Thanks to Big Media’s lack of coverage, you’d never know this country was going through one of its most serious farming crises in over a generation — but we are.
Katie Couric eagerly goes after antibiotics (a legitimate target in my book), but when dairy exports have declined by 37%, where’s her coverage of the impact this has on rural America?
Katie may not be on the case, but regional media and ag journals have been following the dairy crisis very closely over the last year:
IOWA: 68 dairy farms went belly up between May and October last year. (WHO – Des Moines)
NEW JERSEY: There are 93 dairy farms in the whole state, a 39% drop from three years ago. (philly.com)
NEW YORK: State comptroller reports that the drop in milk prices between 2007-2009 was steepest decrease in state history, with rural New York losing $700 million during that time. (WYSR)
WISCONSIN: Low Milk Prices Cause $1.1 Billion Hit on State Farm Income in ’09 (WI Ag Connection)
Milk prices have been at devastating lows all through 2009, which means that, unless you pay a little bit more for milk (local organic, direct market, or otherwise), you probably contribute to this mess by paying too little. Indeed, if you aren’t paying at least $3.50/gallon for conventional milk, you probably aren’t paying enough to cover the farmer’s cost of production.* You’re basically getting a loan from the farmer.
So I have some questions, and I hope y’all are ready to get in the ring.
SHOPPERS: Do you deliberately buy milk from small or local organic dairies? How do you find these dairies, and who are your favories (links please!)? Do you try to make sure you’re paying a sustainable price? How do know if the price you’re paying is sustainable?
DAIRY FARMERS: Are you selling milk for less than your cost of goods? If so, how long has that been going on? How much freedom do you have when it comes to choosing a buyer for your milk? Do you know the retail price that shoppers would have to pay at the store to cover your costs?
AG POLICY EXPERTS: How is it legal for milk processors like Dean Foods to not pay a pricethat covers a farmer’s cost of goods? How do we prevent these terrible roller coaster rides in the dairy industry?
*I’m using $16 per hundredweight as a price that covers basic dairy costs. If I’m wrong about $3.50/gallon, please let me know in the comments. I’d like shoppers to walk away from this discussion with a price in mind that they should be paying for conventional milk.
Understanding Milk prices is one of the most confusing and muddied systems in the world. I am even an Ag Econ major (sorry this is Emily signed in as Tim) and I have a hard time understanding all the ins and outs. Here is a VERY simple way to explain it.
Since milk is very perishable farmers rely on their coops to market the milk for them. Some brands like Kemps buy from several coops. Some brands like Land O Lakes are their own coop, and are big enough in the market to compete on their own. The price that farmers receive from their coops is loosly based on what futures in milk are trading in Chicago. Since coops are owned by their members (ie farmers) usually coops are not trying to uncut the farmer, but they are trying to stay competitive in the market, so that they continue to have a market.
So why are prices so low on the futures market? One reason is since milk is highly perishable, milk that won’t be use in the fuild market is made into cheese or butter. Companies that warehouse cheese are asked to report their cheese “stocks” This gives traders in Chicago an idea how much milk is being utilized quickly and how much is being made into cheese and being stored. Dairy farmers are constantly concerned what cheddar cheese is being sold for. One of the major problems with this system is there is no auditing mechanism for the reporting. In theory warehouses could lie to lower the prices. I have no proof this is happening, but there has been a lot of questions recently and very few answers.
Another problem to the price crisis is the very nature of the business. It takes cattle two years until they are able to have a calf and produce milk. Even when the price is really low, farmers are hesitant to get rid of cattle they invested so much into. This is why the market takes so long, if ever, to naturally work it’s self out.
What is the answer? Who knows really. We are organic and our organic coop has decided to put a quota system in place. The quota is nice, because you know what your price is going to be.On the other hand, there is no growing our herd. My husband and I just recently joined the family operation and the hope was to expand the herd slightly to provide income for two families. With the quota it is hard to get your quota extended. Quota systems always have a huge barrier to entry.
