DMI insists the deal is about more than just digesters

By CAROL RYAN DUMAS
Capital Press

The announcement last week of a memorandum of understanding between USDA and the U.S. dairy industry to reduce greenhouse gas emissions has caught producers unaware.

The memorandum states USDA and dairy producers will work together to reach a 25 percent reduction in greenhouse gas emissions by the year 2020.

The announcement, made by USDA Secretary Tom Vilsack at the U.N. climate talks in Copenhagen, largely focused on on-farm anaerobic digesters that would capture methane from manure and convert it into electricity. The memorandum is between USDA and the Innovation Center for U.S. Dairy, part of Dairy Management Inc., which is funded by dairy checkoff dollars.

The announcement left producers with numerous questions as to how Dairy Management Inc., having no regulatory authority, would implement the program. Some contend digesters are too costly for most producers and the technology is still unreliable.

In California, digesters are not an option, said Michael Marsh, CEO of Western United Dairymen in Modesto, Calif.

"You can put a digester on a pond, but you can't turn on the engine," Marsh said. Air districts in the state have established nitrous dioxide emissions thresholds that are unreachable, he said.

Money to fund the reductions was not discussed in the announcement, and Marsh said he was initially concerned that the total cost would be put on the backs of dairy farmers. He has talked with dairymen on DMI's board of directors and found the plan also includes emissions reductions in processing, transportation and the retail chain.

David Pelzer, Dairy Management Inc. senior vice president of industry image and relations, said the dairy industry has been working on emissions goals for some time.

"The whole effort began in 2008 with a sustainability summit at the University of Arkansas," he said.

Reducing greenhouse gases is one of the first initiatives to come out of the Innovation Center, a collaboration of industry groups, co-ops and companies.

The 25 percent reduction is voluntary and was set by those members, and the MOU was approved by the board of directors. The intent is to reduce emissions throughout production and delivery -- from the farm to the table -- to reduce costs and to increase revenue streams throughout.

The initiative gives the industry access to USDA financial and staff resources and includes such areas as research into feed crops and feed rations, farm efficiency, processing, transportation and packaging. Emissions can be reduced throughout the system, Pelzer said.

"It's not just about digesters; there is a lot of other stuff involved," he said.

But that message is spreading slowly.

Bob Naerebout, executive director of Idaho Dairymen's Association, also understood the focus was on digesters, which he said are not profitable in the Northwest.

"Maybe they framed it wrong, (but) all I picked up was the discussion of digesters," he said. "DMI has the commitment but lacks any regulatory authority. So it's going to have to be on a voluntary basis."

Mike Roth, Idaho Dairymen's president, agreed, saying, "All of the bugs have not been worked out on methane digesters. For every 10 you put in, there are only 20 percent of them that work."

In addition, most producers can't fund them on their own. They'd need grants, he said.

"The federal government is going to have to throw millions of dollars at it. Ultimately, the taxpayers will pay for a lot of it," he added.

Kuna, Idaho, dairymen and past Idaho Dairymen's President Jack Davis, said while he thinks digesters will be part of the future, the timing isn't right for broad adaptation of the technology. Digesters are still lacking, both in technology and in turning a profit.

In addition, dairymen are hurting right now. It'll be difficult enough to get financing on an operating loan, much less, financing for a digester, he said.

That's not to say dairymen don't support emissions reduction; they do and they have for years, Naerebout said.

"We fully understand the desire. That's why we are supporting and raising funds for the Idaho National Center for Livestock and Environmental Studies."