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Small Biz November 27, 2006, 2:42PM EST

A Raw-Milk Raid Leads to a Special Thanksgiving

(page 3 of 3)

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Gary Oaks' Ohio Department of Agriculture witness statement

The next pressing issue was how to get the milk bottled and out to the shareholders, since Gary couldn't deliver.

Stack of Bills

This is where Gelhaus dove in. "I took over coordinating car pooling…We had to coordinate deliveries for 160 families." Several dozen shareholders became involved in shuttling milk from the farm to shareholders in Kentucky and Ohio, some driving several hours each way. Others handled bottling, and still more volunteered to gather hay and do yard work around the farm, or bring food to Dawn and her three children, all under age 10.

As the winter wore on, Gary would be hospitalized twice more. Dawn says doctors concluded he was suffering from post-traumatic stress syndrome, a stress disorder most common among soldiers in battle. A couple of shareholders with psychology backgrounds provided counseling.

Adding to the family's stress was that they didn't have health insurance. By the end of spring, Gary's medical bills were approaching $50,000. And then there was the matter of his legal problems—stemming from Kentucky, Ohio, and the federal government. As things turned out, Kentucky officials backed off from filing formal charges, after an informal hearing by the Kentucky Milk Safety Board. But Ohio eventually filed charges accusing Gary of illegally selling raw milk and an unlabeled product. His legal bills were soaring past $10,000.

Designated Drivers

By the summer, life finally began improving. Gary was feeling well enough to work on the farm. He was able to negotiate a reduction in his medical bills with the hospitals. Shareholders passed the hat to take care of his legal bills. Two shareholders even agreed to loan him funds to move the farm to a badly needed larger tract of land a half hour from his existing farm.

The family decided not fight a protracted legal battle to avoid incurring additional legal expenses and stress. On November 2, Gary went to a county municipal court in Reynoldsburg, Ohio, and pleaded no contest to violating the state's dairy licensing and labeling laws. He was fined $415, along with an additional $85 in court costs. The FDA also sent him a warning letter against interstate sales of raw milk, which leaves open the possibility of legal action.

Shareholders have scaled back their involvement in the farm's activities as Gary has recovered his health. But the need for car poolers like Gelhaus remains, in order to get milk delivered to shareholders, since Gary doesn't want to challenge the FDA's prohibition about crossing state lines to make deliveries in Ohio.

Show of Appreciation

On Thursday, many shareholders will be giving thanks for Gary—and Gary for them. "This crisis brought us more strongly together," says Mary Lynn Laufer, a Cincinnati shareholder. "We've become a unique, tightly knit group."

Adds Gelhaus, "The crisis showed us just how connected we are. The hardships pointed out to us that we need the farmer and the farmer needs us." Gelhaus is traveling to the farm on Thursday not because her work is required, but as a personal gesture of appreciation for Gary and Dawn, to allow them to take the day off.

For updates on this situation, and additional thoughts based on having investigated a half-dozen raw milk enforcement actions over the last few months in California, Michigan, Ohio, and Kentucky, see my blog, www.thecompletepatient.com.

David E. Gumpert covers business/health issues and also writes the biweekly What Entrepreneurs Need to Know column.

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