Among the items on display is a newly released Oxbo Model 4334 self-propelled merger. The merger -- pictured below -- is made by Oxbo in Byron and is the only piece of equipment in its class in the world. Several aspects of the technology behind it are patented. The merger can gather hay on 250 to 400 acres in a day. It moves across a field at 8 to 12 mph.

Standing in front of the 4334, above, are Tim Call, president of Empire Tractor, Ken Krokowski, of Oxbo, Steve Werner, Dan Athoe, John Bannister and Bill Friese.

The open house continues tomorrow from 9 a.m. to 3 p.m.

Even two new Greek yogurt plants in Batavia won't be of much help to small dairy farmers, which are finding it harder to survive in a globalized market and stringent regulatory environment.

Dale Stein, who operates a large dairy farm in Le Roy, said his heart is with the small dairy farmer, but knows they need to make some tough choices to stay in business.

"I have great sympathy for the small dairy farmer," Stein said. "We were a small dairy farm once. My brothers and I did the milking while my father worked in the fields. He went 20 years without a day of vacation."

The Batavian spoke with Stein Thursday and asked him about a New York Times story that said small dairy farms throughout the state are struggling.

How could Robert and Fred — who produce so much more milk than their dad — end up making less money? There are a number of reasons, some obvious, others less so. Milk went from a local industry to a national one, and then it became international. The technological advances that made the Fulpers more productive also helped every other dairy farm, too, which led to ever more intense competition. But perhaps most of all, in the last decade, dairy products and cow feed became globally traded commodities. Consequently, modern farmers have effectively been forced to become fast-paced financial derivatives traders.

In other words, if a dairy farmer doesn't hedge -- buying options to bet against an increase in prices -- they can't make money. (In hedging, if prices increase, the farmer profits; if prices decline, the farmer offsets losses on product with gains on the options.)

Stein said his farm is big enough to manage the fluctuations in commodity prices, but small farmers simply can't do it.

"Margins are tiny and getting smaller each year," Stein said. "The only way to survive is to sell more product, and if the size of your herd is limited, the less you have to sell."

EPA regulations define a small dairy as 199 head of cattle or less. If a farmer wants to milk a 200th cow, the amount of equipment, technology and infrastructure required to comply with government regulations would cost at least $250,000, Stein said.

Few small farmers want to take that chance.

Especially in today's labor market with fewer qualified migrant workers available.

"It's very difficult for them to compete for labor and for land," Stein said. "We started small. My dad started with two cows. We've slowly grown our business so we can employ more people and give everybody a middle-class wage. It's not that we wanted to be big, but we had to grow to survive."

John Gould, owner of Har Go farms in Pavilion, decided to go a different direction in his effort to keep a farm going that his father bought in 1956.

It's a decision many small farmers have made to survive, according to the Times article.

As tough as it might be to grow from a small dairy farm to a large dairy farm, Gould made the equally daunting decision to switch his farm to certified organic.

Making the switch, which he began in 2005, took three years. It involved building fences (because cows would graze rather than be confined to feed lots), put in water lines and pave drive ways. It takes time for the herd to adjust to a different diet -- corn and soy raised without pesticides or herbicides -- so milk production can drop to nothing for a time. Fields that once relied on chemicals to be productive must be slowly turned back into fields that are mechanically tilled for weeds and can tolerate a few bugs.

"You've got to think those things through and plan how you're going to handle all of that," Gould said.

But Gould said he got what he wanted out of the switch to organic: A profitable and viable small dairy farm.

"It seems to have been a good decision for us," Gould said. "It's certainly a different lifestyle from the type of farming we had been accustomed to, but we continue to make very high quality milk, which is very important to us and important to our customers."

Gould is philosophical about the choice for small dairy farmers -- spend the money to comply with environmental regulations or take a loss for three years and switch to organic.

"Nothing in this business is simple or automatic," Gould said. "That's the life we chose. If we're going to be in the business, we have to make those kinds of decisions."

Small dairy farms that decide to grow would indeed help New York meet the anticipated demand for milk created by two new Greek yogurt plants in Batavia. But Stein said obstacles to growth for small dairy farmers will hold back the industry.

