Friday, August 23, 2013

Dairy Cows on the Moove

From the newly opened "Millions of Milkshakes" in Bahrain to everyone's need for bone-building calcium, there is worldwide consumption of milk, butter, cheese, yogurt, ice cream, skim milk powder, and whey products from dairy cows. Once prosperity led to better nutrition options in India, for example, current production of milk, formerly a scarce commodity, reached 132 million tons, compared to 22 million in 1970, according to TIME magazine (November 18, 2013). Members of dairy cooperatives, many with only one or two cows, have now made India the world's largest milk producer and a dairy exporter.

      Young 4H members, dairy farmers, and international dairy cow shippers, such as Dens Ocean Livestock Express (livestock@densocean.be) and the ones used by T.K.Exports (livestockgeneticsbytke.com), have a prosperous future. The U.S. has become the world's largest cheese exporter. And with more women working the decline in breastfeeding has led to a boom in baby milk powder sales. West Coast dairy processors in the U.S., as well as a companies, such as Mengniu in China, are taking advantage of this increased demand in China and other Asian countries. There also is a growing world market for whey-based ingredients used in infant formula and human and animal nutritional supplements that is offering new opportunities for dairy products.

     Just outside Harbin in Shuangcheng (northeast China), Nestle has invested in a $400 million Dairy Farming Institute. The aim is to train about 700 students annually to become the dairy farmers, managers, and agribusiness suppliers who will meet China's growing demand for milk in a sustainable manner. In the past, China's dairy industry, which had reported sales of $28 billion in 2014, has had tainted milk problems from poor sanitation and deaths from infant formula.

      In the United States, dairy farmers have an outstanding research facility at the University of Wisconsin's Babcock Center for Dairy Research, named for Dr. S.M. Babcock. The Center is  the largest dairy research institution in the United States. Along with studying how to increase milk production,  students learn how to be business competitors, not only with dairy farmers in Wisconsin, California, New York, Arizona, and Texas, but also in the world market. Since the Center has an outreach program, it provides technical support and information about findings that help dairies, suppliers, government regulatory agencies, and domestic and international dairy organizations.

     Profitability, in the dairy farming business, relies on forecasting demand and careful record keeping and analysis of the cost of the feed cows need to maintain their size and health and to produce milk before excess feed just becomes manure. New Zealand's dairy giant, Fonterra, for example, reported that although more milk was processed into milk powder which has a higher return, rising input costs caused a 53% six-month drop in net profits. The desire to control all aspects of raw material to final product, there is some cross-country vertical integration in the dairy industry. For example, the Chinese company, Pengxin, has acquired both dairy farms in New Zealand and corn farms in Bolivia. China's state-owned Bright Food Group also has controlling interests in dairy producers in New Zealand and in Israel's Tnuva.

    Wisconsin's Dept. of Agriculture, Trade, and Consumer Protection distributes $200,000 in annual grants to farmers to finance studies of dairy feed, housing, and other factors that improve milk production. By calling 855-943-2479, dairy farmers and processors can find out about resources and technical assistance available from the State of Wisconsin. Currently, the State also is offering a $50,000 "Grow Wisconsin Dairy Processor Grant" to a licensed Wisconsin dairy processing plant that writes a proposal that would benefit the industry. The application form, due by February 21, 2014, is available at GrowWisconsinDairy.wi.gov.

      In recognition of Dr. Babcock's contribution to the milk industry, he received awards from dairymen in New Zealand and the Wisconsin legislature. In the future, an award may be given to someone who solves the problem of reducing the climate changing greenhouse methane gas released by cow flatulence. Considering a cow, by chewing its cud, expels 4.42 pounds of carbon dioxide for every gallon of milk it produces, methane is a serious concern. Phosphorus runoff from the cow manure that pollutes lake and other water sources also becomes a major problem when the number of big storms increases. But there also are uses for cow poop, check out the 251 facts in Dawn Cusick's kid's book, Get the Scoop on Animal Poop.

