Moo-ve on Up!: Sustainable Innovations in Dairy

Dairy, like just about every other agriculture sector, has become very consolidated. So much so that it is speculated Dean Foods, in cooperation with other major processors, owns up to 80 percent of the fluid milk in dairy-producing regions of the U.S. As one might imagine, sometimes this consolidated system doesn't work so well for the small dairy farmer, who is vulnerable to losing his or her contract with big companies, and can't hope to compete, given the fact that so much consolidation has driven the price of milk ever lower. In response to this between a rock and hard place situation, reports of major milk cooperatives pushing out small farm competition have prompted town hall meetings for the U.S. Department of Agriculture, Department of Justice, and farmers. Senators from milk-producing states like Wisconsin and Vermont are pressing for anti-trust investigations, and class action lawsuits are mounting against the major processors. Certainly, there's much to be done for dairy on a national and political level, and perhaps we will see some progress shortly. But in the meantime, some small dairy farms are picking themselves up by the bootstraps and coming up with creative, sustainable solutions rather than give in to bankruptcy.

Vermont is home to New England's largest dairy industry. It came as no surprise the other day when I got stuck driving behind a big old milk truck on Route 7 for miles, until it finally pulled off at an old farmhouse with cows out to pasture nearby to fill up. Unfortunately, within the past five years, more than 250 Vermont dairy farms have shut down due to low milk prices (thanks to those consolidated companies.) But in an effort to maintain a viable and sustainable business, many small dairy farms are choosing to go against the grain of industrial milk completely, ducking out, and providing communities with what, in many places is the equivalent of prohibition bootleg: raw milk. Raw milk is illegal to sell for human consumption in some states, due to health safety concerns. What distinguishes raw milk, after all, is the fact that it is unpasteurized, unlike the milk that you can buy in the store that has been pasteurized (or ultra pasteurized) to extend its travel and shelf life. But a growing number of people are seeking out raw milk dairies, and buying directly from the farmer, singing the praises of raw milk, which is reported to have a host of health benefits, especially for those with digestive issues. In Vermont, as in other states, small dairies who sell raw milk in weekly shares or at a farm stand are finding a way to reclaim a slice of the dairy industry and create a more sustainable business without facing direct competition from big milk companies.

In another New England state, a group of dairy farmers who were in a tough spot after being dropped by Hood banded together to form a unique and sustainable organic milk company, Maine's Own Organic Milk (MOO Milk.) The ten small dairy farmers located all over the state of Maine produce certified organic milk for local and regional sale. The new brand's cartons features farmers stories and explains why local, organic milk is important. It can also boast a five cow rating for organic integrity from The Cornucopia Institute. But what makes MOO Milk really unique is its status as an L3C company, a low-profit limited liability corporation. L3Cs are new to the scene and are generally defined by the fact that they are taxable, for-profit businesses that seek to achieve a social mission above profit that is eligible to receive grants as a non-profit or cooperative would. The main goal of MOO Milk is to be able to offer the families who produce the milk a fair and consistent price. To do this, the farmers are part-owners of the company and are responsible for the production, processing, marketing, and distribution, all of which is done locally in Maine. While investors will see little monetary return, the idea is that MOO Milk will help keep small organic dairy farms in business, filling a niche market that the big competitors won't be able to fill.

In New England, at least, it seems the trend in dairy, as in many other areas of agriculture, is to stay small, and stay local, in order to become sustainable and find markets that those giant milk processors just can't touch.

photo credit: renny sabina