Even now, before Alpina and Pepsi open their plants, the local supply of milk is limited.

"Chobani (operating a Greek yogurt plant near Albany) already uses so much milk that we don't have any extra milk now in our market," Stein said.

It would help the New York dairy industry tremendously, Stein said, if it were easier for the small dairy farms to grow and help meet increased demand.

"We all want to protect the environment, but current environmental regulations are stopping growth of the dairy industry in New York," Stein said. "Pepsi's milk may well have to come out of Michigan because they have enough milk and we don't, which is a shame, because we could use the jobs."

Press release:

Assemblyman Steve Hawley (R,I,C-Batavia) hosted a statewide group of 4-H participants at the Capitol in Albany. The assemblyman, who has a lifelong connection to the agricultural industry and way of life, spoke to the young people about public service, improving state government and New York pride.

“It was a pleasure and a privilege to speak with these 4-H participants who are poised to be the leaders of tomorrow,” Hawley said. “I was happy to discuss many aspects of civic engagement, such as the value of community service, the process of how a bill becomes a law, and viewing public service as a vocation rather than an occupation.

"I not only encouraged, but challenged the young people to stay here in New York and help clear the path for economic growth by eliminating unfunded mandates and reducing excessive local costs like Medicaid spending, rather than fleeing the state and being a part of the problem. The group was responsive and energetic, and it does my heart good to know that these youngsters will be the next generation of great New York leaders.”

Hawley grew up on his family’s Hawley Farms, which he would later go on to operate. He is a past president and current member of the New York State Farm Bureau, and a former 4-H Club member of the Light Horse Club in Genesee County.

DEC officials and the owners of MY-T Acres have agreed to a $7,500 fine for the farm's Oct. 12 release of a pesticide that led to the evacuation of as many as 300 homes along West Main Road.

The DEC faulted MY-T Acres for application of a restricted use of a pesticide by a non-certified applicator, use of pesticide contrary to the label and contamination adjacent the non-target area.

The pesticide used, Chloropicrin, is applied to potato fields prior to planting.

Oct. 12 was a humid, windless day and the pesticide hung close to the ground. One person was treated for minor exposure and residents who did not evacuate the area were encouraged to close their windows.

MY-T Acres waived a hearing on the violations and agreed to pay the fine.

Press release:

During a visit to Zuber Farms in Churchville today to discuss her opposition to burdensome government regulations for farmers --like the recently lifted ban on the wintertime application of manure -- Congresswoman Kathy Hochul announced she has joined the bipartisan House Dairy Caucus to better represent the farmers in New York’s 26th Congressional District.

“Dairy farms play an important role to the New York State economy, making up nearly half of our state’s $4.5 billion agriculture industry and yielding more than 12 billion pounds of milk annually,” said Congresswoman Hochul.

“Fighting against burdensome regulations, like the ban on the wintertime application of manure, and fighting to give them the workforce they need by supporting an expansion of a temporary guest worker program, are some of the reasons why I joined the House Dairy Caucus.

"We must continue to support commonsense initiatives that provide our farmers with the proper resources and right opportunities to grow and continue to be driving factors in the Western New York economy.”

With nearly 35,000 farms, most family owned, New York’s agriculture industry is one of the state’s largest small-business industries. New York currently ranks fourth in the nation in milk production and Wyoming County, in the middle of New York’s 26th District, leads the state with almost 200 dairy operations.

Congresswoman Hochul, along with Representatives Paul Tonko (NY-21) and Richard Hanna (NY-24), today sent a letter to Secretary of Agriculture Tom Vilsack commending him for removing the ban of the wintertime application of manure.

In October, representatives Hochul and Hanna introduced a bill that would allow dairy farmers to bring in temporary guest workers through the H-2A visa program to address their labor shortages. Currently, dairy farmers are unable to apply for H-2A visas due to the year-round production of dairy. 

