States Target Raw-Milk Farmers

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Worse than Russia?

The Family Farms Co-op thought it had dealt with the Michigan prohibition against retailing raw milk, which is similar to prohibitions in many other states, four years ago, when it set up the co-op. Under the arrangement, the co-op leases cows from the dairy farm and then sells shares in the herd to co-op members, each of whom pays $20 a year for their share. The co-op members purchase milk for $6.50 a gallon, which goes back to the dairy farmer in the form of a boarding fee for the cows.

"It has to be this way, because it's illegal to sell raw milk retail" in Michigan, says Hebron. Michigan law allows for people who own and board dairy cows to consume their milk, though.

After I listened to Hebron tell his story about the state police and agriculture inspectors refusing to let him make a call home after confiscating thousands of dollars worth of fresh farm products from his truck, and then serving a search warrant on his wife and rummaging through the farm family's home, I asked him, "Could you believe this was happening in the United States?"

"No," he said. "I have a customer in Chicago who says he's from Russia. He thinks this is worse than what happens in Russia."

Crackdown Factors

This harsh Michigan action bears an eerie resemblance to the case of Organic Pastures Dairy, a producer of raw milk, which California agriculture officials shut down for more than two weeks (see BusinessWeek.com, 9/28/06, "Getting a Raw Deal?"). California authorities went after Organic Pastures when four children became sick from E.coli bacteria, but an exhaustive investigation turned up no evidence of E.coli at the dairy. In comparison, even though 200 people were sickened by E.coli from California spinach, none of the California spinach farms were shut down.

What's behind these crackdowns by major states against producers of raw milk? I suspect it's a combination of two forces at work.

First, there's the simple matter of growing demand from consumers seeking food with as little processing as possible, who want to buy it from local farm producers (see BusinessWeek.com, 10/16/06, "The Organic Myth"). Organic Pastures has seen its revenues climb 35% to 40% annually since it switched to selling raw milk in 2000. Similarly, the Family Farms Co-op has grown from nothing to nearly 1,000 members over the last four years.

Out of Proportion

Second, as raw milk and organic milk (milk which is pasteurized, but obtained from cows fed organic feed, with no hormones) become more popular, large dairies are becoming concerned and exerting pressure on agriculture officials to crack down on the raw-milk producers. Just take a look at the Web site milkismilk.com to get a sense of the conventional dairies' concern.

Regardless of what anyone may think about raw milk, the heavy-handed enforcement action by Michigan authorities just feels inappropriate—way out of proportion to any possible violation of the law. It smacks of a speed-trap approach to law enforcement, except here the penalty isn't just a fine, it's the livelihood of three family farms.

(Note: I will be following the unfolding situation at Family Farms Co-op, much as I have the Organic Pastures situation, at my blog, thecompletepatient.com.)

Gumpert is author of Burn Your Business Plan! What Investors Really Want from Entrepreneurs and How to Really Start Your Own Business. His Web site is www.davidgumpert.com.