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February - Dykhuis Farms, INC.

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Bob’s Desk<br />

FEBRUARY<br />

2011<br />

I have used an Ipad since the beginning of harvest last fall.<br />

It is an amazing little tool that keeps me connected to the Internet<br />

and emails wherever I go. It allows me to keep up with several<br />

aspects of my work while I am busy with something else out<br />

of the office. My Ipad is run off local Internet or the AT&T Network.<br />

I am writing this article on it as I sit in Grand Cayman. The<br />

tagline of AT&T is “Rethink Possible”. I am just amazed at how<br />

appropriate that is for that company and our time.<br />

I am very heavy into the planning stages for this year and<br />

into the future. I am always doing some of that but the start of a new year creates<br />

some sense of urgency. Nicole and Kim are both working in the office now and that<br />

gives Joe and Jason additional time to work on numbers to rethink how we do things.<br />

We are participating with Agri Stats as a benchmarking service to see how we compare<br />

in performance and cost of pig production, feed and trucking using the same<br />

way of measuring. This will give us an idea of what is possible as demonstrated by<br />

others.<br />

We will continue to evaluate everything we do and filter it through the questions<br />

of does it improve performance, or is it building a capital asset, or will it pay for<br />

itself in a short period of time, and does it fit our mission.<br />

We are working on pay and evaluations this month. We are studying area pay<br />

for different jobs and also looking at incentive programs to promote buying and enthusiasm.<br />

We continue to see improving performance and the new corn is very good<br />

quality.<br />

The market and load out crew have demonstrated a new possibility of performance<br />

and have my congratulations.<br />

The markets continue to work higher along with the cost of feed. We think<br />

that is a good thing but it is like working with dynamite. We do not know where all<br />

the pieces will land after the explosion that is going on is finished.<br />

We need to keep that “Rethink Possible” in mind. Think back to a few years<br />

ago and consider how many things have changed in how we do things. We need that<br />

to continue and we need everyone’s help.<br />

This looks like it could be a good year. Let's enjoy it!<br />

~ Bob<br />

In This Issue:<br />

Page 1<br />

Note from Bob<br />

Lean Hog Index<br />

<strong>February</strong> Birthdays<br />

Employment Anniversaries<br />

New Employees<br />

New Births<br />

Page 2<br />

Rethinking Possible Highlight<br />

Page 3<br />

Finishing Production<br />

Sow Production<br />

Page 4<br />

Crops/Nutrients<br />

Accounting/HR/Payroll<br />

Page 5<br />

Safety<br />

Maintenance<br />

Page 6<br />

“Sausage Tops Food Trends<br />

for 2011”<br />

Page 7<br />

3rd Qtr Target Winners<br />

Page 8<br />

Recipe<br />

Wouldn’t You Know...<br />

Contact Kim Hulst with corrections or<br />

newsworthy items you’d like to submit for<br />

the newsletter.<br />

khulst@dykhuisfarms.com or<br />

call the office<br />

Employment Anniversaries (Feb.)<br />

John Bronkema ~ 4 yrs<br />

Dan Dalman ~ 7 yrs<br />

Sarah Sheridan ~ 1 yr<br />

Juventino Ruiz ~ 1 yr<br />

Douglas Dreyer ~ 2 yrs<br />

Baltazar Gazca ~ 10 yrs<br />

NEW EMPLOYEES (Jan.)<br />

Colin Prins<br />

Part-Time<br />

Hidden Hollow<br />

Happy Birthday!<br />

Feb 1 ~ Erin Ehinger<br />

Feb 6 ~ Sarah Sheridan<br />

Feb 9 ~ Keith De Kleine<br />

Feb 11 ~ Colin Prins<br />

Feb 12 ~ Zenaido Loyola<br />

Feb 13 ~ Gregg Taber<br />

Feb 13 ~ Jeff Homkes<br />

Feb 14 ~ Juventino Ruiz<br />

Feb 23 ~ Angie Sinden<br />

Feb 27 ~ Sylvia Torres<br />

1<br />

Lean hog index<br />

12-1-2010 ~ $67.35 cwt.<br />

1-3-2011 ~ $72.47 cwt.<br />

1-24-2011 ~ $76.72 cwt.<br />

Congratulations...<br />

...to Dan Dalman on the birth<br />

of a baby boy, Lucas, on<br />

December 10th!


