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CELEBRATING OUR LOCAL
DAIRY INDUSTRY
A Special Supplement to the West Side Index & Gustine Press-Standard
Thursday, June 18, 2020
2 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
Prices plunge during pandemic; but recovery may be emerging
California dairy producers
enjoyed a solid 2019
after suffering through a
four-year downturn in the
prices they were paid for
their milk and carried optimism
into 2020.
Then came the novel
coronavirus and a pandemic
which upended life in nation’s
around the world.
Shock waves from the
pandemic rolled through
the economy as a whole and
the dairy industry was not
spared as milk prices paid
to producers plunged in the
face of the crisis.
But, as unexpectedly as
the pandemic itself, milk
prices appeared to be significantly
on the way to recovery
as May gave way to
June, according to one industry
economist.
“What is fascinating is
that in the last week or so I
have seen an unprecedented
rally in the market,” Annie
AcMoody, director of economic
analysis for Western
United Dairymen, told Mattos
Newspapers in a June
5 interview. “The block
cheese prices set a new record
high price, something
that we have never seen.
We went from borderline
catastrophe to June prices
approaching record highs
in some commodities, mostly
cheese. In California, a
lot of our production goes
to cheese, so it is a big deal
for our producers.”
AcMoody said she anticipates
prices paid to producers
for June jumping to
the $18 per hundredweight
range - or about where the
prices stood back in the
pre-COVID days of February.
In the interim, she said,
prices fell to around $17 in
March, plummeted to $14 in
April and slipped further to
$13 in May.
“That is a huge jump,”
AcMoody stated, adding the
cautionary note that prices
may slip somewhat in July.
“I think $18 is kind of a
See ECONOMY | PAGE 3
Prices paid to dairy producers plunged with the emergence of the novel coronavirus pandemic, but indications of a recovery are cause for at least
cautious optimism in the industry.
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ECONOMY
CONTINUED FROM PAGE 2
ceiling considering the issues
we have in the economy,”
she stated.
AcMoody acknowledged,
though, that while she is
“cautiously optimistic”
about the remainder of 2020
a number of unknowns remain.
“If there is another lockdown
in the fall, we could
see the same thing again,”
she said of the pandemic
impact on the dairy industry.
AcMoody said that the
pandemic-related drop in
milk prices could be attributed
primarily to widespread
restaurant closures.
About 50 percent of the
domestic cheese demand
and 45 percent of demand
for butter is generated by
the food service sector, Ac-
Moody told Mattos Newspapers.
“The product to restaurants
no longer had a place
to go,” she explained. “Retail
sales increased, but
not enough to make up for
the loss of restaurants.
Some commodities (such
as cheese) are more dependent
on food service than
retail.”
On the production side,
AcMoody said, plants are
tailored for very specific
products and were unable
to quickly pivot to another
product to meet shifting
demand.
The pizza industry was
the exception to the COV-
ID-19 restaurant impacts,
she noted.
“They were already set
up for delivery and takeout,”
AcMoody said. “Some
pizza chains recorded their
highest sales month in history.”
That was to the benefit of
California producers, she
noted, because the state
is the largest producer of
mozzarella cheese.
AcMoody said that prices
to producers in the $17-$18
range is roughly a tipping
point for producers.
“They can make it at that
level. It is more sustainable,”
she commented. “If
you go under that for a long
period of time you are going
to have some people
with problems.”
Commodity prices for
feed supplies needed by
dairy producers also trended
downward when the pandemic
hit, AcMoody pointed
out.
“I haven’t heard that they
are going back up like the
milk prices are,” she said.
“We could get a little bit of
a break there.”
Early on, AcMoody said,
2020 was looking like a
strong year for dairy producers.
Prices had reached nearly
$20 per hundredweight
at year’s end - the highest
level since a record-setting
2014 when milk prices
topped $22.
“It was pretty slow
growth, but it progressively
kept improving until the
end of 2019. If softened a
little bit in early 2020, but
it was still a good start to
the year that stemmed from
the improvement (in 2019),”
AcMoody said. “Things
were going as they were
expected to go.....and then
they didn’t.”
