Michigan Department of Agriculture
Annual Report, Fiscal Year 2004
(October 1, 2003 - September 30, 2004)
Jennifer M. Granholm, Governor
Dan Wyant, Director

A Snapshot of Michigan's Food & Agriculture Industry

Agriculture in Michigan contributes $55 billion annually to the state's
economy, making it the second-largest industry. Production agriculture, food
processing and related businesses employ about 1 million Michigan
residents.
 
Michigan produces over 200 commodities on a commercial basis,
making the state second only to California in agricultural diversity.
 
Michigan leads the nation in the production of 12 commodities (including
tart cherries, blueberries, cucumbers for processing, geraniums and many
varieties of dry beans) and ranks in the top 10 of 25 other commodities.
 
Field crops (corn, dry beans, soybeans, sugarbeets, hay, wheat) are the
largest segment of Michigan agriculture, according to production valued
at more than $1.3 billion annually. They are followed by the dairy industry
valued at $1billion annually and the floriculture and nursery industry at
about $609 million annually.
 
Michigan exports about one-third of its agricultural commodities each
year. In 2004, the state exported more than $919 million of agricultural
products. Agricultural exports account for approximately 25 percent of the
value of Michigan farm receipts. Michigan ranks 5th and 8th nationally in
exports of fruits and vegetables. Michigan's largest export commodity is
soybean and soy products, which was valued at $202 million in 2004.  A
total of 12,400 jobs were supported by Michigan's agricultural exports in
2004, according to U.S. Department of Agriculture figures.
 
Michigan has about 10.1 million acres of farmland, and the state is home
to 53,200 farms averaging 190 acres each. There has been significant
growth in the number of small farms over the past few years as well as
large farms. More than 35 percent of the state's total farmland is in some
form of preservation agreement.


Michigan Department of Agriculture 

Summary of Accomplishments

Director's Summary

The Michigan Department of Agriculture (MDA), created in 1921, serves,
protects and promotes the food, agricultural, environmental and
economic interests of the people of Michigan.

The department operates on an approximate total budget of $95 million
($31 million from the general fund) and 600 full-time employees, and
oversees or administers a diverse array of programs that in some way
impact all of us, every day.  Each division of MDA strives to reach
program goals that reflect the department's main priorities of:
      Food Safety and Security
      Animal and Plant Health and Protection
      Environmental Stewardship
      A Viable Agriculture Economy
      Consumer Protection 
      Homeland Security
These priorities have been aligned to ensure consistency with the
Governor's priorities of Education, Economy, Environment, Health Care
and Hometown Security, and the State of Michigan values of Integrity,
Inclusion, Excellence and Teamwork.

In addition to staff located at the downtown Lansing office, MDA
maintains seven regional offices and two laboratories. MDA's field staff
plays an important role in helping MDA meet its mission through service
to the citizens of Michigan.  Located throughout the state, local experts
are available to offer assistance to industry, residents and consumers
quickly and efficiently.  In most cases, problems are solved at a regional
level, allowing businesses to continue serving their customers effectively
in accordance with state laws and regulations. MDA has also established
an office in Atlanta to address bovine tuberculosis in Northeast Michigan;
and has added Emerald Ash Borer staff at four of MDA's regional offices
to effectively respond to this exotic pest devastating Michigan's ash
resources.

MDA employees are proud to serve the citizens of Michigan and equally
proud of the role they play in assuring the safety, economic viability and
environmental stewardship of Michigan's food and agriculture industry. 
This report highlights MDA's key achievements during Fiscal Year 2004
(October 1, 2003 through September 30, 2004).

The department successfully implemented and enhanced programs to
protect and preserve Michigan's food and agriculture industry and our
state's natural resources.  During FY 2004, MDA:

      Partnered with Oakland, Wayne and Macomb counties and the
     City of Detroit to develop a process for responding to imminent
     health hazards.  The process, "Emergency Action Plans for
     Retail Food Establishments," was developed as a result of
     experiences during the Blackout of August 2003 that affected a
     large portion of the Midwest and Eastern U.S. and parts of
     Canada.  The process has become a national model, and was
     used by the Centers for Disease Control and Prevention (CDC)
     for clean-up efforts in hurricane-ravaged Florida in 2004.  The
     process includes an Emergency Action Plan manual, industry
     training, improved communication systems, and testing
     components.

      Launched a new initiative to further reduce the risk of foodborne
     illness, which focuses on the five behaviors and practices
     identified by the CDC as causing or contributing to most
     foodborne illness.  These behaviors and practices include poor
     personal hygiene, food from unsafe sources, inadequate
     cooking, improper holding temperatures, and contaminated
     equipment.  MDA plans to reduce the prevalence of these risk
     factors in food establishments by 25 percent by 2011.

      Attained bovine tuberculosis split state status from the federal
     government, allowing most of Michigan, including all of the Upper
     Peninsula, to move to stage 4 of the 5-stage federal TB
     eradication program, one stage below TB-free status.  

      Continued to test livestock for bovine TB in Michigan, focusing
     resources on the area in Northern Lower Michigan where TB has
     been found; there were no new cases of bovine TB in cattle in
     Michigan in the April 2003 to April 2004 testing cycle.

      Expanded the electronic identification cost-share program to
     include livestock producers in the Upper Peninsula, and
     increased surveillance and regulatory enforcement of livestock
     moving into the U.P.    Implemented gamma interferon testing for
     bovine TB, which reduced staff time needed for testing and
     improved responsiveness to producers. These added measures
     paved the way for Michigan to apply for Stage 5 Bovine TB-free
     status for the Upper Peninsula.

      Secured and utilized federal funds for the continued fight against
     Emerald Ash Borer (EAB) in Michigan to maintain the necessary
     infrastructure for handling response efforts; expand survey
     efforts to pinpoint the areas of infestation; enforce and expand
     the quarantine to prevent artificial spread of EAB; provide
     sanitation and disposal options; continue research into the pest's
     biology and identify possible control options; and ensure
     community and homeowner outreach and awareness through
     public meetings, brochures, billboards, signage and more.

      Implemented a new detection system statewide in the continued
     battle against EAB.  The detection tree project , developed based
     on recommendations from the EAB National Science Advisory
     Panel, established more than 10,000 detection trees in a grid
     system strategically located in every township at varying density
     rates in each county, with the exception of those in the known
     generally infested area.  The trees were "girdled" - a process that
     removes a ring of bark around the trunk - to stress the tree and
     therefore attract any beetles that may have been present. The
     trees were also treated with a sticky substance to trap the
     insects. Surveyors peeled the bark off the detection trees in the
     fall to look for larvae and signs of infestation. This detection tree
     project helped identify previously unknown outlier infestations
     and made it possible to determine the extent of the initial
     infestation in southeast Michigan.

      Marked the first Emerald Ash Borer Awareness Week, declared
     by Governor Jennifer Granholm as the week of May 24, 2004.  
     Activities during the week were geared toward raising public
     awareness of EAB and the steps everyone can take to prevent its
     spread, as well as fostering a cooperative spirit among citizens,
     communities, government and industry, to reduce the risk the
     insect poses to the 700 million ash trees blanketing the state. 

      Verified the first "environmentally assured" farmsteads under the
     Michigan Agriculture Environmental Assurance Program's
     (MAEAP) Farmstead System.  The farms are located in Alpena
     and Kalamazoo counties.  MAEAP continues to be one of the
     state's most innovative initiatives for preventing agriculture-
     related pollution.  Nearly 3,000 farmers and technical assistance
     providers have attended MAEAP Phase I Education Sessions,
     with more than 200 farms either verified or moving toward
     verification under the program.

      Protected Michigan's groundwater resources by collecting and
     properly disposing of unwanted or outdated pesticides and
     mercury at 15 permanent drop-off sites through the Michigan
     Clean Sweep Program.  Michigan celebrated the collection of the
     one millionth pound of pesticides through the program since its
     inception in 1995.

      Increased the number of acres of farmland permanently
     protected in Michigan through three programs that work to
     preserve farmland and open spaces: the Farmland and Open
     Space Preservation Act, commonly known as P.A. 116; the
     Purchase of Development Rights (PDR) program; and the
     Michigan Agricultural Preservation Fund and Board.  The state
     holds more than 45,000 P.A. 116 agreements, preserving over
     3.5 million acres of farmland.  This equals about 35 percent of
     Michigan's 10.1 million acres of agricultural production land.

      Acquired the state's first permanent conservation easement
     located in Chesaning, in Saginaw County, as part of the
     Conservation Reserve Enhancement Program (CREP).  CREP is
     a voluntary program to implement environmentally sound
     conservation practices on agricultural land to improve quality and
     enhance or restore wildlife habitat.  The new easements facet of
     the program allows farmers and other landowners to receive a
     one-time, up-front payment for entering into a covenant that
     permanently preserves conservation values and restricts
     development on enrolled lands.

      Implemented a Water Use Reporting program to help agricultural
     producers register for and comply with the required annual
     reporting program, if they have the capacity to withdraw over
     100,000 gallons per day.

      Created the Michigan Emergency Veterinary Network or "Vet
     Net" as part of Michigan's homeland security efforts in the animal
     health and protection arena.  Michigan's Vet Net, one of the first
     such programs in the nation, was made possible by federal
     homeland security dollars and funding from MSU CVM.  Vet Net
     is a comprehensive education and training program geared
     toward the state's nearly 3,600 licensed veterinarians to enhance
     their awareness, preparedness and response to animal disease-
     related emergencies. 

      Celebrated the first exports ever of Michigan apples to Mexico,
     after nearly a decade of work by the Michigan apple industry to
     meet Mexican selling requirements.  Development and
     expansion of export markets are critical components to ensuring
     the future profitability of our state's growers and farmers and the
     long-term viability of agriculture in Michigan.

      Launched the May Day to Labor Day gasoline inspection project
     to answer Governor Jennifer M. Granholm's call for increased
     gasoline monitoring during last summer's peak driving season. 
     Inspectors increased monitoring efforts by 30 percent during the
     project, surpassing their goal of a 20 percent increase. 
     Inspectors found that 29 percent of gasoline tested failed to meet
     quality standards, which included testing octane levels, sediment
     and water in the gas. Inspectors also found that 12 percent of the
     stations tested fell short of gas quantity standards.  From the
     inspection results, 50 fines/consent agreements were issued,
     with the rest of the locations being warned that they were in
     violation of quantity or quality laws. The vast majority of violations
     were not intentional, but due to improper upkeep and
     maintenance of devices. MDA is the state agency responsible for
     regulating gasoline sold in Michigan for quality and quantity
     standards. The department conducts various types of routine,
     complaint and undercover inspections at the state's 5,100-plus
     licensed retail gas stations. About five billion gallons of gas are
     sold in Michigan annually, ranking the state 7th nationally in
     gasoline consumption.

      Unveiled two mobile emergency supply units and equipped MDA
     veterinarians with personal emergency response kits, to enhance
     emergency preparedness efforts and bolster MDA's agrisecurity
     capabilities.  The trailers and kits ensure that Michigan stands
     ready to quickly and effectively mobilize and respond to potential
     animal health situations.

      Served as community partners and maintained a positive
     organizational culture through special employee activities and
     programs that also tie to the Governor's Visions and Values. 
     Employees raised funds for the Michigan Harvest Gathering;
     Youth Livestock Scholarship Funds at the Michigan State Fair
     and U.P. State Fair; and the State Employees Combined
     Campaign.  Staff also raised funds and coordinated agriculture-
     related activities for students at Walnut Street School in Lansing,
     a school MDA adopted 10 years ago.  Walnut activities included
     field trips, mentoring, classroom reading days, providing turkeys
     for a Thanksgiving celebration, and hosting school families in
     need as part of Operation Santa during the holidays.  MDA
     employee contributions to the school have averaged more than
     $4,000 per year for the past 10 years.

Michigan Commission of Agriculture
William Pridgeon, Chair
(517) 335-3403

Members of the Michigan Commission of Agriculture are appointed by
the Governor to establish policies and provide administrative direction for
the Michigan Department of Agriculture.  The five Commission members
are appointed for four-year terms, with confirmation by the Michigan
Senate.  The Commission holds meetings that are open to the public for
attendance and comment.  Meetings are held in the Lansing area and
throughout the state.

Commissioner William Pridgeon, of Montgomery, chaired the
Commission in 2004. Commissioner James Maitland, of Williamsburg,
served as vice-chair and Commissioner James Byrum, of Onondaga,
served as secretary.  Doug Darling, of Maybee, continued service on the
Commission.  Governor Granholm appointed Ann Jousma-Miller, of
Gladstone, in December 2003.

