Article courtesy of the Las Cruces Bulletin
By Samantha Roberts
As 2011 comes to a close, businesses are rushing to make end-of-the-year deadlines, including renewable energy certificates (REC) for solar that will change in 2012.
F&A Dairy Products will be expanding its solar systems, adding four 100kilowatt units to the existing unit the dairy installed in May. “The four additional units will fuel different parts of the complex and will be located next to the existing unit,” said Bob Snyder, vice president of New Mexico operations for F&A Dairy. Snyder said the dairy decided to add the additional solar now, so it could take advantage of incentives that will expire in 2011.
“RECs are at a peak right now,” said Mellow Honek, a managing member of Sunspot Solar Energy Systems, which installed the panels at the dairy. “They are great right now, but they will still be good next year. The incentives are not going away, but will be changing. “I would definitely recommend other people (add solar). It’s a step in the right direction toward energy independence. And we have an abundance of sunshine here.”
“We thought if we were going to do it, it better be this year,” Snyder said. “The panels significantly offset the energy we use. “Solar does create enough energy to make a difference.”
Though the dairy uses too much energy to be entirely generated by solar, Snyder said the panels will help “take out some of the peaks.” “This is just to offset costs,” he said. “A dairy is a big place, and we use a lot of utilities to process the milk into cheese.”
Honek said the amount of solar the dairy will have after construction on the additional panels is completed in March 2012 will be equivalent to 100 solar systems on mid-sizes houses. “To my knowledge, the one 100-kilowatt unit the dairy has now is the largest commercial system on a privately owned building in New Mexico,” Honek said. “The system after everything is completed will be five times that size.”
Honek said installing all of the panels will take about 1,300 man hours. “The dairy has been a great customer, and they are a perfect example of a company that is making an investment in a major resource we have here,” Honek said. “Powering a portion of their plant using solar shows what is possible for businesses to do to reduce long-term energy costs.”
The dairy doubled in size a little more than one year ago and now employs about 140 people. “We are constantly making changes,” Snyder said. “Our goal is to get both plants running to full capacity.”
F&A Dairy distributes its products to Toucan Market and other distributors. Locally, Dion’s Pizza is a purchaser of F&A Dairy products.
The Future of Dairy in New Mexico
F&A Dairy is one example of growth the dairy industry in New Mexico has seen over the past few years. “Southern New Mexico is a major player in the dairy market,” said Jeff Witte, director/ secretary for the New Mexico Department of Agriculture (NMDA).
“Southern New Mexico dairies have an abundant milk supply,” Snyder said. “Farmers are leaving California and coming to New Mexico and the Texas panhandle.”
Milk production in New Mexico averages more than 600 million pounds per month, according to the NMDA. New Mexico currently has 173 dairy farms, with a large number of them in eastern New Mexico. There are 20 processing plants in the state.
“Dairy in New Mexico saw growth in the eastern portion of the state from 2008 to ’09,” said Robert Hagevoort, extension dairy specialist with New Mexico State University. Hagevoort said cheese plants in Clovis, N.M., and Dalhart, Texas, spurred this growth. “There are benefits in New Mexico for the dairy industry,” Hagevoort said. “There is a lot of agriculture in New Mexico, so farms can grow the feed that dairies need, and they, in turn, can supply the farms with fertilizer. “There is a natural free flow from each one.”
Hagevoort said dairies also use marginal farmland so they don’t compete with other crops. However, dairies are struggling with drought conditions, high feed costs and corn prices that are increased from ethanol demands. “Depending on world economy, the future of dairy in New Mexico is still great,” he said. “It all depends on larger economic factors beyond our control. Linking energy to food policies doesn’t make any sense.”