If you did away with all government supports, the fear is that only the large dairies would surrive and/or we would start importing cheaper milk from other countries. I am not 100% certain that would happend (us dairy farmers are pretty savy), but a lot of fringe producers would certainly leave the market.
We would love to sell directly to customers, but the costs to start our own bottling facility are too much.
So there you have my two sense. Thank you to everyone out there who is supportive of the American farmer and is trying to understand all this nonsense.
Emily Zweber (aka @ezweber and sometimes @zweberfarms on Twitter)
came across this production stat in a sustainability paper and don’t understand how New Zealand milk can challenge North American on price, running 2 cows for the same yield as 1 here.
By contrast, the 2007 average annual yield for the top six milk-producing counties in Europe is 6,362 kg milk per year, while annual production in New Zealand and Canada averages 3,801 kg milk/cow and 8,188 kg milk/cow respectively (FAO, 2009). [U.S. is even a little better than Can]
http://bit.ly/bHG5vW
I try to make sure the label on the milk says farmer owned. I support farmer owned processing whenever possible, I like the thought of them making the money on the processing. After many dairy related conversations on twitter I have learned more about the safeguards inbedded in the dairy system.
ksfarmboy aka Tom Tibbits
I love Crystal Ball Farms milk but my current provider is having problems with his distributor, Does any one know who sells Crystal Ball milk in the Chicago area ( Schaumburg )?
> “Sure, there is a niche for that and if infrastructure exists to process milk in this way then great. The infrastructure does not exist here.”
In Latin American coffee production, the person who offers to buy a small farmer’s coffee for a price far less than the market rate (let alone the farmer’s own cost of production) is called, in Spanish, a “coyote.” The name means exactly what it implies — a predator/scavenger — because the coyote then turns around and sells that coffee for a huge profit. This happens in every coffee region on the planet, not just Latin America.
Personally, I’ve travelled in Nicaragua, I’ve talked to coffee farmers first hand about coyotes and other blunt economic realities of coffee farming, and I have to tell you, the similarities between US dairy and third world coffee production is astonishing. Farmers in both regions conclude, “But what choice do I have?” Like you say, small farmers like your neighbor have to sell to the coyotes (whether they’re dairy or coffee coyotes).
There’s no immediate, better choice for small US dairy farmers. I know that. No quick fix, either. But this dairy situation demands more than Americans shrugging our shoulders and saying “It’s rough. But that’s the way it is.” Because there are options could be pursued. In most coffee growing regions, for example, there’s now a fair trade option. Equal Exchange Co-op pioneered the FT coffee business concept here in the states, gambling that US consumers were actually willing to pay more for coffee if they knew they were paying a fair price. EE pays a “Fair Trade minimum” to farmers, allows coffee farmers to lock in on higher prices if the going rate for coffee exceeds the FT minimum, works with farmers to receive credit, and helps small farmers get technical training they need to compete with the big dogs.
Personally, I think this would work in US dairy. Is Fair Trade a niche market? Sure, even in coffee, it’s a small percentage, but it’s growing fast. In 1986, there were no such options for small coffee farmers. Now Fair Trade coffee is a multibillion dollar industry, and so successful is the movemment, that rural coffee farming communities in Nicaragua have established clinics and hospitals for their families.
And Nicaragua makes rural Kentucky look like Manhattan.
Met with my fav local dairyman this morning. We were discussing issues of antibiotic residues in meats (I purchase steers from his dairy farm for meat). I should put that in perspective before I go any further. The reason we were discussing the possible ab residues in meats was we were talkin about livestock auctions and how hard it would be for us as a small livestock buyer to purchase cows and be assured they were free from any antibiotic usage and this is why we purchased straight from the farm of farmers that we know. That’s just how we do it. It works for us. Not saying its best for everyone, but its best for us.