FEBRUARY<br />

2011<br />

Rethinking Possible Highlight<br />

Team: <strong>Dykhuis</strong> <strong>Farms</strong> Market Hog Loading<br />

Back Story: Subs and Deads<br />

Getting animals transported to market alive and able to walk and move with the group and free of defects is the<br />

ultimate goal load crews are trying to accomplish. Packing plants track all subs (an animal that is unable to keep up with<br />

the other animals due to injury or fatigue) and deads. These animals slow down the productivity of the plant, cost more<br />

in labor to handle, and are one of the focus areas for monitoring humane treatment of animals. Reducing subs and<br />

deads is something that helps both our and the packer’s bottom line, but it also reduces the chance for bad press or<br />

plant shutdowns. Our loading crews have been reducing our percentage of subs and deads year after year. Below is a<br />

table of DFI Loading Team’s past 2 years verses an industry benchmark. The table shows our improvement from 2009 to<br />

2010. Congratulations to all the loaders who participated in 2010 and thank you for what you do. There were right<br />

around 30 people who loaded hogs at one point or another, but there are six men who combined to load 70% of the<br />

hogs. Special THANKS: Frank Cronin, Baltazar Gazca, Gabe Urbina-Caballero, Joe Schaub, Filipe Carrilo, and Nic Veldkamp.<br />

DFI 2009 2009 Benchmark DFI 2010 2010 Benchmark<br />

Subs .178% .22% .143% .25%<br />

Deads .194% .14% .129% .12%<br />

Total Subs and .372% .36% .272% .37%<br />

Deads<br />

Animals Sold 104,846 ------ 126,875 ------<br />

A New Possible: PERFECTION<br />

The last turn at our Silver Shade finisher site (Erin’s Farm) we were able to sell all the hogs on the site with zero<br />

Subs and zero Deads!!!! There were 3,736 head sold in November and December. This is the first time we have record of<br />

where an entire site was sold with a perfect sub and dead record. This couldn’t happen without excellent pig care<br />

throughout the turn by Joe Schaub and Kyle Nykamp, and the quality work that the loaders and truck drivers did. Congratulations<br />

and Thank You to the loaders: Frank, Don, Joe, Kyle, Jamie, Nic, Noah, Balto, Zenaido, Sarah, Tenecia, Glenn<br />

and Alomar.<br />

If you see a loader today, shake their hand and give them a pat on the back!<br />

~ Submitted by Joe <strong>Dykhuis</strong><br />

Pictured from left to right: Frank Cronin, Don VandeVusse, Kyle Nykamp, Joe Shaub<br />

2


Finishing Production<br />

Roll With The Changes …<br />

FEBRUARY<br />

2011<br />

As we enter into a new year and decade, things continue to change. Anyone involved with agriculture knows the<br />

highs and lows of raising crops and livestock and the tremendous changes that can occur in a short period of time. One<br />

of these changes we have seen in the past few months is the dramatic rise in feed inputs. Everything has moved up in<br />

price anywhere from 10-45%. Main ingredients such as corn, bean meal, DDGS, fat, and midds have spiked up as well as<br />

micro ingredients such as amino acids, vitamins, and trace minerals. Luckily, unlike 2008, lean hog prices have risen as<br />

well with summer lean futures in the mid $90’s. These are very important pigs, as myself and the field crew have expressed,<br />

and we have to be on full alert as growers and managers of any changes in the barn that you are seeing and be<br />

able to communicate it quickly. Even with higher lean hog prices, margins are still tight and depending on positions that<br />

