Organic Dairy

Organic Dairy Groups File Lawsuits Over Federal Milk Pricing System

Tue, 28 Apr 2026 17:54:05 GMT

Organic dairy farmers are challenging their required participation in the Federal Milk Marketing Order (FMMO) program through a series of federal lawsuits, arguing the system does not reflect how organic milk is produced or marketed.

Members of the Coalition for Organic Dairy Exemption (CODE), including Aurora Organic Dairy , Horizon Organic Dairy and CROPP Cooperative/Organic Valley , have recently filed three federal court actions questioning the constitutionality of including organic milk in FMMOs. A separate class action claim seeks compensation for payments farmers say were collected over the past six years without providing a return.

At the center of the filings is a request to exempt organic dairy from the FMMO system, rather than dismantle the program entirely.

“The federal government has locked in an updated dairy pricing regulation that actively harms organic dairy farmers,” says Elvin Ranck, an organic dairy farmer plaintiff from Pennsylvania. “It systematically siphons revenue generated from organic dairy sales and redistributes it to non-organic dairy producers and their partners.

He continues: “This is effectively a government taking. CROPP Cooperative, of which I am an owner-member, pays millions of dollars each year into the Federal Milk Marketing Order pools, yet those dollars never return to organic farmers like me, and under the current system, they never will. At some point, we have to stand up for ourselves.”

Separate Supply Chains, Shared Pricing Rules

The lawsuits argue organic and conventional milk are treated the same under FMMO pricing and pooling rules, even though they operate under different production systems.

Organic milk cannot be intermingled with conventional milk under federal regulations and typically moves through separate supply chains. Organic production also comes with higher feed, certification and handling costs, along with additional processing requirements.

While organic milk represents about 3% of total U.S. milk production, it accounts for roughly 7% of fluid milk sales. More than 10% of U.S. dairy farms are certified organic.

Plaintiffs argue the current structure pulls revenue out of organic milk checks instead of supporting investment in that segment.

Previous Attempts Through USDA

According to CODE, the legal filings follow multiple attempts to address the issue through USDA’s administrative process.

The group submitted proposals in 2015 that were not advanced and presented organic-specific recommendations during the 2023 national FMMO hearing that were not considered. Concerns raised in post-hearing comments in 2024 were not reflected in the final rule, and administrative challenges filed in 2025 were opposed.

“USDA, under both Republican and Democratic administrations, has spent more than a decade protecting a Depression-era pricing system that forces organic dairy to subsidize conventional products, while refusing every administrative avenue that might have resolved the dispute without litigation,” CODE members said in a press release. “There is a growing movement in this country, across party lines, that wants to know where food comes from and how it’s produced. Organic farmers help make that possible. The federal government should not be making it harder for us to survive, and it has had every opportunity to fix this.”

What the Lawsuits Would Change

The lawsuits emphasize that the goal is not to eliminate FMMOs, but to remove organic milk from a pricing structure plaintiffs say was not designed for it.

“Federal law already recognizes organic as different. USDA’s own organic standards treat our milk as a distinct product with distinct requirements,” CODE members said. “We are not asking to tear down the FMMOs. We are asking FMMOs to reflect a distinction that the law already makes – and that consumers already understand.”

If successful, the cases could change how organic milk is handled within federal pricing orders and whether producers remain subject to pooling requirements moving forward.

Organic Valley Makes History with First Female CEO, Shawna Nelson

Thu, 20 Mar 2025 18:00:00 GMT

Organic Valley, the nation’s largest organic, farmer-owned cooperative, has named Shawna Nelson as its next CEO, effective March 28. Nelson, a Wisconsin native with nearly two decades of experience within the co-op, has grown from intern to executive, demonstrating a deep commitment to Organic Valley’s farmers-first mission.

Nelson, who grew up in Wisconsin’s Driftless Region, started with Organic Valley in 2005 and has since held key roles in marketing, sales analysis, recruitment, employee relations, field operations, and dairy pool management. Her broad experience within the co-op has given her a well-rounded understanding of both farm-level challenges and cooperative strategy.

She steps into the role as Jeff Frank departs to become CEO of Monogram Foods. During his tenure, Organic Valley increased pay prices for organic family farms, strengthened its financial position by cutting debt in half, and secured the #1 branded market share in organic dairy.

“I’m incredibly proud of what we’ve accomplished together,” Frank said in a company press release. “I’m leaving humbled by the work we’ve done, grateful for the relationships I’ve made, and with a greater appreciation for the organic movement and organic family farms.”

Farmer and Board President Dave Hardy acknowledged Frank’s contributions and voiced confidence in Nelson’s leadership.
“Jeff’s achievements were remarkable, and we are enthusiastic about the opportunities ahead,” Hardy said. “The Board chose Shawna because of her demonstrated strong leadership, understanding of the farmer membership, and connection to the employees. She has shown dedication to the mission and to organic food, and with her vision will lead our farmer-owned cooperative forward.”

Nelson, who holds a business degree from UW-Stevens Point, lives in La Farge, Wisconsin, with her husband and son.

“I am deeply honored to build on the momentum developed through Jeff’s leadership and step into the role of CEO,” she said. “The dedication and passion of our employees, board, and farmer member-owners inspire me every day. I look forward to working in collaboration across the cooperative to build on our successes and continue to serve our mission now and for generations to come.”

Your Next Read: California Dreams: Transformation Through Innovation

Danone to Sell U.S. Organic Dairy Units to PE Firm Platinum Equity

Tue, 02 Jan 2024 16:32:24 GMT

French food group Danone said on Tuesday it had signed an agreement to sell its premium organic dairy units in the United States to investment firm Platinum Equity.

