Tom,

White's suggestion gives farmers two ways to improve their profitability: selling direct to consumers, and selling value-added products like cheese.

Going the value-added route is obviously more lucrative, but is going to carry up-front costs for both equipment and marketing.

It seems that the easier route for cash-strapped farmers, at least in the short term, might be to hold off on the valued-added part, but immediately start selling fresh milk to consumers.

Is there some reason that that is a bad idea?  Are there regulations that would prevent it?  Or is the additional profit capture potential for direct sales of milk small enough that it's not worthwhile?

On a related note, I wonder about HP Hood.  They are a farmer-owned cooperative, which means that if the farmers, who are the owners, feel that they aren't getting a fair price for their milk (or a fair share of the price hike that HP Hood has gotten), the should be able to do something about it.  Yet they're complaining to Stonyfield.  What's up with that?

Excellent post, Tom.

Chickens deserve our true friendship! So do fish! So do other sentient beings! Let us learn to be kind.

I suspect these will be challenging times for economic niches, like organic dairy.  With the cost of living rising, families will put a premium on saving money, not on organic products. If I remember correctly, in the 1970's when we had a similar run-up in oil prices and cost of living, supermarkets came out with their unlabeled "generic" products.

Looks like GE has investor-owned HP Hood mixed up with farmer-owned Organic Valley, which is indeed a coop. Easy to get condused, seems Stoneyfield buys milk from OV and licenses yogurt production to Hood.

One more reason to buy local. What, you thought Stoneyfield was actually a farm?

The true meaning of life is to plant trees, under whose shade you do not expect to sit.

Personally, I choose to avoid all dairy.
When I consumed dairy, I did buy only organics, as I am well aware of the conditions on typical dairy farms, as well as the mega dairies (personal experience, living in the heartland).
Further along my life's journey, I decided that I cannot contribute to an industry that is detrimental to the environment, to animal well being, and to my own health. I'm much healthier now, with drastically reduced 'hormonal issues'.

Consider just saying No to dairy.

Why isn't anyone pointing out the value (and potential) of the farmer's market? Most urban areas are ripe for a reliable farmer's market with organic, local, fresh fruits, vegetables, cheese, breads, etc., as well as byproducts such as wool and local crafts. Our area is even looking into a year-round, indoor/outdoor venue that offers the potential for a sustainable income to local farmers and artists. With the cost of fuel and increased interest in all things healthy and green, now is definitely the time for the Grange, Ag Extensions, and other organizations that serve the agricultural community to actively promote all viable alternatives.

isn't exactly going to help dairy farmers.

Presumably there is always an option to avoid a certain food if one has concerns about safety, toxicity, animal welfare, etc., but calling on consumers to simply stop eating any particular food group is overly simplistic.

Excellent point!  I only purchase eggs, poultry, fish(wild caught & smoked), dried beans, fruits & vegetables from our local farmer's market.  They have organic flours and breads.  There are cheeses from all over the world, spices and herbs.  There are vendors who sell fresh & smoked pork/beef/lamb/and turkey.  

It is a T-Th-Sat. indoor/outdoor(weather permiting operation) that has been in existence for over 50 years.  Seasonal items are added, such as flats for planting gardens and landscaping/flower gardens in the spring and summer. Holiday items such as Christmas trees/Halloween pumpkins, etc. are available.

Our market is city owned property, with an independent manager.  They have special functions year round such as chili cookoffs.  In the summer there are outdoor food vendors selling bar-b-que, mexican, greek, soul food, and an ice cream stand.

The demand is there.  The market master last year also started a program at the market to bring organic farmers together with consumers willing to purchase shares in the products of a farmer's operation, using the market location as a distribution point.

And this is in just a medium size town in the rustbelt section of the midwest.

It might be helpful to know a bit of history.  Stonyfield Farm yogurt works was started on a small hillside farm in Wilton NH more than 20 years ago.  It was created as a way to financially support the non-profit Rural Eduation Center (I was a member of the Board).  Gary Hirschberg, despite what anyone who doesn't know him may think, has a deep philosophical commitment to organic agriculture, family farms and environmental sustainability.  No doubt, he and his company can't always make all the right decisions at every point in time, but the two decade history of Stonyfield is about as admirable as you can get in this complex world.

Let's not let the perfect be the enemy of the good.  Stonyfield has made a difference, and will continue to do so.  Constructive criticism is never bad however.

I just paid $7.29 for a gallon of Organic Valley organic milk! I'd swear it was $6.29 per gallon last week. What happened?!

I had just gotten used to paying far more for organic than conventional milk. I had stopped wincing when I put it in my cart. I wasn't even afraid to tell friends and family, who complain about $3.00 per gallon milk, that I buy organic milk.

But I don't think I'll be able to pay $7.29 for a gallon of milk next time. There's something magical about that number. It's a tipping point for whether a beverage is expensive or inexpesive.

How much of this goes to the farmer? The processor? The petroleum industry? Is anyone working on building a hybrid milk truck for moving milk from the farm to the processor? Must be a lot of braking power to recapture.

It has become apparent, to me at least, that milk is indeed a luxury. I dread the day cheese is no longer affordable.

...I consume more milk than I do gas, and milk is more expensive than gas!