With that said, back to milk. He also sells his milk as most dairies that I am familiar with do, selling to a large processor so I guess we’d call him conventional. But really, there is nothing conventional about this dairy farmer. No, he doesn’t process his own or sell raw milk or participate in an Organic program of any sort. But conventional in the sense that the majority use the word, he is not. I would also think that the majority of “conventional” dairies also use the same or similar precautions that he does.
He checks every single cow for ABs prior to even putting her on the milk line, even the ones he has raised from birth on his farm. He has a data tester, uses an incubator, takes a milk sample, and gets results all before the cow ever enters the milk line. The testing doesn’t end there. They test their cows daily, yes DAILY. Bulk tanks are also checked. Dairy farmers have a huge incentive to be extra precautious on ABs. Even the most minute positive for Ab residues ends up as a major loss to that dairy farmer. They own the tank….now thats SOME incentive for caution.
Now, is he paid properly by the large processor?…my personal opinion is, of course not. But, just because we dislike the practices of the processor doesn’t mean we should not support the vast majority of America’s dairy men & women buy picking up a gallon of “conventional” (for lack of a better term) milk at your neighborhood grocery market. They need our support.
Just my 5cents
Amy, John’s Custom Meats @KyFarmersMatter on twitter
Love it. Thanks, Amy. You raise a very important aspect of grocery shopping: We shouldn’t ever assume that buying “conventional” means we’re buying from a thoughtless farmer or that our purchase is doing no good at all. You and David both make a great case that sometimes our “Big Box” dollars flow in a very good direction.
But just to be clear, this farmer is using antibiotics and that’s why he’s testing? (In which case, yes, I think his practices are fairly routine, no?) Or are you saying he’s not using antibiotics and is so fanatical about it that he tests on top of not using them? I’m asking because I think your use of the word “organic” (no antibiotics) is throwing me off here.
If his practices are above-and-beyond, I wonder why he’s selling his milk for bottom dollar. I’d say the average sustainable food shopper is usually willing to pay $8-$9 per gallon, as you can see from this dicussion. Is his operation sustainable in the economic sense?
That said, on the other hand, if his practices are in fact shared by the majority of conventional dairy farmers as you say, I’m not sure why the processor should pay him more? Isn’t testing for antibiotics like this required by law before it goes online?
Sorry if I’m being a dumb city kid here. Just trying to understand.
I buy conventional & don’t worry about dairy farmers in Canada for reasons above.
I’m still interested in the debate about how to promote a better price for conventional system dairies (since the same philosophy can be applied to other food in US/Canada).
One step is knowing when a retail price is screwing the dairy, but the next step is figuring out how to pay fair and see that fairness gets back to the dairy too!
Does your dairy guy suffer severe price swings or pressure from the processors, or is he happy?
yourlocalfoods
We too check our milk everyday for antibiotics even if we know they won’t be present. Conventional milk means that antibiotics CAN be used. Not that they always ARE being used. We use them to treat infections if need be. But we check every cow before her milk is sold. We don’t just go by the labeled withdrawal time on the bottle. And we check each cow after she has a calf regardless if she’s had antibiotics or not. We also check each bulktank of milk everyday even if we know there aren’t antibiotics present. And we may sound paranoid but there is a reason for it. Ex: Today we sold approximately 25,000 lbs of milk. That equals 250 cwt. 250x $16 = $4,000. I’d say a $5 test is well worth it.
And yes, by law all milk trucks that deliver to the processing facility are checked to be clear of antibiotics. REGARDLESS of production method.
Conventional antibiotics was submitted by
David Brand, @BrandFarms
We’ve talked about bottling our own milk before, but right now I dont’ think the startup costs would make much sense for us. But we have discussed it.
David Brand, @BrandFarms
>”Conventional milk means that antibiotics CAN be used. Not that they always ARE being used”
But as a shopper, if I want milk produced without antibiotics, conventional milk can’t guarantee it. I’m not saying that conventional’s lack of transparency is right, wrong, good, or bad. I’m just pointing out that this is a big reason why local organic and/or direct-marketed milk is likely to cost more, as John Mesko pointed out above.