The sale of the Horizon Organic and Wallaby businesses is part of the company’s portfolio review and asset rotation program the company announced in March 2022, Danone said in a statement, without disclosing the financial details of the deal.

“This sale, once completed, will allow us to concentrate further on our current portfolio of strong, health-focused brands and reinvest in our growth priorities,” said Danone CEO Antoine de Saint-Affrique.

Danone will retain a minority stake in the business, the company added.

Danone declined to comment on the deal value, but added that the sale would have an impact on its 2024 financials.

Platinum Equity did not immediately respond to a Reuters request for comment on the deal value of this transaction.

The Paris-based company said in January last year that it was exploring strategic options, including a potential sale, for its organic dairy activity in the U.S.

Danone’s organic dairy activity in the U.S. comprised of the Horizon Organic and Wallaby businesses with a portfolio of organic dairy products, including milk, creamers, yogurt, cheese and butter.

It represented approximately 3% of Danone’s global revenues and had a dilutive impact on Danone’s like-for-like sales growth and recurring operating margin in 2022.

Organic Valley Added 84 Farms to its Membership in 2023

Fri, 29 Dec 2023 21:22:45 GMT

During a year full of farm consolidation, Organic Valley, the largest dairy cooperative of organic farmers in the nation, added an additional 84 farms to its membership in 2023.

“This is who we are,” says Shawna Nelson, Organic Valley executive vice president of membership. “Last year, we brought in farms that were abruptly dropped by their milk buyers, and this year, we’ve welcomed 84 more into our organic dairy community. Our commitment to organic family farmers is unwavering, and we aim to be the go-to option for those seeking a stable future in farming.”

According to the company, the cooperative welcomed:

26 farms from Pennsylvania
22 farms from New York
12 farms from Wisconsin
6 farms from Ohio

Several other farms from Indiana, Iowa, Maryland, Michigan, Minnesota and Vermont were welcomed as well.

“We can’t do this alone,” says Jaclyn Cardin, Organic Valley chief brand officer. “If you care about how your food is produced and who is producing it, we think we offer a lot. We want consumers to buy with both heart and head, knowing that Organic Valley products come from a place of integrity. Because we’re a farmer-owned cooperative, when you purchase our products, the farmers who dedicate themselves to caring for the land, the animals and their communities receive stable and farmer-determined compensation. We believe good food comes from good, small family farms.”

Looking ahead, Organic Valley plans to continue supporting small organic family farms in 2024.

For more industry news, read:

John Phipps: The Slow Growth of Going Organic in Agriculture

Mon, 11 Dec 2023 17:27:54 GMT

A straightforward question from Melody Kappenman from Leaf River, Illinois:

“How much is organic farming growing year to year? I’m hearing more & more about organic foods being available. Is organic farming anywhere near half of all farming in the United States and/or the world?”

This is a great question, and the answer was mildly surprising.

To begin with, data about organic products usually comes from producer organizations along with numbers from the USDA. While they show historic sales growth they almost never compare it to total retail food sales. For example, here is a chart showing organic sales since 2005. $60 billion dollars is pretty impressive. Until you compare it with total food sales.

(Farm Journal)

Sales of food consumed at home were $1.05T in 2022 with food away from home $1.35T. Organic numbers are production, and USDA numbers are consumption.

Organic share of the food market is then anywhere from 2.5% to 6% depending on how you measure. Global organic sales are roughly twice as large, $133B, but total global food sales are three times as large, so the organic share is less than 2%.

(Farm Journal)

Organic sales are growing but have a long way to go to comprise half of our consumption. Part of the problem with increasing organic sales is some food is really hard to produce organically. The biggest segment – produce – has been the most successful, but not all plants lend themselves to organic production.

Organic dairy is challenging since the rules require organic feed, housing rules, ration and medicine restrictions, and more. Organic meat production has many of the same hurdles, but the largest is organic feed components are difficult to produce, particularly meeting the non-GMO standards for corn.

(Farm Journal)

Inflation has made consumers price sensitive, and organic production requires higher prices to offset costs.

The growth of U.S. organic market has been met in part by imports, especially fruits. I doubt organic market share will increase much due to such production issues, but also because objective proof of organic advantages for consumers is still sparse.

Dairy Report: New Organic Standards for Livestock Released

Wed, 01 Nov 2023 19:40:27 GMT

This week USDA released more specific standards for livestock and poultry producers that want to label their products as organic. the agency releasing new rules. It follows years of negotiations with organic groups, farm organizations and livestock and poultry producers. The organic trade association pushed hard for new regulation, saying they’ll promote consumer trust and ensure competing companies abide by the same rules. Now the rules cover issues, including outdoor space requirements, living conditions for animals, maximum density regulations for poultry and how animals are transported for slaughter.

Halloween was earlier this week and what better way to celebrate them by handing out some dairy themed treats. Some ideas include string cheese, which is low in calories and high in protein, chocolate milk and there are some shelf stable options. Yogurt tubes, microwavable macaroni and cheese, mini cheese wheels milk straws, cereal cups cheese crackers, and also don’t forget about cow themed candy like Milk Duds, cow tails and cow pies.

Organic Valley Partners Up on Seaweed Feed

Thu, 19 Oct 2023 18:59:33 GMT

Organic Valley , the nation’s largest farmer-owned organic cooperative, is partnering with Hawaiian seaweed grower, Symbrosia , to test the viability of feeding seaweed as a means of mitigating livestock methane emissions.