were taken, pork producers can be either losing or making money in the coming months. The market we are in compared<br />

to 5-10 years ago is so volatile that not only do you have to be able to cope with change, but you have to constantly<br />

expect it and embrace it. With this run in main ingredients, the savings by increasing DDGS levels is also apparent. We<br />

currently have dramatically increased our usage and inclusion rates in all phases of production. Another unfortunate<br />

change that has occurred is the absence of Nathan Hedden, our Indiana Finishing Manager. Nathan has made a career<br />

and family move back to his home state of Illinois working for The Maschhoff’s. We wish him the best of success and enjoyed<br />

the contributions he made to our team while he was here. We look forward to more change by finding a solid individual<br />

to replace Nathan’s duties. One thing is for certain, there will always be change in our industry and how you handle<br />

it will directly affect how successful you are.<br />

~ Submitted by Brandon Hill<br />

Sow Production<br />

Looking back at 2010, in the sow units, we focused on:<br />

~ Improving Total Born by:<br />

1. Decreasing sow body condition to stimulate appetite in lactation<br />

2. Adding water nipples to open sow/gilt areas in gestation<br />

3. Continuing to work on parity structure<br />

~ Finishing the Herd Reduction<br />

1. Reducing HH to 3000 sows<br />

2. Reducing labor cost per pig by working more efficiently<br />

~ Changing barn flow to have an open sow/gilt area<br />

~ Improving health (especially PRRS)<br />

We have made great progress in all of these areas! We produced over 1 more pig per sow over the whole year!<br />

This was due to higher total born, higher farrowing rate, lower pre-weaning mortality, etc.<br />

We still have some kinks to work out on parity structure and barn flow, and I promise we will get the barns to<br />

flow better.<br />

Over the past 3-4 years, we have made a lot of major changes to the system/barns/etc. that have and will have a<br />

positive impact on production. In 2011, I challenged us to change our focus to focusing on the details. We are farmers<br />

who have control over what happens in our barns.<br />

How can we keep things a little cleaner to prevent scours? How can we notice quicker when sows seem off?<br />

What other things happen that if they didn’t happen could help us improve just a little? What things should we do to<br />

help us improve just a little?<br />

We are going to have a great year!<br />

~ Submitted by Erin Ehinger<br />

3


FEBRUARY<br />

2011<br />

Crops/Nutrients<br />

The year 2010 proved to be another challenging year for crops in this area. The excessive amounts of moisture<br />

beginning the first part of May and lasting to mid-July proved to create nitrogen looses to over come. These losses are<br />

attributed to leaching and denitrification of nitrogen from the root zone. The challenge from here is to determine the<br />

amount to be replaced and the physical battle against Mother Nature to accomplish the task. Fortunately, we made a<br />

timely addition to our technology with the tool called OptRx by Ag Leader. These are sensors mounted on an applicator<br />

tool bar the measures the photosynthesis of the corn plant. This relates to the nitrogen level in the plant allowing for<br />

additional nitrogen to be added on the go all in one pass. This allowed for us to minimize the damage in an efficient<br />

manner. We were also blessed with heat units beyond normal. These additional heat units encourage crops to maturity<br />

early with good test weights and yields. Test weights were in the upper 50 lbs/Bu bumping 60 lbs/Bu. Corn yields<br />

ranged from 83 Bu/A on light ground to 201 Bu/A on irrigated ground with an over all average of 152 Bu/A. Soybean<br />

yields ranged from 37 Bu/A to 66 Bu/A with an over all average of 49 Bu/A. The early maturing crops allowed for an early<br />

harvest being completed by November 1, 2010. Our crop plan for 2011 is to stay with 25% soybeans and 75% corn.<br />

