Mark McAfee of Organic Pastures Dairy Co. with actor and comedian George Lopez, sponsor of the George Lopez National Kidney Foundation Celebrity Golf Classic in Toluca Lake, CA, in May.I’ve wanted to write a followup to a posting I did a couple months back on the tremendous business opportunity represented by raw dairy, and nutrient-dense foods in general. Each time I started writing, though, there seemed to be yet another government raid on a dairy or a food club.

Just today, agents from the Wisconsin Department of Agriculture, Trade, and Consumer Protection, accompanied by eight police officers, executed a search warrant on Vernon Hershberger, a dairy producer who’s been resisting government efforts to shut down his farm store. According to one witness, the police surrounded the store and warned off anyone who tried to approach. They had previously been frustrated in trying to enter the store because the warrant didn’t give them authorization to use force, and the store had been locked. But this time, they used the element of surprise to accomplish their goal. They confiscated a computer and several boxes of business records, but took no food. Presumably DATCP wants to make a case that Hershberger violated the ban on sales of raw dairy by breaking the seals on his coolers applied by DATCP agents.

In recent weeks, we’ve seen raids on food clubs in Minneapolis and Venice, CA, and on farms related to these clubs in Minnesota and California. Kind of makes you wonder–why are judges issuing search warrants as if they are grocery store discount coupons?

Clearly, the authorities are trying to scare producers and distributors away from producing raw milk and from organizing private groups seeking to guarantee themselves a supply of food unavailable in supermarkets. What to do?

It’s certainly easy for me sitting at my computer to exhort others to continue the fight. Yet, as Milk Farmer points out in a comment following my previous post, there are multiple ways to fight the fight. “Yes, the authorities are waging a more intense campaign against small farmers. Those that are plucked up in the storm must need to fight the gale, but it seems wise for many others to hunker down and weather the onslaught….after all as long as people are getting their food, that is what it’s all about.”

To the extent Milk Farmer is encouraging people to not be scared off, to fight the fight by pushing good food into the system partly as an act of defiance, and liberation, and partly as an act of economic independence, I’m with him. And if more people can make a decent living and keep money in their local communities, why, it’s even more of a bonus.

A woman on a foodie listserve wrote this comment recently from a state where Whole Foods pulled out of the raw milk market: “I have been selling raw milk for about four years, minimally. It has now shot up enormously since Whole Foods stopped selling here. I can’t keep milk in the fridge. Years past I had a freezer full of it by this time of the lactation. I’m kind of stuck between trying to accommodate (more milkers) to turning people away (staying small).”

I was one of those that was very pissed at Whole Foods for pulling out of the raw milk business, but when I read the preceding testimonial, it occurred to me that, from a business perspective, the grocery chain has helped create a major business opportunity for dairies producing raw milk. As I wrote in May, primary demand for healthful food is exploding. Rapidly increasing numbers of people are coming to understand both the problems of the factory food system, and the health benefits of locally produced nutritionally dense food. All this is happening at a time when corporate behemoths like Whole Foods and Organic Valley are pushing back from raw milk. (And Whole Foods is pushing back in general from living foods, with its ban on kombucha sales.)

In business terms, the Whole Foods and Organic Valleys of the world are creating a huge vacuum. Organic Pastures Dairy Co. in California has been masterful, from a business perspective, of “branding” raw milk, even going so far as making it a major cache’ item at a celebrity golf tournament. Above, you see Mark McAfee of Organic Pastures with actor and comedian George Lopez, sponsor of the George Lopez National Kidney Foundation Celebrity Golf Classic in Toluca Lake, CA, in May. I mean, did you ever think you’d see a raw milk brand prominent at a golf tournament?

While Mark McAfee has paved the way via aggressive marketing of raw milk as a healthy food, smart farmers like the one I quoted earlier in this post are moving in and filling the vacuum.

There are a couple of special wrinkles about the nature of the business opportunity being created by raw milk.

On the positive side, it is feeding off a major reorientation of the food distribution system. Gwen Elderberry put it well in a comment following my post in May about the business aspects of the raw milk market: “I discovered that the local community was much more tenuous and interconnected than I had realized. There are more people than I ever imagined who are interested in co-op’ing local food; people I didn’t think would be remotely interested. I worked in this area as a home care nurse for several years. I picked the brains of the elderly, the infirm, and those who cared for them. Even if the government raided any one person’s farm, the rest would quietly pitch in and replace them. Gosh, in some ways not even dealing with food, but with home care, they already have! It is a huge discovery for me. I don’t NEED to think of it as a black market.”

On the negative side, raw milk has a safety problem. People can debate all they want about how dangerous raw milk really is, and about what the data do or don’t show, and about whether raw milk is to blame in certain incidents, but the fact is that raw milk is under the microscope, as it were. And what has happened over the last year is that there have been some notable outbreaks attributed to raw milk affecting sizable groups of people. Most recently, there have been outbreaks very likely attributable to raw milk contamination in Minnesota and Colorado. Once again from a business perspective, the regulators, dairy industry, product liability lawyers, and others who oppose raw milk are using the outbreaks to lift the pasteurized milk brand, and denigrate the raw milk brand.  

The practical problem raw dairy producers face is this: How do you deal with legitimate safety issues while under a state of siege? The regulator/public health communities may carp about safety, but these people really don’t want raw dairy producers to succeed. If they do, these regulators know they’ll find other excuses to come down on the producers.

All this doesn’t mean producers shouldn’t pay attention to safety; they should, but it should be because they care about their customers and don’t want to get sued, not because they expect anything in return from the authorities.

My sense is that everyone involved in the production and distribution of nutrient-dense foods will need to become ever more conniving to survive. As Gwen Elderberry suggests, this isn’t unlike fighting a guerrilla war. Fighting a guerrilla war requires more than business smarts. More on that upcoming.