The Michigan Commission of Agriculture met monthly in 2004 with the
exception of May, August, October and December.  Commission
meetings were held in Lansing in February and November, and Saginaw
in June, with remaining meetings held in East Lansing.  The Commission
met in conjunction with Agriculture and Natural Resources Week at MSU
and Ag Expo at MSU.

Prominent issues during 2004 were Emerald Ash Borer, Bovine TB,
Generally Accepted Agricultural Management Practices (GAAMPs),
Chronic Wasting Disease and Gasoline Inspection.

Commission staff prepared meeting notices, agendas, minutes and
director's reports for each meeting.
 
Executive Office 
Dan Wyant, Director 
(517) 373-1052

MDA's Executive Office oversees the administrative and policy issues of
the department, provides internal and external communication services,
and coordinates communication and response activities for state
agricultural and homeland security emergencies.  The Executive Office
consists of the director, deputy director, director of agricultural policy,
legislative liaison, communications director, public information officer,
media support, communications and emergency management staff, and
administrative support staff.  

Administrative Section
MDA Director Dan Wyant served as the chief executive officer of the
agency in 2004. The director was appointed by the Michigan Commission
of Agriculture in October of 1996, and works with them on policy issues.
The director also is a member of Governor Jennifer Granholm's Cabinet.  
During FY 2004, Wyant also represented Michigan on the National Fruit
and Vegetable Advisory Committee, and served on the Governor's Land
Use Leadership Council and Chronic Wasting Disease Task Force.  The
director also serves as chair of the Michigan Grape and Wine Industry
Council and holds a seat on the Michigan State Fair Advisory Board.  

MDA's deputy director, Keith Creagh, manages the day-to-day operations
of the department, working closely with all the division directors and key
program staff to oversee the functions of MDA. 

The director of agriculture policy, Christine White, works with the director
and other key personnel to review, revise and propose department
programs and policies, and also serves as the key contact for federal
issues and congressional contacts. 

The legislative liaison, Brad Deacon, is MDA's link to the Michigan
Legislature and the Michigan Office of Regulatory Reform. The liaison
assists the Legislature in assessing and preparing legislation connected
with agriculture. In 2004, MDA participated in several notable pieces of
legislation. Governor Granholm signed into law the creation of the Grain
Insurance Fund to protect producers in the event of a business failure.
The Governor also signed bills to prohibit the release of aquatic invasive
species, including genetic variants of those species. Licensing deadline
requirements were written into a number of MDA programs, and the
labeling requirement for ethanol was removed. Also, the Governor signed
legislation to change notification requirements for pesticide application in
schools and day care centers.

Office of Communications 
Sara Linsmeier-Wurfel, Director
(517) 373-1104

The Office of Communications (OC) provides professional internal and
external information, education and communication for the employees, department,
stakeholders and general public. OC staff works on a wide range of
communication activities to create and maintain a public identity for MDA,
including creating key communication pieces, coordinating
communication efforts with media relations efforts, planning media and
special events, developing talking points on various programs and
issues, and aligning communication efforts with the department's
priorities and the Governor's Cabinet Action Plan initiatives.  Staff works
closely with MDA divisions and the Emergency Management Section to
coordinate crisis/urgent communication plans and corresponding
activities for a variety of issues that the department addresses throughout
the year.  Staff members serve as liaisons to MDA divisions to help them
meet their communication goals, and provides writing, editing and design
services for booklets, brochures, newsletter and annual reports.  OC also
provides graphic arts services for divisions, including the development
and production of displays, advertisements, posters, logos, ceremonial
checks, certificates, banners, signage, maps, charts and PowerPoint
presentations. OC promotes internal communication through special "A-
Team" events and activities and employee meetings, and through the use
of the department's Internet and Intranet Web pages.  During FY 2004,
OC:

      Served as liaison with the Governor's Communications Office
     and with Public Information Officers in other state government
     agencies, and served on numerous joint communications
     committees with federal, state and local agencies, and with
     university, industry and other stakeholder groups on food,
     agriculture, public health and conservation issues and programs. 

      Developed and implemented various crisis/urgent communications plans and
     corresponding activities for a variety of the issues that the
     department addressed throughout the year, 
     including Bovine Spongiform Encephalopathy, Emerald Ash
     Borer, West Nile virus, Chronic Wasting Disease, Bovine
     Tuberculosis, and Food Safety. 

      Spearheaded message and information development for a
     variety of department issues, programs and activities.
      
      Created and updated communication tools to combat the spread
     of Emerald Ash Borer, including brochures, door hangers and
     posters; banners and educational displays; and press releases
     and advisories.  Co-chaired the EAB Communication Committee,
     working with partners to develop a coordinated and effective
     communication strategy for the EAB eradication effort. 
     Coordinated media events, took photos and wrote web articles
     about key components of the response effort, including firewood
     blitzes, survey activities, EAB Awareness Week, the detection
     tree project, establishment of new marshalling yards, tree
     removal projects, and quarantine issuances and expansions.

      Maintained the department's Internet site to provide cost-
     effective, easily updated information.  Many publications were
     distributed electronically via the Internet, saving printing and
     distribution costs and time.  MDA's Web site pages are viewed
     more than 3 million times per year in 2004. 

      Enhanced and maintained the department's Intranet site that
     shares important and interesting internal information with MDA
     staff.  The Intranet is the department's primary means of
     communicating issues to all staff statewide. The department's
     Intranet Web site is used to help keep MDA staff informed of
     priorities, events, issues and changes within the department. 
     Online communication tools accessed by staff via the Intranet
     include a division filing cabinet for sharing electronic files and
     information; Ask the Director; the MDA People Page for sharing
     personal and professional accomplishments; and the MDA
     Employee Directory with contact information for all department
     employees.

      Served as liaisons to MDA divisions, and researched and
     advised divisions on how to meet division and department
     communication needs.

      Represented the department on the Communications Team for
     the MI 360 evaluation project coordinated by the Office of Great
     Workplace Development.

      Provided writing, editing and design services to divisions for
     booklets, brochures and newsletters.  Topics included: Emerald
     Ash Borer, Chronic Wasting Disease, Bovine TB, West Nile
     virus, Right to Farm, Generally Accepted Agriculture and
     Management Practices, biosecurity, human health and food
     safety, groundwater protection, thoroughbred racing, fiscal
     stewardship, venison processing, analytical service testing fees,
     market development, and more.

      Provided graphic arts services for all divisions, including
     development and production of logos, ceremonial checks,
     original art for displays at the Michigan State Fair, certificates,
     banners, maps, charts, Power Point presentations,
     advertisements, posters, pictorial displays and more.

      Coordinated employee activities as part of MDA's Employee
     Recognition/Awards Ceremony, Special Events Committee events, and "A-
     Team" events, aimed at improving internal communication and team building.

      Coordinated the 2004 State Employee Michigan Harvest
     Gathering fundraiser for the Food Bank Council of Michigan. 
     State employees donated over $31,000 and 91,000 pounds of
     food in 2004.

      Partnered with Walnut Street School in Lansing to help connect
     urban kids with their food and agriculture roots.  MDA employees
     adopted Walnut Street School 10 years ago, and have hosted
     field trips to farms and horse shows, served as mentors and
     guest classroom readers, provided computer equipment and
     books for the school, sponsored Thanksgiving meals at the
     school, and sponsored school families in need as part of
     Operation Santa during the holidays. 

      Established a videoconferencing  network which connects ten
     MDA locations statewide, including Regional Offices,
     laboratories, U.P. State Fair and the Office of Racing
     Commissioner.  OC staff also maintains a satellite TV system in
     Constitution Hall to receive information in emergency situations;
     and a NOAA weather radio system to track developing storms
     that could affect MDA employees and the agriculture industry.  
     Staff also maintained and provided training and direction for a
     public meeting notice board, electronic "smart board"  and
     computer systems in conference rooms, and provided
     audio/visual assistance to the Executive Office and other
     divisions, as needed.

      Distributed over 100 press releases and media advisories to
     local, state and national media outlets using an electronic
     fax/email system; and made over 3,000 contacts with media
     resulting in extensive state and national exposure for the
     activities and programs of MDA.   MDA's media faxing/email
     database includes 8,377 media outlets and can target distribution 
     by 18 categories, including type of media (TV, radio, print), 
     subject, region and county.
 
Emergency Management Section
Brad Deacon, Manager
(517) 335-3403

The Emergency Management section coordinates MDA's response to
serious incidents involving disasters or threats to food or animal safety
and/or agricultural economic viability, emergency management and
emergency response capabilities.  During FY 2004, the section: 

      Coordinated MDA's response to serious incidents involving
     disasters or threats to food or animal safety and/or agricultural
     economic viability. Of these incidents, seven disaster requests
     were submitted to the Secretary of USDA.

      Coordinated participation of department emergency management
     staff in two drills and one exercise for the Palisades Nuclear
     Power Plant in July and August.

      Developed continuous in-house emergency management training
     and exercising throughout the department.   About one-fourth of
     MDA staff participated in some level of Incident Command
     System Training.  Emergency Management staff coordinated
     approximately one exercise per month during FY 2004, including
     orientations, drills and table top exercises.

      Helped implement new department initiatives on Homeland
     Security, including establishment of protocols for emergency
     response based on the threat level, and representation on
     Homeland Security boards and committees.

      Coordinated continued development of MDA's emergency
     response capabilities to meet the challenges posed by threats to
     Homeland Security.  Represented the department on the
     Michigan Homeland Security Task Force, and chaired the
     Agriculture and Food Supply Subcommittee of the Critical
     Infrastructure Protection Committee.

      Participated in the State Homeland Security Assessment process
     on both the local and state levels.

      Represented MDA on the Michigan Hazard Mitigation
     Coordinating Council, participating on the Planning Committee,
     and the Michigan Emergency Planning and Community Right to
     Know Commission.

Agriculture Development Division
Bob Craig, Director
(517) 241-2178

The Agriculture Development Division assists the Michigan food and
agriculture industry in developing new and enhanced domestic and
international markets for Michigan food and agricultural products.   It also
serves as a catalyst in expanding value-added agriculture initiatives and
marketing efforts to attract, expand or retain food processing and
agriculture support businesses in Michigan.  These activities support job
retention and creation in the agri-business sector throughout Michigan,
and contribute to economic stability.  During FY04, AgD:

      Worked with Michigan growers, food processors, commodity
     boards and others to successfully complete the $3.75 million
     USDA Specialty Crops Block Grant program with close-out on September 30, 2004.
     MDA initially received these one-time federal funds in September
     2001. MDA took advice from specialty crop growers and selected
     projects in areas that included marketing, nutrition, pest and
     disease control, research and new product development.  More
     than 80 percent of these grant dollars were redistributed to sub-
     recipients including: international marketing companies and
     commodity boards; specialty crop commodity organizations and
     growers; new Julian-Stille Value-added Agriculture Program
     grants to growers, food processors, commodity boards and
     companies; and the Select Michigan marketing program. 
     
     Overall outcomes of this block grant program touched more than
     20,000 growers through nearly 100 private organizations and
     companies and generated 213 new jobs over three years, while
     helping retain 1,184 jobs. The program leveraged more than $2
     million in matching funds from individual grant recipients. A complete
     reporting of Michigan's block grant projects can be found at the
     National Association of State Departments of Agriculture's Web
     site, www.nasda.org.

      Assisted the Michigan Apple Committee in developing new
     markets for fermented and distilled Michigan apple beverage
     products by wineries, microbreweries and cider makers,
     with a projected 2,000 to 5,000 jobs created or retained.  
     
      Provided the State Senate Agriculture, Forestry and Tourism
     Committee with survey results and impacts from all Michigan
     USDA Specialty Crop Block Grant recipients along with a copy of
     the NASDA February 2004 progress report entitled, "Improving
     the Competitiveness of Specialty Crop Agriculture."  The State
     Senate adopted a resolution urging the U.S. Congress to provide
     another round of funding of these grants, and sent it to the
     Michigan Congressional Delegation and USDA Secretary
     Veneman. 
 
      Provided Specialty Crops Block Grant seed money to the
     Michigan Bean Commission to fund research on the effects of
     dry edible beans for fighting cancer and AIDS. 