In September 2022, LaFarge, Wis.-based Organic Valley received a $25 million grant from the U.S. Department of Agriculture through the USDA’s Partnerships for Climate-Smart Commodities program to ramp up the Organic Valley Carbon Insetting Program (OVCIP). The cooperative said its OVCIP will provide technical and financial resources to accelerate the adoption of 1,200 new carbon-reduction and -removal projects over the next 5 years.

Through this program, Organic Valley will become the first U.S. milk cooperative to offer direct farmer payments for carbon reduction and removal, as well as cost sharing for the design and implementation of climate-conscious agricultural practices.

One such practice is feeding seaweed. “Research and commercial trials have shown that adding a small amount of the red seaweed, Asparagopsis taxiformis, to livestock feed can reduce enteric methane emissions by over 50% in dairy cattle and over 80% in beef cattle,” Organic Valley officials noted.

The seaweed is native to Hawaii, where the Symbrosia team has been cultivating select strains that they said are significantly more productive, potent, and resilient than wild populations. Their branded product, SeaGrazeTM , was approved for USDA organic certification in July 2023.

Symbrosia grinds the dried seaweed into a powder that is used as a feed additive in small doses to reduce methane emissions. According to the company, “during enteric fermentation in the cow’s digestive process, SeaGraze inhibits the formation of methane without impacting the overall digestion that helps the cow gain weight and produce milk.”

They continued: “In a typical fermentation process, hydrogen (H2) and carbon dioxide (CO2) combine within the stomach to create an output of methane that is released whenever the cow burps. However, with SeaGraze, the hydrogen is blocked from the carbon, reducing methanogens naturally through digestion.”

A pilot program has been developed between Organic Valley and Symbrosia to evaluate the impact of the additive. The 6-month trial began in early July, utilizing the organic dairy research herd at the University of Minnesota’s West Central Research and Outreach Center near Morris, Minn. University of Minnesota researcher Dr. Bradley Heins is supervising the project.

“I am excited about what SeaGraze means for the future of organic dairy farms and its effect on reducing enteric methane production of dairy cattle,” said Heins. “It will help us make a more sustainable organic industry.”

Pending the outcome of the project, Organic Valley will look to scale the use of SeaGraze within its carbon insetting program in the coming years. “Natural options that substantially reduce enteric methane emissions – and pay farmers to do so – are rare, but we are building those platforms with the help of innovators like Symbrosia,” said Nicole Rakobitsch, Director of Sustainability at Organic Valley.

Organic Valley has more than 1,600 organic family farm members, supplying more than 30% of the organic milk sold in the United States.

For more industry news, read:

Organic Valley Rebuilds Oregon Plant After Devastating Fire

Tue, 23 May 2023 13:05:00 GMT

Dusting off the ashes from a three-alarm fire that heavily damaged the Organic Valley’s McMinnville, Ore., 25,000-square foot main building in 2021, the cooperative has since rebuilt.

According to Mark Pfeiffer, vice president of internal operations with Organic Valley, several new additions were added to the plant.

“In the aftermath of the fire, we undertook the reconstruction of our High-Temperature Short-Time (HTST) pasteurizer and the room dedicated to fluid processing,” he shares. “In addition to this, we enhanced our raw milk receiving capabilities by adding an 80,000-pound silo capacity, coupled with the construction of a cutting-edge, three-bay milk receiving facility.”

The cooperative also revamped a compact room designed specifically for drying milk powder, enabling them to produce non-fat dry milk powder (NFDM) in substantial quantities, packed in large totes, each capable of holding around 2,000 pounds.

“This new setup significantly improves our capacity to manage a range of milk segregation needs, which is particularly beneficial when receiving organic milk or conventional milk in various forms,” Pfeiffer says.

The new additions signify that Organic Valley members once again have a facility where they can bring their milk for processing. The additions of the reconstruction happened in two phases. Phase one began on Oct. 4, 2021, and the plant began processing milk again in May 2022. The second phase was completed earlier this month.

“While our plant isn’t operating at its maximum capacity, it presently meets the processing requirements of our members’ milk volumes in the Pacific Northwest,” Pfeiffer said.

With the addition of two 40,000-gallon silos the plant’s capacity nearly doubled capacity. Today, the creamery has resumed making milk powder in 2,000-pound totes for large customers and is processing 2% pasteurized milk, half-and-half and cream.

Pfeiffer notes they still have a significant journey ahead.

“Our plant has not been restored to its pre-fire capabilities, which includes the production of butter and an automated line for bagging 50-pound batches of non-fat dry milk powder,” he says. “Given the rapid changes in the dairy market, we are in the process of exploring potential next steps and construction phases for our facility.”

Nearly 50 miles southwest of Portland, the Organic Valley McMinnville creamery was acquired in 2016, about 50 miles southwest of Portland, in 2016.

USDA Announces Additional Assistance for Dairy Farmers

Mon, 23 Jan 2023 22:33:38 GMT

The U.S. Department of Agriculture (USDA) today announced the details of additional assistance for dairy producers, including a second round of payments through the Pandemic Market Volatility Assistance Program (PMVAP) and a new Organic Dairy Marketing Assistance Program (ODMAP). The update to PMVAP and the new ODMAP will enable USDA to better support small- and medium-sized dairy operations who weathered the pandemic and now face other challenges.