I want to reinterate that, in this particular discussion about the dairy crisis and poor milk prices for farmers, the issue is really not organic versus conventional. A lot of responders say they want to support their local dairies, and that’s their way of helping dairy farmers. Personally, I think that’s a perfectly decent response.
Furthermore, I’m relieved to hear that you’re getting a decent price for your milk, David — and I’m totally sincere about that. You’ve become a buddy on Twitter so I don’t give a rat’s ass if you’re organic or not. I want your farm to do well.
But here’s the problem with conventional: If Brand Farm sells for $16/cwt and another farmer sells to the same processor for $12/cwt, I cant tell as a consumer if my dollar is helping the dairy crisis. In fact, considering the state of dairy industry as described in my post, I think my dollar might well be enabling a very self-destructive system. It’s like your antibiotic claim above: I can’t possibly know what’s happening on the farm, because (a) conventional milk processors can’t track back to the source once the milk is pooled, and (b) I imagine your processor isn’t making a claim about paying a blanket fair price to farmers. So how am I to know I’m helping?
Let me sharpen the question a bit: If farmers are getting hosed on price, how are citizens and shoppers supposed to improve the situation for y’all? Is there dairy policy we should be supporting? Are there actions we should be taking beyond buying milk, a purchase that may well be screwing a dairy farmer somewhere?
No, this dairyman does not use routine antibiotics or hormones. He only gives antibiotics in the instance that an animal has an illness or injury. His wife is a bit neurotic about ABs and supplemental hormones. As for why he tests so adamantly for Abs, that’s generally just the norm. Several reasons, some of which may include bringing in new replacements, etc.. from other farms. There are genuinely just careful with food safety in general. I don’t think this is unusual.
As for why he’s selling his milk for bottom dollar, I think he’s just selling his milk the way he always has. Does he really have any other choices? The milk processing industry is quite consolidated. There are not too many options out there for them. Unfortunately, the vast majority of Americans are not at all interested in $8-$9 gallon milk. Sure, there is a niche for that and if infrastructure exists to process milk in this way then great. The infrastructure does not exist here. And how much of that $8-$9 retail is the farmer receiving? I don’t know.
Is it sustainable? Yes and No. When we began our meat project with him last year it was basically a friend reaching out to another friend struggling…trying to help add some value in the only way we could….meat. But, generally speaking he’s from a generational family of dairyman. By his own admission in 2009, his family dairy was in the worst shape of its existence, much worse than the 80’s crisis. It was because of the crisis that we got the idea to add value to his operation by creating some fabulous meat!
Should the processor pay them more for their milk? Yes! Absolutely! They deserve a fair price and a living wage, regardless of whether or not they’re doing what the majority does. But unfortunately, it’s just not that simple.
Dairy prices have always been volatile and even somewhat seasonal for as long as I can remember.
Maybe this from the coop extension can put some things in perspective.
RE: Price Volatility: http://www.extension.org/pages/Milk_Price_Volatility_Today
Other info: http://www.extension.org/pages/Dairy_Cattle_Milk_Marketing
Amy, John’s Custom Meats @KyFarmersMatter
I agree that you can’t always know where exactly conventional milk comes from, but organic coops are the same as conventional when it comes to comingling the milk. The only way to really know if you are helping a single farmer would be to go to the farm and pay the farmer more cash face to face for a job well done. If a person is willing to research which milk is organic and exactly where it comes from then a person should also be willing to research which conventional processors are responsible and take care of their patrons.
We are lucky and sell our milk to Prairie Farms. Prairie Farms patronage dividend paid out is one of the highest, if not the highest, in all the country for cooperatives. So if the company does well it actually is passed on to the producers. Most other conventional milk coop’s don’t pass on the profits as much as Prairie Farms does.
