Staff Writer
Local organic milk farmers will soon get a big boost to their business when a new brand of milk hits the stores in November.
Maine’s Own Organic Milk Company (MOOMilk), a cooperative effort of 10 Maine organic milk farmers, will be available for consumers thanks to efforts by the Maine Farm Bureau and the Maine Organic Farmers and Gardeners Association. Four of the 10 farmers participating in the MOOMilk program hail from Aroostook County. The local farmers are Vaughn Chase of Mapleton, Norman Kaufman of Smyrna, Matt Oliver of Hodgdon and Kip Griffin of Washburn.
The new product is a welcome blessing for the area farmers, who back in February had their world turned upside down when H.P. Hood notified them that it was canceling its contracts for certified organic milk. Hood, one of the nation’s largest dairy producers in the country, cited the poor economy for its decision to cease organic milk production.
This news came as a shock to not just the farmers, but to the businesses that supplied the farmers with specialized organic grain. That initial shock soon gave way to thoughts of moving forward in the organic milk industry.
“We were all surprised,” said Chase, who owns a 600-acre farm — Chase’s Organic Dairy Farm — in Mapleton. “We had all made big [financial] commitments to switch over to organic farming. We were told by Hood that they were in the County to stay.”
“I was disappointed, but I understood it from a business owner’s standpoint,” Oliver said. “They [Hood] have to make money like any other business, but the initial news was disappointing.”
Oliver, who owns a 125-acre farm in Hodgdon, was better off than some of the other County farmers since he is still under contract with Hood until June 2010. Thus far, Hood has continued to honor its original contract.
“I was one of the last farmer’s in under the contract, so I guess I am one of the last one’s out,” Oliver said. “Hood doesn’t need the milk, so just as soon as MOOMilk needs the volume, I will switch over.”
Other farmers, like Chase, have already seen their contracts expire.
“We didn’t really know what we were going to do,” Chase said. “We were hoping somebody was going to pick us up so that it wouldn’t get this far. We’ll continue to work on different avenues.”
“Hood has been very professional with me, so I have nothing against them.” Oliver said. They couldn’t keep on with a segment of their business that was losing money. I understand that. This is a capitalistic country and new opportunities come along all the time. Nothing else came along, so we decided to do it ourselves.”
Enter MOOMilk.
After months of organizing and planning, MOOMilk will soon be a reality as it’s expected to be distributed in Hannaford, Associated Growers, and a number of natural food stores. The group is also negotiating with Walmart and Shaw’s stores.
David Bright, an organic farmer in Penobscot County, is a member of the board of directors for MOOMilk and has been one of the key figures in getting the product off the ground. He became involved with the group through his work with the Maine Farm Bureau’s marketing committee.
“The Maine Farm Bureau got together with MOFGA and it seemed like there was all kinds of demand for local food,” Bright said. “The answer was to come up with a different model for how the farmers could market their milk.
The company’s goal is to keep the member farms afloat by offering a fair price for their milk. Farmers will receive a base price of $24/cwt, one week after they ship their milk. In addition, 90 percent of the company’s profits will go directly to the farms, Bright said.
“The business is not set up to make a lot of money on its own,” Bright said. “It’s really more about helping the farmers make more money. It’s a partially farmer-owned company, with the farmers getting 90 percent of the profit. That’s what makes this venture so different than other traditional business.”
According to Bright, the farms collectively own 45 percent of the company and will elect three of the seven board members. An additional 45 percent of the company will be owned by investors, which are currently being sought to provide a $500,000 start–up fund. The Maine Farm Bureau and MOFGA will each own one half of one percent; and the three-person team that formulated the development plan will own four percent of the company. The final five percent will be withheld for future employee compensation.
Milk that has been produced throughout the summer has been shipped to Oakhurst and is presently going into the regular milk supply until the processing plant is able to start producing MOOMilk.
“We’ve been shipping the milk to Oakhurst and it’s going conventional,” Bright explained.
Oakhurst does not have an organic line of milk.
Oliver, whose initials ironically enough are also M.O.O. for Matthew Omar Oliver, said he was excited about the new line of milk and was eager to see it in stores. He thought the product should be on the shelves in time for Thanksgiving. Originally a superintendent in Old Town, Oliver and his wife purchased a farm on top of Westford Hill in 2002. His farm is totally devoted to organic milk.
“We thought it would be a great way to raise the family and it’s been great exercise for me,” he said.
The group has had “terrific” support from the Department of Agriculture, according to Bright. MOFGA and the Farm Bureau of Maine have offered a tremendous amount of support as well.
“Everyone wants these farmers to succeed,” Bright said.
The Crown of Maine organic co-op, which is located in the St. John Valley, will do some of the distribution, while Oakhurst is also helping with distribution. The organic milk will be processed at Smiling Hill Dairy in Westbrook, where it will be processed on an organic production line. It will be packaged in half-gallon paper cartons with screw tops. The milk is homogenized and pasteurized, but not ultra-pasteurized. There will be whole milk, two percent, one percent and skim milk. Cream, half&half, butter, yogurt and ice cream may become part of the product line down the road.
“Our market is probably going to be Bangor-south,” Chase said. “There seems to be a real interest in an organic milk product made here in The County. We’re hoping this will take off enough to pick up a few more farms.”
