1. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Steven J. Sievert Technical Director, National DHIA/DHIA Services Manager, Quality Certification Services Inc.

2. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Overview of Herd Testing in the U.S. Meter Center Field Service Provider Dairy Farm AIPL DRPC Laboratory Consultants, Vets & Nutritionists AI Organizations Breed Associations Interbull 2

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11. Sievert, 2008 ICAR, DHI Manager’s Session, 11 Quality Certification in the United States  Program is user-driven Guidelines developed by service providers Review and recommendation by Audit Review Committee Approval by Council on Dairy Cattle Breeding (Records Providers, Breed Associations and A.I. Organizations)  Administered by Quality Certification Services, Inc. Specific auditors for each service area Serve as compliance auditor and educational resource

12. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Quality Certification in the United States  Two views on the certification process… Certification is a business requirement Certification is an asset to our business The difference is subtle and rooted in leadership and/or management at the provider level Our Mission Provide a reliable source of information to people interested in the U.S. dairy records industry

13. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Scope of QCS  27 Field Service affiliates working with: 3,007 Field Technicians (including 284 Dependent Service Providers) 47 Meter Centers and 89 Meter Technicians 103,165 Certified Portable Meters 66,127 Certified Electronic Meters 47 Laboratories analyzing an average of 4.73 million milk samples monthly 4 Dairy Records Processing Centers processing cow data  QCS interaction with CDCB, ARC, FSAC, LAC, ICAR, AIPL, NAAB, PDCA, USAHA, and industry partners. 13

14. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Assuring Data Accuracy is the Role of QCS Meter Center Field Service Provider Dairy Farm AIPL DRPC Laboratory Consultants, Vets & Nutritionists AI Organizations Breed Associations Interbull 14

15. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Is There a Difference between Certified Providers?  No…. All certified providers meet the minimum standards or guidelines for their service area Assurance of the accuracy of data throughout the system  And Yes… Providers operate in a competitive marketplace Invest in employees Offer service-driven programs and services Exceed the minimum standards in each compliance area Market their people and organization effectively

16. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Who are the Field Service Providers? 16

17. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Wide range of ownership or management Private testing businesses Federated associations Vertically integrated organizations Non-profit organizations and for-profit businesses Working with 3,007 Field Technicians Employee Field Technicians Employees of County Testing Organizations Independent Milk Testers/Testing Organizations 27 Field Service Providers serving the U.S. 17

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19. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Snapshot of the U.S. Milk Recording Providers All DHI Providers Working with…  4.4 million cows in 23,005 herds  10,412 to 784,214 cows  8 to 4,425 herds  3,007 field technicians  103,165 portable meters  66,127 electronic meters Top Quartile (n=7) Working with…  Herds of all sizes/all geographic locations  110,000 to 559,685 cows  145 to 4,425 herds  15 to 196 technicians  930 to 10,814 portable meters  72 to 3,987 electronic meters

20. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Certification of Field Service Providers  Guidelines developed by DHI Managers  Certification program administered by QCS  Annual Certification – alternating on- and off-site  Education resource for all providers Annual Certification Initial Training of Field Techs Continuing Education Of Field Technicians Calibration of Portable Meters Calibration of Electronic Meters Calibration of Scales Comparison of Test Day and Milk Shipped Data Verification of Member Service Agreements 20

21. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Member Service Agreements Education of dairymen with respect to Code of Ethics, Release and Use of Records, and Uniform Operating Procedures Includes Herd Code, Owner, Date and Signatures from Dairy and Field Service Affiliate Every dairy needs to have one on file to submit data to the GEP (AIPL) – receive young sire incentives, animal PTA’s, breed recognition programs 21

22. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Monitoring Test Day/Milk Shipped Deviations ◦ Average test day weight is 103% of bulk tank ◦ Investigate if 110% ◦ Common sources of variation include  Hospital milk not in bulk tank  Large calf milk usage  Irregular milk pickups by plant  Two herds (herd codes) in one bulk tank ◦ Sales and Service Opportunity? Yes! 22

23. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Performance of Electronic Milk Meters ◦ Must be ICAR approved model (i.e. Boumatic Perfection) ◦ Annual evaluation by:  Water Calibration Test  Parlor Performance Report  EMMR from PC Dart  Parlor Report from Dairy Comp 305  Metatron Report from DairyPlan (GEA) ◦ Need to identify the make, model & number 23

24. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 << PRE CALIBRATION POST >> CALIBRATION 24

25. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Is There is Difference? Electronic Meter Calibration The Minimum Standard… Annual calibration or statistical review of each electronic meter The Goal…  Ensure that accurate data is being sent to the dairy records processing center from dairies using daily meters The Top Quartile… Calibration of meters one to twelve (monthly) times per year Going the extra mile…  Meters are periodically out of spec  Sales and service opportunity for provider  Maximizing the performance of the dairy’s investment

26. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Annual Continuing Education Requirement  Calibrate your Portable Meters Annually  Proper Sample Collection and Handling  Support for Field Service Affiliate ◦ Conduit from the dairy to field service affiliate ◦ Collection of MSA, EMM, BT documentation ◦ Ensure dairy gets value from records 26

27. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Is There is Difference? Field Technician Training The Minimum Standard… On-farm training with 3 herds The Goal…  Provide new technicians with hands-on training of meters, sampling and data entry/handling The Top Quartile… On-farm training with 7-20 herds Going the extra mile…  Technicians are ‘farm- ready’ and exposed to a variety of milking systems and designs  Meet the expectations of today’s dairies

28. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Is There is Difference? Field Technician Training The Minimum Standard… Annual continuing education meeting for all technicians The Goal…  Educational forum for updates to policies, procedures, and technology changes The Top Quartile… Field technician training 2x to 12x per year Going the extra mile…  Employees are part of team and provided with tools for success  Balanced approach of training, support, and marketing  The field force is the ‘front line’ of sales

29. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Field Technician does not show up on time  Field Technician appearance/behavior is not professional  Meters do not operate properly  Meters are dirty  Meters are old (or appear to be old)  Field Technician is not mixing samples properly  Sample ID accuracy  Data entry errors/handling  Data turn-around time Bottom Line – the little things matter… 29

30. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 What are the Meter Centers? 30

31. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Calibrates the portable meters used in the field using approved procedures  Maintenance and repair of meters  Continued training of meter technicians  Timely reporting of calibration results to Field Service Affiliate 31

32. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Calibration of Meters a Priority 45 Certified Meter Centers in the U.S.A. 89 Certified Meter Technicians Meters must be calibrated every 12 months (not 14) Uniform Calibration and Performance Guidelines Meter Center Audits Every 2 Years Portable & Stationary Calibration Centers Meter Technician Audits Every 2 Years Maintenance/Calibration Meter Technician Training Required Every 5 Years Manufacturer Supported 32

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34. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Is There is Difference? Portable Meter Calibration The Minimum Standard… Calibrate each portable meter annually at a certified meter center The Goal…  Ensure that each meter is calibrated and providing accurate estimate of milk production The Top Quartile… Calibration of meters one to four times each year Going the extra mile…  Meters are ‘in-service’ 300 to 400 hours per month  Identified the need to inspect/repair/calibrate these meters more frequent basis  The ‘oil change’ theory

35. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 The Responsibility of Laboratories 35

36. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 47 DHI Laboratories in the U.S. and Mexico Varying business structures County DHI laboratories Privately held laboratories Labs operating as part of integrated field service provider Offering varying services DHI component testing only Analysis of DHI and payment samples MUN testing (31 labs) ELISA testing of milk samples (11 labs) PCR and/or Microbiology services 36

37. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 47 DHI Laboratories in the U.S. and Mexico Sample analysis includes 4.73 million milk samples monthly (2-year mean) Smallest lab analyzes 8,000 samples per month Largest lab analyzes 464,000 samples per month Two Components of Certification Biennial On-Site Audit Monthly Samples Unknown Analysis 37

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39. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Samples Unknown Lab Certification Report Lab within Guidelines 39

40. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Samples Unknown Lab Certification Report Lab out of Compliance 40

41. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Samples Unknown Lab Comparison Report Allows a lab to compare their lab with other program participants Only know their identity – do not know who the other labs are Identify trends, see all the instruments at once Marketing tool? 41

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43. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Shows performance of all participating laboratories  Only know your performance - TEXASDHIA 43

44. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Dairy Records Processing Centers (DRPC) 44

45. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 Four Records Processing Centers in the U.S. Process monthly DHI data for herds on both Official and Management Programs Provide technical training for field service providers and field technicians Two Components of Certification Annual Off- Site Audit Monthly Test Herd Processing Handling the Data 45

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49. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 The difference is the management team – not the program  The QC program is the fundamental basis Independent (3 rd party) audit of compliance Provides the (part of the) framework for the field service activities of recording providers Resource for the recording provider  The management team … Recognizes the importance of compliance areas Integrates QC into day-to-day service activities Invests time and capital in people and programs Markets and positions their organization

50. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010  Accuracy and reliability of data  Levels the playing field for all providers  Independent of size, structure or geographic location  Dairies, Studs, Breed Associations, etc. all trust us to do the job right  Quality data at the dairy level to make educated management decisions 50

51. HERD TESTING IN THE US AND THE ROLE OF QC– SIEVERT 2010 A simple, yet vital mission…. Providing a reliable source of information to people interested in the U.S. dairy records industry. Performance & Quality Standards Compliance Auditing of Providers Education, Training, & Development 51