I feel the best way, at the moment, to support your local dairy farmer is to visit the farm and see how things are done. If the way they handle their farm is satisfactory to you then find out where his or her milk is processed and sold and focus on products from that processor. Helping the local farmer regardless of their production method would be best. However, I don’t know the best way to help the overall price for the entire industry. The processors may not be claiming they are paying a blanket fair price to all farmers, but not all the consumers out there are claiming they are willing to pay $8-$10/gal either. Some of the more vocal ones here on FFF and on twitter claim they are willing, but I’m guessing given the choice the $4/gal milk will be in most people’s fridges then the $8/gal milk. Processors are in it to make a profit just like any other business. If people really do care, they will do the research and find the processors that really are treating the producers right.
David Brand @BrandFarms
If everyone bought local, these questions would answer themselves… Hmmmm I think I’ve heard that before! Excellent summary, El Dragon!
Yes, absolutely, conventional milk shoppers should be just as concerned and curious about their milk. But I think it’s a primary trait of the organic/sustainable shopper to be researchers, to visit farms, read labels, and think about the issues swirling around food and farming (hence, this website). The reason people buy milk solely on price, in my opinion, is that they don’t think about it — not that they don’t want to. They just never have. I don’t think it occurs to most people to think about why their food is priced the way it is, how it’s produced, etc.
About commingling of milk, yes, organic co-ops pool milk, obviously, so I shouldn’t have overstated the trackability. But with Organic Valley for instance, there’s a strong ethic about keeping the paying price fairly consistent for milk and because they market well, they make sure shoppers understand this. So while shoppers can’t track the milk back to the source, the way they can buying single-source milk or buying direct from a farmer,shoppers can understand better where their money goes.
Sounds like you have a good co-op. I do think strong co-ops with active participation from farmer-members is absolutely crucial to solving the problems we’re talking about here. We just have to carry that democratic ethic and farm-focus forward to the processor and consumer.
…but I will no longer buy the organic milk from my supermarket after reading about UHT [organic] milk here: http://organicnymilk.wordpress.com/2010/02/05/organic-milks-dirty-little-secret-part-ii/ and here: http://www.foodrenegade.com/just-say-no-to-uht-milk/
I have searched high and low on the internet for local milk sources because I prefer not to buy your regular old supermarket brand. I have found several sources that have helped me locate ‘local’ NY milk. I have to travel quite a distance to get it though. I try to shop at specialty stores or co-ops to get my milk. For raw milk — it’s quite a hike away from my house. Some brands that I love — Hudson Valley Fresh, (NY) a not-for-profit dairy cooperative http://www.hudsonvalleyfresh.com/index.html. Maple Hill Creamery, Little Falls, NY cream-line, organic, grass-fed whole milk and I’ve even tried Garelick Farms milk http://www.garelickfarms.com/ which is a group of dairy farmers ranging from Vermont to Maine.
I can remember years ago when there was a lot of talk and gasping going on about the price of milk and how it could reach $4.00! a gallon. This was years before I knew anything about the cost of milk production, etc. These days I am much more knowledgeable, and I am prepared to pay more for milk. I want to support my local dairies. The list of dairies that are left is very disturbing to me especially in New York. I truly feel that consumers have no idea the dairy crisis exists or are even aware of the plight of the(ir) ‘local’ dairy farmers – just like I didn’t at one time.
Our junior Senator is up for special election in November (she was appointed by our governor to take over Hillary Clinton’s seat) and I know for a fact that she supports family farms and tried to get the American Dairy Farmer Protection Act bill passed. I will be working hard to help her keep her seat. We need her!
Thanks for this great blog post and the wealth of information, and for allowing me the chance to comment here.
Leesie a/k/a SeasLife on Twitter
If Fair Food Fight had a Shopper of the Year Award, I’d nominate you, Leesie. You are ALWAYS so aware, well-read, and compassionate toward farmers.
New York is our number three dairy state, so I too am disturbed by what’s happening in your state. It’s doubly concerning because consolidation is obviously the next step after significant small-farm loss. Ulla Kjarval has written about the 75,000 beef CAFO proposed for New York, and I’m assuming dairy CAFOs will be right around the corner.