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4 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
Toste family dairy emphasizes production, efficiency
NEWMAN - A family
dairy which moved to its
current Santa Fe Grade
Road facility more than 20
years ago has seen steady
growth and gains.
Today, the dairy of John
and Sandra Toste milks
1,350 cows twice a day - a
far cry from the 49-cow
dairy which represented
John’s entry into the business
in the late 1980s.
“You worked hard, but
at the end of the month
you saw a profit that you
could invest back into your
business,” he said of his
start in the business during
a 2011 interview with
Mattos Newspapers.
When the Tostes married
in 1994, John had a
300-cow dairy in the Crows
Landing area. When that
number grew to 500 cows
in 1999, it was time to
search for a new home -
and the Tostes made the
move to their current facilities.
Through the years they
have improved and expanded
the facilities, and
added land to support the
growing herd.
That herd expanded well
beyond what the Tostes
had envisioned.
“When we moved to this
place there was capacity
for 800 cows,” John recalled.
“I remember saying,
‘when are we ever going
to fill this place up?’
This is far beyond my expectations.”
Along the way, they
raised their three children
- Makayla, Adriana
and John Jr. - all of whom
share their parents’ passion
for the dairy industry.
Makayla is currently
working in a USDA position,
Adriana will be a
senior at Oklahoma State
University (and is on the
school’s dairy judging
team) and John Jr., who
recently graduated Gustine
High, plans to study
dairy science at Modesto
Junior College and come
back to the family dairy.
In their years as dairy
producers, the Tostes have
experienced the highs and
lows of the industry, ranging
from the devastating
collapse of milk prices in
2009 to the record highs of
2014.
Sound management,
with a premium placed on
production and efficiency,
has helped the family
dairy weather the downturns
and maximize returns
during better times.
“We have always been
conservative and efficient.
That is what gets
us through this,” John reflected.
“When times are
good, you have to save for
See TOSTE | PAGE 5
Dairy has been a family lifestyle for the Tostes of rural Newman. John and Sandra Toste are pictured with their children, from left, Makayla,
John Jr. and Adriana - all of whom share their parents’ passion for the dairy industry.
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TOSTE
CONTINUED FROM PAGE 4
the bad times.”
A variety of improvements
have translated into
greater production over
the years.
John said that, daily production
of seven to seven
and one-half gallons of
milk per cow was considered
strong. Now, he said,
production runs nine gallons
per day.
Genetics, cow comfort
and nutrition are all key
factors, John shared.
“If you want to maximize
production, especially in
the times that we have
gone through, cow comfort
is a key,” he said. Installing
soakers seven or eight
years ago was a significant
improvement in cow comfort,
John added. The temperature
regulated soakers
run more frequently as
the mercury rises, helping
keep the cows cool.
During extended periods
of hot weather, John
said, daily production
could drop by a gallon of
milk or more without such
measures. As it is, production
suffers somewhat
during hot weather but
keeping cows as comfortable
as possible minimizes
the loss.
Genetics are another
key consideration.
“You want to breed for
production, but still have
positive fat content in
that cow’s milk (to bring
a higher price),” John explained.
John Jr. selects the bulls
used in the dairy’s breeding
program. He said he
considers a variety of factors,
including production,
daughter pregnancy rate
and structure.
“I look for results from
the daughter. If they continue
to do well for us, we
continue to use them. If
not, we like to switch it up
a little,” he stated.
Technology has put a
wealth of information at
the fingertips of dairy producers,
John added, allowing
them to more efficiently
manage each animal.
Twenty years ago, information
for each cow was
recorded on a card. Today,
a computer program contains
information ranging
from production and fat
content to number of lactations
and health for each
animal.
That also allows for
ready comparisons from
one generation of cow to
the next.
“If you are doing things
right, the daughter should
be better than the mother
See TOSTE | PAGE 6
John Toste Jr.
and his father,
John Toste, are
pictured on the
family’s Santa Fe
Grade Road dairy.
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6 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
TOSTE
CONTINUED FROM PAGE 5
in terms of production,”
John stated.
For all the technology,
however, dairy producers
must also simply know
their animals.
“You still have to be
a cow man, at the end of
the day. You have to have
a passion for the cattle,”
said John. “Sometimes you
don’t have to look at a computer
to tell when a cow is
not being productive for
you.”
