For Immediate Release: December 30, 2008
Contact: Jennifer Holton, 517-241-2485 or holtonj@michigan.gov

Michigan’s Agri-Business Sector on the Grow in 2008
Ag-based businesses poised for job creation, business expansion

LANSING, MI –Michigan Department of Agriculture (MDA) Director Don Koivisto today highlighted a sample of agriculture successes in 2008 from agri-food business expansion to job creation and noted ag-based businesses are important components for diversifying Michigan’s economy in the long-term.

“Michigan’s agri-business sector is more than just cows, plows, and overalls. It’s a cutting edge, growing business industry generating more than $38 billion in direct economic activity, $64 billion in total economic activity, and employs 1 million people,” said Koivisto. “As a matter fact, if Michigan’s agri-food sector appeared on the Fortune 500 list, it would rank 62nd, which speaks volumes on the importance of agriculture to Michigan’s economic health.”

From 2006 through 2011, the state could see an additional $1 billion economic boost from Michigan’s agri-food sector and create up to an additional 23,000 new jobs annually, according to a 2006 study by Michigan State University’s Product Center. Also, Michigan’s agricultural economy expanded at a rate of more than one full percentage point above the growth rate of the general economy (5.9 percent vs. 4.8 percent) between 2004 and 2006 and has continued to grow.

“Michigan’s agri-food business industry is changing and expanding at a rapid pace. By investing in the agri-food industry with incentives such as Agricultural Processing Renaissance Zones, we are significantly contributing to the state’s economic development,” said Koivisto. “These expansions are creating good paying opportunities for Michigan’s skilled workforce in areas such as food research and development and food science.”

The following showcases a small sample of Michigan’s agri-business success stories in 2008:

Agricultural Innovation Grant Program
MDA’s Agricultural Innovation Program, funded through the 21st Century Jobs Fund, had a $10 million total appropriation, with $5 million earmarked for FY07 grants, with the charge to accelerate the growth of Michigan’s $63.7 billion food and agriculture industry.
This grant program helps establish, retain, expand, attract, or develop value-added
processing and production operations in Michigan through innovative financing assistance to processors, agri-businesses, producers, local units of government, and legislatively-authorized commodity boards in Michigan.
Thanks to the investment in these 40 companies, MDA has been able to leverage state funds to private industry investment at an 8:1 ratio helping to create nearly 120 new jobs. This program has helped generate more than $36 million in private capital investment in the agri-food sector - the state’s fastest growing economic sectors.

Business Expansion:
Gerber Products Company, Fremont
Thanks to a two-year public-private partnership, Gerber Products Company, headquartered in Fremont, was awarded an Agricultural Processing Renaissance Zone (APRZ) as part of their expansion plans and commitment to Michigan. Gerber’s expansion includes modernization of the existing manufacturing facility, the addition of production lines, purchasing of new equipment, and a new warehouse and distribution center.
Gerber Products Company will invest $75 million in the Fremont facility, maintain 1,100 jobs, and create an additional 200 new jobs. Indirect jobs may also be created as the Company purchases 61,000 tons of produce for their product line from more than 200 Michigan growers. Additionally, they purchase $36 million in packing and raw materials from 11 key Michigan-based suppliers.

W.K. Kellogg Institute for Food and Nutrition Research (WKKI), Battle Creek
WKKI is the epicenter of Kellogg’s global research, development, and innovation activities. New product innovations created at WKKI are eventually produced and marketed all over the world. The largest percentage of commodities used at WKKI is from United States producers. Based on 2006 data, approximately 18 percent of grain, flour, fruit, honey, and other food products are purchased from Michigan agri-business producers.

In February 2008, an APRZ was approved. The APRZ guarantees $54 million in private investment over the next decade and the addition of 300 jobs in the food science research and development field. This designation enables Kellogg Company to continue to fuel top-line growth through additional pilot plant space, enhanced process scalability, and additional space for a flexible team environment and total technical community. Many of the new products WKKI creates will be manufactured in Battle Creek, Grand Rapids, and Wyoming. Kellogg also utilizes Michigan co-manufacturers to produce products created at WKKI.

