Posted tagged ‘R&G Miller & Sons farm’

Organic Valley Surges After More Red Ink

April 28, 2020

I continue to follow the ups and downs in the organic food movement for the Wisconsin Examiner. This update on the Organic Valley farmers co-op came after the coronavirus pandemic prompted the dairy farmers to schedule an unusual “virtual” annual meeting.

Here’s how the story starts:

 Here’s more evidence of the hard times — but also of new hope — in farm country.

Organic Valley, the nationally known organic farmers co-op headquartered in LaFarge, lost money for the third straight year in 2019, but observers say its economic performance has improved and more importantly organic milk sales are unexpectedly zooming in 2020.

“Organic milk is just flying off the grocery shelves,”  says Joel McNair, who publishes a Wisconsin-based farm magazine called GrazeHe says the co-op is “experiencing if not record sales, near-record sales” based on the comments he hears from Organic Valley farmers.

An unexpected rise in sales in January 2020 turned into a flood in February and March when the coronavirus swept across the country, according to observers. As Americans retreated to the safety of their homes, they began stocking their refrigerators with organic milk.

“People are eating more at home, and that is driving more in-store retail organic dairy purchases,” confirms Elizabeth McMullen, Organic Valley’s public relations coordinator, in a written statement.

She describes the growth in retail sales as “unprecedented”.

Note the 2019 financial results were not yet audited.

To read more, please go here.

Organic Farming Beset With Problems

February 25, 2020

I spent considerable time in 2019 looking into the crisis in organic farming. What I found was disturbing: A profitable niche agricultural industry producing high-quality dairy products had seen its standards undermined, its output cheapened and commodified, and many of its farmers squeezed to the point of ruin.

The Wisconsin Examiner ran the two stories.

I wrote in part 1:

The crisis in organic dairy comes at a moment of paradox. The federally governed organic program and its “USDA ORGANIC” label have flat-out triumphed in the marketplace. (USDA is the U.S. Department of Agriculture.)

You find the green-and-white organic label on milk cartons, vegetables, fruit and packaged products. You find it in big box stores like Woodman’s, Kroger, and Wal-Mart, membership warehouses like Costco, and, of course, righteous grocery co-ops like Willy Street in Madison and Middleton, Outpost in the Milwaukee area, and all the grocery co-operatives brightening Viroqua, Ashland and other smaller Wisconsin towns.

Nationwide, organic food sales hit a record $47.9 billion in 2018, up almost 6% from the year before, according to the Organic Trade Association. In Wisconsin, the powerhouse Organic Valley farmers’ co-op, headquartered in little LaFarge (pop. 763), saw its national sales top $1 billion for the third straight year in 2018.

But dig deeper and you find turmoil far and wide.

It’s not just the imbalance between the supply and demand for organic milk or an apparent double standard on enforcing organic rules either.

Everything from shifting consumer preferences to plant-based substitutes for dairy and beef, to the rise of soil-less hydroponic farming competing with organic dirt farmers, to the importation of fraudulent organic grain driving down the prices paid legit organic growers for their corn and soybeans have all soured organic’s financial sweet spot.

“(Up until) five or six years ago, it really looked like organic was going to be the salvation of farming,” says Dave Chapman, a Vermont farmer who runs the Real Organic Project advocacy group.

“Great! We had a label that recognizes that,” says Chapman. “The tragedy is that industrial food producers took over the label. They had the influence to twist the rules to their advantage.”

 

To read more, please go here.


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