The Tostes increase
their efficiency by growing
about half of the corn
and wheat needed on the
dairy.
“We have purchased
more ground here in the
last couple of years that
was next to ours,” John
said.
Nine employees help the
Toste family operate the
dairy.
While John and John Jr.
oversee the operation in
the barns and fields, Sandra
manages the accounting,
compliance reports
and vast paperwork that
goes with running a modern
dairy.
Despite the ups and
downs, the work and commitment
involved, the
Tostes embrace dairy and
the family lifestyle it has
provided.
“You may have had a
long day, but you have
your son next to you the
whole time, that makes
you want to go forward,”
John said. “We’re all working
for the same thing.
That makes it all worth it.”
“You have to love it,”
Sandra said of being a
dairy family.
John said he is comfortable
with the current herd
size but nonetheless has
been going through the
process of being permitted
to grow larger.
“That is for the next
generation,” he explained.
“If they want to grow, they
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John Toste Jr., a 2020 graduate of Gustine High, plans to attend Modesto Junior College and join his parents on the family dairy.
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THURSDAY, JUNE 18, 2020 CELEBRATING OUR LOCAL DAIRY INDUSTRY | 7
Dairy upbringing helped shape goals for Toste sisters
Makayla working
for USDA; Adriana
on Oklahoma State
judging team
NEWMAN - Sisters
Makayla and Adriana
Toste grew up on a West
Side dairy, with a passion
for the industry further instilled
through their competition
in livestock show
rings and as part of dairy
judging teams through
Gustine FFA and Newman
4-H.
Those roots have continued
to influence their path
in college - and in Makayla’s
case beyond.
Today Makayla is working
for the USDA’s Merced/Mariposa
Farm Service
Agency, helping administer
programs which
benefit the ag community,
including dairies.
Adriana, meanwhile, is
preparing for her senior
year at Oklahoma State,
where she is on the dairy
judging team and plans
a career in dairy-related
communications or marketing.
Makayla joined the
Farm Services Agency last
August, after she completed
a California Milk Advisory
Board internship in
Mexico.
Her current focus is on
helping producers qualify
for a new USDA food assistance
program, which
provides aid for those in
the ag community who
have been directly impacted
by the coronavirus
pandemic.
Dairy producers are
among those who qualify
for the program, Makayla
noted, not only for the impact
on milk but for the
row crops they grow.
Response to the program
has been overwhelming,
she said.
“We started sign-ups
on May 26, and we have
over 500 (farmers and
ranchers) signed up right
now,” Makayla told Mattos
Newspapers in early
June. “Four individuals,
including myself, have appointments
back to back
Makayla Toste, left, and Adriana Toste were each raised with a passion for the dairy industry. Makayla is currently working for the Merced/Mariposa Farm Service Agency, while Adriana
is entering her senior year at Oklahoma State, where she is a member of the dairy judging team.
for three months. Merced
County is very diverse
when it comes to the different
commodities. We
have been staying busy for
all of our producers.”
In her role, Makayla
said, she works with an
interested producer to
determine eligibility and
then helps them through
the application process.
The payments from the
newest program and others
which have provided
assistance to farmers may
not fully offset the loss to
producers, she reflected,
but represent a valuable
lifeline to farmers facing
tough times.
“Even if it is just a little
bit of money, it will help
with something,” she explained.
When not working on
assistance programs,
Makayla said, she is involved
in compiling crop
reports.
Working remotely during
the pandemic has been
facilitated by technology,
but difficult nonetheless.
“I can get the work
done. But we enjoy the
relationship that we have
with these producers. Not
having that interaction
with our producers can
make it a little hard. Not
everybody is tech-savvy,
because you have producers
of all generations,” she
pointed out. “We can’t wait
to get into the office and
be able to see our producers.
Her dairy background,
she reflected, has given
her a great understanding
of the challenges which
face those in the ag community
and instilled a passion
for the industry.
“If my parents had chosen
a different career path
and we were not in ag,
that would definitely have
changed my career path,”
Makayla stated. “Anyone
in the ag industry is passionate
about what they
do. They put in the hard
work because they enjoy
what they do. I enjoy what
I do because I am helping
someone.”
