Urban Water Urban Water InstituteInstitute

Water Policy Water Policy ConferenceConference

Delta Fix: Can Delta Fix: Can Agribusiness Agribusiness

Afford It?Afford It?Geoffrey Vanden HeuvelGeoffrey Vanden HeuvelDairy Farmer / Vice-Dairy Farmer / Vice-Chairman,Chairman,Milk Producers CouncilMilk Producers Council

August 24, 2012August 24, 2012

Fun Facts About Fun Facts About Milk and Dairy CowsMilk and Dairy Cows

Real milk comes from cowsReal milk comes from cows A cow needs to have a calf to start A cow needs to have a calf to start

producing milkproducing milk

Fun Facts About Fun Facts About Milk and Dairy CowsMilk and Dairy Cows

A calf:A calf: Weighs about 100 pounds at birthWeighs about 100 pounds at birth Walks and starts nursing its mother at about 1 Walks and starts nursing its mother at about 1

hour after birthhour after birth Gains about 2 pounds per day, and is weaned Gains about 2 pounds per day, and is weaned

at about 75 days of ageat about 75 days of age Is ready to breed at 15 months oldIs ready to breed at 15 months old

The gestation period of a cow is 9 monthsThe gestation period of a cow is 9 months So at 2 years old, a cow is ready to have So at 2 years old, a cow is ready to have

her first calf and start producing milkher first calf and start producing milk

What Is Milk Made Of?What Is Milk Made Of?

““Average” Holstein cow milk is made Average” Holstein cow milk is made up of:up of: 3.5% butterfat3.5% butterfat 3.2% protein3.2% protein 5% lactose5% lactose 0.5% minerals0.5% minerals 87.8% water87.8% water

What Is Milk Made Of?What Is Milk Made Of?

So in the grocery store:So in the grocery store: ““Whole milk” is 3.5% butterfatWhole milk” is 3.5% butterfat ““Lowfat milk” is 2% butterfatLowfat milk” is 2% butterfat ““Skim milk” is 0.25% butterfatSkim milk” is 0.25% butterfat

or lessor less

CheeseCheese About 40% of California’s milk is About 40% of California’s milk is

manufactured into cheesemanufactured into cheese Cheese is really the binding together of Cheese is really the binding together of

the protein in milk, 80% of which is the protein in milk, 80% of which is casein (or glue), with the butterfat in casein (or glue), with the butterfat in milkmilk

So when you make cheddar cheese, the So when you make cheddar cheese, the butterfat and protein end up in the butterfat and protein end up in the cheese, and the lactose and non-casein cheese, and the lactose and non-casein proteins end up in “whey”proteins end up in “whey” ““Eating her curds and whey…”Eating her curds and whey…”

Milk and Dairy ProductsMilk and Dairy Products Milk weighs about 8.6 pounds per gallonMilk weighs about 8.6 pounds per gallon It takes about 1.16 gallons of milk to make 1 It takes about 1.16 gallons of milk to make 1

pound of cheddar cheesepound of cheddar cheese In California, we produce more than In California, we produce more than 2 billion2 billion

pounds of cheese per year (mostly cheddar and pounds of cheese per year (mostly cheddar and mozzarella), which makes up about 20% of the mozzarella), which makes up about 20% of the total U.S. production of cheesetotal U.S. production of cheese

We also make about We also make about 620 million620 million pounds of pounds of butter per year (about 40% of the U.S.), and more butter per year (about 40% of the U.S.), and more than than 1 billion1 billion pounds of milk powders per year pounds of milk powders per year (about 58% of the U.S.)(about 58% of the U.S.)

Only 11-14% of California’s milk is actually sold Only 11-14% of California’s milk is actually sold as fluid milk in the storesas fluid milk in the stores

Lactose-Free MilkLactose-Free Milk

Do you know how they make “lactose-Do you know how they make “lactose-free” milk for those who are lactose free” milk for those who are lactose intolerant? I didn’t either, until a few intolerant? I didn’t either, until a few months ago.months ago.

