Organic Dairy Industry Challenges & Opportunities
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- Rosemary Boone
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1 Organic Dairy Industry Challenges & Opportunities The New York Farm Viability Institute, Inc. is a farmer-led non-profit organization dedicated to strengthening agriculture in New York State by helping individual agricultural producers succeed. While each farming enterprise faces its own challenges, some issues are common to many producers in a given production sector or industry segment. NYFVI seeks to identify priority issues of industry-wide scope that can be addressed either with resources at the NYFVI s own disposal, or through the efforts of collaborating organizations. In April 2006, the NYS Organic Dairy Task Force along with NYFVI organized an effort to identify barriers to success for the organic dairy industry in New York State. The group identified intermediate-term threats and opportunities to the industry, along with potential production and management system changes that could make a difference to enterprise success. Focus group participants and other industry leaders subsequently rated these threats, opportunities, and promising changes in ways of doing business low, medium or high priority, yielding a composite ranking of all the issues on a scale of 100 (lowest possible score) to 300 (highest possible score). A score of 300 indicates that every person who rated the item gave it a high priority rating. The lowest possible score is 100, meaning that every individual gave that item a low rating. The number preceding each item is the composite ranking. The following is the full list of issues identified by focus groups in ranked order. During the rating process respondents were able to add items. The added items appear at the bottom of each section without a score since they were added by an individual and not seen by the group. In developing proposals for projects for NYFVI consideration, researchers, consultants, and educators are encouraged to consult this list of issues, with particular attention to those that received relatively high rankings. Ranking Score Five-year threats to the success of the New York industry: 281 Maintaining the integrity of organic both in the eyes of consumers and in the certification process as demand increases and the organic dairy industry grows. 281 Unifying organic standards and the interpretation of organic standards so all organic producers are on a level playing field. More uniform methods for certifying and monitoring organic dairy operations. 252 Milk price stability. 248 Cost and availability of organic feeds.
2 238 Pay price for milk not meeting the cost of production. 229 False or misleading advertising regarding organic production. 219 Encouraging and pacing the growth of organic dairy allied support industries such as grain and forage production, feed, milk processors, supplies, vet services. 214 Balancing the growth of supply and demand for organic milk and the potential for too much organic milk production resulting in an associated milk price drop. 214 Obtaining veterinarian support for organic dairy herd health. 210 Lack of consumer understanding of organic and organic standards and communication to consumers regarding the benefits of organic and the integrity of organic production. 205 Maintaining and enforcing milk quality standards. 200 Lack of opportunities and resources for education of producers in terms of both transitioning to organic and organic production management. 200 Encouraging and pacing the growth of the organic dairy industry to fill the demand for organic milk. 186 Organic grain contamination: overspray or spray drift, cross pollination, GMO, contamination during grain processing and mixing. 181 Processors moving to different locations due to a lack of available milk in particular regions (Currently the big buyers are nationwide and can shift their geographic buying and processing focus). 167 Public perception of the organic dairy industry and organic milk as influenced by the roadside appearance of the farms. 167 Lack of institutional support for organic production: NRCS, Cornell, SUNY Schools, NYS Dept. of Ag. & Markets, Farm Services Agency, Soil & Water Conservation Districts. 162 Large companies and organizations getting interested in and involved in providing products and services to the organic dairy industry. 152 Lenders not willing to work with organic dairies. Corporate America wanting to take over Lion share of organic industry instead of farmers setting prices. Processors promising the moon and stars now in order to get the supply they want. Then forcing farmers back into roller coaster rides to the bottom!
3 More local suppliers of organic supplies (Vets, health products, soil additives, etc.) Changing Standards Milk truckers should be forced to pick up milk on hill, out of way places. Five-year opportunities for advancement of the New York industry: 252 Improve (tighten up and unify) the standards and interpretation of the standards for organic certification. 243 The opportunity to bring in new farmers and young farmers and use idle land. 238 Building a sense of optimism for family farms and a willingness to work together cooperatively. 233 Building an effective organic dairy industry infrastructure: vets, marketing, research, education, supplies, feed 233 Building an industry that is characterized by communication and cooperation between all its parts. 214 Promoting the organic dairy industry s role in maintaining green space and improving quality of life in local communities. 210 The recognition of organic dairy as a viable business opportunity. 210 Developing youth interest and pride in the organic dairy industry. 200 Working to improve milk quality standards and the perceptions of organic milk quality. 190 The opportunity to work with local watersheds to promote the role of organic in water quality protection. 186 The opportunity to build a more diverse dairy industry. 186 NYS rainfall and topography is good for smaller, grass-based dairies. 181 The opportunity to develop a diverse support base for organic dairy production: health professionals, consumers, local communities, agricultural support services, etc. 176 Homeland security and the feeling of safety in being and buying local. 171 Proximity to a large consumer population. 165 Large companies and organizations getting interested in and involved in providing products and services to the organic dairy industry.
4 Shady scumbag milk middle men who scheme to get you to sign by using N.E. transition premium payment up front. Potential production system changes that could make a difference: 281 Developing preventative animal health practices and animal health interventions (diseases, infections, parasites, etc.). 257 Better practices for soil fertility and fertility management. 238 Management helps in the conventional to organic transition process. 238 Increased reliance on internal farm fertility resources (N, P, K, composting, micronutrients, cover crops, and green manure crops). 229 Education about and adoption of more intense and more efficient grazing practices and production of higher quality forages. 224 Education and guidance in attaining and maintaining milk quality standards in order to receive milk quality premiums. Understanding of the economics of maintaining milk quality. 214 Techniques for extending the grazing season using alternative crops. 186 Education about the expected potential results with various available weed control practices. 167 Techniques for acquiring high moisture corn in the fall when prices are low, then effectively storing it and saving on drying costs. Lack of website info on N.E. Transition program only OV has it. Lack of access to Stonyfield & HP Hood middle men block us out. How to handle possible drop in production when transitioning Potential business system changes that could make a difference: 224 A networking system that builds relationships and provides collaborative opportunities that allow producers to obtain organic grains and forages from producers who have them. 205 Education in how to use the information available to producers to make profitable management decisions and changes [e.g., herd health, production and reproduction information; milk quality, soil and forage test information; farm financial records].
5 200 Dairy sales for good genetic stock organic cows, heifers and calves similar to breed sales for conventional dairy cattle. 157 Outside financial management advice from consultants and financial institution staff that has training in organic dairy management. 186 Organic dairy educational and internship opportunities. 195 Clustering of small farms in order to achieve economies of scale for supply purchases and milk sales, without individual farms becoming large farms. 167 Affordable and effective organic crop insurance options. 176 A mindset shift as to what constitutes success in the dairy business. 181 Time to gather and analyze information, utilize effective problem solving/decision making methods and make good, effective decisions. 152 Better systems for marketing and communication when there is no phone or no internet access. Better communication systems among all farmers to be able to be involved in the market place. (Large or small market places.) Educate on how to get out of debt and stay out of debt In converting to organic, the soil conversion is easiest. Just takes time. Otherwise the organic supply of dairy feeds, corn meal, soy, etc is a concern. Also we're not sold on dairy health. I have used organic remedies (aloe vera, cider, etc) on my conventional cows with mixed results. Would like more backup in herd health treatments. Organic Valley has lazy incompetent NFO milk inspection. They don't show & don t care Lack of qualified milk inspections & service techs Milk middle men don't understand STDS should be allowed to transition nonorganic day old calves if feed 100% organic. I can not expand herd by buying expensive replacements
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