      Worked with MDA Pesticide and Plant Pest Management
     Division staff and the Michigan Economic Development
     Corporation to attract and establish a portable sawmill in Monroe
     County to process Emerald Ash Borer infested logs into
     marketable garden tool handles and other products.  Crook-Miller
     Company, of Hicksville, Ohio, installed the mill and created
     Emerald Mills, Inc., to operate the facility.  Twelve  Michigan
     employees were hired in the initial start-up phase in the fall.  

      Assisted the Michigan Asparagus Advisory Board and Michigan-
     based food processors, including Honee Bear Canning, with the
     developed of a new Individually Quick Frozen value-added
     asparagus product in a microwaveable container that is now
     being manufactured and sold commercially in Wal Mart
     Supercenters across the nation. This new product has provided a
     much needed boost to the Michigan asparagus industry.  

      Celebrated the start-up of production at a sweet cherry double
     bleaching and finishing plant in Buckley, enabling sweet cherries
     to be used in producing maraschino cherries and other products
     in Michigan.  Previously, more than half of Michigan's sweet
     cherries had to be shipped to Canada for double bleach
     processing due to inadequate capacity in-state.  This project was
     partially funded by a 2002 Julian-Stille Value-added Agriculture
     Grant to Leelanau Fruit Company.  The Buckley facility is unique
     in Michigan in that it has a large MDEQ-licensed disposal well to
     handle spent brine for this facility and others in an
     environmentally sound manner.  

      Working with MDA PPPM staff, provided marketing assistance
     and regulatory phytosanitary inspection to the Michigan apple
     industry, which opened the Mexican market for shipments of
     fresh Michigan apples, resulting in one month's sales totalling
     $250,000 in 2004 and more expected in the future.  This is the
     first time Michigan apples have been marketed in Mexico since
     NAFTA was instituted in 1994.
   
      Provided $50,000 through the MDA International Market
     Development Grant Program to eight Michigan food and
     agricultural organizations. These grants leveraged additional
     federal and private resources to develop or enhance overseas
     markets. 

      Promoted Midwestern wines, including two Michigan wineries, at
     the London Wine and Spirits Show through Mid-America
     International Trade Council (MIATCO).  
  
      Facilitated chef training and education in several Mexican cities
     as part of international market development efforts.  Staff
     coordinated three seminars in 2004, promoting 
     processed apple, blueberry, cherry and cranberry (ABCC)
     products for the baking industry.  Since 2002, the ABCC program
     has resulted in training of 600 Mexican chefs, reached 9,000
     trade and consumer contacts, and resulted in sales of  $200,000
     for Michigan companies.  Four Michigan companies exhibited at
     ExpoPan in Mexico City, resulting in $35,000 in sales at the show
     and anticipated sales of $200,000. 

      Participated in the Association of Convenience Stores (NACS)
     Buyers' Mission, providing seven Michigan companies with the
     opportunity to meet convenience store buyers.  
 
      Assisted Michigan firms in applying and qualifying for federal
     funds to reimburse their export development costs. Through
     membership in MIATCO, MDA enables Michigan food producers
     and processors to receive reimbursements of up to 44 percent of
     their export market development costs in the USDA Branded
     Market Access Program. 

      Coordinated participation of eight Michigan firms in the Michigan
     pavilion at the Food Marketing Institute/U.S. Food Export Showcase
     in Chicago, the largest grocery store trade show in the world.
     Over 300 contacts were made by companies, with expected sales
     over $1.3 million. Additionally, three Michigan companies participated
     in the Chicago Fancy Foods show held concurrently with FMI at
     McCormick Place in Chicago. 
     
      Represented the MDA Director at over 95 percent of regular,
     special and annual meetings for Michigan's 15 legislatively
     established commodity groups, and worked with the Assistant
     Attorney General on statutory issues and unpaid or unremitted
     assessment funds.  Through producer-run committees, nearly
     $14 million in producer dollars was spent on various promotion,
     research and marketing activities for their respective
     commodities.  Staff chaired several meetings with commodity
     executives and the Director and  worked with several commodity
     groups to implement 2002 program changes adopted by the
     Michigan Legislature in Public Act 232 of 1965, as amended, the
     Agricultural Commodities Marketing Act. 

      Received a final Agricultural Tourism report from Western
     Michigan University supported by a Federal State Market
     Improvement Program grant from USDA.  
     
      Developed and distributed the 2004-2005 Farm Market, U-Pick
     and Ag Tourism Directory.  The Directory provides a  listing of
     many Michigan farm markets, farmers' markets, u-pick
     operations and other agricultural tourism entities.  It is also
     available as a searchable database at www.michigan.gov/mda.
  
      Received funding for the Select Michigan program through a
     cooperative partnership among USDA (Rural Business
     Enterprise Grant), commodity organizations, Michigan Integrated
     Food and Farming Systems, individual food businesses, retailers
     and MDA.  The goals of the program are to increase marketing
     opportunities for, and awareness and purchases of, Michigan
     locally grown food products.
     
      Expanded the Select Michigan program to include the Detroit
     market in addition to Grand Rapids.  Asparagus, blueberries,
     peaches, carrots, onions, apples, organic foods, potatoes,
     seasonal vegetables, wine, apple juice, canned apples, whitefish,
     sugar and chestnuts were featured in scheduled promotions
     during the year.  The Select Michigan campaign used eye-
     catching point-of-sale materials, including stickers, posters,
     banners and display cards.  In-store tastings and
     demonstrations, radio promotion and magazine editorial also
     supported the program objectives.  
     
      Worked with several major Michigan food retailers   Spartan
     Stores, Meijer, Kroger, Farmer Jack, and Super K-Mart -- to
     incorporate  the Select Michigan message into their marketing
     materials.   Growers, farm markets, restaurants and other
     businesses that grow, process or promote Michigan food
     products are also using the Select Michigan logos.   
      
      Implemented activities of the Michigan Grape and Wine Industry
     Council (MGWIC), a 10-member council established by the
     legislature to support the growth of the Michigan wine industry. 
     Assisted by research, education and promotion programs of the
     MGWIC, the Michigan wine industry continues to grow.  Sales of
     Michigan wine increased 63 percent over the past seven years.
     In 2003, the Council established a goal of increasing wine grape
     acreage in the state nearly ten-fold over the next 20 years,
     from 1,400 acres in 2003 to 10,000 acres by 2024.  

      Hosted an annual meeting of the Michigan wine industry, with
     over 120 participants.  A highlight for the year was the completion
     of the Web-based Start-Up Guide and resource kit, "Wine
     Industry Resources for Michigan," which is a valuable resource
     for new and existing members of the industry.  

Animal Industry Division
Steven L. Halstead, DVM, MS, Director and State Veterinarian
(517) 373-1077

The Animal Industry Division (AID) safeguards the health and welfare of
livestock and domestic animals in Michigan and, through these efforts to
protect domestic animals, protects the health of Michigan's citizens. The
division conducts surveillance for animal disease, diseases transmitted to
humans by animals, and food safety hazards, to protect the health of
Michigan residents. The division is responsible for administering
reportable animal disease programs and overseeing toxic substance
contamination incidents relating to animal health. AID also enforces the
humane treatment of animals through the licensing and regulation of
animal shelters, pet shops and riding stables. The state veterinarian
administers the division, and supervises animal disease surveillance and
eradication programs throughout the state.

The division remained very active in animal health programs in FY 2004. 
Major progress was made in the Bovine Tuberculosis Eradication Project;
in examining Michigan's privately owned cervidae for the presence of
Chronic Wasting Disease; and in advancing Michigan's animal health
emergency management preparation.  During FY 2004, AID:

      Established Split State Status in the State/Federal Cooperative
     Bovine TB Eradication Project.  The entire Upper Peninsula and
     majority of the Lower Peninsula were designated Stage 4
     (Modified Accredited Advanced) in the five-stage program, with
     the North Eastern region of the Lower Peninsula (formerly the
     Surveillance and Infected zones) designated Modified
     Accredited.

      Applied for TB-Free status, Stage 5 of the five-stage program, for
     the Upper Peninsula.
     
      Conducted 147,369 bovine, 4,876 caprine (goat), and 165 bison
     individual animal tests for TB using MDA, USDA, and fee-basis
     private veterinary practitioners. One cattle herd was found
     infected with bovine TB in early FY 2004; as with all previously
     identified infected herds this herd was located in the known
     affected area of Northeast Michigan, now known as the Modified
     Accredited Area.  As of December 31, 2004, 1,013,000 animals
     had been tested for bovine TB (cumulative number since project
     inception), representing nearly all of the state's total herds and
     almost 33,000 herd visits.

      Implemented Gamma Interferon testing for bovine TB to reduce
     MDA and USDA staff time and improve responsiveness to
     producers.
     
      Conducted 44 TB testing investigations and 71 livestock
     movement investigations, resulting in $3,758.82 in fines for
     testing and illegal movement of animals.

      Expanded the Michigan Electronic Identification Program for
     livestock to include farms and producers in Michigan's Upper
     Peninsula.  Since 2001, 12 sale barns have received stationary
     readers, which have read tags on over 35,000 head of cattle as
     they passed through the sale barns.  Seven livestock packing
     plants in four states have received stationary EID readers with
     tags on over 15,000 head read by the readers.

      Increased staff hours conducting surveillance of livestock
     movement across the Mackinac Bridge to enhance the Bovine
     TB Eradication Project.
     
      Tested 826 privately owned deer and elk for Chronic Wasting
     Disease (CWD).  All tests were negative.

      Conducted 44 cervidae investigations (movement, facility and
     registration issues) resulting in $2,750.00 in fines.

      Conducted Incident Command System (ICS) training (level 200)
     for AID and USDA Veterinary Services staff to help ensure
     emergency preparedness.

      Held a hands-on orientation session for the Michigan Emergency
     Veterinary Network in May.  Approximately 60 veterinarians
     attended.  Sessions included basic incident command structure,
     communication tools, media relations, and biosecurity training. 
     This session was the first step toward the formation of a
     Michigan Veterinary Corps of private veterinary practitioners, a
     cooperative effort among MDA, Michigan State University, and
     the Michigan Veterinary Medical Association, establishing first-
     line surveillance and response for exotic/foreign animal disease
     and bioterrorist incursions in Michigan.
     
      Identified two Equine Infectious Anemia (EIA) positive horses,
     which resulted in issuance of two quarantines and testing of an
     additional 19 contact horses.

      Responded to West Nile virus (WNV) cases in 21 equine animals
     from 14 counties.  No cases of Eastern Equine Encephalitis
     (EEE), a related virus that infects horses and humans, were
     identified in 2004.

      Followed up on 40 animals diagnosed positive for rabies.

      Maintained Pseudorabies Stage V Free Status for Michigan
     swine.

      Maintained Brucellosis Certified-Free State Status for cattle and
     swine.

Environmental Stewardship Division
Vicki Pontz, Director
(517) 241-0236

The Environmental Stewardship Division (ESD) provides leadership and
administers programs that promote environmental stewardship of
agricultural and other natural resources, ensuring that farming operations
protect land and water resources, and public health.  A summary of FY
2004 program accomplishments follows:

      Assisted Michigan landowners in establishing 4,052
     Conservation Reserve Enhancement Program (CREP) contracts
     representing 47,896 acres.  Landowners enrolled 23,352 acres in
     Grass Filter Strips, and 1,723 acres in Riparian Forest Buffers. 
     These 25,255 acres of corridor conservation practices are
     reducing agriculturally related sediment, phosphorus, and
     nitrogen loading on over 2,000 miles of Michigan watercourses
     (streams, drains, rivers, and lakes)   equal to the distance from
     Saginaw, Michigan, to Los Angeles, California.  Landowners also
     enrolled 9,768 of wetland restorations, 712 acres of shallow
     water area for wildlife, 7,702 acres of whole filed grass plantings,
     and 892 acres of field windbreaks.
     
      Awarded $7.5 million in Clean Michigan Initiative grants to
     purchase permanent conservation easements on over 4,500
     acres.
     
      Issued four easements using state funded grants totaling
     $180,000, permanently protecting 75 acres of farmland in
     conservation practices
     
      Reimbursed producers for 100 percent of costs incurred for
     establishing conservation practices that control or exclude
     livestock access to surface waters through the Livestock Access
     Program, a state-sponsored component of CREP.  By the end of FY04, the
     program installed 30 limited access livestock crossings,
     55 alternative watering sources, 138,000 feet of exclusionary
     fencing, and 2007 acres of wildlife habitat.
     
      Administered grants and facilitated education, training, capacity
     building, local resource assessment, strategic planning, annual
     budget preparations, and the development of annual work plans
     for 83 conservation districts.
     