“The Biden-Harris administration continues to fulfill its commitments to fill gaps in pandemic assistance for producers. USDA is announcing a second set of payments of nearly $100 million to close-out the $350 million commitment under PMVAP through partnerships with dairy handlers and cooperatives to deliver the payments,” said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt. “USDA is also announcing new assistance targeted to small to medium size organic dairy farmers to help with anticipated marketing costs as they face a variety of challenges from weather to supply-chain challenges.”

Pandemic Market Volatility Assistance Program

PMVAP assists producers who received a lower value due to market abnormalities caused by the pandemic and ensuing Federal policies. As a result of the production cap increase, USDA’s Agricultural Marketing Service (AMS) will make PMVAP payments to eligible dairy farmers for fluid milk sales between 5 million and 9 million pounds from July through December 2020. This level of production was not eligible for payment under the first round of the PMVAP. Payment rates will be identical to the first round of payments, 80 percent of the revenue difference per month, on fluid milk sales from 5 million to 9 million pounds from July through December 2020. USDA will again distribute monies through agreements with independent handlers and cooperatives, with reimbursement to handlers for allowed administrative costs. USDA will contact handlers with eligible producers to notify them of the opportunity to participate.

As part of the first round, PMVAP paid eligible dairy farmers on up to 5 million pounds of fluid milk sales from July through December 2020. The first round of payments distributed over $250 million in payments to over 25,000 eligible dairy farmers. These dairy farmers received the full allowable reimbursement on fluid milk sales up to 5 million pounds.

More information about the PMVAP production cap increase is available at www.ams.usda.gov/pmvap .

Organic Dairy Marketing Assistance Program

The new ODMAP, to be administered by USDA’s Farm Service Agency (FSA), is intended to help smaller organic dairy farms that have faced a unique set of challenges and higher costs over the past several years that have been compounded by the ongoing pandemic and drought conditions across the country. Many small organic dairy operations are now struggling to stay in business and FSA plans to provide payments to cover a portion of their estimated marketing costs for 2023. Final spending will depend on enrollment and each producers projected production, but ODMAP has been allocated up to $100 million.

The assistance provided by ODMAP will be provided through unused Commodity Credit Corporation funds remaining from earlier pandemic assistance programs. The assistance will help eligible organic dairy producers with up to 75 percent of their future projected marketing costs in 2023, based on national estimates of marketing costs. This assistance will be provided through a streamlined application process based on a national per hundredweight payment. The payments will be capped at the first five million pounds of anticipated production, in alignment with preexisting dairy programs that target assistance to those smaller dairies that are most vulnerable to marketing challenges. This program is still in development.

Details about the Organic Dairy Marketing Assistance Program will be available and updated at www.farmers.gov as more details are released in a Notice of Funds Availability later this year.

Organic Valley Rescues Small Northeast Family Farms

Thu, 22 Sep 2022 14:30:00 GMT

The nightmare for any dairy producer is to receive notification that they are losing their milk market. Securing a new milk market at the last minute certainly is easier said than done and often turns into crisis mode for a farm to find a valuable market that is willing to take their milk.

This is the unfortunate story that played out earlier this summer for many Pennsylvania dairy farmers, including John Painter of Painterland Farms LLC. who milks 400 cows near Westfield. The Northeast dairy farmer shares that he couldn’t believe it when he received notice from his milk processor that they were dropping him and that he only had five days to find another place to ship his milk to.

“Organic Valley stepped in and is allowing us to continue to do what we love,” Painter says.

Organic Valley welcomed 50 organic family farms throughout the Northeast, including Painterland Farms. Within days of learning of these farmers’ plights, representatives from Organic Valley were in Pennsylvania meeting with the families and sitting down to discuss their options.

“Our mission is imperative – especially after seeing these family farms lose their market with little to no notice. What we have seen across the country is that when small family farms go out of business, they don’t come back,” Travis Forgues, Organic Valley executive vice president of membership, says. “At the rate these farms are currently disappearing, there won’t be any small family farms left in America. However, if all of us do our part, we can keep these small family farms viable.”

“It’s a weight off our shoulders – that’s for sure,” Painter says. “Everyone on the Organic Valley staff that we dealt with was very attentive, responsive and helpful. With their help and quickly picking up the procedural pace, we turned a bad situation into a new opportunity!”

So far this year, Organic Valley has welcomed more than 60 new farms that were dropped by other companies in the dairy industry.

“As farms face increasing pressure both financially and climatically, Organic Valley continues to fulfill its mission of saving small family farms across the rural landscape,” says Elizabeth Mullin, public relations specialist with Organic Valley. “Due to our supply and demand forecasting we had done earlier in the year preparing for the Northeast, we were able to offer them a market with the fastest turnaround in our cooperative’s history – one week.”

Organic Valley Sets Sights on Satellite Technology to Improve Pasture Grazing

Thu, 22 Sep 2022 04:13:06 GMT

Organic Valley is launching a pilot program that uses satellite photography to measure pasture health on its dairy farms, according to a company press release. This new technology aims to provide farmers with nearly real-time feedback each week to support dairy herd nutrition, improve grazing systems and address environmental concerns.

The company notes that their producers divide their perennial pastures into paddocks and move their herds frequently between them based on the maturity and quality of forage available. This frequent movement is known as “intensive rotational grazing,” and is a key practice within regenerative farming systems.

“Rotational grazing requires farmers to measure the forage in each paddock on a regular basis, a manual and time-intensive practice,” says Wade Miller, Organic Valley senior director of farm resources, in the press release. “Satellite photos measure the forage in each paddock remotely, greatly easing the farmer’s labor and time burden. Based on university trials, we expect our farmers will be able to capture at least a 20% increase in pasture utilization through the use of this technology.”