Yeah, I remember when milk was flirting with that price, too. Not that long ago, actually (2008?). Wheat was going up too, so a loaf of bread and a gallon of milk together were pushing ten dollars, — and I’m assuming those prices were closer to “real,” that is, actually covering the farmers’ cost of doing business. It would have been a great time to explain to customers, “OK, everybody. See this price? It’s actually sustainable right now. When it goes down, it won’t be anymore.”
Glad to hear your junior senator is on the right side. Hope she can stay in the fight!
And thanks for all the links, too, Leesie. Does ayone else have links to New York dairies that need shopper-love?
Paying $4.00-$4.50/gal in vancouver under a VERY regulated dairy industry with quotas, marketing boards, etc. Interestingly, conservative thinktanks go after it every now and again saying open competition helps consumers who are being forced to pay too much. Luckily, individual consumers can’t get worked up to save $40-50/yr.
Could get done in under international trade though, if access to our domestic dairy market gets thrown into bigger EU trade negotiations.
Wonder if there is potential for regional farmers to band together to market their production with a louder voice? Problem is you need somewhere to sell if you get into a staredown with your existing outlet.
Canadian system sounds good. I wonder if farmers bristle under quotas? I’d assume over the long haul, a system like that evens out the booms and busts that US dairy suffers through, making quotas more acceptable.
Farmers band together regionally quite frequently in the US, and farmers in niche markets (certified organic, synthetic hormone free, etc) do a good job of opening markets for themselves this way. See Organic Valley and NOFPA in particular.
Had past discussion on this topic with @NYfarmer and @FredMarcoux (Quebec dairy). From Frederic:
We get on my farm 74$ Can/100 liters. 4.2 butterfat 3.55 Protein So somethings around 30$US/ 100 pounds?!?
Note, Frederic said you have to pay around $25000/cow to get your quota to start with.
Expect each province roughly the same.
yourlocalfoods
Quota for 50 cows, $25K= $1.25mil, then add your farm & actual cows (another 1-2mil around here). Would think financing options are more available since returns are more secure, but don’t know that 1st hand.
Have been told existing dairies are in stronger position to add quota (maybe with financiers?)
Also, great retirement options. ie can sell your quota, keep your land.
Canadian ag is a totally different beast. I need to learn more.
To what degree do discount retailers like Target and WalMart contribute to the unfairly low price of milk (as well as other foods)? They have to be cheating the system somewhere to be able to offer such low retail prices.
Great question. I don’t think they’re cheating the sustem necessarily, but they’re certainly buying the cheapest industrially produced milk available. If they’re “cheating” at all, they’re deliberately lowering the price in order to draw customers in and making it up elsewhere — product priced this way is called a “loss leader.”(This isn’t really cheating; it’s a very old grocery practice. Bananas have been traditional loss leaders for almost a century now, so long that most shoppers would suffer sticker shock to if they ever saw the real price in a grocery store.)
But even if they take the loss themselves, and that is their own choice, Target, Wal-mart and other “Big Box” groceries contribute to the problem by creating a totally unreal expectation about what milk and other foods really cost. It’s like crack. People get hooked on that cheap price, feel severe discomfort if they ever see a “real” price for milk, and then go running back to Dr. Feelgood for more cheap milk.
That price per gallon you are tossing up should be much higher.
What would consumers be willing to pay for a car that was manufactured in a facility that was open to the public, where every part, part supplier, every worker, every assembly line could be inspected and tested by the consumer prior to purchasing the car? Surely the cost for cars would triple, maybe more. Maybe not for everyone, but for the picky automotive connoisseur… And we are talking about cars here, not food that goes into your mouth.
The price should be what the farmer needs to make it work for him. For some that will be $5/gal, for others, more. Whatever the price, all the costs need to be factored in.