      Continued the Michigan Agriculture Environmental Assurance
     Program's (MAEAP) Livestock System on-farm verification
     process.  Over 2,500 producers and technical assistance
     providers attended Phase 1 educational sessions.  Thirty-three
     livestock farms were verified in 2004.
      
      Developed Progressive Planning, a system of helping farmers
     begin work toward a Comprehensive Nutrient Management Plan (CNMP) and
     eventual Livestock System verification.  The system is being
     implemented by over 100 trained local coordinators from diverse MAEAP partners
     throughout the state.  Over 120 interested farmers have
     enrolled. 
     
      Continued the MAEAP Farmstead System on-farm verification,
     with 20 farms verified in FY04 (26 farms to date).  Trained 33
     Technicians to develop farm-specific action plans to address on-
     farm environmental risks.
     
      Developed a MAEAP Cropping System evaluation tool, designed
     to provide farmers with accurate information about how field-
     based management practices affect environmental resources. 
     This tool provides information needed to be in conformance with
     applicable Michigan Right-to-Farm guidelines and in compliance with
     applicable state and federal environmental regulations. 
     
      Worked one-on-one with over 650 farmers through the Michigan
     Groundwater Stewardship Program (MGSP) to identify
     groundwater risks and to develop plans to reduce those risks. 
     Groundwater Technicians implemented a wide variety of
     groundwater stewardship practices, including 411 abandoned
     well closures, 303 emergency plans, 254 pesticide spill kits, and
     30,970 acres of pre-sidedress nitrate testing.
     
      Recycled 38,420 pounds of properly rinsed pesticide containers
     at agri-business sites throughout the state, through the Michigan
     Pesticide Container Recycling Program.
     
      Collected, removed, and properly disposed of more than 197,000
     pounds of pesticides and mercury.  Celebrated the collection of
     the one millionth pound through the Clean Sweep program.
     
      Sampled 283 drinking water wells at no charge to well owners
     through the MDA Groundwater Monitoring program.  The
     program continues to focus on sampling wells in areas
     surrounding contaminated wells to help ensure public health. 
     Also screened 3,323 wells for atrazine and nitrate contamination.
     
      Worked one-on-one with 106 golf courses, through the Michigan
     Turfgrass Environmental Stewardship Program (MTESP), to
     identify on-course environmental risks and to develop plans to
     reduce those risks.  Three additional golf courses were certified
     through the MTESP (which provides for the highest degree of
     environmental stewardship), and 25 courses participated in one-
     day MTESP training sessions.
     
      Responded to and abated 24 accidental spills of agrichemicals
     (pesticides and fertilizers) and manure.  In most cases, the
     product was recovered and land-applied at agronomic rates,
     avoiding costly waste disposal costs.
     
      Worked with 7,680 individuals (one-on-one or in small groups) to
     complete home risk assessments using the Home*A*Syst tool.  MGSP AmeriCorps
     members worked with residents to identify groundwater risks
     around the home, yard, and garden, creating an action plan to
     lower any identified risks.  MSU Center for Evaluative Studies
     indicates changes in practice are being made around the home
     after completing a session with a MGSP AmeriCorps member. 
     For example, 36 percent of respondents now identify or plan to
     start identifying a pest before selecting a pesticide; 34 percent
     have stopped or are planning to stop storing unused or unwanted
     pesticides in their home or garage; and 42 percent now test or
     will start testing their well water annually.
     
      Recruited and trained 407 community volunteers to participate in
     groundwater stewardship outreach.  MGSP AmeriCorps
     members train these volunteers to work with hardware stores
     and garden centers to provide point-of-sale education to staff and
     customers, serve on local groundwater stewardship teams, and
     participate in other local groundwater protection projects.  In
     2004, these individuals volunteered 1,709 hours toward local
     groundwater stewardship efforts.
     
      Administered the Forestry Assistance Program (FAP), which
     funds 20 foresters covering 46 counties.  They provide education
     and one-on-one technical assistance to private landowners and
     communities regarding local forest health issues and sustainable
     forest management.  Conservation district resource professionals
     made 1,800 on-site assistance contacts with landowners
     representing 81,000 acres; referred 21,000 acres for harvest;
     facilitated actual timber harvests on 6,368 acres valued at $2.3
     million; and coordinated reforestation tree planning on 4,000
     acres.  Foresters set and monitored 2,300 traps to assist in the
     Emerald Ash Borer eradication project.
     
      Processed the renewal of 3,856 farmland and open space
     preservation agreements, securing 308,480 acres from
     development.  A total of 44,000 agreements are protecting more
     than 3.5 million acres.  Legislative changes in 2001 improved the
     incentives for enrollment, resulting in an increase from an
     average of 155 new applications annually in the years 1997-2000
     to 262 new applicants in 2004. 
     
      Permanently protected 466.32 acres of farmland through the
     purchase of additional farmland development rights easements
     at a cost of $659,400.  Four additional easements were donated,
     protecting an additional 343 acres.  This brings the number of
     acres permanently protected in Michigan  to 16,200, as of
     September 30, 2004.
     
      Worked with the Michigan Agricultural Preservation Fund Board
     in the development and adoption of an application process and
     scoring system for making grants to local government purchase
     of development rights programs.
     
      Inspected and licensed 3,997 individual living units at 824
     locations, yielding an approved capacity to house 22,609 migrant
     farm workers.  Migrant Labor Housing staff surveyed and
     sampled approximately 600 water supplies serving the housing
     sites.  Staff also administrated $255,000 through the migrant
     labor housing construction grant program, resulting in producers
     investing $1,049,000 in housing construction projects. 
     Construction grants for improvements were awarded to 37
     migrant housing providers in 13 counties, resulting in 91
     improved units.  Grants for new construction projects were
     awarded to four  migrant housing providers in two counties for a
     total of 33 new living units.  In support of licensing activities, 30
     surveys were conducted of suspected or known housing sites for
     which no license applications were filed, and 36 housing
     complaints were investigated.  In each case, action was initiated
     to license, vacate, abate the problem, or refer the complaint to
     another agency having jurisdiction.  Staff provided testimony and
     documentation to assist local government in the successful
     prosecution of an operator of unlicensed migrant labor housing,
     resulting in conviction with a fine and jail time.  
     
      Administered 30 Intercounty Drain Projects with an estimated
     cost of $10.8 million.  A total of 421,525 acres were served by
     these projects, affecting 109 miles of drains. 
     
      Responded to 144 drain maintenance requests in 42 different
     counties, improving approximately 746 miles of drains serving almost 1,540,000
     acres of multiple use watersheds.  Over $4.4 million was derived
     from private and public special assessments and grant monies
     from the Clean Michigan Initiative, Section 319 of the Clean
     Water Act and the Federal Hazard Mitigation Grant Program, for
     these drain maintenance projects. 
     
      Implemented the first year of Water Use Registration for
     agricultural withdrawals for quantities greater than 100,000
     gallons per day, as required by P.A. 148 of 2003. Approximately
     1,155 water users registered to receive the required annual
     reporting forms.
     
      Responded to nine complaints of low capacity residential wells
     being affected by high capacity irrigation wells. This is a new
     program initiated by state law, P.A. 177 of 2003. Of the nine
     complaints, eight were resolved with water supplies being
     restored; one was not verified. 
     
      Responded to 121 new environmental and nuisance complaints
     in 47 counties through the Right to Farm complaint response
     program.
     
      Developed 39 Manure Management System Plans covering
     12,302 animal units and 16,852 acres of cropland.  Nearly three
     miles of streambank fencing was installed and dozens of other
     conservation practices implemented.  
     
      Received 33 verification requests for Site Selection and Odor
     Control for New and Expanding Livestock Facilities.  These
     requests covered 60,916 animal units, six requests for new
     facilities and 27 for expanding facilities in 17 counties.
     
      Provided education and assistance to encourage the increased
     use of biosolids (nutrient rich by-products of wastewater
     treatment) recycling and application.  Currently, 174 Michigan
     waste treatment facilities apply 87,923 dry tons of biosolids on
     agricultural cropland.
     
      Participated in the annual MSU Ag Expo biosolids demonstration
     plot and display tent to provide biosolids information to
     producers.
     
      Distributed biosolids information packets to all Michigan
     Conservation District offices to provide producers and the public
     updated biosolids information.
     
      Partnered with the Michigan Water Environment Association to
     develop and update industry members on information and
     technology for biosolids land application.
     
      Developed four quarterly newsletter issues of "Amendments," a
     newsletter that aims to improve awareness of the Michigan Biosolids Program.

Fairs, Exhibitions & Racing Division
Barbara Hensinger, Director
(517) 373-9763

The Fairs, Exhibitions and Racing (FER) Division oversees Michigan's
state, county and local fairs; county horse racing programs; horse racing
breeding and owner assistance programs; and producer security
services. The division also administers grant programs for the fairs, the
horse racing industry, and related organizations. FER staff, during 2004:

      Assisted the 89 county and state fairs with premium support and
     matching funds.  In 2004, FER staff managed the allocation of
     62.3 percent of the total $2.4 million premiums paid for
     competitive exhibits at all fairs throughout the state.
     
      Awarded and supervised $120,000 in competitive livestock
     grants to 33 organizations. The program provides funding to
     increase the development and promotion of adult and youth
     involvement in the animal agriculture industry.
     
      Managed $2.14 million in purse and administrative funds for the
     28 county harness racing fairs hosting over 600 races.  Staff
     administered more than $2.7 million for supplements and
     breeders awards to thoroughbred and standardbred breeders
     and owners.  Standardbred and thoroughbred tracks across the
     state received over $2.3 million in race purses for futurity and sire
     stakes races. 
     
      Completed drug testing on horses at 12 draft horse pulls and 65
     county fair harness race days.  Of the 1,141 samples collected at
     races, only six tested positive for illegal drugs. Three of the 58
     samples collected at the draft horse pulls tested positive for
     illegal drugs.
     
      Worked with the Michigan Thoroughbred Owners and Breeders
     Association to expand the Youth Horse Racing Program.  FER
     staff worked with volunteers at four county fair locations to host
     the program for approximately 70 youth participants.  As in 2003,
     a championship race at Mount Pleasant Meadows, a premier
     pari-mutuel racetrack in Michigan, concluded the season.  More
     than 20 of the season's participants competed at the
     championship race.
     
      Managed the Upper Peninsula State Fair.  FER Division Director
     Barbara Hensinger served as the acting fair manager during the
     search for a new fair manager.  In mid-August, Scott Staelgraeve
     joined the team as the new manager.  As in previous years,
     Lansing FER staff assisted the Escanaba FER staff in the
     financial management, and premium payment process, and
     provided administrative assistance.  FER staff also assisted
     Animal Industry Division staff with livestock exhibits and sample
     collection for drug screening.  New in 2004 was the "Growing
     U.P. Farmers" exhibit which drew thousands of children,
     educating them on the production process of agricultural
     products from seed to consumer.  Additionally, 13 community
     members participated in the first annual "U.P. Survivor" contest,
     competing in challenges from showing swine to eating cherry pie. 
     Both new events were successful entertainment for fairgoers at
     the Upper Peninsula State Fair.
     
      Assisted with the Michigan State Fair, which ran from August 11
     through August 21, 2004.  As in previous years, FER staff served
     as superintendent of the Agriculture Building which houses
     agricultural entries, exhibits and vendors during the fair; collected
     samples for drug screening & DNA comparison of champion
     livestock; and, in conjunction with the Animal Industry Division,
     assisted the livestock superintendents with animal health checks.
     
      Worked with the Youth Livestock Auction committees at the
     Michigan State Fair and Upper Peninsula State Fair to coordinate
     the auctions. MDA staff also contributed to the success of the
     auctions by raising over $6,100 internally, which was used to
     purchase swine at both auctions. The swine were then donated
     to the Food Bank Council of Michigan.
     
      Worked with the Michigan Youth Livestock Scholarship Fund to
     award seven $1,000 scholarships to youth exhibitors at the
     Michigan State Fair.  The fund also provided $21,000 in
     educational awards to over 125 exhibitors in 2004.
     
      Successfully completed recommended changes for fair
     premiums and horse racing programs, and closed regulations
     808, 811, 812, 814, 817, 820 and 823 in 2004.  Regulations 813
     and 816 remain open and continue to be restructured.  
     
      Partnered with the fair and festival industry to present workshops
     to fair and festival management at their conventions on subjects such as animal
     health issues and ethics, livestock drug testing, premium regulation
     changes and how to implement them, water safety issues on fairgrounds,
     and non-profit budgeting and accounting.
     
