Resources

Additional Resource Links

Maryland Dairy Farmers Get Set to Go Organic

By Kristi Bahrenburg Janzen

A group of Maryland dairy farmers, agricultural experts, and organic dairy company representatives met in Frederick recently for an intense four-hour session on new opportunities in the booming organic dairy market. Horizon Organic representatives kicked off the March 3rd event, which was organized by the Maryland Department of Agriculture, by outlining the strong demand for organic milk nationwide, and Horizon’s desire to procure it locally in Maryland. Representatives from the Maryland Department of Agriculture also elaborated on certification and crop insurance, while organic farmers Arden Landis and Nick Maravell offered advice based on their own experiences.

“Maryland is becoming a very good spot for us,” said Jule Taylor, director of milk procurement for Horizon Organic, which markets the leading brand of certified organic milk in the country. “The Northeast is a milk deficit region for organic,” said Taylor, adding that growth is expected to continue for the foreseeable future. High consumer demand combined with the shortage has placed the potentially organic dairy farmers in the Maryland region in a new position. Over the past two or three years, as local farmers began to express interest in selling into the organic market, neither Horizon, which is owned by Dean Foods, nor Organic Valley, the largest organic farming cooperative in North America, took the bait. So far, aside from a 465-acre operation owned by Horizon on the Eastern Shore of Maryland, there are no certified organic dairies in Maryland, noted Karen Fedor, manager of the organic certification program for the Maryland Department of Agriculture.

 Now, however, the small but significant group of mostly grass-based dairy farmers who attended the meeting were palpably excited about the lucrative organic market opportunities becoming available. At various stages of transition, they were also eager to hear tips on grass-based and organic methods. Given keen interest on the part of Horizon, as well as attention from Organic Valley, chances for farmers from this region to sell organic milk have never been better. “This is the first we knew there was a market so readily available!” said Myron Martin, who has 80 cows at Peace Hollow Farm in Brownsville, Maryland. In a telephone interview a week after the meeting, Martin said the session led him to hire a consultant to assist in the transition. “I’ve been working ever since so I can change my farming practices,” Martin said. “I’m going to try!” About eight farmers at the so-called Maryland Organic Dairy Opportunity Meeting said they were “definitely interested,” according to Valerie Frances, specialty marketing coordinator at the Maryland Department of Agriculture, which organized the meeting. Four more said they were considering the transition to organic, she said. Ideally, to attract a buyer, seven or eight farmers would be ready to sell at the same time, she said.

While the transition to organic typically takes three years, these farmers may be up and running organically more quickly. Most have already transitioned to the grass-based methods that work well in organic dairying, and some already have -- or are well on their way to -- certified organic land. Arden Landis of Green Pastures Farm, a certified organic operation in Lancaster County, Penn., provided the folks at the meeting with a bit of motivation: “You can make a lot more money than in the conventional market,” Landis said. “But you’ve got to make the commitment to it”, said Landis, whose operation is fully grass-based. “We almost hit $30 a hundredweight this fall” he said, noting he’s able to take advantage of Horizon’s system of quality bonuses. That price compares to a typical $13 to $17 a hundredweight for conventional milk, or a more typical organic price (without bonuses) of around $22. “How would you like $30 a hundredweight?” he prodded.

Soaring Demand for Organic: The organic market segment overall shows strong and sustainable growth trends, with organic dairy products leading the demand, Taylor said. “This is what’s driving the past growth, and this is what’s going to be driving the future growth” she said. Organic milk represented 2.5% of the milk industry in 2003, up from just 1% in 1999, and still rising, according to the most recent data available from SPINS, a market research firm, Taylor said. In the Baltimore-Washington, DC area, folks demanded even more organic milk. In those urban centers, organic milk represented 3.1% of the milk market, she said. Data from the Organic Trade Association show similar trends. Nationwide sales of organic dairy food grew 20% to $1.4 billion in 2003 from year earlier, it said. “Consumers are demanding these products for a variety of reasons”, Taylor said. “They choose to go the organic route because they’re concerned about possible toxic effects of pesticides, antibiotic resistance due to overuse of the drugs, water quality, the long-term ramifications of genetically modified organisms (GMOs) and growth hormones, and animal rights”, she said.

