Tim WightmanHere’s the message I get from Tim Wightman’s comment following my criticism of Organic Valley Family of Farms:  Don’t be so quick to criticize this large farm co-op. There are some delicate political and economic issues involved here. Many dairy farmers have a big stake in the conventional co-op/processor distribution sytem, and at Organic Valley, farmers are being pinched financially because of a decline in consumption of pasteurized organic milk…and are resentful because some of their farmer brothers are making up for the financial challenge by selling raw milk. Besides, regulators and processors regularly communicate about routine issues, and may say a few things that sound conspiratorial. Cut us some slack.

It’s an intriguing message, coming as it does from a founder of the Farm-to-Consumer Legal Defense Fund, and I can appreciate that there are business sensitivities. I actually think some of these sensitivities signify quite important issues, though. (By the way, if this is just a little internal misunderstanding, you might think that someone from Organic Valley might have at least had the courtesy to answer my email or phone call–there’s been only silence.) 

I say all this while acknowledging that I don’t necessarily have special insights into farm economics and pscychology, having spent practically my entire life in the city, with little or no contact with farmers until the last three years.

But I’d like to throw something out that may shed light on what’s really happening here. I think many Wisconsin dairy farmers, indeed, dairy farmers everywhere, are more upset about the raw milk controversy than has been generally appreciated. I remember when the Ohio Department of Agriculture began cracking down on raw dairy producers back in 2006, being told by regulators there that some of the cases the agency was pursuing originated with complaints by conventional dairy farmers.
I’ve heard similar rumblings in other states–that it’s dairy farmers who are concerned because some of their brethren are challenging regulatory limitations on raw milk…and earning nice money in the process.

Now, I think it’s safe to say many of these upset dairy farmers are being urged on by processors, who have absolutely nothing to gain and lots to lose when dairy farmers transition to raw milk.

There’s a larger issue involved, though–a business issue–which has to do with the different mentalities involved when you’re doing business as part of a government-business cartel and doing business in the real marketplace. Conventional dairy farmers don’t experience all opportunities afforded by our capitalist system because they are dealing in a highly controlled marketplace, a marketplace where prices are fixed by a few processors with government approval, and those prices are too low for the suppliers to make a regular profit.

There are few incentives for doing a great job because pasteurization levels the quality playing field. There’s little economic opportunity. It’s very difficult to be anything other than a commodity. In fact, over the long term, the deck is stacked against you, much as it would be if you lived in a company town.

It’s much different if you are in a market economy, out there selling directly to consumers, or via retail establishments. All you have to do is observe many Amish dairy farmers, or Mark McAfee of Organic Pastures, who aggressively sell a wide variety of products, to appreciate the demands of the real economy.

So when we talk about conventional vs raw milk, we’re not just talking two different supply sources, we’re talking two entirely different business models.

Organic Valley may be an upstanding organization much of the time, but at its heart, it’s a processor that is part of a government-industry dairy cartel. Tim Wightman strongly suggests in his comment that we’ll see a much more positive side of Organic Valley before long. Certainly it could be a force to help dairies diversify by providing outlets for their raw milk. That would require innovative thinking within an industry where there’s little room for competition, for segmentation, for niche marketing, for growth.

Think back to the old Soviet style farm collectives, and you won’t be that far off in thinking about the dairy co-ops. Some farmers who value that way of doing business are resentful of the Scott Trautmans of the world, who are out there hustling and seeking out new opportunities. The controversy over our right to access raw milk happens to be the trigger for bringing out into the open the farmer-on-farmer divisions.