Several benefits of cattle grazing on pasture include improved soil health, greater biodiversity and increased plant biomass.

“Through this pilot program, we will test the technology on a cross-section of farms nationwide in 2021, and will make it available to all Organic Valley farms in 2022,” Miller added.

Organic Valley Rebuilds First Stage of Oregon Plant Damaged by Last Year’s Fire

Thu, 14 Apr 2022 14:00:00 GMT

Nearly a year ago, dairy farmer Jamie Bansen of Forest Glen Jerseys, located in Dayton, Ore., received alarming news that the creamery her family ships milk to was on fire. Thankfully for Bansen and the other Organic Valley patrons, the McMinnville, Ore., creamery has since dusted off the ashes and is almost finished with its first phase of rebuilding.

The cooperative shares it will hire eight new employees on May 2 to resume making nonfat milk powder at the original site. Fourteen employees are already back to work.

“Our first phase will be completed this summer when we will resume making nonfat milk powder to be used by our customers as an ingredient in ice cream and yogurt. We will also begin utilizing our expanded receiving bays and pasteurized silos for storage, processing, and segregation of raw liquid milk,” Mark Pfeiffer, Organic Valley vice-president of internal operations says.

Forest Glen Jerseys has shipped milk to that very same processing plant for more than four decades. First as Farmers Cooperative Creamery (FCC) and then as Organic Valley when they purchased that plant back in 2017.

The plant has seen several upgrades since the purchase, as Organic Valley has invested nearly $23 million in renovations and upgrades. On April 20, 2021, the 25,000 – square-foot main building was destroyed after the fire erupted at the plant. The milk dryer, butter churn and storage tanks all survived the blaze.

“If it had been a total loss, I’m not sure we’d be rebuilding anywhere, quite frankly,” Pfeiffer shares.

Nearly 500,000 lb. of milk is shipped daily into the McMinnville plant to make butter and milk powder, stemming from 42 local family farms, including Forest Glen Jerseys.

Bansen represents the fourth-generation farmer in her family. In 1965, Bansen’s father, Dan, left the home farm in California and moved to Oregon with 35 cows and six kids. Today the family owns and operates two dairies, all of which are home to Registered Jersey cows and ship all of their milk to Organic Valley.

“The plant has been our livelihood for all these years. Dad was president for FCC for 10 plus years and helped develop that business, really to the point that helped make it an attractive purchase for Organic Valley,” Bansen adds.

Bansen applauds her cooperative creamery for acting immediately and working well on behalf of its farmer patrons.

“They kept farmers well informed and quickly diverted milk to other homes last year,” Bansen says. “We are happy to soon be back to processing healthy, delicious butter and powder locally. We as well as the other Organic Valley farmer owners are looking forward to being back online in McMinnville and resuming more efficient milk transport and processing here in our back yard rather than having the extra expense of rerouting milk elsewhere.”

Pfeiffer says rebuilding the creamery will help save and sustain small organic family farms in the region.

“Without the expertise of our partners, such as the City of McMinnville, McMinnville Water and Light, and our general contractor, this project would not have progressed so rapidly – especially with supply chain issues and a global pandemic – and we are very grateful,” Pfeiffer states.

While the timeline for the second phase is still to be determined, Pfeiffer shares that they will prioritize employee offices and the potential for butter production. The anticipation is that phase two will extend in 2023.

“We’ve come a long way from last year,” Pfeiffer says. “We look forward to growing our capabilities in McMinnville, Oregon, and turning organic dairy from small family farms into delicious products for families across the Pacific Northwest.”

USDA Publishes Origin of Livestock Final Rule for Organic Dairy

Thu, 31 Mar 2022 12:19:38 GMT

A long-anticipated “origin of livestock” final rule has just been released by the UDSA that illustrates the uniform standards for transitioning dairy cattle to organic production. This change promotes a fairer and more competitive market for all organic dairy producers, by making sure that certified USDA organic dairy products are produced to the same consistent standard.

The USDA rule was originally proposed in 2015 but withdrawn in 2018. In late 2019, the USDA decided to reopen the comment period on the proposal.

The Secretary of Agriculture, Tom Vilsack, states, “This action demonstrates the USDA’s strong commitment to America’s organic dairy farmers. The Origin of Livestock final rule provides clear and uniform standards about how and when livestock may be transitioned to organic dairy production, and how transitioned animals are managed within the organic dairy system. Now, all organic dairy livestock producers will have the confidence and certainty they are operating in a fair and competitive market.”

USDA’s National Organic Program (NOP) will oversee the new rule, which in general:

Allows a dairy livestock operation transitioning to organic, or starting a new organic farm, to transition non-organic animals one time.
Prohibits organic dairies from sourcing any transitioned animals. Once a dairy is certified organic, animals must be managed as organic from the last third of gestation. Variances may be requested by small businesses for specific scenarios.

Statement From Organic Valley

Organic Valley released a statement saying they welcome the long-awaited announcement by USDA. The Origin of Livestock rule was originally published in 2015, this regulation clarifies the expectation for how dairy farms transition and source dairy cows for organic milk production.

The USDA has now clarified the Origin of Livestock to mean that a dairy operation can exercise a one-time transition event of the period of 12 months, thereafter all animals on the farm must be organic from the last third of gestation or an initial transition occurrence. The USDA requires the herd transition to be associated with a dairy operation that actively milks animals.