Adriana’s junior year at
Oklahoma State was cut
short by the coronavirus.
She is hoping, though,
that school - and the college
dairy judging season
- resumes in the fall.
Adriana said the Oklahoma
State team did compete
in one contest this
spring before the pandemic
struck.
The primary judging
season in college ranks is
in the fall, she noted, and
“right now that is up in the
air.”
She was on the dairy
judging team at Modesto
Junior College before going
to Oklahoma State.
While judging in the
college ranks is more
demanding than in high
school circles, Adriana
said, her positive experiences
at Gustine High set
the stage for collegiate
success.
Her coach and teammates
at Gustine High
gave her a strong foundation
in judging, Adriana
remarked.
“High school is where
you get that foundation,”
she said. “College is where
you put it to use.”
Both sisters envision a
dairy-related future.
And Adriana, like
Makayla, said their dairy
roots helped shape their
goals.
“We are all very thankful
that we have the dairy
background. For us, it really
instilled a passion for
agriculture,” Adriana reflected.
“We are all very
thankful that we had this
experience growing up. It
set the tone for what we
wanted to do in terms of
careers.”
8 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
GHS alum Nunes working in dairy genomics field
GUSTINE - A Gustine
High graduate who grew
up on a family dairy is now
involved in the genetics
side of the industry.
Lexie Nunes is currently
working as a genetic services
specialist for STgenetics.
She joined the company
on a part-time basis
while attending Ohio State
University, and transitioned
to full-time status
upon graduating in May
2019.
Nunes said she is involved
in the company’s
genomics testing program
- which is essentially a
bovine DNA evaluation
which provides predictive
information about
how a specific animal may
perform in terms of milk
production, breeding and
overall health.
Armed with that data,
Nunes said, dairy produc-
Lexie Nunes
of Gustine is
working in the
dairy genetics
field. She is
employed by
STgenetics.
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NUNES
CONTINUED FROM PAGE 8
ers can make better informed
management decisions
and create a more
accurate inventory of
their herd.
A genomics mating program
allows producers
to make more accurate
mating decisions, Nunes
noted, and also guides decisions
on which calves to
keep and raise into their
herd.
“Typically, when people
are starting out they will
want to test their breeding
age heifers,” she said. “After
that, people test their
calves when they are born.
That way they know which
ones they want to raise.”
A sound genetics program
is absolutely essential
to a successful program,
Nunes emphasized,
and genomics provide information
not previously
available.
You can have two cows
that look identical, but one
will produce more milk on
less feed. You can’t tell
that by looking at them,”
she explained. With genomics,
she said, “if you
have two heifers you can
figure which one is going
to make you money and
which one is not. You either
have a good cow or
you don’t. There is no gray
area.”
The ultimate goal, she
said, is to help producers
be more productive and efficient.
“We need to make our
cows produce more using
less resources,” Nunes
stated.
Nunes, who graduated
with a degree in ag communications
with a minor
in dairy science, said she
was planning a career in
marketing and communications
when the opportunity
to join the genetics
firm came about.
“I never saw myself doing
genetics. I ended up
really loving it,” she commented.
“I took a couple
of genetics courses in college,
but I am very much
a hands-on person. I didn’t
learn as much as I did
when I started this job.”
Nunes works with dairy
producers in California
and a number of other
western states.
Her own roots in the industry
give her valuable
perspective into the challenges
facing dairy producers.
“I’m a dairy farmer’s
daughter. I know that
dairymen in these tough
times are always looking
for the next step to make
them more profitable,”
Nunes remarked.
Nunes, a 2014 Gustine
High graduate, is the
daughter of Alfred and
Lucy Nunes.
Her involvement in
dairy judging took her
across the nation as a
member of teams from
Modesto Junior College
and Ohio State - where she
was president of the Buckeye
Dairy Club.
At Gustine High, Nunes
was part of the FFA team
that placed first in California
and second in the nation,
earning a trip to compete
at an international
show in Scotland.
“I have been around
cows my whole life,” she
said. “It was the dairy
judging that kind of led
me to the next phase of
my life.”
