2008 HOLSTEIN ASSOCIATION USA
STATE OF THE ASSOCIATION SPEECH
June 25, 2008

John M. Meyer
Chief Executive Officer

Mr. President, delegates, members, and guests, today is a special joy because of the presence of so many old and new friends who have come from every part of the country to be with us to celebrate the Holstein cow and her Association.  This is a homecoming of sorts for a number of the Holstein Association staff and me, as 19 of us were either born in Wisconsin or live here now.  Prior to moving to Vermont, I spent most of my life in Fort Atkinson, which is about 80 miles from here, where I met my wife and best friend, Vicki, and where my mother still lives.  On a final personal note, I have enjoyed some special times turkey hunting with friends in nearby Easton; and trust me, only a real local knows where Easton is.

Now, for the business at hand, it is my pleasure to provide you with the 2007 Holstein Association State of the Association address.

Many thanks to you, the members of this organization, for your commitment to the betterment of the Holstein breed.  Let me also take this opportunity to thank the Holstein Association Board of Directors for the time they give to serve this fine Association.  I hope that all of you appreciate their work as much as I do.

We are pleased to be able to report that 2007 was another strong year for the Association.  It was highlighted by considerable increases in key areas which measure breed interest and the strength of a dairy breed association. 

The growth in member participation in the programs offered by your Association not only last year, but over the last five years is an excellent indication of the value dairy producers see in U.S. Registered Holsteins^SM.

I am going to briefly outline some of the growth we have seen over the last five years.  As background, in 2003, there were 86,360 dairy herds in the United States compared to 71,510 herds in 2007.  In terms of cows, there were 9,083,000 in 2003 compared to 9,150,000 in 2007.  So, there were 17% fewer herds and 1% more cows in 2007 compared to 2003.

Program Review

In 2003, 288,841 animals were registered compared to 317,128 in 2007, which represents a 10% increase.

The classification program enjoyed tremendous growth in 2007, as our classification team evaluated more cows than any time in the last 10 years.  A total of 325,915 animals were classified in 2007, compared to 280,549 in 2003, which represents an increase of 16%.

The number of Holsteins on official test continues to grow.  We are pleased to report that 304,339 cows were enrolled in the TriStar Program in 2007 compared to 253,770 in 2003, which is a 20% increase.

Your participation in the Holstein COMPLETE program has been a key factor in this growth.  In 2003, the second year of COMPLETE, 89,998 cows in 763 herds were enrolled.  In 2007, 197,860 animals in 1,705 herds were enrolled in COMPLETE.  This represents a 123% increase in herds, and a 120% increase in cows.  Here too, this provides an excellent example of the value you see in this convenient and cost-effective program.

These illustrations detail how we have successfully increased our market share in an industry that is getting smaller every day.

What is the real secret of this success?  It is you, the members of the Holstein Association USA, Inc.  From our youngest junior member to the oldest adult member, you have supported, and participated in the programs your Association offers.  Furthermore, the Board of Directors, delegates, and members have focused on the big picture and not let trivial things that can come and go derail the association, as happens sometimes in pedigreed livestock organizations and other associations.

Challenges

Some must be wondering with all of the good news chronicled in the Annual Report, and in my address, if the Association is facing any challenges.  We are.  The biggest one is something that each of you is dealing with everyday, and it centers around the price of oil.  It is a very uncertain world we live in today, and the challenges of running a business, from my viewpoint, are greater now and the risks are higher than ever. 

While program participation in services offered by your Association is growing at an unprecedented rate, the costs of providing those services have never been higher.  Our Regional Representatives’ gasoline costs are up 26% through April, while Classifiers’ expenses for gasoline have risen 50%.  The Association’s lodging costs are up 11% for the first four months of the year, compared to 2007, and the cost of airfare continues to rise.

Rest assured, we will get through these turbulent times.  Holstein Association members are among this country’s most resilient people. 

At the grassroots membership level, we need to engage local, state, and national politicians to address our continued dependence on foreign oil.  If energy policies in the United States do not change soon, we will be even more dependent on imported oil five and ten years from now than we are today, and $4.00 per gallon gasoline will seem a distant memory.

All of us need to work together to convince our elected officials to do everything they can do to ensure that the American farmer remains this country’s most valuable resource.

Ladies and gentlemen, you own the world’s most efficient cow, the U.S. Registered Holstein.  We have the cows, and people to help ensure a bright future for everyone involved in America’s dairy industry.

Thank you very much!