Organic Valley’s statement shared, “The USDA’s action falls in line with the thousands of public comments supporting the agencies narrowing of permissible organic dairy transitioned approaches. Our cooperative has been a leading voice and commented in the past three comment periods and had our board chair Steve Pierson testify on the topic in 2019 in front of the U.S. House Agriculture subcommittee for Biotechnology, Horticulture, and Research.”

Furthermore, they share that while the final rule represents progress, Organic Valley will continue helping government agencies understand and alleviate the impact of one provision of the final rule that could negatively impact small farm intergenerational transfers of organic dairy operations.

“Origin of livestock has been a long-standing priority for Organic Valley. Our farmers have been disadvantaged by the lack of consistency on the origin of livestock for the last 20 years,” Organic Valley Board President and farmer-member, Steve Pierson says. “This is a priority that we have led nationally and over the last seven years, and while the regulation isn’t perfect, I am encouraged that there is finally some progress from the USDA on a vital aspect of the organic program.”

More information about the Origin of Livestock rule is available at: www.ams.usda.gov/rules-regulations/national-organic-program-origin-livestock

Organic Valley Plans to Take on Farms Previously Dropped by Competitors

Wed, 09 Mar 2022 17:11:29 GMT

Organic Valley has offered to purchase milk from as many as 90 organic farmers whose previous contracts with Horizon Organic and Maple Hill will soon be terminated.

Founded in 1988, Organic Valley, a farmer-owned cooperative, has extended its hand making the single largest effort to save small organic family farms in the Northeast through a letter of intent.

Dozens of the farms that received offers are located in Vermont, according to a statement from the Vermont Agency of Agriculture, Food and Markets. One family that received this offer resides in Cornith.

Osgood Family Farms milk 30 cows and second-generation dairy farmer, George Osgood shares that his family began farming this land more than 65 years ago.

“I’m glad to partner with Organic Valley to continue our family farm,” he said in a statement. “A cooperative owned by small family farms is the perfect fit for us. It gives us the chance to keep doing what we love.”

As dairies from all over the U.S. continue to lose family farms through consolidation and industrialization over the past decade, states like Vermont have certainly felt the pain.

Earlier when Horizon announced it would pull its contracts with 89 farmers in the Northeast, many of those farmers said they didn’t know if they would survive the blow. Maple Hill announced plans to terminate contracts with an additional 46 organic farmers in New York.

“We are the only national brand still fighting for small family farms because we know that the best quality food is ethically sourced from small family farms,” Bob Kirchoff, Organic Valley CEO says.

U.S. Sen. Patrick Leahy, D-Vt., expressed gratitude toward the company.

“While this is terrific news for these farm families, challenges still remain for the organic dairy industry, and I will continue to work, along with others who support organic dairy to help find, or create, new markets for organic milk,” he said in a statement.

Organic Valley plans to release more information on efforts to provide hope to small family farms in the Northeast, as well as across the U.S. in the coming weeks and months.

Dairy Report: Dairy Farmer Pleads Guilty to Nearly $60M in Fraud

Wed, 03 Nov 2021 20:39:24 GMT

The owner of Shuttered Dairy has plead guilt to conducting nearly $60 million in fraud. Meanwhile, farm losses 5,800 farms in 2019 versus 2018. Ag Day’s Clinton Griffiths explains more in this week’s Dairy Report.

Owner of Shuttered Dairy Pleads Guilty in $60M Fraud

The owner of an award-winning organic dairy in Pennsylvania that abruptly closed its doors last fall pleaded guilty Thursday to running a Ponzi scheme that bilked investors of nearly $60 million.

Philip Riehl, an accountant and the majority owner of Trickling Springs Creamery, ran a long-running fraud scheme that preyed on hundreds of Amish and Mennonite investors, according to federal prosecutors. He pleaded guilty in federal court to securities and wire fraud and conspiracy.

Sentencing was scheduled for June. Riehl, 68, faces a maximum of 45 years in prison.

“Riehl’s victims trusted him to handle their investments with honesty and integrity. Instead, he took advantage of their trust based on their mutual religious affiliation,” U.S. Attorney William McSwain said in a written statement. “In some cases, the defendant swindled individuals out of millions of dollars. It is only natural for members of a tightly knit community to want to take care of one another, but Riehl wasn’t concerned with taking care of anyone but himself and he doesn’t deserve the loyalty of his victims now.”

Chambersburg-based Trickling Springs Creamery opened in 2001 and produced milk, cream, butter, ice cream, yogurt and cheese. The dairy’s products were sold up and down the East Coast.

Court documents said Riehl lured investors to a fund that made most of its loans to Trickling Springs and paid off older investors with money from new investors. He and a co-conspirator also sold promissory notes in an effort to prop up the struggling creamery, lying to investors that it was profitable when in reality it was losing money, according to court documents.

As of December, investors had lost $59.7 million through the Riehl Investment Program and Trickling Springs, falling victim to one of the largest Ponzi schemes in state history, authorities have said.

Trickling Springs closed its plant and retail location in Chambersburg last fall and filed for bankruptcy in December.

Riehl previously apologized in a letter to investors.

Farm Number Show the Smallest Drip in Recent History

The U.S. saw a loss of 5,800 farms in 2019 versus 2018, per USDA. But, that’s the smallest decline in recent years. Since 2012, the average year-over-year decline in the number of farms was around 12,000, with the biggest drop being between 2014 and 2015.

In 2019 the total number of farms in the U.S. totals 2,023,400.

By far, Texas is the winner in farm numbers, with 247,000 farms.