The fall weather was what could only be dreamed of. Not only was it great for harvest, it was also favorable for<br />

applying manure. We applied over 14.8 million gallons in a five week period over the month of October with the drag<br />

line handled 100% of the manure. Combined with the spring applications, 29.8 million gallons were applied in 2010. We<br />

continue to look at different equipment and ways to make things go smoother. Pit levels continue to be adjusted as<br />

needed in order to balance available storage space. As a reminder, pay close attention to adding extra liquid to the manure<br />

pits. This not only diminishes our storage capacity, but it also adds costs due to handling the extra liquid. I also<br />

want to express gratitude to the units for their cooperation in assisting in keeping record of manure storage levels,<br />

weekly inspections, and proper operation and maintenance for DEQ requirements of CAFO’s. As a reminder, this is a requirement<br />

of the state and must be completed accurately.<br />

Market Opened on Wednesday, January 26, 2011 with March pricing at:<br />

Corn $6.44/Bushel<br />

Soybeans $13.75/Bushel<br />

Soybean Meal $373.40/Ton<br />

~ Submitted by Jeremy Baas<br />

Accounting, Human Resources, & Payroll<br />

We recently had our preliminary visit with our auditing company, Frost, PLLC. They asked some of us questions,<br />

began doing physical inventory counts, and requested processes documentation. Everything went so smoothly that<br />

they were done early, of which Joe <strong>Dykhuis</strong> and I were especially grateful. We were given a large list of tasks and research<br />

to prepare before they come again in early March, when we hope to then complete the audit quickly and effectively.<br />

For payroll, Kim and I have worked on the W-2’s, which will soon be on the way to all employees. In addition,<br />

please note that all 2010 medical flexible reimbursements may still be submitted before March 31, 2011. Please make<br />

sure to look at your name and address on your paychecks to make sure these are up-to-date. As always, please call the<br />

office or visit in person at any time if you have questions.<br />

~ Submitted by Dean Dozeman<br />

4


FEBRUARY<br />

2011<br />

Safety<br />

First off, I’d like to introduce myself to the <strong>Dykhuis</strong> <strong>Farms</strong>, Inc. family. I started here in December, and I am assisting<br />

in Human Resources/Safety. I graduated in 2009 from Calvin College with a Bachelor’s Degree in Business Communications<br />

(if you’re a Hope fan, we can still be friends…I promise). I’ll also be responsible for the monthly newsletter. I’ve<br />

had a great welcoming here, and I’m excited to see what the future holds for the Human Resources and Safety departments!<br />

Over the month of January, around 30 people received CPR and First-Aid training. At least 2 people from each<br />

unit have been certified or recertified, and their names are clearly displayed in case of an emergency. Please notice the<br />

new CPR posters that are hanging up in your unit (or that will be put up soon). In case of an emergency and neither one<br />

of the CPR card holders are present, reference the CPR poster (there are both English and Spanish sides).<br />

Managers – please mark <strong>February</strong> 15 on your calendars which will be the Annual Fire Extinguisher Check. Look<br />

out for more information in the coming weeks.<br />

A few reminders about wintertime safety (from Pork Checkoff):<br />

Watch out for frostbite in you and your co-workers. Symptoms will include numbness, a red/white/yellow/blue color to the skin, waxy appearance<br />

to the skin, and the skin will be cold to the touch.<br />

If you are experiencing hypothermia, seek medical attention right away. Symptoms include numbness in arms and legs, muscle tension, feeling<br />

cold and fatigued, and uncontrollable shivering.<br />

Wear layers of clothing and cover head and neck.<br />

Get out of wet clothes immediately.<br />

Make sure your boots are waterproof and insulated.<br />

Avoid drinks with caffeine because they increase the amount of fluid you lose which increases the amount of heat loss.<br />