John
John, you are a treasure trove of information, and I really appreciate your take on why local sustainable/organic food is priced the way it is. Here’s one of my favorite quotes in this whole discussion:
“The milk purchased directly from farmers is fresher, uncontaminated by milk from other farms, and the consumer has the full inspection regime in their own head. You have to pay for that kind of transparency.”
Exactly. Transparency has a high value in today’s market, too. You’ll pay for transparecy with certified organic milk. You’ll pay for transparency with high-priced tracking methods that allow you to track your industrially produced food. Or you’ll pay for transparency by buying straight from the farmer who will let you examine his/her whole operation.
If you really want to know how your milk was made, you ought to pay a bit more for that.
In New York, I support Nymilk…they are a new brand of FRESH (not UHT) organic milk in the state. They are are cooperative of 28+ small family farms in the Northern Finger Lakes Region, but also have farms up Near Albany.
They bottle the milk fresh at Upstate/Niagara Farms in Rochester (also a cooperative of farmers).
It is slow heat pasteurized to 140 degrees ONLY, and is homogenized. I’m ok with that.
The real key to this brand is how they pay their farmers. All farms receive a farmgate price of $32cwt, which is significantly higher that all the other organic processing companies. Many others (including Horizon, Stonyfield and Organic Valley) have been lowering prices to their farmers during the economic downturn, so much so that many are not making anything approaching a livable wage.
Nymilk farms (they make Nycheese, too) pay their farmers enough to forgo farm subsidies, avoid food stamps and give them the ability to milk small herds (60 cows or less, in some cases) and still send their kids to college.
I know that $4.99-$5.99 is not uncommon for organic milk half gallons, but in this case I find it well worth the money.
Amazing! I bet that price would make a lot of dairy farmers’ eyes pop out.
I assume this is the co-op you’re talking about:
http://www.getnymilk.com/
I take it they’re doing well in this economy?
Anyone know? I couldn’t tell if it was an official cooperative from the site.
I can’t actually tell you what my milk costs because my husband does the shopping, but we buy local organic milk at our food co-op, and we only buy in glass containers. I would love to buy directly from a farmer, but there are relatively few in reasonable driving distance. It’s important to me that the farmers are getting a living wage and fair price, and I feel that is more likely with organic small local producers.
Don’t know where you’re located, anonymous, but you might look into delivery. You might be surprised to find some local farms are willing to drive their milk to your door or a nearby drop point.
I would agree that local organic and “sustainable” milk tends to be priced to cover labor and other costs. Not a surefire guarantee, but a safe bet.
My family happily pays $4.00 per half gallon for organic whole milk from Crystal Ball Farms in Osceola. We purchase the milk, along with bread and eggs, from Simple Provisions, an MSP delivery service that only works with small organic farms. I believe they deliver across the metro area. I blogged about it here: http://housekept.blogspot.com/2008/10/simple-provisions-convenient-way-to-buy.html
I’ve met people from Crystal Ball at the St. Paul farmers market and they sell milk their for about the same price, so I imagine $4.00 works well for them. However, my family is now looking for a raw milk producer, so we may soon stop our milk order (unless we can get raw milk through the same source). This is indeed a critical issue for farmers and shoppers, and I was pleased to see this post and comments. Milk is so integral to a lot of diets and related products (cheese, cream, butter, etc.), but I’m continually amazed at how many people buy milk from Costco but serve fancy French cheese at a dinner party.
I take the same approach to quality, organic milk as I do for vegetables or other foods: for many/most people, grocery budgets do not preclude the purchase of sustainable products – it’s simply a matter of eating less of some things (meat, dairy) and more of other things (beans, rice, pasta, bread, etc.). The American grocery list must be reinvented for this model to work.
I know Crystal Ball. That’s a kick-ass dairy. Plus, they sell milk in quarts at local co-ops, and not too many small organic dairies offer that around here. I’ve bought from them before.