Top 10 States in number of farms

Texas: 247,000
Missouri: 95,200
Iowa: 85,300
Ohio: 77,800
Oklahoma: 77,300
Kentucky: 74,800
Illinois: 71,400
California: 69,900
Tennessee: 69,700
Minnesota: 68,000

The total land in farms, at 897,400,000 acres, decreased 2,100,000 acres from 2018. This slight year-over-year drop is on par with recent years and a sign farmland isn’t vanishing as quickly as some think .

The average farm size for 2019 is 444 acres, which is up 1 acre from the previous year.

States in the west tend to have the largest average farm sizes.

Top 10 States in average farms size

(acres)

Wyoming: 2,417
Montana: 2,164
Nevada: 1,821
New Mexico: 1,613
North Dakota: 1,506
South Dakota: 1,459
Arizona: 1,379
Nebraska: 982
Colorado: 822
Alaska: 810

Read More

John Phipps: Farmland Isn’t Vanishing as Quickly as Some Think

Can You Guess What 10 States Have The Greatest Number of Farms?

Oregon Dairy Farmer Applauds Organic Valley for its Efforts on Handling Destructive Fire

Fri, 23 Apr 2021 18:28:32 GMT

On Tuesday afternoon, dairy farmer Jamie Bansen of Forest Glen Jerseys located in Dayton, Ore., received alarming news that the creamery her family ships milk to was on fire. Thankfully, the longstanding relationship between Organic Valley and Forest Glen Jerseys did not cause Bansen to lose too much sleep.

“I received a phone call from a friend saying the plant was on fire,” Bansen says. “I immediately went to social media and witnessed my creamery become overwhelmed with flames.”

A three-alarm fire to Organic Valley Creamery in McMinnville, Ore., started around 1:15 p.m. on Tuesday. While there was severe structural damage to the creamery, a spokesperson for the company reported that no injuries to employees or first responders occurred. “The exact source and initial location of the fire is not known at this time,” Bob Kirchoff, chief executive officer for Organic Valley reported. “A thorough investigation of the incident is being conducted, and we will not speculate on the origin of the fire. We are thankful for the actions of local emergency personnel, and we are complying fully with local authorities.”

Forest Glen Jerseys has shipped milk to that very same processing plant for more than four decades. First as Farmers Cooperative Creamery (FCC) and then as Organic Valley when they purchased that plant back in 2017.

The plant has seen several upgrades since the purchase, as Organic Valley has invested nearly $23 million in renovations and upgrades. “We cannot speculate on the dollar figure at this moment, but the damage is extensive and appears to be a total loss,” Kirchoff reports.

Nearly 500,000 pounds of milk is shipped daily into the McMinnville plant, stemming from 42 local family farms, including Forest Glen Jerseys.

Bansen represents the fourth-generation farmer in her family. In 1965, Bansen’s father, Dan, left the home farm in California and moved to Oregon with 35 cows and six kids. Today the family owns and operates two dairies, all of which are home to Registered Jersey cows and ship all of its milk to Organic Valley.

“The plant has been our livelihood for all these years. Dad was president for FCC for 10 plus years and helped developed that business, really to the point that helped make it an attractive purchase for Organic Valley,” Bansen adds.

Bansen applauds her cooperative creamery for acting immediately and working well on behalf of its farmer patrons. “They continue to keep farmers well informed by sending us an updated voice-recording text and let us know when we can expect to hear future updates,” Bansen adds. “Organic Valley quickly diverted milk to other homes.”

Field staff who live and work in the area are also making themselves available to Organic Valley farmers, Kirchoff notes.

Bansen believes quick action from her creamery saved Organic Valley members from dumping milk, as Organic Valley quickly diverted its patrons’ milk to its extensive network of co-manufactures partners. While Organic is not sure of the long-term plan, they stand behind their cooperative’s pledge to pick up its farmer’s milk.

“Continuing to pick up our farmers’ milk is one of our top priorities and we’re confident we will continue finding homes for all of it. We are grateful to have strong partners in the industry who are there for us when we need them so we can continue being there for our farmers,” Kirchoff says. “We also take pride in ensuring a stable pay price for our farmer-owners.”

2020 brought more than just a world pandemic for Forest Glen Jerseys. The Willamette Valley was engulfed by a wildfire last summer, and like other farmers in the area, Bansen was on edge. “The sky was orange and while we were one of the lucky ones that did not have to evacuate, it was still nerve-wracking to know that the winds could shift and we would be forced to find a new home for all our cows at any moment,” Bansen says.

Earlier this year, the Bansen family experienced winter storms that put them without power for a string of days, but Bansen said the farm generators kept the milk cold and the cows never missed a beat.

Like so many other dairy farmers, admittedly Bansen is exhausted. Nonetheless, she still is devoted to producing a wholesome product for consumers to enjoy. “This is our livelihood. We just keep moving one-foot in-front of the other,” Bansen says. “The cows are not quitting, neither are we. Thankfully neither is our cooperative.”

ARM Targets Texas Organic Dairy In Most Recent Activist Video

Fri, 20 Nov 2020 03:02:23 GMT

Animal Recovery Mission (ARM) is gearing up to release another video alleging animal abuse at an organic dairy in Texas.

The video, which is expected to be released in full sometime in the next week, shows some rough handling of down cows, singing of udders, a cannulated cow, newborn calf care and the dead pile (two animals) at Natural Prairie Farms. The group is relying on its ability to misinform and scare consumers out of purchasing milk.