     The Financial Times (April 9, 2014) reported that the major impact of methane on global warming has motivated companies and research institutions, such as the following, to study ways to reduce methane emissions from cows:
     - The Innovation Center for U.S. Dairy in Illinois
     - C-Lock Company in South Dakota
     - The National Institute of Agricultural Technology in Argentina
The U.S. Department of Agriculture is funding a $10 million, 5-year study to determine how the dairy industry can reduce greenhouse gas from methane 25% by 2020.Promising ideas about how to reduce cow-produced methane include: anti-methane grains and dietary supplements laced with basil or garlic, an improved digestive system for cows, scanners that monitor the gas content of cow burps, a strap-on-backpack connected to tubes that collect methane gas from cow stomachs, and a reduction in the world's cattle herd (In the U.S. there are 88 million cattle). To date, these ideas are too expensive to be practical. The Resources Defense Council did mention that methane from cows could power cars and refrigerators, if it could be harnessed.

     Methane is not the only cow-related problem. Phosphorus runoff from manure is a major contributor to water pollution, since it causes the growth of harmful blue-green algae. Limited phosphorus reduction is now achieved by digesters that use an anaerobic process to separate liquids from solids and then capture and burn off methane gas to generate electricity. Another machine that relies on a nutrient concentration system is also being used to remove excess phosphorus. Thus far, however, most raw manure remains untreated.

     It is interesting to note, according to Laurie Winn Carlson, in her book, Cattle: An Informal Social History, that Dr. Babcock never took out a patent on the machine he developed to measure the fat content of milk, because he believed it should be available to all. His invention prevented milk diluted by water to be sold for full price and enabled cows to be ranked not only by the quantity of milk they produced but also by the fat content of their milk. A cow that produces milk with a high fat content is doubly valuable because her eggs can be harvested and sold for artificial insemination. Cattle of the World by John Friend describes the process of harvesting fertilized eggs from dairy cows and freezing semen from bulls known to produce outstanding calves. In the frozen form, semen from desirable bulls can be exported to improve and/or provide cross-breeding with dairy cattle herds anywhere in the world.

     The variety of dairy cow characteristics John Pukite mentions in his book, A Field Guide to Cows: How to Identify and Appreciate America's 52 Breeds, suggests reasons why farmers import specific dairy breeds out of the world's approximately 920 different cow breeds. The Holstein-Friesian dairy cow, found in at least 125 countries, produces the largest amount of milk, but she feeds on a concentrated diet of grain/corn, lives in an environmentally controlled barn, and needs regular veterinary care. In contrast, quite a few dairy breeds, such as the Canadienne, Galloway, Jersey, and Brown Swiss, graze in pastures out-of-doors. The Brown Swiss, like the Jersey, Guernsey, Pinzgauer, and Ayrshire, produces milk with a high butterfat content and also is second only to the Holstein in terms of milk yield. Multipurpose breeds, such as the Maine-Anjou, MeuseRhineYssel, and Normande, are bred for both milk and beef throughout the world. The hides of the Galloway and Pinzgauer also are known for their good quality leather. All dairy cows are usually easy to handle. Some, like the Salers and Simmental, have good mothering instincts. The South Devon, Red Poll, and a few other breeds have long lifespans.

     Whereas, the ships that carried beef cattle across the Atlantic Ocean to England in the 1880s were overcrowded and filthy, health protocols now cover the ventilation, watering, feeding, and manure handling conditions of live animals when they are in transit by ship. Cargo planes also are specially fitted to ensure the safe, humane transit of livestock. At livestockexporters-usa.com,
the online newsletters of the Livestock Exporters Association (LEA) provide dairy cattle exporters with information about policies of the U.S.Department of Agriculture's Animal and Plant Health Inspection Service (APHIS) regarding, among other information, the health certifications of livestock exports and insurance underwriting guidelines for ocean transit of animals, as well as information about new markets, such as Jordan and Iraq.

     Dairy cows are not just traded among agriculturally developed countries. Through the not-for-profit Heifer International organization, children, scout troops, schools, and parents can donate cows to impoverished families around the world. Just go to the heifer.org website to contribute the $500 it takes to donate a cow, or $50 for a share of a heifer, and see some of the happy recipients who have learned to care for their gifts. Since families who receive a cow from Heifer International agree to pass on the first calf offspring to another needy family, each donation is a part of an endless chain devoted to eliminating world hunger and poverty. In Kenya, Heifer International also holds a 40 percent share in a plant that cools and processes milk and seeks new markets for the 6000 households that gain a secure monthly income by bringing their milk to the plant.

