Corner Post editorial —
Small family dairy farms vs Large coporate operations
by Aubrey Ellison, posted Dec. 7, 2011
Bigger isn’t always better. This dramatic expansion of industrial agriculture has made it increasingly difficult for small family farmers in the U.S. to stay in business. Instead, the food industry has become dominated by a handful of giant corporations, which benefit from government policies that favor large-scale production, according to the Sustainable Table website.
Small family farms normally have factors that limit the amount of milk they can produce. Limiting factors include a smaller land base, shortage of labor, outdated facilities, high milk transportation costs and high cost of feed. In comparison, large corporate farms usually have a large land base, larger more modern facilities, larger labor force, cheaper feed costs due to volume purchases and lower transportation cost.
“We see more and more small dairies go out of business,” said Marilyn Calvin, a small dairy farm producer in Mt. Vernon, Mo., and Dairy Farmers of America representative and council member. “We need to keep infrastructure, to help keep our local plants open such as Schreiber’s, a local cheese processing plant. We need the infrastructure to keep milk truck routes operating, feed stores and equipment businesses open. The large corporate dairy operations moving into the area are keeping it all going. Each cow generates $14,000 to $18,000 through the economy, many times over.”
Even though most consumers prefer to know the farmer that produces their milk, the reality is that local farmers cannot produce enough to feed the masses. Large corporate farms are needed to ensure that nationwide demand for dairy products is met. Without the large corporations, milk prices for the consumer would hit the roof and possibly still put small producers out of business. Since the large grass-based corporations are usually seasonal, they flood the market in early spring with over production, thus driving milk prices down for everyone including small family farms.
“Grasslands, a large New Zealand based company, has introduced share milking to help locals,” Calvin said.
Share milking allows more people to get involved in the dairy industry and gives them the opportunity to use local utilities to get them started. At the current rate that small producers are operating, they would not be able to keep up with demand if it weren’t for the larger corporations. Unless you are born into or inherit a dairy operation, the start-up costs are so high the average person cannot afford it. Some experts estimate the start-up cost for an average dairy to be near the $1 million mark.
“Corporate farms are necessary to provide the country with enough dairy products at this point,” Calvin said. “They increase the percentage of milk produced, and increase the percentage every year. There are just not enough small business to keep up.”
While there are other areas to consider when comparing small family farms vs. large corporate farms, the lack of adequate supply of dairy products is the focus of this particular viewpoint.
In other areas, small family farms could be viewed as better but even I, a small family dairy farmer, would have to admit that large corporate dairies have the advantage in this area. Even though small family farms are an attractive way to raise a family, small family farms are going to have to learn to co-exist with large corporate dairies in order to meet the ever-increasing worldwide demand for dairy products. Small producers alone cannot supply the world with the products demanded. Maybe bigger is better.
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