Michigan Milk Producers Association (MMPA), Ovid
MMPA, the largest dairy cooperative in Michigan, represents 1,430 of Michigan’s approximate 2,500 dairy farms. In 2007, Michigan dairy farms produced approximately 7.5 billion pounds of milk, and MMPA member farms accounted for approximately 3.7
billion of those pounds. In addition, MMPA owns and operates two processing facilities in Michigan - Constantine and Ovid.

With slightly over five million pounds of daily processing capacity, the Ovid plant could process 25 percent of the state’s current annual milk volume of 7.5 billion pounds.

MMPA has committed to investing $35 million in their existing Ovid facility, maintaining 86 existing jobs, and creating 10 new jobs. Additionally, 166 indirect and induced jobs will be created by their commitment to Michigan as well as 344 construction jobs. MMPA is also considering an additional investment of $25-27 million for a new spray dryer for manufacturing milk products, which brings their total new expansions and private investment to approximately $62 million within the designated APRZ.

In the long-term, MMPA’s investment will lead to $182.6 million in both direct and indirect economic impact according to the MSU Product Center for Agriculture and Natural Resources.

“These are just a few examples of what Michigan’s homegrown businesses are doing to attract new investment and create jobs in our local communities,” said Koivisto. “When government and private business work together, great things can be accomplished for Michigan’s business community.”

For more examples of growth and expansion in Michigan’s agri-food sector, visit the MDA Web site at http://www.michigan.gov/.

###Editor’s Note: Director Koivisto’s last name is pronounced Coy-Vis-Toe.

Oklahoma Ag Dept. Adds Blog

The Oklahoma Department of Agriculture, Food, and Forestry has opened a new blog directed at Oklahoma producers and consumers. We're hoping it fills a void created about a month ago when the state's largest newspaper, the Daily Oklahoman, announced it was eliminating 150 positions and decreases circulation from all 77 counties to about 23 counties.

The blog can also be accessed through the ODAFF home page.





Terry Peach
Oklahoma Secretary of Agriculture

Two more stallions test positive for CEM. Commissioner Farmer calls for quick Federal action.

FOR IMMEDIATE RELEASE
Friday, December 19, 2008
For more information contact:
Bill Clary
(502) 564-4696
Cindy Ragin, APHIS USDA
(301) 734-7280

FRANKFORT, Ky. — Kentucky Agriculture Commissioner Richie Farmer has asked U.S. Agriculture Secretary Ed Schafer to move quickly to declare a state of agricultural emergency and commit federal funds in connection with an outbreak of contagious equine metritis in central Kentucky.

The request is a proactive measure to ensure that sufficient resources are available to manage the disease outbreak, Commissioner Farmer said.

“It is important for the people of Kentucky to understand that this could be a serious situation in our signature equine industry,” Commissioner Farmer said. “The state is working with federal authorities to contain the outbreak and determine its source.”

Kentucky’s horse industry has a total estimated economic impact of approximately $5 billion a year. The horse industry generates an estimated 80,000-100,000 jobs, and another 14,000 jobs come from tourism businesses related to the horse industry. Kentucky farm cash receipts for equine, including stud fees, are estimated at $1 billion annually.

Two more stallions have tested positive for contagious equine metritis, making a total of three from a single central Kentucky farm. The stallions added to the list are a 13-year-old quarter horse and a 4-year-old registered with the American Paint Horse Association. A 16-year-old quarter horse tested positive on Dec. 10, and the National Veterinary Services Laboratories in Ames, Iowa, confirmed the result on Dec. 15. The affected stallions and all exposed horses on the farm have been quarantined.

Testing was performed by the University of Kentucky Livestock Disease Diagnostic Center in Lexington. “The expertise available at LDDC greatly enhances our ability to respond both quickly and effectively to disease outbreaks,” State Veterinarian Robert C. Stout said.