Richard ‘Kudo’ Couto, founder of ARM, said their “undercover investigation” went from March 2019 until July 2019.

According to ARM, some of the violations observed in the video they plan to release are:

Maltreatment and Excessive Abuse of Dairy Cows: Cows tormented, kicked, hit with shovels, and stabbed with screwdrivers by vet tech crews and animal caregivers. (There is video footage of rough handling of down cows.)
Neglect of Sick and Injured Dairy Cows: Flesh wounds, eye gashes and/or leg injuries not treated. Cows w/ infected eyes, infected udders, cuts and scrapes, limping and too weak to walk seen untreated and in declining health.
Squalid, Overcrowded, Unsanitary Housing: Cows live in squalid, overcrowded and unsanitary conditions. Cows spend the majority of their lives in illegally overcrowded feces-ridden barns and insufficient stalls force cows to lay in feces-ridden cement, causing foot rot and infections to untreated open wounds and scars. (To be clear, these cows live in what appear to be sand-bedded freestall barns with fans. The video shot of the lanes with manure in them was clearly just before they were either flushed or scraped.)
Force Feeding & Scientific Research Performed on Cows: Portholes to allows access to the rumen of a cow, to perform scientific research and analysis of the cow’s digestive system. Cows being force-fed with metal tubes by untrained employees. (There is footage of an employee giving a cow in a chute some kind of electrolytes with a tube. The “portholes” they mention are cannulas.)

Related articles

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There's Now a Way to Tell If Milk Is From 100% Grass-Fed Cows

Fri, 20 Nov 2020 02:05:39 GMT

Consumers have been shelling out premiums for organic dairy products from grass-fed cows. But for the most part, there wasn’t a way to tell whether those cows had eaten a few blades of grass or an exclusive grass diet.

Now, Organic Valley and Maple Hill have come up with a third-party certification standard for grass-fed products, one of the fastest-growing categories in dairy. To obtain the seal, cows must have a 100 percent grass diet with zero grains, and have plenty of pasture for grazing. There’s also a full supply chain verification. Only certified organic farms can participate.

Consumers are increasingly interested in transparency with regards to food -- they want to know where their food comes from and how animals are raised. However, claims on food labels don’t always help, and the lack of a standard for grass-fed organic dairy in particular led to misleading labels. The new program is a check on other companies who are doing “greenwashing,” said Melissa Hughes, chief mission officer and general counsel at Organic Valley.

“If you’re going to put this on your label, it’s going to mean something tough,” Hughes said. “Honestly, consumers are confused about all the different labels out there.”

Grass-milk products are relatively new on grocery store shelves. Organic Valley started doing work with grass milk about five years ago, Hughes said. Consumers can expect to see the certified grass-fed organic seal in stores in 2019. The program currently has more than 320 farms, 15 dairy processors, 15 certifiers for an expected 48 different dairy products.

Oxpeckers And Zebras

Fri, 13 Nov 2020 05:50:39 GMT

There are dozens of instances where smaller animals coexist with much larger animals. African oxpeckers, for example, feed on the backs of zebras, elephants, hippopotamuses and other large African animals, according to Cosmos magazine. The relationship isn’t all symbiotic, as the Oxpeckers are actually vampire birds that do eat ticks, but then suck the blood out of open-tick wounds.

Over the past several weeks I’ve sat in on presentations by a number of small, startup companies that produce and market alternative food products. One product was produced from grass-fed Guernseys. Another yogurt was made from family-owned organic dairies in Oregon.

One of the more interesting presentations came from Miyoko Schinner, CEO and founder of Miyoko’s, a company that makes vegan cheeses. We decided to interview Schinner and provide her remarks for everyone to see. You can read her comments here .

As you read the story, you may feel your heartbeat accelerate, your face get red and an anger well up inside you, because she says things that drive dairy people nuts. The fact that she calls her vegan products cheese, for example, even though there’s no dairy in them. Or that they milk cashews. Or that she calls our current methods of food production unsustainable.

One might ask why in the world we decided to print such false information. Good question.

A colleague once told me that it is important to keep your friends close and your enemies closer. I think what he meant was we need to know as much as possible about those who have opposing views so we can see things from their viewpoint, and thereby learn in the process.

I’m not calling Schinner and her company enemies, by any means. I think they are more like the oxpecker, living off of the much larger dairy industry. Had the dairy industry not laid the brand development groundwork for things like artisan cheese and yogurt it would be hard to imagine that Schinner’s product or other products in that category would be successful.

That being said, I would assume that the larger dairy industry derives at least some benefit from these smaller, niche market products. If someone is eating yogurt because it comes from milk from grass-fed, locally owned Guernseys, at least they are eating dairy products. And maybe if someone eats a vegan cheese that tastes like high-end cheddar, they will at least appreciate what full-fledged cheddar tastes like.

Even though the dairy industry is huge and these startups are very small in comparison, it does accentuate the fact that a considerable effort needs to be made to educate consumers about modern agricultural practices. Swisslane Farms has developed a Dairy Discovery center to educate kids and their parents about life on a dairy. It’s also comforting to have experts like those at the National Dairy Council to make sure dairy is prominent in dairy nutrition guidelines.

While I appreciate that these small companies are trying to carve out a niche for themselves, I could do without the disparaging remarks these companies make against modern production agriculture. They’re playing on uneducated consumer emotions to gain differentiation, and that’s not right. After all, you’d never hear the oxpecker say a disparaging word about a zebra.

What do you think? Should dairy alternative companies be allowed to market their products as dairy? Send me your comments at mopperman@farmjournal.com