Constantly salt areas that are prone to becoming iced over.<br />

INJURY REPORT (MONTH OF JANUARY)<br />

# of Reported Injuries 1<br />

“Safety starts with ‘S’ but begins with YOU.”<br />

# Requiring Medical<br />

Treatment<br />

Injury Type<br />

1<br />

Twisted ankle<br />

Author Unknown (submitted by Jeremy Baas)<br />

~ Submitted by Kim Hulst<br />

Maintenance<br />

We are working on Erin’s small barn. We should have this project finished by the end of the month. In <strong>February</strong>,<br />

we hope to complete the feed bin project by Erin’s, Highway Hogs, and Oak Grove. We are adding two rings to some of<br />

the bins by each site.<br />

We purchased four new portable welders; they look just like the ones we have in the units. The difference between<br />

the new ones and the old ones is that they are built heavier, and they have a 100% duty cycle. Oak Grove, Sandy<br />

Ridge, and the Finisher crew are each getting one; the fourth one will be used by the maintenance crew. It’s important<br />

that we keep these welders stored in a clean, dry environment when not in use.<br />

It’s already the end of January, and it will soon be hot so enjoy this while we can.<br />

~ Submitted by Dave Gerrits<br />

5


Sausage Tops Food Trends for 2011<br />

FEBRUARY<br />

2011<br />

From its leaner nutrition profile to its powerful flavor experience, pork sausage is capturing the culinary world's attention<br />

in the New Year. The Food Channel has even ranked sausage among the leading food trends for 2011.<br />

"Look for a leaner, better quality sausage, sourced locally at farmers markets, to take on the role as the 'new bacon,'"<br />

proclaims the Food Network. "Home butchery and the charcuterie trend that has led to renewed interest in cured meats<br />

are additional factors here, as well."<br />

Thanks to the great taste, versatility and value of sausage, both professional chefs and home cooks are experimenting<br />

more with this perennial pork favorite, says Pamela Johnson, director of consumer communications for the Pork Checkoff.<br />

"Sausage isn't just for breakfast anymore, and it's not just a pizza topping or center-of-the-plate item, either. From<br />

jambalaya to soups to salads, people are finding many new ways to incorporate sausage as an ingredient and add a<br />

punch of flavor to their meals."<br />

The craft of charcuterie, the branch of cooking devoted to preserving sausage and other meats made from pork, has also<br />

experienced a renaissance in recent years. More restaurant operators are making their own specialty sausages, says<br />

Johnson, who notes that the Pork Checkoff has long promoted the merits of sausage and offers many sausage recipes at<br />

TheOtherWhiteMeat.com. In recent years, the Checkoff partnered with Michael Ruhlman, author of the book<br />

"Charcuterie: The Craft of Salting, Smoking, and Curing" to create and promote an exclusive sausage recipe.<br />

You don't have to feel guilty about enjoying sausage, either from a health standpoint or budget considerations, adds<br />

Stephen Gerike, director of foodservice marketing for the Pork Checkoff. Today's sausage is leaner than ever, without<br />

sacrificing flavor, and it still offers one of the best buys in the meatcase.<br />

"The quality of the pork that's used in sausage contributes to a high-quality product that can be part of a healthy diet. By<br />

using high-pH meat with very good water-holding capacity, this allows for a leaner product with a good nutrition profile."<br />

As a nutrient-rich red meat, sausage offers unique attributes not offered by plant proteins, such as:<br />

• A good source of iron. A 3-ounce serving of pork delivers 5 percent of the daily value of iron in heme form, which is<br />

more readily absorbed by the body. Heme iron from meat is absorbed at levels ranging from 15 percent to 35 percent,<br />

according to the Journal of the American Dietetic Association, while iron from plant is absorbed at levels ranging from<br />

only 2 percent to 20 percent.<br />

• Vital vitamins. A 3-ounce serving of pork offers 8 percent of the daily value of vitamin B-12, a micronutrient not found in<br />

plant-based foods according to the USDA's nutrient database.<br />

It's remarkable how much flavor a juicy, 3- to 4-ounce sausage link can add to a dish, notes Gerike, who adds that drycured<br />

sausage is all the rage in fine dining today.<br />

"You can transform sausage into any authentic ethnic flavor you want, from mild Italian<br />

sausage to spicy chorizo to robust bratwurst. Not only does sausage deliver an exceptional<br />

flavor experience, but it offers a great value proposition, too. It's no wonder why<br />

sausage has become a top food trend in 2011."<br />

Source: Johnson, Pamela. "Sausage Tops Food Trends for 2011." Pork Leader (Pork Checkoff) 31 (20 Jan. 2011). Web.<br />

