HB 22-SHARED ANIMAL AND RAW MILK/PRODUCTS  1:03:52 PM CHAIR PATKOTAK announced that the first order of business would be HOUSE BILL NO. 22, "An Act relating to shared animal ownership; and relating to the sharing and sale of raw milk and raw milk products." 1:04:13 PM REPRESENTATIVE GERAN TARR, Alaska State Legislature, as prime sponsor, presented a PowerPoint on HB 22 [hard copy included in committee packet]. She began the presentation by paraphrasing slide 2, "Food Security in Alaska - Today," which read as follows [original punctuation provided]: Alaska is food insecure 95% of food is imported from outside Alaska can produce more 67% of farmers surveyed by Division of Agriculture would produce more if they had more market options $5 challenge Would generate $188 million for our economy REPRESENTATIVE TARR then paraphrased slide 3, "Food Security in Alaska - Historically," which read as follows [original punctuation provided]: At statehood in 1959 525 farms Produced 49% of agricultural products Dairy farming goes back to at least 1867 Dairy farms across the state from McGrath to Nome to Kodiak to Mat-Su REPRESENTATIVE TARR explained slide 4, "Food Security in Alaska - Milk," which read as follows [original punctuation provided]: Only two certified dairy farms in Alaska Havemeister Dairy in Palmer In business since 1935 Baptist Mission Heritage Farm in Kodiak Certified as a grade A dairy in 2019 Alaska can produce more Operations in Kodiak and Delta Junction close to coming on line REPRESENTATIVE TARR paraphrased slides 5 and 6, both titled "Herd Shares," which read as follows [original punctuation provided]: Allowed by regulation 18 AAC 32.010 requires contractual relationship 18 AAC 32.010. Purpose and applicability of 18 AAC  32.010 - 18 AAC 32.060. (a) The purpose of 18 AAC 32.010 - 18 AAC 32.060 is to safeguard public health and safety by ensuring that milk and milk products from a cow, goat, or sheep, that are to be sold as part of commerce and intended for human consumption, are manufactured, sold, and delivered in a safe and wholesome condition. (b) The provisions of 18 AAC 32.010 - 18 AAC 32.060 apply to (1) each milk producer, each wholesale milk distributor, and each owner or operator of a milk processing plant, receiving station, or transfer station whose milk or milk products are to be sold as part of commerce and are intended for human consumption; (2) each milk hauler who (A) collects, for the milk producer, milk processing plant, or the department, samples of raw milk for pasteurization or for bacterial, chemical, temperature standards, or compliance testing; or (B) hauls milk from a milk producer or other milk distributor to a milk processing plant, receiving station, or transfer station; and (3) a processor of a milk product. (c) The provisions of 18 AAC 32.010 - 18 AAC 32.060 do not apply to a person who owns a cow, goat, or sheep and uses the milk from the animal for that person's personal use. (Eff. 5/23/98, Register 146) REPRESENTATIVE TARR finished her PowerPoint presentation with slide 7, "House Bill 22 - 2 things," which read as follows [original punctuation provided]: Puts herd share program in statute Strengthens program by putting in statute Allows producers to offer value added products to customers in herd share program Butter, ice cream, cheese Opportunity for farmer to produce additional products to support farm Opportunity for consumer to purchase more goods at one place REPRESENTATIVE TARR explained that the existence of herd shares would mean better business opportunities for farmers because farming is very capital-intensive. With herd sharing it's possible for a farmer to start small and grow as they build products and a customer base. She pointed out possible safety concerns addressed by the Department of Environmental Conservation (DEC) and noted a relevant part of the Sectional Analysis, which read as follows [original punctuation provided]: "In addition, Section 17.20.015 prohibits the Department of Environmental Conservation from adding restrictions and additional requirements on the sharing or transfer of raw milk between owners of a milk-producing animal." She also noted that HB 22 contains language defining "raw milk." 1:10:51 PM REPRESENTATIVE FIELDS asked why the raw milk provision in SB 22 is necessary. REPRESENTATIVE TARR explained that a farmer may start herd sharing with an investment of a few thousand dollars, whereas starting a Grade A dairy operation would require millions of dollars. REPRESENTATIVE FIELDS said that it sounds as if the smaller owners don't have access to pasteurization. REPRESENTATIVE TARR replied, "That is true." 1:13:46 PM SUZY CROSBY, Owner, Cottonwood Creek Farm, testified in support of HB 22 by presenting a PowerPoint [hard copy included in committee packet], titled "Managing A Goat Herd Share Operation in Alaska." She presented slide 2, titled "Why Goats?", which read as follows [original punctuation provided]: Ease of handling ? Digestibility of goat milk ? Minimal infrastructure ? Simple cleanup ? "Missing link" MS. CROSBY paraphrased slide 3, "Why Herd Share?", which read as follows [original punctuation provided]: ? Goats can help "pay their way" ? Connecting consumers with producers ? "Loca-vores" ? Freedom of choice ? Food security! MS. CROSBY presented slide 4, titled "Remember food insecurity (Mar. 2020)?", which showed a picture of empty dairy cases in a grocery store. She then showed slide 5, "What Herd Share is:", showing a picture of a refrigerator full of dairy products which she took for comparison immediately after seeing the empty dairy cases. Slide 5 read as follows [original punctuation provided]: ? Legal in Alaska ? http://dec.alaska.gov/eh/docs/vet/Dairy/RawMilkShare sAKFactsheet.pdf ? Currently restricted to fluid milk only ? Sustainable CSA ? Scheduled pickup ? Commitment ? Know your farmer! MS. CROSBY presented slide 6, "What Herd Share is not:", which read as follows [original punctuation provided]: ? Not the grocery store! ? Not *selling* milk ? Not making cheese or other products? Yet! ? HB 22 would allow value-added products within the definition of the herd share relationship. MS. CROSBY then paraphrased slides 7, 8, and 9, all