Tuesday, August 6, 2013

Discover Africa

The African continent is three times the size of the United States and nearly three million square miles bigger than Europe, including the Asian portion of Russia. By 2100, the U.N. estimates Africa will have 3 billion more people than it has now. Future opportunities in this vast and growing continent need not be overlooked because of the world's somewhat warped historical viewpoint. A new guide, Emerging Africa, by Kingsley Chiedu Moghalu dispels some of the assumptions about lack of development on the continent. And in 2015, one of the discussions in the Foreign Policy Association's Great Decisions program will feature "U.S. Policy Toward Africa."

    Headlines do not tell the whole story of what is happening in Africa. News reports rightly warned that the Ebola virus was out of control in West Africa. In April and May of 2014, the world heard that over 200 teenage girls were kidnapped by Boko Haram, an Islamist terrorist group in northern Nigeria. Since then, the group has taken additional girls and women as wives, cooks, and suicide bombers; young men and boys have been abducted to serve as soldiers. On January 15, 2019, al-Shabab terrorists with ties to al-Qaeda would kill at least 21 in an attack on a hotel/office complex in Nairobi, Kenya. In April, 2015, jihadis from al-Shabab killed 147 in a raid on a Kenyan university. Earlier,  terrorists attacked at a Kenyan mall.

     Europe's scramble to colonize the continent between 1876 and 1912 left independent African countries in the 1960s with an uneducated population, some leaders who exploited their people in imitation of former colonial administrators, disease, and transportation ties to Europe rather than each other. To this day, Fastjet is still having trouble launching its plan to provide affordable African flights.

     But just like Pablo Picasso in 1907, when he first saw the African artifacts that caused him to create a new form of art, young people are in a position to look at Africa in a new way. Beginning with the book Ashanti to Zulu, kids can learn the alphabet and 26 African traditions at the same time. With the help of ePals.com, classrooms can connect with African students in several languages by email, Skype, and project collaborations.

     Students need not see Africans only as impoverished children who can live on 50 cents per day donations. According to trendwatching.com, 65% of Africa's 8- to 18-year-olds have access to a mobile phone. In Gambia and Ghana, trendwatching.com reports entrepreneurs run solar-charging kiosks where the public can charge their mobile devices for a fee. In addition to social contacts, mobile devices are facilitating education and job-hunting in Africa. By 2060, trendwatching.com expects there will be 1.1 billion middle class Africans. Already, the SABMiller bottler and Coca-Cola have joined forces to profit from Africa's growing middle class.

    Africa's growth is attracting $24 billion in foreign investment this year. In fact, the Financial Times (April 4, 2014) reported that return from private equity investments in Africa is comparable to the return on investments in China and Latin America. No wonder the Rothschild Fund is looking to invest $530 million in African projects that have a long term social development aspect to them. And the Swedish risk capital firm, Swedfund, is investing in a partnership between the H&M retailer and Ethiopian textile firms that manufacture according to high social and environmental standards. (Also see the later blog post, "Never Too Young to Invest in the Future.")

    Forbes magazine listed 27 billionaires in Africa. Today's richest African is Aliko Dangote of Nigeria, who makes his money from the cement used for construction throughout Africa. Recognizing the potential for African construction, Dubai has invested $300 million in Dangote Cement. Other riches have been made in areas, such as oil, sugar, flour, banking, media, telecommunications, luxury goods, diamonds, supermarkets, and pharmaceuticals. Looking past the current drop in oil prices, Dangote increased his oil refinery investment from $9 billion to $11 billion in December, 2014. (Nonetheless, his estimated $21 billion fortune has taken a $5.4 billion hit due to sagging oil prices.) Stephen Saad of South Africa, founder of Aspen Pharmacare, is making his fortune by manufacturing generic drugs. Isabel dos Santos, Africa's first female billionaire, a former head of Angola's state oil group, and the daughter of Angola's president, is a major player in the banking industry. She seeks to block Spain's CaixaBank's attempt to assume full control of the Portuguese bank, BPI, where she is the second largest investor. As an alternative, she has proposed a merger of BPI and Portugal's Millennium BCP bank to reinforce their presence in Africa's Portuguese-speaking Angola and Mozambique. (As of President Joao Lourenco's election as President of Angola, Ms. dos Santos no longer heads Angola's national oil company and the former president's son has been charged with fraud for transferring $500 million out of the country.)  Bob Diamond's Atlas Mara, founded to invest in Sub-Saharan African financial institutions, continues to expand with its latest interest in a 45% stake in Banque Populaire du Rwanda.