Organic standards prohibit the use of harmful pesticides, synthetic fertilizers, antibiotics and hormones. Organic cows must also be fed 100% certified organic hay and grain, and animals over six months of age must have access to pasture. Other requirements include refraining from feeding livestock formulas containing urea or manure, or mammalian or poultry slaughter by-products. Dairy farmers have expressed interest in organic markets for additional reasons as well, Taylor noted. “Above all, they have obviously been concerned with the flat prices of conventional milk for years. But farmers also take issue with outdated controlled pricing systems, the use of chemicals on the farm, soil and water conservation, encroaching development, and family health”, she said.

Quality of life on a small family farm and long-term profitability are also at issue. “People are asking, ‘Will their children want the farm?’,” Taylor added. “There is some hope out there, because organic does address the concerns of consumers and farmers” Taylor said. Not only do organic farmers maintain strict standards, but they also enjoy long-term sustainable prices, she noted. Producers of certified organic feed can also be in a great position. “Organic grain prices are going through the roof right now” said Taylor. Potomac, MD-based Maravell of Nick’s Organic Farm, which produces grain, hay, vegetables, seed and grass-fed beef, also noted that prices for certified organic grains are two to three times higher than for conventional.

 

 Employing a Grass-Based System: “Research shows grass-based dairy operations are more profitable than confinement-based operations” Said Stanley Fultz, extension agent from the Maryland Cooperative Extension in the Frederick County Office. There’s a $150 per year per cow advantage to grass-based, he said. While each cow is producing less milk, expenses on feed, vet services and pesticides are way down, he noted. Cull rates are also much lower, he added. Grass-based farmers try to maximize the time their animals spend foraging on high-quality pastures in fresh air and sun, while minimizing the amount of costly grain they eat. Grazers often strictly manage their cows’ grass intake by rotating them systematically through various paddocks or pastures, in order to maximize soil and grass health as well as animal health. “We wanted to make the milk on high-quality forage” said Landis, who has his entire 128-acre farm in grass. Landis’ herd is seasonal and spends the winter outside, sheltered by portable wind breaks. His cows eat no corn silage, soy meal, or soybeans, he said. They do receive some grain, but by buying hay and corn directly from neighbors rather than the feed mill, he saves money, he said. “Soil fertility is key to producing the best forage”, Landis said. “We’re not talking NPK and pH” he noted. “It’s building the soil.” Landis said. He amends the soil with lime, boron, gypsum for sulfur, and chicken and cow manure, which doesn’t have to come from certified organic animals. “You just can’t go out and buy a commercial nitrogen source.”

Many grass-based operations work on a seasonal basis, allowing cows to go dry in deepest winter and calve along with their natural cycles in spring. Seasonally-oriented farmers say their cows are healthier, and that’s worth it, even if having dry cows for a couple of months puts a few kinks in the supply line.

Securing an Organic Dairy: Even while confronting the challenges of transition and certification, the Maryland farmers who hope to sell organic milk to an organic dairy must jump another hurdle: In order to attract such a dairy to pick up their milk, they must negotiate as one. - “It’s a bit of a quandary” noted Frances of the Maryland Department of Agriculture. “The farmers need to decide together.” she said. “It has to work for one buyer.” While a buyer would prefer at least seven suppliers to start, something may be worked out with fewer, Frances added. Still, “we really need that group effort” she noted. In addition to Horizon and Organic Valley, Pennsylvania-based Natural by Nature could potentially play a role, at least over the long term, Frances noted. Horizon, however, is the one that “is really interested” at this time, she said.

If farmers end up working with Horizon, they would sign a two-year contract with automatic one-year renewals, assuming the farmer wanted them and no quality problems arose, said Cindy Masterman, Horizon’s producer relations manager for the eastern region. Horizon provides a “long-term sustainable pay price,” and requires farmers deliver their milk exclusively to Horizon, “We do look for a dedicated supply,” Masterman said. Farmers may remain members of their own cooperatives while selling organic milk to Horizon, Masterman noted. “We would be managing the hauling, because we don’t want our product commingled,” Taylor added. But the milk check would come through the co-op, and the co-op would manage the field service, quality testing and producer payroll. If a farmer chose to become independent, the services the co-op provided could be conducted by a third party, they said. James Miller, a representative of Organic Valley, who attended the meeting but did not make a presentation, told attendees after the meeting that his co-op is also interested in moving into the region. “We have been discussing expanding our area into Maryland and Virginia” Miller also said in a telephone interview. “We are definitely interested in pursuing the growth of organic farming in Maryland, Pennsylvania and Virginia”. “Organic Valley has always been very supportive of farms that are starting out or transitioning to organic farming.” he said.