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THURSDAY, JUNE 18, 2020 CELEBRATING OUR LOCAL DAIRY INDUSTRY | 11
West Side dairy producers enact COVID-19 safeguards
West Side dairy producers
have enacted a variety
of precautionary measures
against coronavirus infection
in an effort to keep
employees and their families
safe.
From stepping up sanitation
protocols to encouraging
employees to stay
home when sick, dairies
are implementing many of
the same safeguards that
are being applied in workplaces
of all sorts.
Those measures often
include reminding employees
not to congregate
in time card areas or
break rooms - but the very
nature of the business is
such that employees are
most often not working
in close quarters with one
another, dairy producers
reported.
Dairy producers are
used to dealing with milk
price swings, production
costs beyond their control,
increased regulations and
more extensive compliance
report requirements.
And this year, they
found themselves dealing
with a pandemic.
“Our employees expressed
a lot of fear, as
did the rest of the world,”
said Tony Lopes, who is
the operations team leader
at the Tony L. Lopes Dairy
founded by his grandfather,
and is also involved
in the family’s P&D Dairy.
“They are concerned
about their families and
their households. We did
everything that we could
to make that that we were
not going to be a source
of any more concern for
them.”
Lopes said the importance
of hygiene was
stressed to employees,
and that restrooms, areas
where employees clock in
and out and other facilities
are routinely sanitized.
“Given the nature of
our operation, our breaks
and lunch times are pretty
staggered as it is. Our
system was already set up
to where they won’t all be
in the break room at the
same time,” he explained.
“For the majority of our
employees, with our work
being outdoors, social distancing
is not as much as
a challenge as you might
have in a meat packing
plant.”
Employees were also
reminded to follow recommended
guidelines.
“It was really just an
abundance of caution to
keep everybody protected,”
Lopes said.
The dairy also used its
suppliers to help secure
hard-to-find items such as
paper products and sanitation
products for its workers
and their families to
take that worry off their
shoulders. Workers were
also provided documentation
that they are essential
workers in the event that
they were stopped by law
enforcement.
“We felt we needed to
be pro-active about that to
ensure they felt comfortable,”
Lopes commented.
And, the importance of
staying home when sick
was emphasized.
“A lot of our guys have
the mantra that if we’re
sick we have to fight
through it. When this happened
we had to have a
talk with our guys, (telling
them) if you’re feeling under
the weather you need
to take responsibility for
that and stay home,” Lopes
told Mattos Newspapers.
When employees called
in sick, they were asked
not to return until they had
been tested for COVID-19.
“Everybody was willing
to do that,” said Lopes,
noting that no employees
tested positive.
Moonshine Dairy also
implemented a number
of protocols, said owners
Rich and Jacquie Dyt.
Centers for Disease Control
(CDC) guidelines were
printed in English and
Spanish and posted.
The Dyt’s daughters
were given the assignment
of sanitizing facilities such
as break rooms, as well as
door handles, four times a
day.
Sanitizers were put in
any equipment that was
shared by employees.
“We had a meeting with
the guys and just talked
about the seriousness of
it, and that we wanted to
maintain the social distancing,”
Jacquie Dyt
reported. “Even though
they work together, they
are not in close proximity.
We also tried right away
to stagger their lunches
so they weren’t all taking
lunch at the same time.”
The number of dairy visitors
- already largely limited
only to those with essential
business - dropped
even further when the
pandemic struck.
“We haven’t had any
salesmen come by in
months,” Rich Dyt said.
Dairy producer John
Toste said he, too, held
meetings with employees
encouraging them to keep
social distance from others
away from work as
well as while on the dairy.
“Everybody is trying to
wear gloves, stay safe and
wash their hands,” Toste
shared. “We try to social
distance as much as we
can. Before, you would get
closer to an employee to
talk. Now we kind of keep
our distance. We try to do
that. Everybody has a little
concern over it. We are
working together to make
things better.”