Joining Congresswoman Hochul on the tour today at Zuber Farms were Kim and Eric Zuber, co-managers of Zuber Farms, Scott Page, president of the Genesee County Farm Bureau, and seven other local dairy farmers from throughout Western New York.

Kim is also the former president for the Monroe County Farm Bureau and a member of the Executive Committee for the New York Farm Bureau's Western New York Regional Advisory Committee. Eric is currently a member of the New York Farm Bureau.

Zuber Farms is a dairy in Monroe County, home to 1,000 head of young stock. The 10 farmers present today represented more than 10,000 head of cattle.

Two brothers (Trystan and Max Sandvoss) bought a former horse farm in Bethany a year ago and are now raising goats and making cheese, according to a lengthy article in the Buffalo News.

No one was selling cheese they made from goats who grazed in the green fields of Western New York. "Here, between Buffalo and Rochester there's a bigger market than Seattle," Trystan said.

Spreadable chevre, in double cream, garlic, dill or other flavors? Fresh cheddar curds that squeak between your teeth? For those, First Light Creamery would have first dibs on local cheese fans' wallets.

So the Sandvosses moved to Genesee County in April 2010. They worked on their cheese labels, each bearing the name reflecting their double mission: First Light Farm and Creamery. They retrofitted the stables to house goats, built sanitary rooms for making, storing and packaging cheese. They reached out to nearby farmers to trade byproducts, like their whey (cheese runoff), for a couple of the pigs it would feed.

The Sandvosses aren't quite farmsteaders yet. Their young herd includes 45 goats, with 23 producing milk -- not enough yet to meet demand for their cheese, found at more than 10 farmers' markets this summer and outlets like Premier Gourmet, Farmers and Artisans and the Lexington Co-Op. So for now they blend their herd's milk with high-quality, organic Jersey cow milk from neighbor Brent Tillotson's farm.

So far they've sold pretty much everything they've made, Trystan said. Staffing their farmers' market booth puts them directly in touch with customers, and they appreciate the chance to explain the fine points of their labors.

John Duyssen says he spent several years studying alternative energy, primarily considering whether to convert his farm to solar or wind.

In the end, the sun won.

"It's more consistant than wind, in my opinion," Duyssen said. "We're putting it in cattle pasture, so there's no wasted space. I don't have a 140-foot tower and cable wires to look at. And it's cool."

In all that study, and all the green agriculture classes and seminars Duyssen attended, he learned a few things about solar power.

With the help of Stein Fabrication in Le Roy, Duyssen installed specially designed platforms for the solar panels that will track the sun both on its daily and seasonal movements. The panels will absorb direct sunlight, which experts told Duyssen will increase the power production of the panels by 30 to 40 percent.

"We'll produce enough power for the farm and the house," Duyssen said. "That's our goal."

The panels and installation are being handled by Liberty Solar out of Buffalo.

The extra, lower-cost power, Duyssen said, should help him increase strawberry and honey production. Honey, he said, takes a lot of electricity for heating and refrigeration.

Asked if he wanted to share how much the solar panels are costing (some of the cost is offset by power company grants), Duyssen said, "Oh, no, because everybody will say I'm out of my mind to do this."

The 10-year break-even point could be accelerated by ongoing increases in fuel cost and/or increased production at the farm.

"Utilities just keep going up and up, gasoline, heating oil, diesel," he said. "Every little bit (of savings) helps. I've jammed the numbers and I think it's going to work."

Previously: Duyssens keep 'the family' in family farming

A young woman lost part of her leg in a farm machinary accident off Drake Road, Elba, on Wednesday afternoon.

A hunter found Diana M. Beechler, 24, of Water Street, Oakfield, with her arm and leg stuck in an auger she had reportedly been cleaning.

Elba Fire, along with more volunteers from Batavia and Oakfield worked for than 90 minutes to extricate Beechler from the machine.

Mercy Flight transported Beechler to Strong Memorial Hospital in Rochester.

"It was a pretty tough extrication," said Brian Russell, chief of the Elba Volunteer Fire Department. "We’re used to extricating out of cars, not farm equipment, so it definitely adds to the challenge."