     African startups also are winning outside support. IBM's "Project Lucy" coordinates the work of local universities, development agencies, startups, and others who want to create ventures that solve key African issues. BiztechAfrica reports that, as part of its 4Afika Initiative, Microsoft has made five innovation grants to the following startups: Uganda's access.mobile, which facilitates information sharing in the fields of agriculture and healthcare, Kenya's Africa 118, a mobile directory service, and Kytabu, which rents textbooks on tablets (A US entrepreneur just found funding for a similar project on the TV show, "Shark Tank"), and Nigeria's Gamsole, which creates games for Windows, and Save & Buy, which facilitates e-commerce purchases.

     In a long entry in March, 2014, " trendwatching.com's African" described how African governments and developers are facilitating areas, like Ghana's Hope City, Nigeria's Eko Atlantic, and Kenya's Konga Techno, that invite entrepreneurs to set up shop. Better than being  unemployed, business-minded young adults are responding by using crowdfunding platforms, such as Globevestor; developing tech applications, such as Nigeria's bus travel website (bus.com.ng); entering competitions (South Africa's First National Bank holds an "Ideas Can Help" competition for inventors, Yola sponsors a build-your-own website contest, there's a Anzisha Prize and a TechCabal Battlefield prize); and formalizing Africa's informal economy of outdoor markets, street hawkers, and resellers. Kenya's e-commerce Soko platform, for example, now connects global shoppers with local jewelry artisans who use natural and upcycled materials. FirstBank Nigeria is one of the firms that facilitates secure online payments.

      Projects involving the rich history of Egypt are already a staple of school curricula. Tracing Mansa Musa's religious pilgrimage from Timbuktu, the West African city in Mali, to Mecca in 1324 introduces an African mogul who distributed gold on his journey and returned with an architect to build a great mosque and scholars who created the Sankore University. A video about Shaka Zulu can introduce students to a military genius.

     Looking back through previous blog posts, Africa is mentioned in a variety of contexts.
  • There are T-shirt designs from Swaziland and a U.S. artist who studied at the University of Cape Town in South Africa ("Global Drawing Power")
  • Somali children were featured in Asad, the live action short nominated for a 2012 Academy Award ("See the World at the Movies")
  • Paul Simon's "Graceland" recording incorporated the township rhythms of South Africa ("Music of the Sphere")
  • Ghana's kente cloth was mentioned in "The World of Fashion" and Ghana's chocolates tempted taste buds in "Pizza, Plantains, and Moo Goo Guy Pan."
  • In 2004 Wangari Maathai of Kenya won a Noble Prize for mobilizing a campaign to fight global warming by planting trees and launched the U.N. project to plant a billion trees around the world ("Hope for the Future" and "A Healthy Environment")The website, About.com African History, has a list and description of Africa's 25 Nobel Prize winners. 
  • Students located the African countries that produced the products they found in their scavenger hunt bags ("Games Children Play")
Just like the missionary, David Livingston, who happened to come upon the African falls he named for Queen Victoria, Africa still is open for discovery. China has discovered Africa's many minerals, such as iron ore and copper, and is building railroads to transport them to ports for export. French-speaking Chinese students have followed Chinese companies to work for them in former French colonies. Oprah Winfrey has founded a school for girls in Africa. The Bill and Melinda Gates Foundation has set out to help eliminate malaria and HIV in Africa. George Clooney sent up a satellite to watch for atrocities in the Darfur region of Sudan. And, like Alexander McCall Smith, the author of The No.1 Ladies' Detective Agency in Botswana, there's still the possibility of finding riches by writing one of Africa's fascinating stories.