At the processing plant, milk is put in a At the processing plant, milk is put in a holding tank, and an enzyme is added to holding tank, and an enzyme is added to the milk, which converts the lactose to the milk, which converts the lactose to fructose. So “lactose-free” milk tastes fructose. So “lactose-free” milk tastes sweeter because fructose is sweeter sweeter because fructose is sweeter than lactose.than lactose.

How About Chocolate Milk? How About Chocolate Milk? Do You Know Where It Do You Know Where It

Comes From?Comes From?

““Bessy the Brown Cow”Bessy the Brown Cow”

What Cows EatWhat Cows Eat

A cow is a “ruminant” animal, which A cow is a “ruminant” animal, which means they need a certain amount of means they need a certain amount of forages in their dietforages in their diet

About 40% of a dairy cow’s diet About 40% of a dairy cow’s diet needs to be forage, which consists of needs to be forage, which consists of alfalfa hay and/or silagesalfalfa hay and/or silages

Mature milking cows eat about 50 Mature milking cows eat about 50 pounds of “dry matter” per daypounds of “dry matter” per day

California’s Dairy California’s Dairy IndustryIndustry

About 1.7 million dairy cows in CaliforniaAbout 1.7 million dairy cows in California These cows need a lot of forage, These cows need a lot of forage,

including alfalfa hay and silages, to be including alfalfa hay and silages, to be sustainedsustained

Silages cannot be transported long Silages cannot be transported long distances because they have a high distances because they have a high moisture contentmoisture content

Alfalfa hay is an essential part of Alfalfa hay is an essential part of sustaining the California dairy herdsustaining the California dairy herd

California’s Dairy California’s Dairy IndustryIndustry

There are 980,000 acres of alfalfa hay There are 980,000 acres of alfalfa hay production ground in Californiaproduction ground in California

75% of the alfalfa produced in 75% of the alfalfa produced in California goes to the dairy industry California goes to the dairy industry (15% to horses, 5% to export, and the (15% to horses, 5% to export, and the balance to beef, sheep and others)balance to beef, sheep and others)

50% of the alfalfa acres in California 50% of the alfalfa acres in California are located in regions of the State are located in regions of the State impacted by the Deltaimpacted by the Delta

Delta Fix ImpactsDelta Fix Impacts Current agricultural Current agricultural

water costs to grow water costs to grow alfalfa range from alfalfa range from $35 per acre-foot to $35 per acre-foot to $75 per acre-foot$75 per acre-foot

Studies have Studies have indicated that the indicated that the Delta fix will Delta fix will add add $180 per acre-foot$180 per acre-foot to the cost of to the cost of agricultural wateragricultural water

Delta Fix ImpactsDelta Fix Impacts

Growing alfalfa in the Central Valley Growing alfalfa in the Central Valley requires about 4-5 acre-feet of water per requires about 4-5 acre-feet of water per acre of alfalfa. acre of alfalfa. 500,000 acres of alfalfa in the CV = 2.0-2.5 500,000 acres of alfalfa in the CV = 2.0-2.5

million acre-feetmillion acre-feet $180 per acre-foot X 2 million acre-feet = $180 per acre-foot X 2 million acre-feet = $360 $360

millionmillion The dairy industry is highly regulated. The dairy industry is highly regulated.

There is no method of “recapturing” this There is no method of “recapturing” this $360 million from our customers$360 million from our customers

This seems like a problemThis seems like a problem

Economic Value of the Economic Value of the Dairy Industry to CaliforniaDairy Industry to California

The California Milk Advisory Board The California Milk Advisory Board has analyzed the economic impact of has analyzed the economic impact of the California dairy industry:the California dairy industry: $63 billion in economic impact$63 billion in economic impact 443,000 jobs443,000 jobs For every job on the farm, another 22 For every job on the farm, another 22

jobs are created beyond the farmjobs are created beyond the farm

Bottom LineBottom Line

No alfalfa No alfalfa

No dairy industryNo dairy industry

Thank You. Questions?Thank You. Questions?