Russell said crews had to cut through two layers of metal covers to be able to safely pull Beechler from the auger.

Beechler was reportedly an employee at the farm at 3869 Drake Street Road and was inside a grain cart cleaning it out when she either fell or was pulled into the auger.

It's unknown how long she had been stuck when a local hunter came upon the machinery and noticed a problem with the power take off (PTO) of the tractor. When checking the PTO problem, he discovered Beechler lodged in the auger.  He shut down the PTO and called 9-1-1.

Russell said Beechler was alert and conscious throughout the extrication.

"We controlled the bleeding as best we good," Russell said. "It was hard with her being stuck up inside there, but they (the volunteers) did an excellent job."

Alton Beechler, Diana's father-in-law, called it "an unfortunate accident."

"She is pretty tough," Alton added, "and if anybody can make it, she can."

Assisting at the scene were Mercy EMS and the Sheriff's Office.

(Initial report)

With the planned yogurt plants for Alpina and PepsiCo in Batavia, there's nothing but opportunity ahead for regional dairy farmers, according to Kim Pickard-Dudley, general manager of the membership division of Upstate Niagara Cooperative.

More yogurt means more milk and farmers are ready to meet the demand, Pickard-Dudley said.

"We're obviously excited for this opportunity for farmers," Pickard-Dudley said.

Upstate built its own yogurt plant in West Seneca in 2006 and a year ago purchased a 100-year-old plant in Watertown.

Alpina and PepsiCo have both broken ground on sites in the Genesee Valley Agri-Business Park, though PepsiCo has yet to reach a purchase agreement with the GCEDC (negotiations are, we hear, currently going on at the Albany level) for the 81-acre parcel. 

Regional farmers will be able to adjust capacity to meet all the demand for milk to make yogurt, Pickard-Dudley said.

Whether that milk comes through Upstate or yogurt manufacturers go directly to farmers is unknown at this time, Pickard-Dudley.

"Farmers are always up for a challenge for meeting new demands on supply," Pickard-Dudley said.

Pickard-Dudley was in Batavia at the O-AT-KA offices on Monday to meet with Rep. Kathy Hochul, who discussed with Upstate representatives her bill to create a guest worker program to assist New York's agricultural industry.

Project Wave -- which we now know is being pursued by PepsiCo -- will be the largest yogurt plant in North America, according to an industry expert with more than 15 years in the field.

Jeff Stephen, a consultant with Productive Partners, said in an interview today that what Pepsi is planning is impressive and will be a huge benefit to the community and the local dairy industry.

"Pepsi isn't the kind of company that is going to go anywhere," Stephen said. "They're not going to cut back because of any shortage of money. This is everything you could ask for in a local community. They are going to be successful. Not everything will go to plan, but they will succeed. This is a major global commitment."

Based on industry reports, Pepsi wants to get into the yogurt business. The multinational firm is planning a merger of sorts with Theo Muller Group, a German company that makes seven different yogurt products.

Stephen said companies for years have been trying to crack the U.S. yogurt market in the belief that American consumers don't buy as much yogurt as they should. Europeans consume five or six times as much yogurt as Americans, Stephen said.

The key to the U.S. yogurt market, Stephen said, is to make yogurt with more body and texture, a yogurt that can be consumed as a meal or a key ingredient in a meal. Growth in the U.S. yogurt market has been thwarted, Stephen said, because too much of the product available in the U.S. is what Stephen called "crappy dessert yogurt."

The key to the U.S. market is Greek yogurt, which has more flavor, is more filling and has greater nutritional value.

That's the kind of yogurt that will be the basis of Alpina's product line. Alpina was the first big signing for Genesee County Economic Development Center in the new ag park. Alpina is building an initially 10,000-square-foot facility that will employ 50 people.

Pepsi's plans begin with a 300,000-square-foot facility that will employ 180 people, with a build out by 2033 of 16 production lines and 600 employees.

There is no yogurt plant in North America that's close to that size, Stephen said.