      Continued to lead a task force to study water safety issues at
     fairgrounds.  In 2004, an additional five studies were completed.
     Each fair was visited twice, once prior to the fair and again
     during the fair.  The team, including personnel from MDA's Food & Dairy and 
     Environmental Stewardship Divisions, the Michigan Department
     of Environmental Quality, and local health departments,
     evaluated the water quality including: water supply, distribution
     system, cross-connection control, abandoned wells, hand
     washing and drinking water, sewage collection/treatment, animal
     washing, manure management and chemical use/storage. 
     
      Added the Producer Security Services Section to FER in 2004. 
     This section regulates the enforcement of the Grain Dealers Act;
     provides review services for department-wide producer security
     regulation; and administers the Agricultural Marketing and
     Bargaining Act and the Farm Produce Insurance Authority.  In
     2004, staff regulated 250 grain elevators, including 11 out-of-
     state grain brokers; established the Farm Produce Insurance
     Authority Board; and launched promotional programs while
     providing administrative support for the insurance program.
     
Finance & Administrative Services Division
David Bruce, Director
(517) 373-1100

The Finance and Administrative Services Division (FAS) administers
business processes for the department, including budget, accounting,
auditing, procurement, fiscal stewardship, resource management, facility
management, fleet management, travel arrangements and mail
operations.  During 2004, FAS:

      Surveyed customers to determine division financial needs.
     
      Closed the Accounting books with 159 less staff hours than in
     2003, and 314 fewer hours than in 2002.
     
      Added reference materials to shared drives and the department's
     Intranet (classification structure, agency object codes).
     
      Developed and offered budget liaison orientation and training
     workshop.
     
      Facilitated the elimination of split pay roll at fiscal year-end.
     
      Piloted the statewide credit card receipts solution (CPEAS) and
     rolled it out to the Michigan State Fair and U. P. State Fair.
     
      Reviewed and streamlined document retention procedures.
     
      Expanded electronic invoice processing to include IKON in
     October 2003 and Detroit Edison in September 2004.
     
      Met vehicle reduction requirements of Executive Directive 2003-
     18.
     
      Assisted in the development, implementation and monitoring of
     the department's budget.
     
      Designed and worked toward implementation of the department's
     new Electronic Weekly Activity Reporting System (EWARS).
     
      Implemented a new strategy for reviewing and responding to
     "Risk Management" as it relates to the Biennial Assessment.
     
      Designed, implemented and executed a voluntary contract with
     26 vendors for removal of ash trees for public and private
     landowners in southeast Michigan, in support of the Emerald Ash
     Borer Program. This is the first time a contract of this nature has
     been put together.

Food & Dairy Division
Kathy Fedder, Director
(517) 373-1060

The mission of the Food and Dairy Division (FDD) is to protect public
health and ensure a wholesome food supply, while working to maintain a viable food and dairy
industry. To this end, the division enforces food, beverage and dairy laws
in Michigan. FDD conducts regular inspections of food and dairy products
and facilities. The division licenses food service ands retail food
establishments.  Inspectors visit and examine restaurants, farms, grocery
stores and other food-producing manufacturing and sales
establishments. FDD keeps consumers and stakeholders informed of
recalls, illness outbreaks and other food and dairy-related issues. All of its
duties and functions are geared to a single goal: food safety. In 2004,
FDD accomplished the following:

      Conducted 28,041 inspections at food and dairy facilities;
     licensed 28,300 food service establishments and 13,298 retail
     food establishments; and conducted over 1,002 enforcement
     actions to address food safety violations, including restaurants
     and cafeterias. Conducted 1,957 plan reviews and investigated
     1,146 non-illness and foodborne illness complaints. 
     
      Provided four Foodborne Illness Response STrategy (F.I.R.ST.)
     training sessions for local and state regulators who investigate
     foodborne illness outbreaks. Improved coordination during
     outbreak responses to identify outbreaks early, implement control
     measures promptly, and prevent human illness. Added training
     on detecting international contamination. 
     
      Developed a foodborne illness outbreak tabletop exercise, which
     was piloted in four local health agency jurisdictions. This tabletop
     exercise, recently published on the Michigan 
     Department of Community Health's MI-TRAIN, let local health
     staff members work together, practicing their response to an
     outbreak situation and implementing procedures learned from
     F.I.R.ST training. 
     
      Along with Fairs, Exhibitions and Racing Division staff, FDD
     visited five fairs to identify and reduce public health and
     environmental risks associated with potable water provided by
     fairgrounds. 
     
      Created and distributed materials to producers and consumers,
     including updated regulations. Created on-going materials and
     education for food safety including numerous articles in
     newspapers; extensive radio and TV.  Conducted a public
     information campaign "Food Safety is Everyone's Bag," piloted in
     Detroit, to encourage consumers to use the 1-800- 292-3939
     hotline to report food safety violations they see in grocery and
     convenience stores. 
     
      Partnered with the Michigan Department of Community Health,
     the National Food Safety and Toxicology Center at Michigan
     State University, and food and agricultural industry stakeholders. 
     Using federal monies and stakeholder in-kind contributions. 
     
      Sponsored a tabletop exercise that brought in over 100
     participants to run through simulated challenges faced by the
     food industry when responding to incidents of intentional
     contamination of the food supply.  
     
      Partnered with the University of Michigan School of Public Health
     to conduct a survey for 
     environmental health professionals who serve as regulators for
     the food service industry and investigators during suspected
     foodborne illness outbreaks.  Other partners in the effort included
     the Michigan Department of Community Health, the Michigan
     Association of Local Public Health, and the Environmental Health
     Divisions of Michigan's 45 local public health agencies.   
     
      Developed and pilot-tested two training programs where industry
     managers and regulators were learning side-by-side.  The
     Emergency and Food Security Management for the Foodservice
     Industry program was developed in partnership with the Michigan
     Restaurant Association and the National Restaurant Association
     Educational Foundation. The Crisis Management and Food
     Security Training for Small Volume Meat and Poultry Processors
     was developed in partnership with MSU Extension, the American
     Association of Meat Processors, and the Michigan Meat
     Association. Both training programs are available for
     stakeholders, as requested.
     
      In response to the Great Blackout of August of 2003, co-
     partnered with the Oakland, Wayne, Macomb and City of Detroit
     public health departments to create, print and publish online
     Emergency Action Plans for Retail Food Establishments to
     respond to imminent health hazards. (This is a model to the
     nation; the Centers for Disease Control  and Prevention (CDC)
     requested a copy while it was still being produced to use in the
     clean-up in hurricane-ravaged Florida.) The project includes an
     Emergency Action Plan (EAP) manual for each food operator,
     industry training, improved communication systems, and testing
     for the EAPs.
     
      Enrolled in the voluntary Food and Drug Administration's National
     Retail Food Regulatory Program Standards and began training
     food section field staff according to these standards. 
     
      Continued to enforce statutes prohibiting the production and sale
     of raw milk and continued to educate consumers and producers
     about the risks associated with raw milk consumption. 
     
      Shared information on 90 recalls and recall expansions affecting
     Michigan with food inspectors, local health officials and the
     general public. In June 2004, an outbreak due to Salmonella
     enteritidis, involving 29 laboratory confirmed cases spread over
     12 states and parts of Canada, was identified. Staff from  FDD,
     public health agencies and the FDA conducted a joint
     investigation that identified raw almonds originally processed in
     California as the source. FDD staff audited 106 Michigan food
     establishments that received the almonds to verify that recalls
     were effectively removing contaminated product from commerce. 
     Information on 28 recalls of almonds or products containing
     almonds was shared with food safety regulators and consumers,
     through e-mail and the Internet.
     
      Worked closely with dairy processors to provide safe, wholesome
     dairy products to consumers, including 7,415 farm inspections.
     
      Continued to ensure food safety in Michigan's restaurants
     through a partnership between MDA and Michigan's 45
     independent local health departments. MDA provides statewide
     program policy and direction as well as consultation and training
     services to local health department sanitarians. Local health
     department performance is evaluated every three years in
     conjunction with the Michigan Local Public Health Accreditation
     Program. The Accreditation Program helps assure accountability
     for the nearly $8.25 million allocated by the state to local health
     departments to conduct the food service sanitation program.
     
      Along with Governor Jennifer Granholm, set a goal to reduce the
     occurrence of the five behaviors and practices identified by the
     CDC as being the most prevalent contributing factors of
     foodborne illness.  The goal is 25 percent reduction by 2011. The
     program includes baseline, midcourse, and final surveys;
     training; and industry support components.
     
      Changed Standard Operating Procedures (SOPs) for license
     applicants prior to opening a new food service establishment, to
     reflect increased emphasis on the five CDC identified risk
     factors.
     
      Created the Food Safety Training Database to assist the food
     industry and regulators in obtaining food safety training. The
     training database can be searched by location,  specific
     language, course type, target audience, and the instructor's
     name.
     
      Developed a uniform license application and inspection report
     form for statewide use for Temporary Food Service Establishments. 
     
      Presented six training courses for sanitarians at 13 locations
     across the state. A total of 290 local health department
     sanitarians spent over 2,270 combined classroom hours learning
     about Michigan's Food Law, Temporary Food Establishments /
     Special Transitory Food Units, Plan Review, Plumbing / Cross-
     Connections, and Accreditation Self-Assessment.
     
      Issued certificates to 19 local health department
     standardized trainers. 
     
      Evaluated 21 local health departments.  The week-long
     evaluation process includes both office and field components. 

Human Resources Division
Robert Kaczorowski, Director
(517) 373-1057

The Human Resources Division (HR) supports department personnel in a
variety of program areas.  The division is responsible for the selection,
hiring and compensation of department employees, as well as the
administration of employee benefits, position classification, labor relations
and training.  HR oversees programs that ensure equal employment and
equitable representation of groups within the department's work force. 
Programs include:  recruitment, student programs, career seminars,
reasonable accommodation coordination, sexual harassment complaint
investigations, health and safety coordination, and compliance with the
Americans with Disabilities Act (ADA).  During FY 2004, HR:

      Collaborated with the Michigan Department of Civil Service to
     implement the new Human Resources Service Center. This
     program is jointly sponsored by the Executive Office; the
     Michigan Departments of Civil Service, Management and
     Budget, and Information Technology; and the Office of the State
     Employer, as a part of the Human Resources Optimization
     Project.

      Coordinated, with the Pesticide and Plant Pest Management
     Division, the implementation and administration of the Emerald
     Ash Borer Response Project. 

      Coordinated and processed the hiring of 326 employees
     throughout the year.  This included 85 full time employees; 31
     non-career employees such as students and fruit/vegetable
     inspectors; and 310 special personal service contractual
     employees in State Fair operations, conservation services, and
     horse racing operations.

      Coordinated and conducted numerous training programs
     throughout the year.  These included training in the areas of
     discriminatory harassment, workplace violence, performance
     management, targeted selection, and supervisory training.

      Collaborated with the Office of Great Workplace Development to
     conduct a pilot of the MI 360 evaluation project.   

      Coordinated an annual Employee Recognition Ceremony to
     honor employees for their commitment to state government.
     Employees were recognized for years of service, 
     promotions and special achievements.  Awards included the
     Commission Awards for Excellence and Employee of the Year.

      Collaborated with the Office of the State Employer in the
     negotiation process for four primary collective bargaining
     agreements covering approximately 75 percent of all MDA
     employees.

Laboratory Division
Steve Reh, Director
(517) 337-5040

The Laboratory Division performs scientific and analytical services that
support MDA programs.  The laboratory also performs tests and offers
technical consultation services for other state and federal agencies, as
well as fee-based services to Michigan industry and private citizens.  The
Laboratory Division consists of two world-class facilities: the William C.
Geagley Analytical Laboratory in East Lansing, Michigan, and the E.C.
Heffron Metrology Laboratory in Williamston.

The Geagley Laboratory performs more than 300 different biological,
chemical and physical tests on a routine basis.  The laboratory examines
food samples, beverages, pesticides, seeds, fertilizers, gasoline, and
animal feeds to ensure a safe food supply, verify labels, ensure
compliance with state and federal regulations and to guarantee product
quality.  The Geagley Laboratory also monitors food and animal feed for
contaminants; tests blood and urine from competing race horses for
performance altering drugs; and tests livestock samples in order to
prevent the spread of infectious diseases.