outlining safety and sanitation, which read as follows [original punctuation provided]: Safety & Sanitation: Part 1 Milking location Wash your hands! ? Pre-milking spray ? Hand or machine? ? Final strip ? Post-milking dip Safety & Sanitation: Part 2 ? Wash hands! ? A "sharp dividing line" ? Filtering milk ? Rapid chilling ? Cold storage Safety & Sanitation: Part 3 Record keeping-- which goat's milk? ? Educating the share owners ? Jar care MS. CROSBY then presented slides 10, 11, and 12, which showed pictures of milk products, and which read [original punctuation provided]: "HB 22 would allow value-added products -- like Queso Fresco? Or feta with sundried tomatoes? ?Or chevre?to be a legal component of a herd share agreement." She moved on to paraphrase slide 13, "Benefits of HB 22 to consumers:", which read as follows [original punctuation provided]: ? Freedom to make food choices without restriction ? Having a variety of dairy options besides milk ? Access to digestible products for those intolerant to commercial dairy ? Many consumers prefer ready-made vs. DIY ? Growing preference for unique locally made/artisan food MS. CROSBY paraphrased slide 14, "Benefits of HB 22 to producers:", which read as follows [original punctuation provided]: ? Allows for best usage of seasonal surplus milk ? Farmer can buy more hay per gallon of milk (goats eat even during their dry period!) ? Specialty products would still be available in winter even when fluid milk production drops MS. CROSBY presented slide 15, "HB 22 would offer benefits overall:", which read as follows [original punctuation provided]: ? Help strengthen Alaska's fragile food system ? Help prevent food waste ? Expand Alaskan agriculture by offering a new business opportunity for farmers 1:27:26 PM REPRESENTATIVE MCKAY noted Ms. Crosby's assertion that "man could not survive on Twinkies." MS. CROSBY said that the more nutritious a food is, the higher the likelihood of bacteria. REPRESENTATIVE MCKAY commented that he lived for four years in Norway where goat products were very popular. 1:29:58 PM AMY SEITZ, Executive Director, Alaska Farm Bureau, presented a PowerPoint [hard copy included in committee packet] titled "HB 22 Expanding Alaska's Dairy Industry." She said that HB 22 is important for increasing agriculture and local food access, as well as for the economic benefits. She said that, while agriculture in Alaska is growing, there is opportunity for more contribution, which would grow the economic benefits and increase food security. She said that 50 percent of food consumed in Alaska used to be grown locally; that number is now 5 percent. She explained that shipping delays, strikes, and worldwide pandemics affect the ability to import food into the state. "If every Alaskan spent $5 a week buying Alaska-grown," she said, "it would have a $188 million impact on our economy." She noted that there is not enough production in the state for all residents to spend $5 per week, so removing barriers to production is important. 1:34:22 PM MS. SEITZ presented slide 5, which contained quotes regarding COVID-19 impacts on the food supply chain and read as follows [original punctuation provided]: "it has been seen that COVID - 19 has an impact on the whole process [food supply chain] from the field to the consumer" - Oxford Academic, Impacts of Covid - 19 on the food supply chain " With the coronavirus pandemic, we're facing a crisis the likes of which none of us has experienced before. Times like these remind us all of the importance of ensuring our nation's food security, and we want to assure Americans that agriculture remains on call 24/7." -Zippy Duvall, President American Farm Bureau Federation "The food supply chain is breaking," -John Tyson, Tyson Foods Chairman MS. SEITZ said that with only two Grade A certified dairies in Alaska, most of the dairy operations in the state are part of a herd share program. She explained that Alaska would need 28 million pounds to constitute a 90-day supply of milk, but current production is at 3.5 million pounds. She said that HB 22 would increase economic opportunities for farms as well as choices for consumers. 1:38:42 PM AMY PETTIT, Executive Director, Alaska Farmland Trust, presented a PowerPoint on HB 22 [hard copy included in committee packet]. She explained that the Alaska Farmland Trust aims to protect agricultural areas, promote Alaska's agricultural industry, and educate the public on the industry. She said that the United States Department of Agriculture (USDA) conducts a Census of Agriculture every five years, and the most recent census shows that farms have decreased by 3 percent in the contiguous U.S., but have increased by 30 percent in Alaska, with Alaska leading the nation in the number of new farmers. She said that the number of small farms in Alaska has increased by 73 percent, and that 47 percent of farmers in Alaska are women. She said that the value of food sold directly to consumers increased from $2.2 million in 2012 to $4.5 million in 2017. She characterized HB 22 as being about improving access, removing barriers, developing economies, and expanding production, and that the investment in the next generation of farmers that could be made possible by HB 22 would benefit the state. 1:46:33 PM CHAIR PATKOTAK opened public testimony on HB 22. 1:47:28 PM MARLENE WENGER testified in support of HB 22. She said that she and her husband started the Copper River Valley Chapter of the Alaska Farm Bureau 20 years ago, and that in their own store they carry as many Alaska-grown products as possible. She noted that during the COVID-19 pandemic the store had run out of imported items, but not those which had been locally-produced. 1:49:08 PM DONNA CELIA testified in support of HB 22. She said that she is a herd share member at Cottonwood Creek Farm, having learned farming as a child. She described watching the farming industry in Oregon die, then slowly be replaced by the organic movement. She expressed appreciation for farming culture and noted the popularity of farmers markets in Alaska. 1:51:20 PM CHAIR PATKOTAK, after ascertaining that no one else wished to testify, closed public testimony on HB 22. He then announced that HB 22 was held over.