State Supported Bread and Butter

Wednesday, July 19 2006
Brattleboro Reformer: http://www.reformer.com/editorials/ci_4068595

While it was good that Gov. James Douglas and legislative leaders recently came up with an $8.9 million emergency aid package for Vermont dairy farmers, it was the economic equivalent of putting a Band-Aid on a sucking chest wound.

One of the biggest problems for Vermont dairy farmers is the price they get for their milk, which has been driven down as the dairy industry gets more consolidated.

Dean Foods, based in Dallas, controls 70 percent of the milk sold in New England. It is also the leading manufacturer of organic milk and soy milk, thanks to its acquisitions of Horizon Organic Dairy and Organic Cow of Vermont. H.P. Hood, based in Massachusetts, controls 15 percent of the New England milk market.

There are only a handful of local dairies left in Vermont -- such as Monument Farms in Weybridge, Thomas Dairy in Rutland and Strafford Organic Creamery. Virtually all the milk and dairy products one sees in the supermarket comes from other states.

Cabot Creamery may claim the title of "World's Best Cheddar," but it is owned by AgriMark, a Delaware corporation that is not a real cooperative. The St. Albans Cooperative Creamery signed an agreement in 1999 with DairyLea and Dairy Farmers of America to form Dairy Marketing Services.

AgriMark, Dairy Farmers of America, DairyLea and the St. Albans co-op market nearly 80 percent of Vermont's milk. This consolidation means Vermont farmers are tied to a national market that isn't interested in competition or preserving Vermont farms.

One solution to this problem is giving Vermont farmers more control of the processing and marketing of their products. This would ensure a steady and fair price for Vermont milk.

In 2003, Anthony Pollina founded Dairy Farmers of Vermont, a group with 300 farmer members -- representing one-third of the milk produced in the state. He and his group have been working on establishing an in-state independent processing plant that will collect, bottle and market Vermont-brand milk.

Pollina tried this idea two years ago, when his group sought to buy the former Idlenot Dairy plant in North Springfield. He asked the state to kick in $500,000 toward his plan, but he was rejected by Douglas, who said the plan was too risky. But the same governor that refused to put up $500,000 as seed money for the Idlenot plant is willing to spend 15 times as much on temporary subsidies for farmers.

State support of a farmer-owned cooperative milk processing plant would have a far more lasting effect on the fate of the 1,200 remaining dairy farms in Vermont. But the state can do more than that. Pollina and Dairy Farmers of Vermont have called on state institutions to make a commitment to buy 100 percent Vermont dairy products, and have asked some of Vermont biggest employers, such as IBM and National Life, to make a similar commitment.

Unfortunately, the Douglas administration doesn't seem to be very interested in supporting these things.

"Vermont needs to wake up and acknowledge we live in the real world," said Agriculture Commissioner Steve Kerr earlier this year. In other words, farmers should get bigger and produce more milk and embrace the genetically modified crops and factory farms that are the norm elsewhere.

At a time when milk prices are approaching record lows, it would be suicidal for Vermont's farmers to do this.

It's been proven time and time again that the Vermont name adds value to products from maple syrup to teddy bears. Why not put the Vermont name on milk and other dairy products? Why not take advantage of the image that Vermont has for purity and quality? Why not take advantage of the many shoppers who are willing to pay a little bit more if it means supporting their neighbors instead of out-of-state conglomerates?

Local agriculture is hot right now, and the "localvore" movement -- eating only food that's grown and produced locally -- is gaining more and more support. It's time to add milk and dairy products to the list of locally produced foods. It's time for the state to get behind this idea and really help out Vermont's dairy farmers.