Commissioner Farmer is closely monitoring the investigation and has informed Kentucky Governor Steve Beshear of the progress of the investigation. The Governor has assured Commissioner Farmer that he understands the seriousness of the situation and has pledged to work with the Commissioner to address the matter.

“The state is acting aggressively to contain and mitigate this disease,” Commissioner Farmer said. “Our interstate and international trading partners can be confident that Kentucky will employ all necessary resources to deal with this situation.”

Contagious equine metritis is a transmissible, exotic venereal disease in horses. It usually results in infertility in mares and, on rare occasions, can cause mares to spontaneously abort. Infected stallions exhibit no clinical signs but can carry the CEM bacteria for years. CEM is commonly transmitted during sexual intercourse but also may be transmitted indirectly through artificial insemination or contact with contaminated hands or objects. CEM can be treated with disinfectants and antibiotics.

There is no evidence that CEM affects people

Kentucky horse has contagious equine metritis; stallion, exposed horses under quarantine.

FOR IMMEDIATE RELEASE
Tuesday, December 16, 2008
For more information contact:
Bill Clary
(502) 564-4696
Cindy Ragin, APHIS USDA
(301) 734-7280

FRANKFORT, Ky. — State and federal agriculture officials are investigating a case of contagious equine metritis (CEM) in a quarter horse in central Kentucky.

The 16-year-old stallion tested positive for CEM during routine testing on Dec. 10. The test was performed by the University of Kentucky Livestock Disease Diagnostic Center as a preliminary step to shipping frozen semen to the European Union. Samples were sent to the National Veterinary Services Laboratories in Ames, Iowa, which confirmed the diagnosis on Monday.

The index horse and all exposed horses are under quarantine and undergoing testing protocols. The index horse is being treated, and exposed horses have been tested to see if they are infected.

The index horse was moved to Kentucky in February from Texas, where he had been located for his entire breeding career. All breeding was done artificially with no history of natural service.

During the 2008 breeding season, 22 stallions from various states were bred on the farm. Thirteen of the stallions were relocated to other states, and one was relocated to another facility in Kentucky. The index stallion was bred to 44 mares both on the farm and by shipped semen.

Contagious equine metritis is a transmissible, exotic venereal disease in horses. It usually results in infertility in mares and, on rare occasions, can cause mares to spontaneously abort. Infected stallions exhibit no clinical signs but can carry the CEM bacteria for years. CEM is commonly transmitted during sexual intercourse but also may be transmitted indirectly through artificial insemination or contact with contaminated hands or objects.

There is no evidence that CEM affects people.

CEM can be treated with disinfectants and antibiotics. CEM-positive mares and mares from CEM-positive countries in Kentucky are required by state regulations to go through a treatment protocol and remain in quarantine for no less than 21 days. Stallions in Kentucky that have CEM or come from a CEM-positive country also are required to remain quarantined until a treatment protocol is completed and they test negative for the disease.

The first cases of CEM in the United States were diagnosed in central Kentucky in 1978. Another outbreak occurred in Missouri in 1979. The disease was eradicated rapidly in both outbreaks.
Kentucky’s horse industry has a total estimated economic impact of $4 billion a year, according to a 2005 study by the American Horse Council. The horse industry generates an estimated 80,000-100,000 jobs, and another 14,000 jobs come from tourism businesses related to the horse industry. Kentucky farm cash receipts for equine, including stud fees, are estimated at $900 million for 2008.

A fact sheet about contagious equine metritis is here.

KDA's equine health page is here.

KDA launches high-tech systems to increase efficiency.

FOR IMMEDIATE RELEASE
Wednesday, December 10, 2008
For more information contact:Bill Clary
(502) 564-4696



FRANKFORT, Ky. — Two new Internet-based systems are enabling the Kentucky Department of Agriculture to carry out its pesticide regulation and environmental enforcement duties more efficiently, improving customer service and staff productivity.