When Stephen saw what was being planned for Project Wave, as first reported on The Batavian, he figured Pepsi, whose plans with Theo Muller had already been reported by the Wall Street Journal, was a likely prospect for the property. A project of that size would almost certainly be a plant for a large corporation moving into a new product line. 

The deal bringing Pepsi to Batavia hasn't been signed yet, but construction has begun on the facility and Pepsi is clearly eager to get its new product to market by 2013.

Stephen just hopes Pepsi is planning a yogurt line based on Greek yogurt and not "crappy dessert yogurt," which he doesn't think will help Pepsi or other yogurt makers expand the U.S. market.

Whatever Pepsi does, he doesn't see the Pepsi products competing directly with Alpina, which will be producing a slightly higher end yogurt and going after niche markets.

Pepsi's main competitors will be Dannon and Yoplait.

Dannon, based in White Planes, is a pure dairy company and between its two main brands, controls about 38 percent of the yogurt market. Yoplait, owned by General Mills, has another 6 percent. The rest of the market is shared by regional players and store brands, some of which, Stephen said, are very good.

Another potential local player in the yogurt market is O-AT-KA Milk Products, which is owned by Upstate Niagara Cooperative. 

The rumor is that a current expansion at O-AT-KA is for the local plant to start making yogurt ingredients.

It's unknown who the ingredients will be sold to, but Upstate purchased a 100-year-old, one-line yogurt plant in Watertown about a year ago.

Charitably, Stephen said, the Watertown plant is "historic," but it shows Upstate's intention to move into the yogurt business.

Whatever product Pepsi brings to market, Stephen said, will be thoroughly researched and well marketed.

"I have very high respect for Pepsi," Stephen said. "They are efficient in manufacturing and production and very good marketers. They are not the kind of company that gives up."

It's unknown whether Pepsi will purchase its dairy products through O-AT-KA or directly from farmers (those are discussions that probably haven't even taken place yet, Stephen said), but as for farmers, Stephen said they will be happy working with Pepsi.

Pepsi, he said, takes an approach that being easy to work with helps lower costs.

"I think the farmers will want to do business with them," he said.

As for milk supply, the market will probably be shaken up for awhile initially, but the big farmers have little trouble adding capacity (more cows) and there should be an ample milk supply in Western New York to meet the needs of Pepsi, Alpina and O-AT-KA, and any other players that enter the market at the ag park.

Perhaps the worst news for other dairy businesses, Stephen said, is that if Pepsi wants to hire an employee, they will hire that employee. They will spend what it takes, he said, to get the best employees, especially in key positions.

But it's a great pool of employees that is attracting Pepsi to Batavia, Stephen said.

For years, he's been telling dairy companies to stop manufacturing in places like Los Angeles, New York and Philadelphia because the standard of living is so much better in smaller communities.

Employees can actually afford to buy a house in a place like Batavia. That isn't true in larger population centers. And, Stephen said, the schools are good, and that's attractive to a major employer.

"You have a pretty high quality of life," Stephen said. "It's a pretty attractive place to put people who are going to work for you for a long time."

Sen. Mike Ranzenhofer is using his time away from Albany -- the legislature is out of session -- to meet constituents and visit local businesses.

Today, Ranzenhofer did an ag tour in Genesee County, visiting Kreher’s Organic Egg Farm in Basom, Torry Farms in Elba and Offhaus Farms in Batavia.

Above, Gordy Offhaus talks with Ranzenhofer about dairy cattle.

Press release:

The Genesee County Farm Bureau recently voiced its support for legislation sponsored by Assemblyman Steve Hawley (R,I,C – Batavia). Resolutions in support of the bills, which seek to ensure that state benefits are offered to the proper applicants, received unanimous support from the bureau at its annual meeting.

In order to protect the essential services that families rely on, we must ensure that the state’s limited resources are not being spent in the wrong places,” Hawley said. “This legislation will ensure that public assistance benefits are allocated to true New York residents that are not abusing tax dollars for illicit use. Having the unanimous support of the Genesee County Farm Bureau bolsters our ability to accomplish goals on the state level, and I look forward to continuing our efforts to make Western New York’s voice heard in state government.”