Obviously buzzed about the prospects at hand, Ron Holter, who has 128 dairy cows with his wife Kathy on Holter Holm Farms in Jefferson, Maryland, is in the process of certifying his farm as organic right now. “With these big co-cops, you feel like you’re a burden” Holter said. “It’s a thrill to have somebody who actually wants to come and buy our milk!”

(Kristi Bahrenburg Janzen is a freelance writer who writes about organic food, sustainable and organic farming, and environmental and human health.

For more information on Organic Dairying in Maryland:

Maryland Cooperative Extension:

Stanley Fultz, Extension Agent, Dairy Science,
Frederick County Office,
sfultz@umd.edu or (301) 631-3578
www.agnr.umd.edu/frederick

Maryland Department of Agriculture:

Karen Fedor, Manager, Organic Certification Program,
fedorkm@mda.state.md.us or (410) 841-5769
Valerie Frances, specialty marketing coordinator
FranceVL@mda.state.md.us or (800) 492-5590
Mark Powell, director of special projects (contact for
crop insurance info.)
powellms@mda.state.md.us
(410) 841-5775

Horizon Organic Dairy:

Jule Taylor, Director of Milk Procurement, 
julet@horizonorganic.com or (303) 530-2711, ext. 305
Cindy Masterman, Producer Relations Manager-East,
cindym@horizonorganic.com or (888) 648-8377
www.horizonorganic.com

Organic Valley:

Peter Miller, East Pool Regional Coordinator
peter.miller@organicvalley.coop  or (612) 801 3506 or
to leave a message only (888) 444-6455, ext. 407
www.organicvalley.com

Lancaster Ag Products:

Merlin Nussbaum or Reuben Stoltzfus
340 Beechdale Road
Bird-in-Hand, PA 17505
(717) 295-9100
(They have no website.)

Chesapeake Organic Producers (COP):

(a committee of certified organic producers of grain
forages, livestock and more)
Contact Nick Maravell
nickmaravell@comcast.net or (301) 983 2167

Organic Trade Association

www.ota.com

Here some other websites whose resources we have found quite valuable and useful:

ATTRA - Appropriate Technology Transfer for Rural Areas
P.O. Box 3657 Fayetteville, AR. 72702 (800) 346-9140
These folks have programs for all kinds of organic/sustainable production.

The New Farm
This is the farm site for the Rodale Institute and the e-version of their fine magazine. Lots of good stories, informative articles, an organic price index, "nuts and bolts" information from the people who started publishing "Organic Farming and Gardening" a generation ago.

WWOOF - Willing Workers On Organic Farms
wwoof is a USA wwoof program. Our wwoof program allows people to sign up to become wwoofers or wwoof hosts instantly.

Maryland Department of Agriculture organic certification

The National Organic Program, USDA

Certified Naturally Grown
a non-profit alternative eco-labelling program for small farms that grow using USDA Organic methods but are NOT a part of the USDA Certified Organic program.

The Rachel Carson Council
promotes alternative, environmentally benign pest management strategies to encourage healthier, sustainable living. 8940 Jones Mill Rd. Chevy Chase, MD 20815
Email: rccouncil@aol.com

Southern Sustainable Agriculture Working Group
How they do it in Dixie. Lots of good photos and articles on actual farms and how that farmer farms, many of whom are organic.

Permaculture Activist
"Permaculture provides a new design language for observation and action that empowers people to co-design homes, neighborhoods, and communities full of truly abundant food, energy, habitat, water, income, and yields enough to share."

Future Harvest
Has information on CSA’s in Va. Wv. Md.
Products for sale page from organic farmers.
Phone 410-604-2681,

PASA Pennsylvania Association for Sustainable
Agriculture a nonprofit organization working to improve the economic and social prosperity of Pennsylvania food and agriculture. We work with the farmers that grow our food, the consumers that eat the food, and those concerned with the ecological well-being of our environment and natural resources.