The E. C. Heffron Metrology Laboratory renders ultra-precise mass,
volume and length calibration certification for Michigan businesses, and
houses the consumer protection programs for Weights and Measures
and Motor Fuels Quality.  The metrology laboratory also conducts
regulatory services, calibrating standards used for enforcement by the
Michigan Departments of Treasury and Agriculture, Michigan State
Police, and all county road commissions.  The tests and analyses
conducted by the metrology laboratory assure that weights and measures
in Michigan comply with national standards, making items eligible for
international trade, and preventing economic fraud and deception. 

During FY 2004, the Laboratory Division:

      Applied for and was selected for membership in FDA's Food
     Emergency Response Network (FERN) in the areas of both
     chemical and microbiological analyses at the Geagley
     Laboratory.  FERN is a network of federal and state food
     laboratories that have the expertise and capability of testing
     foods for select agents that could be used in a terrorist attack on
     the food supply.
     
      Developed a Memorandum of Understanding (MOU) between
     the MDA and MDCH Laboratories detailing individual
     responsibilities related to a food security threat or crisis.  The
     agreement also detailed support that each laboratory would
     provide the other in the event of a chemical or 
     biological incident.
     
      Identified performance indicators for all division sections and
     began measuring performance in order to evaluate program
     effectiveness.  Submitted a FY 04 Performance Indicator report
     to the Executive Office detailing division-wide level of
     performance.
     
      Successfully completed an upgrade of the Weights and
     Measures Field Inspection Software Program.
     
      Continued to work with a vendor to configure new Laboratory
     Information Management software to meet the division's needs.
     
      Released the first ever Geagley Laboratory Users Guide to aid
     customers in their interaction with Laboratory Division staff and
     analytical programs.
     
      Continue to configure and implement eWARS, a web based
     activity reporting system, for the division.
     
      Eliminated standard supplies to allow each section to more
     effectively monitor usage, adjust purchases as the volume and
     type of work activity changes, and control expenditures.
     
      Continue to modify operating procedures to meet Executive
     Directives issued by the Governor as well as provide supplies,
     equipment and services to meet section's operational needs.
     
      Applied for Homeland Security Funding and was approved to
     purchase video surveillance equipment for the Geagley facility.
     This hardware and software has been installed and will be operational in 2005.
     
      Completed a greenhouse glazing and mechanical project.  All
     new Lexon glazing was installed in place of the old glass, along
     with new vent mechanical systems.  New computerized
     environmental controls were also installed, with a new weather
     station.  A complete masonry restoration and caulking project
     was also completed on the greenhouse.
     
      Contracted with an architectural firm to complete a study of the
     Motor Fuels Quality Laboratory to identify deficiencies and make
     recommendations to address environmental problems.  Also
     included in the study were recommendations necessary for
     expansion of both gasoline and diesel fuel testing.  Highlights of
     the report included, but were not limited to, replacement of the
     roof membrane, reconfiguration of the roof to allow for roof
     drains, increased air conditioning, and expansion of the fuel
     sample storage area.  These renovations will ensure the
     laboratory will  have the capabilities of safely and efficiently
     performing tests on motor fuels in anticipation of future program
     expansions
     
      Worked with DMB and an architectural firm to identify and correct
     an air balancing problem with three 100 percent exhausted Bio-
     Safety hoods that were decertified due to operational
     deficiencies.  Work to correct the problem commenced in
     January, 2005.
     
      Performed over 170,000 tests on animal blood for the reportable
     diseases of brucellosis, equine infectious anemia, pseudorabies,
     Johne's disease, anaplasmosis and bluetongue.  Approximately
     46,000 of these were service samples bringing in revenue to the
     state.  
     
      Performed surveillance testing of ticks for the indication of Rocky
     Mountain spotted fever.  
     
      Continued to provide testing for a Johne's disease demonstration
     project, as part of a cooperative agreement with MSU and MDA's
     Animal Industry Division.  The lab expects to receive and test
     approximately 4,000 of these samples during the ongoing
     project.
     
      Celebrated the section's successful completion of all annual
     federal proficiency and check test samples.
     
      Solved a serious brucellosis testing problem by tracing back to a
     defective batch of anti sera that had been provided by NVSL.
     
      Performed over 110,000 tests on over 20,000 samples in Equine
     Drug Testing (EDT) section in support of the Office of Racing
     Commissioner's regulation of pari-mutuel horseracing. Over
     13,000 of these samples were submitted specifically for Total
     Carbon Dioxide (TC02) testing.  The TC02 testing program has
     been operating since 1998 and over this past year, only one
     positive sample was found and reported, indicating the program
     continues to have the desired effect on controlling abuses related
     to "milkshaking" in race horses.
      
      In cooperation with the Fairs, Exhibitions and Racing Division,
     performed drug testing on 
     approximately 1,200 harness horses racing at fairs and
     exhibitions throughout Michigan during the summer months.
     
      Participated in the "split-testing program" which offers
     confirmatory testing of samples that have been called "positive"
     for drugs in other states.
     
      Provided drug testing of animals at various livestock shows throughout
     Michigan and surrounding states to help ensure integrity in livestock
     competitions.  This program has grown due to outreach efforts by the division
     at the annual Livestock Fair Shows Education Conference.
     
      Analyzed approximately 1,400 dairy, 400 meat, 12 smoked fish,
     25 bottled water, 800 animal feed and 450 fertilizer samples for
     compliance to labeling and food safety requirements.  Fourteen
     requests for analytical testing on food products were received
     from law enforcement agencies across the state.  Over 7,200
     test results were generated on these samples.
     
      Expanded commodity testing programs on feed to include
     screening for the presence of ruminant protein in animal feed
     and meat and bone meal. This testing is important in the efforts
     to keep BSE (or Mad Cow Disease) out of the U.S.  An analyst
     received microscopic training to provide for confirmation of
     suspect positive samples.
     
      Renewed and fulfilled a partnership agreement with FDA for
     mycotoxin or pesticide testing of animal feeds.
     
      Obtained funding through a CDC grant to hire one technician to
     assist in emergency response to food safety emergencies.  
     
      Participated in national workshops discussing the development of
     new analytical methods and techniques for the analysis of heavy
     metals in fertilizer and drugs in animal feed.  Our participation in
     internationally sponsored collaborative studies to validate related
     methods for routine use is scheduled for FY 2005.
     
      Provided heavy metals analysis for cheese survey samples submitted by the
     Food & Dairy Division.
     
      Through the laboratory's Information Services Group, ensured
     accurate, timely sample test results with a one-day turnaround for
     45,000 fee-generating samples for the Animal Disease
     Surveillance section; typed, proofed and distributed Reports of
     Analysis for 1,700 official samples for Microbiology and Food,
     Feed and Fertilizer sections; and distributed 22,000 EDT reports
     and 5,218 Pesticide and Environment, Food, Feed and Fertilizer,
     including Liquor Control, and the Motor Fuels Quality sections. 
     Daily reports were also provided to Finance and Administrative
     Services for billing of testing fees for over 46,000 fee-generating
     tests.
     
      Through ISG,  provided test result information for customers,
     backup for sample receiving 
     functions, and phone and reception coverage for the Geagley
     Laboratory.
     
      Retained the Microbiology Section's accreditation to ISO 17025
     Quality Standards in the field of biological testing through the
     American Association for Laboratory Accreditation (A2LA). 
     Annual review took place in April.
     
      Continued work on two federally funded programs   Microbiology
     Data Program (MDP) and Antimicrobial Efficacy Testing.  The
     MDP program received and tested (for Salmonella and E. coli)
     over 1,000 samples of fresh vegetables.  Three additional
     commodities were added to the program during the year; green
     onions, parsley and cilantro.  The Antimicrobial Efficacy Testing
     program received approximately 23 disinfectant samples during
     the fiscal year and successfully reported results on 30 product
     lots (some of the samples were collected during the previous
     year).
     
      Received 279 cider samples as part of a special apple cider
     project commissioned by the MSU National Food Safety and
     Toxicology Center.  Sixty-two cider samples were collected
     during this same time period by the MDA Food and Dairy
     Division.  All samples were tested for coliforms, generic E.coli,
     standard plate count, E. coli O157:H7 and pH.  Of those samples
     collected, only 12 samples tested positive for generic E. coli with
     no pathogens being detected in any of the cider samples. 
     
      Maintained certification for significant dairy testing procedures
     through successful participation in yearly FDA proficiency
     samples.
     
      Obtained a Light Cycler Polymerase Chain Reaction instrument
     with CDC funds for use in food pathogen testing.
     
      Responded to Governor Jennifer M. Granholm's call to increase
     monitoring at the 5,100 retail gasoline outlets located throughout
     the state to ensure that consumers get what they paid for and
     that a level playing field was preserved for industry during the
     summer period of near record gasoline prices.  As part of the
     "May Day to Labor Day" Project,  953 retail outlets were audited
     from May 1 to September 7.  Quality or quantity problems were
     identified at 187 retail locations.  29 percent of gasoline samples
     collected due to failed audits did not meet quality standards; and
     12 percent of all devices inspected were found to be inaccurate
     for quantity.  Staff responded to 112 gasoline quality complaints
     and 399 quantity complaints during the project period. Forty-two
     stations were issued fines for repeat quality violations related to
     water, octane, vapor pressure, misrepresentation of product, and
     contaminated product, and eight stations were issued fines for
     delivering less than the quantity represented.
     
      Responded to 1,043 consumer concerns about substandard
     gasoline and/or the wrong amount of gasoline.  Retail
     investigations of gasoline marketers resulted in 320 
     administrative fines, 70 of those for sale of substandard fuels.
     
      Ordered the stop sale of gasoline at 70 retail stations because
     the gasoline contained water or otherwise failed to meet the
     state's quality standards.  Over 585 warning letters were issued
     to firms who were found violating the law for licensing, water
     content, labeling and gasoline quality.
     
      Tested approximately 1,900 gasoline samples for octane,
     oxygenates, vapor pressure, sulfur content, and distillation range. 
     Of those, 118 were found not to meet requirements for AKI
     Octane number, 81 were found to not meet requirements for
     ASTM D-86 Distillation Range, and 45 samples were found that
     contained visible water.
     
      Obtained an additional ISL automated distillation apparatus. The
     unit now has 3 ISL Units and has salvaged the older ADA-V
     units.  The MFQ Analysis Unit is in the process of acquiring a
     new GC/OFID for improved analyses of alcohol content.
     
      During the ozone monitoring period of June through September,
     monitored hydrocarbon vapor by performing vapor pressure
     analyses on samples collected in remote locations.  This
     combined effort of the lab's analytical staff and MFQ inspectors
     enabled the division to examine more distribution locations, and
     allowed field staff more time to complete the Governor's May Day
     to Labor Day review of gasoline stations. 
     
      Upgraded equipment and procedures for disposing of leftover
     gasoline, which was needed because of the increased number of
     gasoline samples collected for testing. The section purchased
     and installed a new gasoline distribution tank with electronic
     pump.  Leftover fuel is being dispensed into state vehicles rather
     than through a costly hazardous waste disposal system.  This
     process provides cost savings to the state through the reduction
     of fuel purchases.
     
      Monitored gasoline volatility at over 719 gasoline dispensing
     facilities to ensure that highly volatile fuels are not being sold in
     Southeastern Michigan reducing contribution to air pollution
     during summer months.  This helped the area maintain National
     Ambient Air Quality Standards.  
     
      Issued two Stop Sale Orders for selling non-compliant fuels with
     an additional nine firms self-correcting problems before stop
     sales were issued.
     
      Collected approximately 1,550 food samples for the Pesticide
     and Microbiological Data Programs (PDP, MDP) and the Triazole
     Sampling Project in FY04.  Almost 70 percent of these samples
     were shipped to other states for analysis per the transshipping
     arrangement with USDA-PDP participants.
     
      Received 1,067 samples for pesticide residue analysis from food
     warehouses throughout the U.S., comparable to the 1,056
     received in FY03.  A total of 800 samples were reported after
     conducting 2,180 tests, with over half found to contain some
     pesticide residue, all but two well below federal tolerances.
     
      Completed the testing of onions and began testing of
     strawberries.    A new method was developed and validated for
     the analysis of triazoles and their metabolites in strawberries in
     addition to validating them with the new QuEChRS method
     implemented in FY03.  This increased the number of extractions
     performed in FY04 by 50 percent and increased the number of
     screening tests by almost 40 percent.
     
      Analyzed strawberries  for 135 percent  more pesticides than
     those analyzed in onions.  Many of these pesticides present
     additional analytical challenges due to their relatively new arrival
     on the market.  The program continues to work toward meeting
     the variable needs of EPA in collecting data for food safety
     decision makers and the registration of pesticides.
     