The Pesticide Product Registration System enables companies that sell pesticide products in Kentucky to register new pesticide products, renew existing pesticide products and pay fees online. The Kentucky Compliance Activity Tracking System (KYCATS) enhances the ability of the KDA’s Division of Environmental Services to track its enforcement activities.

“Our Environmental Services and Information Technology staff have worked very hard to make these systems easy to use and able to provide accurate information in a timely manner,” Agriculture Commissioner Richie Farmer said. “The systems eliminate a large amount of paperwork for our staff. The Pesticide Product Registration System also reduces paperwork for pesticide companies, offers additional payment options and is available 24/7 for companies to access at their convenience.”

The Pesticide Product Registration System provides a simple process for companies to review their company demographic information and send necessary corrections to the Department. During the registration process, companies can make secure electronic payments by using a credit card and/or ACH debit. A pesticide company must be registered with the Department to use the system.

The system is available at https://secure.kentucky.gov/agr/pesticides/web/Login.aspx.

Pesticide registrations generate $1.6 million to the Department annually.

The system was created through a partnership with Kentucky.gov, the state’s official Web site. Kentucky.gov is a collaborative effort of the state and Kentucky Interactive LLC of Frankfort, a subsidiary of Kansas-based NIC, which manages more e-government services than any other provider in the world.

KYCATS breaks enforcement data down by category, enforcement action and other criteria. It helps the Division of Environmental Services compile and file quarterly reports to the U.S. Environmental Protection Agency. The Division is the leading investigating agency in Kentucky for EPA on pesticide-related issues.

KYCATS is a joint effort of KDA’s Environmental Services and Information Technology divisions and Clemson University.

“I commend our Environmental Services and Information Technology staff for their work on these projects,” Commissioner Farmer said. “Years of funding cuts have made it harder for us to perform our duties to the citizens of the Commonwealth. These innovations will help us squeeze more efficiency out of fewer dollars.”

Commissioner Farmer salutes Kentucky producers for record cash receipts.

FOR IMMEDIATE RELEASE
Thursday, December 4, 2008
For more information contact:Bill Clary
(502) 564-4696

LOUISVILLE, Ky. — Kentucky Agriculture Commissioner Richie Farmer said record farm cash receipts and higher net farm income in 2008 are a tribute to the skill and resolve of Kentucky’s farmers and the impact of the state’s agricultural development efforts.

Kentucky farmers took in an estimated $4.7 billion for farm products this year, topping the 2007 record of $4.43 billion, University of Kentucky economists reported Thursday at the 89th Kentucky Farm Bureau annual meeting in Louisville. Net farm income rose by more than 10 percent, even with significantly higher input costs, the UK economists said. They forecast 2009 farm cash receipts of $4.6 billion.

“Kentucky’s farmers did remarkably well in this economic climate,” Commissioner Farmer said. “They got through this year with hard work and resourcefulness. I commend them for rising above the challenges of the past year.”

Commissioner Farmer said the economic outlook report shows that Kentucky’s investments in agricultural diversification are working. Another UK study, released last month, found that $86 million in tobacco settlement funds invested in individual “non-model” projects from 2001 to 2007 returned $1.87 in new farm income for every dollar invested. The study found that every dollar invested in the Kentucky Proud farm marketing program generated $4.70 in new farm income.

"These investments are producing positive returns at a time when individuals, businesses and even entire industries are suffering great hardship,” Commissioner Farmer said. “The General Assembly was wise to create this program. But we can’t rest on our laurels. This economic situation calls for bold action to keep the gains we’ve made and build on them.

“We especially need to maintain and expand the Kentucky Proud program. Consumers increasingly are demanding fresh food made or raised right here at home. There has never been a better time to promote Kentucky Proud products.”

Kentucky Proud generated an estimated $120 million in retail sales of Kentucky products in 2006-07. More than 1,300 farmers, processors, retailers, restaurants, farmers’ markets and state parks are members of Kentucky Proud.