Hawley is the main sponsor of Assembly Bill 6059, which, if passed, would require recipients of public assistance benefits to be New York residents for at least 90 days prior to applying. The assemblyman is a co-sponsor of A.4474, which would institute drug tests for certain recipients of public assistance benefits.

Related, Hawley's office also released this announcement today:

Assemblyman Steve Hawley (R,I,C – Batavia) has been named to the 2011 Farm Bureau Circle of Friends based upon his voting record on issues of importance to New York agriculture. Hawley thanked the organization for their contributions to farming and agriculture across the state.

“I am extremely proud to be recognized by an organization like the Farm Bureau that provides such a critical service to the people of this state,” Hawley said. “Over the last 35 years, as a former president and member of the Farm Bureau, I have seen firsthand how tirelessly the group works to support our proud farmers and further the growth of agriculture in New York.

"Here in Western New York, agriculture is not only the backbone of our economy, it is a tradition ingrained in our way of life that has been handed down from generation to generation. I look forward to continuing my work with the Farm Bureau and making sure New York’s farmers are given the tools they need to succeed.”

The Farm Bureau is a non-governmental, volunteer organization financed and controlled by member-families for the purpose of solving economic and public policy issues challenging the agricultural industry.

Press release:

WASHINGTON, D.C. – Today U.S. Representatives Kathy Hochul (NY-26) and Richard Hanna (NY-24) introduced a bill to help Northeast dairy farms hire legal workers, which would allow for more production of local food rather than imported food, and keep farms in business to support Upstate’s overall economy.

Hochul and Hanna introduced H.R. 3024, the Access to Agricultural Labor Act of 2011, to help farmers secure a reliable and legal workforce.

* The bill would allow foreign dairy workers to temporarily come to the United States to perform agricultural labor and services under the H-2A visa program.

* Under the program, dairy workers would be able to work in the United States for extendable periods of three years.

The H-2A program allows foreign workers to enter the U.S. for seasonal or temporary agriculture work. The program was instituted to meet a need for temporary agricultural labor without adding permanent residents to the population. Currently, dairy workers are unable to participate in the H-2A program because dairy is a year-round industry, but the need for more labor is real and urgent in Upstate New York.

During the past 15 years in the Northeast, farmers have reported difficulties hiring native-born local workers. Even during the recession, farm businesses have still been unable to hire and retain local workers.

“The viability of the dairy farm industry is critical to the long-term sustainability of Western New York’s economy,” Congresswoman Hochul said.  “We need to do all we can to support these family farmers, which is why it is unfair to exclude dairy farmers from the H-2A visa program.

"They face many of the same labor shortage issues that other sectors of the agriculture community face, which is why Rep. Hanna and I are working to ensure they have the same resources available to get their jobs done.”

“Ever since I came into office, I’ve heard from our dairy farmers about the labor crisis facing their industry.  If we want to continue to have a safe and reliable food supply produced in Upstate New York, then this program will be incredibly helpful for dairy farmers,” Congressman Hanna said.

“Allowing dairy farmers access to legal and stable workforce through the H-2A visa program will keep our farms running, and it means agriculture-related businesses will continue to bolster our economy.”

Dean E. Norton, president of New York Farm Bureau, said this issue has been a high priority for several years and the three-year renewable visa would serve the dairy industry well.

“The dairy industry is the largest sector of farming in New York and is very important to the underlying agricultural services that are available throughout the state for all types of farming,” Norton said. “However, because dairy requires a year-round workforce, it has not been eligible for the H-2A program. While H-2A has many problems and inadequacies that will make it difficult to use, it is the only legal way for farmers to secure foreign labor at this time when local labor is not available.”

Among the benefits this bill will bring to Upstate New York farm business:

* It will allow for more jobs to be created and maintained;

* More food will continue to be produced locally rather than imported;

* Upstate farms will continue to be working farms and not vacant   farmland;

* Farms have a ripple effect on the economy and benefit many businesses and industries around them.

As I was leaving Le Roy yesterday, I saw this crop-duster flying over a field off Route 5.