J E N S E N
&
J E N S E N
A T T O R N E Y S
“Meeting The Needs of West Side
“Meeting The Needs of West Side
Farmers and Dairymen Since 1952”
Farmers and Since 1952”
J. Wilmar Jensen • Mark R. Jensen
J. Wilmar Jensen • Mark R. Jensen
General Civil Practice Emphasizing
GENERAL
• Farm
CIVIL
& Ranch
PRACTICE
Law
EMPHASIZING:
• Estate Planning & Probate
• Business & Corporate Law
• Farm Ranch Law
• Real Estate Law
• Estate Planning & Probate
• Business & Corporate Law
• Real Estate Law
1031 Fresno Street, Newman • (209) 862-2846
Superior
TRUCK LINES, INC.
Proud supporter of our
local dairy industry!
Main Office (209) 862-9430
Turlock Office/Yard (209) 669-6931
Lemoore Office/Yard (559) 924-6418
Tulare Office/Yard (559) 684-1969
®
12 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
Dairy cows line
up to feed on
a West Side
dairy.
FILE PHOTO
SERVING THE CENTRAL VALLEY & MOTHER LODE AREAS
FAMILY OWNED & OPERATED SINCE 1938
Modesto • Oakdale • Sonora • Newman • Atwater
THURSDAY, JUNE 18, 2020 CELEBRATING OUR LOCAL DAIRY INDUSTRY | 13
YFC General Ad 2014_Layout 1 3/11/14 9:46 AM Page 1
For All Your Ag Banking
Needs, Stop By One of
Our Convenient
Branch Locations,
or Give Us A Call:
MODESTO
209-527-1900
•
TURLOCK
209-668-3522
•
MERCED
209-383-1116
•
PATTERSON
209-892-6136
•
LOS BANOS
209-827-3885
•
OAKDALE
209-847-7021
HELPING OUR
MEMBERS PROSPER
SINCE 1916!
WE SALUTE THE WEST SIDE’S
DAIRY INDUSTRY!
We Buy, Sell and Repair Pallets
• PICKUP & DELIVERY •
2138 L Street, Newman • 862-3941
JOIN OUR TEAM
Saputo Dairy Foods in Gustine is hiring for multiple positions!
To view all open positions and apply, please visit
http://www.saputo.com/en/Careers
14 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
We Take
OLM SCRIP
Complete Automotive Repair
Oil Change
$
42 75
Plus Tax &
Hazmat
Fee
NOW
SERVICING
ATVs &
Dirt Bikes
24 Point Inspection, Fluid Top Off, Tire Rotation,
Brake Inspection and Little Tree Air Freshener
1996 &
Newer
Smog Check
$
40 75
Plus Certificate
887 N Street (Highway 33) • Newman
(209) 862-2644
HOURS: Monday-Friday 8am-5pm • Saturday 8am-12pm (U-Haul Only)
FREE Wi-Fi & Coffee
While You Wait
Shuttle Service
Available
Fala-se Português
Se Habla Español
THURSDAY, JUNE 18, 2020 CELEBRATING OUR LOCAL DAIRY INDUSTRY | 15
Dairy cows are a familiar sight on the rural West Side. Milk is a leading agricultural commodity in both Stanislaus and Merced Counties.
FILE PHOTO
PROUDLY SERVING YOU
FOR 70 YEARS!
We are proud to have generations in our family furniture business
serving Turlock and the surrounding towns.
We appreciate your business!
From the entire Woods family to your family we thank you for keeping
our doors open for 70 years.
Darryl Woods with Grandpa Thurman Woods
Original store at 433 E. Main St. (shown with Foster Freeze building)
4918 Taylor Court, Turlock
(corner of W. Taylor & Hwy 99)
www.WoodsFurniture.com • (209) 656-2392
Mon. - Fri. 10am - 7pm • Sat. 10am - 6pm
Mon. Sun. 11am - Sat. 10am - 5pm- 6pm • Sun. Noon - 5pm
16 | CELEBRATING OUR LOCAL DAIRY INDUSTRY THURSDAY, JUNE 18, 2020
John & Florie Nunes
office: 854.6325
mobile: 209.495.1964
Newman
Feed & Seed
Convenient
Drive-Up Service!
Your One Stop Shop
For All Your Livestock
and Pet Food Needs!
1303 N STREET • NEWMAN
NEWMANFEEDNSEED@GMAIL.COM
STORE NUMBER: (209) 243-9324
MOBILE NUMBER: (209) 648-1539
FAX: (209) 509-1139