The UK report said cash receipts for livestock were down this year, but crop receipts, buoyed by high prices, rose nearly 40 percent. Cash receipts for vegetables were more than double the level of 10 years ago, and Kentucky growers achieved near-record yields for apples and peaches, the report said.

Colorado Ranch Quarantined Following Discovery of Swine Disease

A Mesa County, Colorado, ranch has been quarantined by the Colorado Division of Wildlife and the Colorado Department of Agriculture following the discovery of a serious and contagious disease that poses risks to wildlife and livestock.

The quarantine order follows the Nov. 17 seizure by state wildlife and agriculture officials of a livestock trailer containing 20 exotic sheep and 16 feral hogs as it was about to enter the Little Creek Ranch in Collbran. The exotic hogs are illegal to transport in Colorado and the driver did not possess required permits for importation or transportation of any of the animals.

Fourteen of the 16 hogs tested positive for pseudorabies, a disease that poses threats to livestock, wildlife and pets. All of the seized animals are being held by the state at a secure location.

Pseudorabies is a contagious viral disease of animals that primarily affects pigs. However, the disease is also a threat to domestic pets and to wildlife, such as raccoons, opossums, fox, skunks and small rodents, which can contract the disease by coming in contact with infected swine.

“This is the first case of pseudorabies discovered in feral hogs in Colorado and it’s important to stress that our livestock industry is not at risk,” said Dr. Keith Roehr, the Assistant State Veterinarian, “Our department is working quickly and cooperatively with the Division of Wildlife to ensure that this virus is not allowed to spread.”

Currently, all 50 states are considered free of the pseudorabies virus in commercial production swine herds. This detection in feral hogs does not jeopardize that status. Colorado and the U.S. Department of Agriculture (USDA) have pseudorabies eradication programs in place. The Department of Agriculture, the Division of Wildlife and USDA Veterinary Services are working cooperatively on a timely response.

The DOW quarantine order for the Little Creek Ranch specifies that no animals, alive or dead, may be removed from or enter the ranch until further notice. The Little Creek Ranch is a licensed DOW commercial wildlife park subject to strict rules for the importation of exotic wildlife species. Because the ranch's wild boar hunting operation existed prior to state regulations banning importation or possession of wild boar and feral hogs, it was 'grandfathered in' with an exemption allowing for a limited number of wild boars on the property. Strict animal health and fencing requirements were dictated as part of the licensing process.

The quarantine orders also require veterinary inspection of all animals currently being held at the ranch. At this time, the investigation of the incident is continuing.

The establishment of feral hog populations has become a major concern for state wildlife agencies across the country. Packs of these hogs can devastate wildlife habitat by rooting up areas of ground and destroying native vegetation. Diseases from the wild hogs can also be passed to wildlife species, impacting populations and spreading throughout an area. In Colorado, feral hogs have been confirmed in the southeastern part of the state. Feral hogs have also been killed by landowners and wildlife officers on the Grand Mesa, near Collbran.

In response, the Division of Wildlife and the Colorado Department of Agriculture have signed a memorandum of understanding to coordinate efforts to eradicate these populations.

The Division of Wildlife considers feral hogs to be an invasive pest. State wildlife regulations allow the killing of feral hogs at any time of year and without need of a hunting license.

For additional information on Pseudorabies, a USDA fact sheet is available at: http://www.aphis.usda.gov/animal_health/animal_dis_spec/swine/f_a_q.shtml

KDA evaluates USDA goat grades.

The Kentucky Department of Agriculture just completed the first half of a project to evaluate the USDA goat grades....more.

Visit KDA's goat and sheep marketing page here.

Event celebrates the cream of Kentucky's youth crop.

by Kentucky Agriculture Commissioner Richie Farmer.


The Kentucky Department of Agriculture is going to honor hundreds of young people from across the Commonwealth on Saturday, Dec. 6 at the annual Kentucky Proud Points Banquet at the Frankfort Convention Center ...more.