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Dairy producers in good shape going into 2015

After struggling for a few years, things have improved significantly for Accelerated Genetics. Chief Executive Officer Joel Groskreutz says the cooperative enjoyed growth of nearly 14 percent for the Fiscal Year which ended on September 30^th.  He credits good milk prices, strong beef prices and “getting the right people on board.”  “Creating that vision so that our employees and our staff know that this is where we want to go now let’s develop that strategic plan to get there.  We are starting to see the fruits of our labor.”

That is not to take anything away from the importance of a quality product; great genetics delivered in a manner that will get that cow settled.

Going forward, the dairy industry is going to face a period of much lower milk prices but Groskreutz says most producers have positioned themselves to withstand the storm. “The producers had a great opportunity to strengthen their balance sheets, pay off some debt and upgrade equipment.”  Plus, beef prices remain high so as they increase cull rates they are going to get some very good prices for those cull cows.

Accelerated Genetics has also increased their presence in Europe, Groskreutz says they expect a lot of change in that market in the coming months as the Common Agricultural Policy quotas come to an end. Most expect Europe will go the route of the U.S. as smaller farms are absorbed by larger operations.

Groskreutz talks about the status of dairy and his cooperative: