photo credit: Furryscaly
Milk Processors Create the Most Pain in the Farm-to-Consumer Chain
Yesterday, National Public Radio’s flagship news “magazine” show had a revealing story on what is behind the U.S. dairy industry woes. Through mergers and acquisitions, Dean Foods and Dairy Farmers of America have come to dominate the milk market and are squeezing the life out of America’s dairy farms.
While Dean Foods executives brag about their “sunny days of record profits,” family farmers are having to risk their life savings to stay in business just a little while longer.
A lawsuit has been filed against Dean and Dairy Farmers of America, claiming they are operating as an illegal cartel.
Farmer’s interviewed for the report say that the two organizations, working together have succeeded in crushing competition and artificially depressing milk prices paid to the farmers.
Here is a link to the story:
NPR Reports: Independent Farmers Feel Squeezed by Milk Cartel
I was visiting my local dairy farmer, Kitty Nicholas, when the NPR producer visted her farm. Kitty has a successful cow boarding operation, and also sells her milk for processing. A picture of one of her calves is the lead photo in the story, and you will note a striking resembleance to the calf on my blog’s masthead. The story stopped short of talking about the raw milk market, but farmers should note that going independent of Big Milk may mean moving toward providing grass-fed, pure raw milk to your local consumers. The Farm-to-Consumer Foundation offers a Raw Milk Handbook, and a Cowshare/Goat Share University tele-seminar to Farmers interested in exploring this possibility.
In Canada, where Michael Schmidt is in the battle of his life to preserve heritage dairy farming, he faces a similar monopoly, The Milk Marketing Board. Other dairymen beholden to the monopoly system are eagerly throwing Michael under the milk wagon, to preserve the status quo and maintain their control. Apparently, all over North America, family farms are on the border of extinction. Only consumer activism and public awareness will turn this around! See the Campaign for Real Milk website to learn more!
Please share this with everyone you know, especially your local dairy farmer!
Stay tuned for more exciting commentary during Michael Schmidt Month on Hartke is Online!







One Comment
i was very interested in your august (big milk) commentary. i myself have been a dairy rte. driver for 15yrs. i started with Borden Inc. which later became Milk Products.and after 7yrs moved over to Dean Foods dba.(Oak Farms). That Dean Foods is squeezing out the little man is no doubt. I was an Independent Contractor at Oak Farms for the past 3yrs and saw first hand how this company bullies and manipulates its way around in the market and with its own routes.It amazed me that in your article the independent farmers were being forced to sell cheap if they weren’t in D.F.A. Because they would sell to us the independent contractor at a price higher than your local market,much higher.Also independent stores who weren’t in a co-op like(G.H.R.A) or (I.B.C.) or (S.B.O.) were being charged an outrages price too. I had money invested in D.F.A. all 7yrs that i was at Borden and from 1995 to 2002 i had only $1300.00. I took that out when i came to Oak Farms. That D.F.A. got saved or scratched on its back by Dean Foods turning it into a co-op is no doubt.I am curious to know how many top people invested just before turning into a co-op. I am currently seeking representation to take Oak Farms Houston to court and sue them for shady paperwork. I have met with the Comptroller, the distribution manager and the president and have showed them evidence of them running 2 sets of books on my rte. All i get is a deer in headlights stare and yes even from the president. I think Dean Foods would have a heart attack if the independent farmers got together with the independent contractors and dealt with each other. We could call it FARM FRESH DAIRY or HONEST DAIRY.
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