      Participated and performed well in five proficiency tests covering
     five commodities, an 
     increase of almost 70 percent over FY03. Tests included one
     from USDA-PDP and four from FAPAS, an international
     proficiency testing program.  Three internal proficiency checks
     were conducted by the Quality Assurance Section covering two
     commodities and 20 analytes.  One internal proficiency check
     identified the need to re-evaluate and raise the limit of detection
     for a pesticide.
     
      Completed a review of the Pesticide Data Program's  Quality
     Manual and all previously written Standard Operating
     Procedures.  In addition, five new SOPs were written.  Audits of
     the section tripled in FY04 as compared to FY03, six times the
     number done in FY02.
     
      Received 170 samples related to pesticide misuse investigations. 
     
      Completed all samples related to an EPA funded worker
     protection project.  The project provided pesticide exposure data
     on farm workers that enter fields after the application of
     pesticides.  
     
      Continued  screening of groundwater samples from farming
     properties for nitrates and triazine residues.  Detection can
     indicate over-application of fertilizers and herbicides.  Over 3,600
     samples were tested.  
     
      Received 18 dairy samples for pesticide residue analyses.  
     
      Received 25 pesticide products and 16 disinfectant products for
     label claim verification.  This activity is funded through EPA
     Cooperative Agreement.
     
      Completed or revised all EPA required Quality Documents and
     submitted them to the U.S. EPA Region 5 Headquarters.
     Documents included the Antimicrobial Chemistry Quality
     Assurance Project Plan (QAPP), the QAPP for FIFRA Pesticide
     Programs and the overall Quality Management Plan (QMP).  
     
      Participated in five check sample tests evaluating proficiency in
     detecting many different 
     pesticide compounds.  Results were exceptional in all the sets.
     
      Received 424 agricultural, lawn and vegetable seed samples
     submitted by Pesticide and Plant Pest Management Division
     (PPPM) inspection staff for Michigan Seed Law compliance.  A
     non-compliance rate of 19.1 percent was determined due to the
     failure to meet labeled claims or improper labeling.
     
      Examined 69 wild bird food samples for Michigan Feed Law
     compliance.
     
      Tested 1,840 voluntary compliance samples from farmers, seed
     distributors, state and federal agencies and others.  Seed quality
     was assessed for compliance with Michigan seed quality
     standards or contractual specifications.
     
      Participated in a cooperative agreement with the enforcement of
     the USDA Federal Seed Act (FSA).  There were 63 interstate
     seed samples examined for FSA compliance.
     
      Continued quality testing with acceptable turnaround time and
     consultation with customers at the Geagley Laboratory in an
     attenuated fashion.
     
      Conducted 9,400 weights and measures (W&M) device
     inspections at 2,400 establishments.  Investigated over 1,002
     complaints involving allegations of short weight, short measure
     and item pricing violations.  Eighteen percent of the commercial
     devices inspected failed to meet the requirements of state law.
     
      Issued 36 W&M warning letters and held 16 industry compliance
     meetings.
     
      Issued 50 consent agreements for weights and measures
     violations, with fines and penalties of $311,850 assessed.
     
      Fully implemented a new W&M service registration program, with
     317 service persons and 116 service agencies registered.
     
      Received continued accreditation for the E.C. Heffron Metrology
     Laboratory to the National Voluntary Laboratory Accreditation
     Program (NVLAP) and a Certificate of Measurement Traceability
     from the National Institute of Standards and Technology (NIST). 
     NIST named the E.C. Heffron Metrology Laboratory as a regional
     small volume prover calibration laboratory and provided both
     technical and monetary support for the setup and accreditation of
     these calibrations.
     
      Tested over 8,600 commercial, law enforcement, and official
     legal metrology standards.

Agricultural Statistics
Dave Kleweno, Director
(517)324-5300

Agricultural Statistics is responsible for compiling Michigan's official
agricultural information database, which was established under a formal
agreement between Michigan and the U.S. Department of Agriculture's
National Agricultural Statistics Service (NASS).

Agricultural Statistics conducts numerous surveys and routinely prepares
forecasts and estimates on acreage, yield and production of Michigan
field crops, fruits and vegetables. Crop-weather information is provided
weekly during the growing season to reflect current crop conditions and
development progress.  Agricultural Statistics also estimates Michigan's 
livestock, poultry and dairy populations, and tracks related commodity
prices. The estimating 
program provides information on agricultural land values, farm numbers,
land in farms, expenditures and labor. Growing areas, production and
value of Michigan's floriculture industry are published annually. Another
significant survey component involves collection of agriculture pesticide
use data.  Agricultural Statistics also conducts the Michigan Census of
Agriculture every five years; supplemental surveys are periodically
performed for aquaculture, irrigation, horticulture, and land ownership. 
During 2004,  Agricultural Statistics:

      Provided county estimates for 14 major crop and livestock
     commodities as part of a 
     cooperative program with MDA. 
     
      Published the results of the Rotational Fruit Inventory, which
     included data on the acreage, varieties, and rootstock of
     Michigan fruit crops. Results were also published on questions
     which measured the impact that abandoned orchards have on
     current operations. The complete publication was put on the
     Internet, and an 8-page highlights release was sent to producers.
     
      Published the 2002 Census of Agriculture, which is conducted
     every five years. Preliminary information was released in
     February and final results were released in June. A publication
     containing county highlights and a profile for each county was
     released in September.
     
      Prepared a special Michigan Farm Facts publication to provide a
     graphical snapshot of Michigan's agricultural industry based on
     the census of agriculture.
     
      Provided support and the infrastructure necessary for growers to
     earn pesticide recertification credits for completing chemical use
     surveys. The PPPM Division approved three surveys in which
     growers could receive one credit for completing the survey. 
     Many growers have expressed appreciation for this survey
     incentive and benefit.
     
      Collected chemical use information on soybeans, winter wheat,
     and eight vegetable crops. Survey data will be used to evaluate
     chemical use levels for the U.S. Environmental Protection
     Agency, to use in setting worker safety standards and in
     administering the Food Quality Protection Act (FQPA).

      Published the results of the Farm and Ranch Irrigation Survey, a
     part of the Census of Agriculture. Data were published on
     crops irrigated, sources of irrigation water, energy costs,
     and investments made in equipment and land improvements.
     These data will be used extensively in establishing the
     state's water policy with respect to agricultural use.
     
      Released the annual statistics bulletin, which included details of
     2003 production, stocks, inventory, disposition, utilization and
     prices of agricultural commodities. The publication 
     included MDA's annual report, Michigan rankings, record highs
     and lows, county estimates, and chemical usage data. A four-
     page Highlights publication was produced to communicate the
     value of Michigan agriculture to as widespread an audience as
     possible.
     
      Worked with the National Association of State Departments of
     Agriculture (NASDA), using telephone and field enumerator staff
     located throughout the state and employed by NASDA, to assist
     in collecting data from farmers and agribusinesses.

The Office of Racing Commissioner
Robert Geake, Racing Commissioner
(734) 462-2400

The Office of Racing Commissioner (ORC) is an independent agency
within MDA that regulates pari-mutuel horse racing in Michigan, in
accordance with the state's Horse Racing Law and the rules of the
Racing Commissioner.

The Racing Commissioner, appointed by the Governor for a four-year
term, prescribes rules, regulations and conditions under which all pari-
mutuel horse racing meets are conducted in the state.

The ORC allocates race dates and issues track, race meeting and
occupational licenses.  The office also collects license and track
revenues, appoints stewards and veterinarians to represent the state,
approves track-appointed officials, and monitors the daily conduct of
horse racing.  ORC also conducts equine and human drug testing
programs, and investigates any irregularities in racing that may lead to
formal hearings and sanctions.  ORC functions primarily as a regulatory
agency, but also focuses on improving and promoting horse racing in
Michigan.  Christine White was appointed Acting Racing Commissioner in
January 2005, replacing Robert Geake, whose term expired December
31, 2004.  During FY 2004, the ORC: 

      Implemented a new rule providing for an Administrative Fee for
     all certified horsemen organizations.

      Expanded the use of broadband Internet connectivity improving
     the efficiencies associated with the issuance of occupational
     licenses at Michigan's race tracks.  

      Approved the transfer of track license for Great Lakes Downs to
     Richmond Racing Co., LLC, continuing the presence of
     thoroughbred racing in Michigan.

      Held public hearings in the consideration of a new track license
     to be issued in the  Detroit Metropolitan area.

      Issued a new track license to Platinum Partners, LLC, to
     construct a race track in Windsor Township in the greater
     Lansing area.

      Granted live racing dates for 2005, resulting in the scheduling of
     538 dates of live horse racing at Michigan's seven licensed pari-
     mutuel facilities.

      Conducted a statewide emergency management exercise to
     ascertain the readiness of Michigan's race tracks.

      Maintained a significant regulatory presence at the race tracks,
     conducting 18,791 equine and human drug tests to determine
     compliance with ORC rules and regulations.

      Continued to improve the simulcast tax deposit program for the
     seven pari-mutuel tracks in the state.  This program expanded
     the amount of time saved for employees at the tracks, the ORC,
     the Michigan Department of Treasury, and MDA.   Increased the
     reconciliation and monitoring capabilities of ORC.

      Promoted public awareness of Michigan horse racing by
     participating in the MSU Horse Expo, Novi Stallion Expo,
     Michigan Parade and a horse racing exhibit at the 2004 Michigan
     State Fair in Detroit.

Pesticide & Plant Pest Management Division
Ken Rauscher, Director
(517) 373-1087

The Pesticide and Plant Pest Management (PPPM) Division, is
responsible for the enforcement of laws and regulations pertaining to the
manufacture and distribution of agricultural products, the sale and use of
pesticides, exotic pest interception and control, pest management, fruit
and vegetable inspection and groundwater protection. In cooperation with
multiple federal agencies, and under the authority of both state and
federal laws, the PPPM division administers programs to protect human
health and the environment from potential risks related to the improper
use of pesticides.  The division also oversees programs to control exotic
pests, certify nursery stock and other plant material for interstate
shipment, inspect and grade fruits and vegetables, and certify
commodities for export.  PPPM also ensures consumer protection
through proper storage and labeling of agricultural products such as feed,
seed, fertilizer and animal remedies.  During fiscal year 2004, the PPPM
division recorded many significant accomplishments.  Of note are the
great strides made in the attempt to control and eradicate the Emerald
Ash Borer.  During FY 04, PPPM:

      Completed its second full year in the battle against Emerald Ash
     Borer which continues its menacing campaign against the state's
     700 million ash trees, and the ash resources in Ohio, Indiana and
     Ontario. While initially little was known about the beetle, the EAB
     multi-agency cooperative response project   encompassing the
     Michigan Departments of Agriculture (MDA) and Natural
     Resources (DNR); the U.S. Department of Agriculture (USDA)
     Animal and Plant Health Inspection Service; the U.S. Forest
     Service; and Michigan State University (MSU) - has been able to
     make tremendous strides in learning more about the pest and its
     biology and also in survey/detection, containment, outreach and
     education efforts. 
     
      Continued EAB detection and survey activities, including:
     inspecting 1,955 "high risk" sites, including nurseries,
     campgrounds, and sawmills; surveying and recording 70,030
     total visual survey data points covering 500,000+ acres; and
     responding to 3,355 calls via the state's toll-free EAB hotline,
     leading to 447 warranted follow-up investigations.
     
      Developed and implemented a statewide EAB detection program
     to act as an early warning system for potential EAB infestations.
     More than 10,000 trap trees were strategically located in every
     township at varying densities in each of Michigan's 83 counties,
     except those in the known generally infested area.  EAB larvae
     and adults were collected from approximately 150 trap trees,
     identifying seven new county infestations outside the 13-county
     quarantine and alerting Michigan officials to areas where
     containment and eradication efforts are needed. 
     
      Focused EAB regulatory activities on enforcing the quarantine
     and increasing compliance. Regulatory activities included
     monitoring the movement of ash products, conducting regular
     inspections and investigations.
     
      Updated the EAB quarantine based on survey data collection and
     analysis on March 25, August 15 and December 27, 2004. 
     These amendments were based upon the extensive survey
     efforts conducted in 2004, which have provided a clearer picture
     of where the beetle exists in our state.  It also ensures that the
     state's strategy and quarantine are responsive to changing
     information and based on the best available science and data.
     
