The northeast organic dairy community has had the perfect storm in 2022: unpredictable weather, loss of a major buyer of raw milk, continuing low pay prices, lack of competition, no COVID or Dairy Margin Coverage (DMC) program subsidy, and inflation caused by a world in tumult. The USDA response to the Task Force recommendations led to an investment of $80 million in four Dairy Business Innovation Centers (DBIC) across the country, including $20 million for the one in Vermont. The USDA Secretary of Agriculture, under pressure from the northeast congressional delegation, set up a Northeast Dairy Task Force which had strong participation from all sides and yielded many good ideas. The northeast organic producer groups used their tremendous support from consumers, advocacy organizations, and farmers to bring pressure to bear on Danone to honor their responsibilities to their organic dairy farmers and the northeast community. The media and industry exposure attracted widespread interest from the organic and conventional dairy industry who were willing to talk about investing in northeast organic dairies. NOFA-VT, NOFA-NY, Maine Organic Farmers and Gardeners Association (MOFGA), NOFA-NH, Northeast Organic Dairy Producers Alliance (NODPA), Organic Farmers Association (OFA) and the National Organic Coalition (NOC), (aka ‘northeast organic producer groups’) joined in a loud, public protest about Danone’s action arousing the subsequent media interest. The situation was further complicated when Maple Hill Creamery, which markets Grass-Fed milk, threatened to cancel the contracts of 46 of their farms, mostly in New York. The news was devastating to those farm families, many of whom had provided organic milk to Horizon Organic for decades and were instrumental in building Horizon’s successful brand.Īfter Danone/Horizon’s announcement in August 2021, some of the dumped farms immediately sold their cows, retired, or went out of business - selling their farms, or reverting to conventional production. This is especially critical in New England where the only alternative buyer is now Midwest-based CROPP Cooperative/Organic Valley. The organic dairy supply market is relatively small, with only a few buyers left after years of mergers and acquisitions, so when a major buyer like Horizon leaves, there are few options for farmers. The reason they gave is that, in the future, they would source their milk from larger operations “that better fit our (Danone) manufacturing footprint.” Danone’s swift regional exit marked the largest simultaneous contract termination organic dairy has ever seen. In August 2021, Danone North America, which owns the organic dairy brand Horizon Organic, notified 89 organic dairy farm families in Maine, New Hampshire, Vermont, and New York that the company was terminating their dairy contracts in 12 months’ time and stopping all sourcing of milk in New England.
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