6


FEBRUARY<br />

2011<br />

These units hit their 3rd Quarter targets. The target numbers they had to reach were:<br />

Total Born: 13.0<br />

Pre-Weaning Mortality: < 11.0%<br />

GRANDPARENT<br />

Grandparent:<br />

Total Born: 13.1<br />

HIDDEN HOLLOW<br />

Hidden Hollow:<br />

Total Born: 13.5<br />

OAK GROVE<br />

Oak Grove:<br />

Pre-Weaning Mortality: 10.5%<br />

Sandy Ridge<br />

Village central/highway hogs<br />

Sandy Ridge:<br />

Total Born: 13.3<br />

VC/HWH:<br />

Total Born: 13.2<br />

7


4 bone-in center loin pork chops, about 3/4-inch thick<br />

1/2 cup flour<br />

1 teaspoon dried thyme<br />

1 teaspoon freshly ground black pepper<br />

1/2 teaspoon salt<br />

1 1/2 tablespoons olive oil<br />

Pear Glaze:<br />

Pan-Seared Chops with Pear and Soy-Ginger Glaze<br />

1/3 cup pear nectar, plus 2 tablespoons<br />

1/2 cup brown sugar, packed<br />

3 tablespoons soy sauce<br />

2 tablespoons unseasoned rice vinegar<br />

1 tablespoon fresh ginger root, grated<br />

1/4 teaspoon cayenne<br />

4 firm but ripe Anjour pears, peeled, halved lengthwise, cored, and cut into 1/2-inch wedges<br />

2 teaspoons cornstarch<br />

Directions: To make glaze, bring pear nectar to simmer in large, non-stick skillet over medium-high heat. Add sugar, soy sauce, vinegar,<br />

ginger root, and cayenne. Stir until sugar is dissolved and sauce begins to simmer. Add pears and stir to coat. Cook, basting pears<br />

frequently, until pears are barely tender, 4 minutes. Mix remaining 2 tablespoons of pear nectar with cornstarch and stir into pear<br />

mixture. Simmer until sauce thickens slightly. Transfer to bowl and set aside. Wipe out skillet.<br />

Combine flour, thyme, pepper, and salt on plate. Dredge chops in flour mixture, coating all sides and shaking off excess.<br />

Using same pan, heat olive oil over medium-high heat and swirl to coat pan. Add pork chops and brown on each side, turning once,<br />

about 4 minutes per side. Turn heat to low and pour pear mixture over top, cover, and cook until chops and internal temperature on<br />

a thermometer reads 160 degrees F and pears are tender, about 5 minutes. Serve immediately.<br />

Serves 4.<br />

FEBRUARY<br />

2011<br />

Prep Time: 15 mins.<br />

Cook Time: 10 mins.<br />

* Recip e co ur t esy o f<br />

w w w .t h eo t h er w h it em eat .co m<br />

Wouldn’t You Know…<br />

The scientific name for a domestic pig is Sus scrofa domesticus.<br />

Words like pig, cow, sheep, and calf come from the Anglo-Saxon or Old English language. After the Norman conquest<br />

of England in 1066, the wealthy French-speaking landowners called these animals by their French names when they ate<br />

them, giving us the words pork, beef, mutton and veal. The Anglo-Saxons, however, continued to call the animals by<br />

their original names, so we have both sets of words.<br />

At any time, there are probably about 850 million pigs in the world.<br />

If a pig were to stand up tall on its hind two legs, its heart would be in the same place that your heart is when you stand<br />

up tall.<br />

Source: http://www.docstoc.com/docs/10577008/Interesting-Facts-About-Pigs<br />

8

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