Dairy-Backed Sales Limits OK'd in House
Washington, D.C., March 29, 2006

Legislation Aims to End Exemption for Large Milk `Producer-Handler'
Washington, D.C., March 28, 2006

Producer-Handler Dairymen Featured on Fox News - The Fox Report
March 22, 2006

Got Competition?
Yuma, AZ, February 25, 2006

He Sells Milk for Half the Price You pay. The Feds Want to Stop Him. Why?
Yuma, AZ, February 19, 2006

System Controlled by Industry Giants
Chicago, IL, February 19, 2006

Dairyman Biding Time with USDA Decision
Yuma, AZ, February 11, 2006

Small Dairyman Shakes Up Milk Industry
Yuma, AZ, February 2, 2006

New Federal Rule to Hit Edaleen Dairy: Farm Too Large for Revised Exemption
Bellingham, WA, January, 14, 2006

Moo-To-You May Become Moot-To-You
Seattle, WA, January, 4, 2006

USDA Announces Final Decision to Amend pacific Nothwest and Arizona-Las Vegas Milk Orders
Washington D.C., December 9, 2005

Do-it-yourself dairies may lose exemption
Silverton,OR, August 13, 2005

Running family farm not about corporate profit: it's about pride
Silverton, OR, August 10, 2005

New rules may milk farm dry
Kent, WA, July 11, 2005

Local dairy on Federal Government hit list
Silverton, OR, July 10, 2005

U.S. sour on tactics of milk's top co-op
Washington D.C., June 20, 2005

Public rallies behind local dairyman
Yuma, AZ, June 19, 2005

Monday deadline looms for Smith Brothers
Kent, WA, June 12, 2005

See more Dairy News!

Spoiled milk: Silverton dairy with Canby operations worry about USDA decision on milk production

By Steve St. Amand
Canby Herald
June 11, 2005

An area dairy with ties to Canby could face a major financial downturn if the United States Department of Agriculture adopts a new milk distribution policy.

Silverton-based Mallorie's Dairy, an 85-employee business that includes milking operations in the Whiskey Hill area, is one of several regional dairies appealing the USDA's recommendation to change production-pricing levels.

"Basically, we stand to lose $1 million a year, or we're looking at cutting 40 percent of our operations," said Mallorie's Dairy Business Manager Charles Flanagan. "I'm not sure how it would all work out economically, but probably the first place we would cut is in Canby."

The proposal concerns changes to 70-year-old producer-handler laws, where dairies producing more than 360,000 gallons of milk per month are no longer exempt from pricing and pooling provisions.

In short, Mallorie's, which produces roughly 525,000 gallons per month, would become part of a pricing pool where the federal government sets the price of milk based on demand in the Pacific Northwest, Arizona and Nevada .

Teri Mallorie-Kilgus, whose family has owned the dairy for more than half-century, said the ruling would pit Mallorie's against the largest milk producers, including the Dairy Farmers of America and Dean Foods. Because of their size, the two organizations can produce milk at significantly cheaper prices than Mallorie's. "We couldn't compete," Mallorie-Kilgus said. "The Dairy Farmers of America is a cooperative that controls 34 percent of the nation's milk, while Dean Foods is the the largest milk processor in the country ... and they both support this."

In comparison, Flanagan said Mallorie's produces roughly 1 percent of the milk in the Northwest, Arizona and Nevada . "We feel this is just another way the large corporations are trying to put the little guys out of business," he said. Included in that is the Whiskey Hill operation, which accounts for about 20 percent of Mallorie's 1,900-cow operation.

USDA: Mallorie's isn't a mom-and-pop store

But in the USDA's summary of the proposal, Mallorie's would be considered a larger dairy despite comparisons to the mega dairies and cooperatives.

Jim Daugherty, regional market administration of the USDA is Seattle , said the ruling would not affect the smallest dairy operations, however he could not comment on specifics of the proposal because by law, the USDA must remain impartial during testimony.

"Mom-and-pop stores are not a factor in the marketplace," Flanagan said.

"When they reach 3 million pounds per month, they become a factor and must fall into the rules ... if the proposal is adopted." The USDA summary concluded that the current law gives advantages to dairies like Mallorie's keep the entire value of their milk production, yet they are not subject to "the strict definitions and limitations" of their business practices.

Cutsforth's Thriftway could be affected

Locally, the ruling could impact Cutsforth's Thriftway, whose labeled milk comes directly from Mallorie's.

Cutsforth's Manager Derek Willis said Mallorie's is the store's biggest supplier of milk, and fears that the ruling could impact milk prices in the long term.

"They've got a great operation over there. They raise their own cows, grow their own feed, and bottle and label their milk right at the facility," Willis said. "We try to support the independents because we're an independent ourself and know how hard it is. Plus they are very competitive in their pricing. "They're the last of the true local farms out there, and these big co-ops are just going in and trying to buy them...then the prices start going up." Flanagan agreed.

"Any time you reduce competition, the consumer is faced with less options and usually a higher cost," he said.

USDA accepts public comment until June 13

The USDA will receive written comments on the proposal, while Daughtery said it could be voted on by the end of 2005. Until then, Mallorie's representatives hope to continue their fight and protect their family business.

"I think it's important to realize the rules we have in effect have worked for 70 years, and we've been here for 50 years," Flanagan said. "I think it's because we're strong competitors, and if we're knocked out of the market, there's an even bigger monopoly than the one already out there."

For more information, visit the USDA website on the hearings at www.AMS.usda.gov/dairy/hearings.htm . To learn more about Mallorie's Dairy and other family dairies opposing the proposal, visit www.keepmilkpriceslow.org .