Yeah, $8 a gallon doesn’t scare me. It makes me a little edgy — my two kids can drink a ton of milk. Much more than $8, though, and I’d have to default to Organic Valley (which goes for $6.99/gal at my co-op of choice).
Love your blog, by the way, and thanks so much for weighing in. Would love to hear more about your adventures with Simple Provisions.
There are many conventional dairy’s that make good quality milk that is marketed through “big box” stores and available to anyone at a cheaper price. The cheaper price doesn’t mean it’s a lower quality product. It’s just being marketed different. And depending on what larger coop the milk is marketed through will really make the difference on the farmers bottom line. Some coops do it rightfor te conventional farmers. It doesn’t all have to be organic milk that people have to buy and drink in order to help the farmer get a good price for their product.
@BrandFarms – David Brand
Thanks for responding, David. I’m not sure people in this thread are making the argument that organic is better quality. I think they’re saying that organic at least offers them transparency as to where their dollars are going, as does buying direct from local dairies. In the examples mentioned, it’s pretty to clear to me that these folks value supporting dairies that stand outside a system that’s breaking farmers.
Do you direct market any of your milk or do your own bottling with your own brand? The Brand brand — I think you could go places with that…
Northeast Organic Dairy Producers Association did an article on nymilk a few months ago and I believe the article said two guys took about 12 years to come up with the idea and put it in action. I don’t think it’s a coop; but a business venture. I wish them success! I’m encouraging an entreprenurial spirit to do the same for wismilk or driftless milk …sad when the Dairy state’s dairies are bought out by Deans. The action needed is to support the Dept of Justice anti-trust actions on consolidation and the state-wide mandates allowing CAFOS in your area. Why anyone thinks they would make money adding another 1000 cows’ milk is beyond me. Probably because they make more in Milk Income Loss Credit than I do with my 30 cows.
Nymilk, Nycheese, Nyeggs, Nyogurt, Nypudding (et al) is actually an LLC with two organic farmer partners (me and Dan France, an organic dairyman from Cobleskill, NY) and we developed and utilize two cooperatived for our raw milk and ingredients inputs). As for the business venture, I still work for free and hope to begin drawing a salary in 2011 (have been working for no salary for seven years).
Dean Sparks
BTW, we are seeking capital to purchase NYC print advertising for our products….if you have any rich Uncle’s, have them email me, please.
Thanks,
Dean Sparks
dean@getnymilk.com
Thanks for popping by, Dean. It’s a pleasure to meet someone who’s working so hard for dairy farmers in your region.
I’ll spread the word about investors. You never know, right?
I just found this conversation for the first time, and love the energy here.Thanks everyone for your thoughtful posts.
A little shot of reality from the farm world: don’t assume Organic Valley farmers are being paid better than any other organic farmer, and don’t assume their pay price, or – god knows – the retail price on a gallon of milk, is making the farmer a profit. What the farmer receives for putting a gallon of milk on the shelf at the Wedge for $6.99 may not even be covering their cost of production. For milk processors, a truly modern way to commit a sin is to drop pay prices to cover theoretical consumer price fear in the face of a recession, while actually raising or maintaining retail prices because, well, there’s profit to be made.
What can we do to fight back? Get to know your farmers, and support the ones you love. What we give to them will come back to nourish us as the circle regenerates itself. The more we support good, ethical producers, the better we’ll eat, and the better off we will be as a community. Support those growers you trust by paying full price for their products, knowing that you are paying the true cost of getting that bunch of carrots/gallon of milk/pork roast to market. Keep “local” connected to “fair trade” when talking about food. The two are inseparable.
Interesting. Do you know for a fact that OV isn’t paying a cost-of-production price to its dairy farmers?
$6.99 is low for OV but that’s probably the Wedge’s doing, as well, in part. I guess I’ve always been under the impression that OV’s price never go as high during the boom days, nor as low during the busts as their competitors, which, in my mind, is a vaguely “fair tradey” model in itself for OV member farmers. Horizon, by contrast, tends to ride the crests and crashes like surfers.