      Conducted 17 investigations of potential EAB quarantine
     violations, with five leading to legal action or prosecution to date.
     
      Established firewood checkpoints along major interstates leading
     out of EAB regulated areas during key travel holiday weekends,
     including Memorial Day and Labor Day, and again at the
     beginning of firearm deer hunting season. These events provided
     an opportunity for staff to have contact with thousands of
     travelers and confiscate illegally moved firewood.
     
      Expanded sanitation/disposal activities to remove and dispose of EAB infested
     dead and dying ash trees, an important component in containing and reducing
     the spread of this destructive pest.  
     Activities included: cutting and properly disposing of approximately 192,000
     infested or at-risk trees in outlier sites across the state; continuing or starting
     operation of eight disposal sites in southeast Michigan; safely disposing of more
     than 200,000 tons of ash materials; expanding approved "value added"
     activities to turn collected material into marketable ash products, such as
     lumber, railroad ties, and tool handles; and continuing review of additional wood
     processors to meet containment objectives, enhance quarantine compliance
     and provide community assistance.
     
      Developed EAB response strategies based upon site-specific
     information, including location, geography of the area and
     distribution of the pest.  Strategies included the removal of all ash
     trees located within a half-mile radius of the last known EAB
     infestation in an outlier area, thereby eradicating the insect and
     infestation; and conducting a 200-yard cut of ash trees in key
     control areas, thereby suppressing the infestation to minimize
     further spread.
     
      Detected numerous isolated EAB infestations outside the known
     generally infested area. Prioritized outlier infestations based on:
     pest populations; location; risk of spread; and 
     national/international significance. Control and eradication
     activities have impacted approximately 8,300 property owners. 
     
      Developed a detailed EAB outreach and education system for
     each impacted area, outlining the state's response plan and
     providing one-on-one question and answer opportunities for
     impacted residents and businesses. This included a series of
     public meetings, media updates and 'tag-alongs.'
     
      Coordinated activities of the EAB Communications Committee,
     whose membership includes communications and outreach
     professionals from each of the state's Cooperative Response
     Project partners, to ensure coordinated, consistent information.
     
      Conducted an intensive public hearing and public input/comment
     process leading MDA to determine the beetle a Michigan public
     nuisance at control and eradication sites.
     
      Produced and disseminated numerous outreach and education
     materials to stakeholders. 
     
      Appointed 13 education outreach facilitators through MSU
     Extension in counties most impacted by EAB.
     
      Conducted legislative and local official tours and briefing
     sessions regarding the latest EAB news and efforts.
     
      Hosted numerous EAB informational booths, educational
     seminars, workshops and group discussions at the state
     and national level, including a workshop for green industry
     professionals and local planners in February and a symposium in
     October.
     
      Initiated a major communication effort, with Governor Jennifer M.
     Granholm's declaration of May 24-30 as "Emerald Ash Borer
     Awareness Week" as its centerpiece.
     
      Conducted a paid advertising campaign utilizing billboards along
     major northbound interstates, radio public service
     announcements, and trade publications to underscore the "Don't
     move firewood" message.
     
      Provided 54 grants totaling more than $855,000 to communities
     within the 13 EAB quarantined counties. More than 10,000 trees will be replanted
     through these grants.

      Provided 11 grants totaling more than $201,000 to communities
     located in EAB outlier areas throughout Michigan. More than
     1,800 trees will be replanted through these grants.
     
      Assisted EAB grant recipients with urban/community forestry
     management.
     
      Assisted property owners impacted by EAB through one-on-one
     technical assistance site visits, phone consultations and
     restoration educational materials.
     
      Inspected and certified more than 11,000 acres of nursery stock
     and more than 19,000 acres (699 fields) of commercial
     Christmas tree farms for compliance with interstate and
     international trade requirements.
     
      Issued 2,149 federal phytosanitary certificates for exports of
     agricultural commodities. Commodities certified for export included
     beans and grain, fruits and vegetables, logs and lumber,
     and propagative plants and plant parts.
     
      Inspected 41 high-risk production nurseries and collected 1,435
     samples across 29 host species as part of the National Nursery
     Survey to detect Ramorum blight, also known as Sudden Oak
     Death.  The top three species analyzed were rhododendron,
     viburnum and lilac.  A total of 231 additional samples were taken
     at 24 retail sites to look for 10 specific exotic pest species,
     including P. ramorum.  
     
      Collected specimens of the perennial "Sunny Border Blue"
     Veronica from a Michigan nursery.  The samples were found to
     be infected with a rust fungus not previously known to occur in
     the U.S.  The disease was identified as Veronica rust, Puccinia
     veronicae-longifoliae.
     
      Detected an exotic beetle, Callidiellum villosulum, (brown fir
     longhorned beetle), in natural wood trunks of artificial Christmas
     trees imported from China.  USDA confirmed the identity of
     specimens collected by MDA staff.  As a result of prompt action,
     a national recall was issued for these types of trees.
     
      Conducted 358 inspections at facilities producing or distributing
     animal feeds.  PPPM inspectors have been inspecting feed
     manufacturing facilities throughout the state for compliance with
     FDA Bovine Spongiform Encephalopathy (BSE) regulations since
     1998. 
     
      Investigated five complaints alleging feed-related animal deaths
     or illnesses, problems with feed quality, or adulteration. 
     Collected and submitted 663 samples to ensure feed safety and
     label guarantees.
     
      Conducted 238 seed inspections at facilities producing or
     distributing seed.  Inspectors issued 74 violation notices and
     removed $632,476 worth of violative seed products from the
     channels of trade.
     
      Submitted for testing  9,687 fruit tree samples from Hilltop
     Nursery, LLC, of Hartford, for Prunus Necrotic Ring Spot Virus
     (PNRSV) and Prunus Dwarf Virus (PDV). Only 0.9 percent of the
     samples tested positive for these viruses while all of the 2,000
     virus-indexed trees did not develop symptoms.
     
      Submitted for testing 700 samples, representing 990,000 plants
     in 95 varieties, from three commercial blueberry nurseries under
     the blueberry virus certification.  All samples tested negative for
     the target viruses (TRSV and ToRSV). As part of this program,
     1,745 blueberry bushes were tested and tagged in the mother-
     block nursery of Tower View Nursery.  
     
      Reviewed 37 biotechnology applications and import permits in
     cooperation with USDA-APHIS. In FY04, MDA, under an 
     agreement with USDA-APHIS, approved two permits for field trial
     studies, nine for interstate movement, and 26 for both field trials
     and interstate movement. Biotechnology activities took place in
     eight counties. Under the PPQ program, 15,000 hibiscus cuttings
     and 23 hydrangea plants were released from post-entry
     quarantine.
     
      Tested 126 dry bean samples of which 77 were certified and 49
     were non-certified. Six samples (2.6 percent) of certified seed
     and five (10.2 percent) of non-certified seed were positive for
     bean blight. All certified seed samples tested negative for
     common bean mosaic virus (CBMV).
     
      Processed a total of 367 seed corn samples representing 22,495
     acres from seven growers, for fungal, bacterial and viral
     diseases. Samples were collected and delivered to the MDA
     pathology lab by field inspectors from PPPM and the Michigan
     Crop Improvement Association (MCIA). Twenty-eight of the seed
     cornfields submitted for certification tested positive for Stewart's
     wilt (Erwinia stewartii) while another 34 tested positive for Goss'
     wilt  (Clavibacter michiganensis subsp. nebraskensis). 
     
      Tested (for export requirement) 35 potato samples from eight 
     growers for Potato Virus Y strain n (PVYn). All samples tested
     negative for the virus.
     
      Processed a total of 1,707 samples of various plant species and
     genera known to be susceptible to Phytophthora ramorum from
     66 facilities. P. ramorum is a plant pathogenic protist that has
     been reported in a number of states and poses a threat to the
     nation's oak trees. All Michigan samples tested negative for P.
     ramorum and the disease has not been reported in the state. 
     This disease is referred to as ramorum blight or sudden oak
     death.
     
      Coordinated the gypsy moth cooperative suppression program,
     resulting in the treatment of 24,581 acres in 11 counties.  The
     program provided relief to residents and communities in heavily
     infested areas including one national lakeshore.  
     
      Conducted 2,942 shipping-point inspections for quality prior to
     shipment for export, domestic or government purchase. During
     FY04, Fruit and Vegetable Inspection staff conducted 1,294
     market inspections helping resolve disputes on the quality and/or
     condition of produce received in Michigan from other states or
     foreign countries.  In addition, 17,113 process inspections were
     conducted on cherries, grapes, apples, blueberries, and peppers
     when received at state processing plants. 
     
      Fruit and Vegetable Inspection staff conducted three USDA/MDA
     Good Handling Practices (GHP) audits at two apple and one
     blueberry packing shed.  The GHP audit is a new volunteer
     program to minimize microbial food safety hazards for fresh fruits
     and vegetables.
     
      Submitted 17 requests to EPA for emergency exemptions to
     allow the use of an unregistered pesticide to control an
     emergency pest problem, in accordance with Section 18 of the
     Federal Insecticide, Fungicide and, Rodenticide Act (FIFRA). 
     MDA also submitted a Section 18 request for 10 products to
     control Asian Soybean Rust.
     
      Conducted pesticide product and use-related inspections and
     investigations, including 153 pesticide use investigations, 35 of
     which occurred in agricultural situations; 85 planned use
     inspections, 50 of which occurred at commercial applicator
     facilities; 31 pesticide-producing establishment inspections; 29
     federal marketplace inspections; 43 restricted use pesticide
     audits; and 1,266 compliance monitoring contacts/inspections.
     
      Investigated the detection of ethylene dibromide (EDB) in well
     water at a farm in Mattawan, Michigan.  This was the site where
     Grape Root Nematode was first detected in 1983 and eradication
     efforts included the use of EDB.  
     
      In conjunction with state partners, participated in the West Nile
     virus (WNV) Core Work Group, coordinating state WNV
     surveillance, and outreach and response activities.
     
      Administered 13,674 examinations to individuals seeking
     pesticide applicator certification or registration credentials, and
     approved 855 seminars for recertification credits, allowing 1,489
     applicators to renew their credentials through continuing
     education programs.
     
      Conducted more than 428 sanitation inspections of Michigan's
     grain elevators and feed manufacturing facilities to ensure
     the safety and integrity of stored raw grain commodities and animal feed products.  
     
      Continued a partnership with state agencies and stakeholders to
     advise agricultural dealers and farmers on how to deter illicit use
     of anhydrous ammonia and ammonium nitrate, while protecting
     its safe, intended use. 

      Conducted more than 255 inspections and issued 121 notices for
     fertilizer and liming materials found to be in violation
     of the fertilizer and liming laws. This resulted in the 
     interception and removal of about $70,000 worth of violative
     fertilizer and liming products from distribution.

      Submitted 622 fertilizer samples to ensure label guarantees and
     a wholesome food supply.  Issued 20 warning letters and two
     informal hearing notices to manufacturers with significant
     fertilizer sample violation rates.

      Conducted annual inspections of commercial facilities storing
     bulk pesticides and fertilizers to ensure all commercial facilities
     storing bulk agrichemicals in Michigan have containment, proper
     security measures and emergency plans in place.  Tank failures
     occurred at three state storage facilities; however, the secondary
     containment inspected by PPPM prevented more than 500,000
     gallons of liquid fertilizer from being released into the
     environment.

      Partnered with the Groundwater Monitoring Program to monitor
     water quality at bulk storage facilities by collecting 50 well
     samples. This project will better determine the nature and extent
     of pesticide and fertilizer contamination in groundwater, if any, at
     bulk agrichemical facilities.
     
      Conducted outreach activities to inform staff, industry, and
     producers about the newly implemented Regulation 642, On-Farm Fertilizer
     Bulk Storage. This regulation became effective in August 2003,
     and establishes a statewide standard for the storage and handling
     of bulk liquid fertilizer on the farm.
     
      Initiated an advisory workgroup to develop and review proposed
     fertilizer bulk storage regulation amendments that focus on current containment
     technology and regulatory needs.  Entered into three compliance
     agreements for the implementation of a bladder system as an
     alternative design, stipulating that firms follow the technical
     specifications and standards in the proposed amendments.


Please contact us with any questions or for more information.

Michigan Department of Agriculture
P.O. Box 30017
Lansing, MI  48909
Phone: (517) 373-1104
Fax: (517) 335-7071
Online: www.michigan.gov/mda
E-mail: mda-info@michigan.gov
Toll-free: (800) 292-3939

Dan Wyant
Director