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Local dairy on Federal Government hit list

July 10,2005
Tim King
Salem-news.com

There could be bad news down the line for Oregon 's largest family-owned dairy . Mallorie's Dairy in Silverton has grown steadily over the past 50 years, and they employee nearly 90 people. But a decision in Washington D.C. could spell the end for this organization that performs the entire dairy operation; from calf birthing to milk bottling. Few large media organizations are paying attention to the matter and Mallorie's owners are hoping the public can help.

A new federal ruling from the USDA would severely limit milk production for small businesses like Mallorie's . This could mean signigficant downsizing and the reduction of the dairy's workforce, a hard thing in today's economy according to Mallorie's Business Manager Charles Flanagan, "To get below the 3 million pound limit that they set, we would have to downsize about 40 percent, which would be a tremendous impact on our employees and on the community.

"If we continue to operate just the way we are we would have to pay almost a million dollars a year into a fund, and that just doesn't work for us. We don't even come close to having that kind of net profit in a year."

Teri Kilgus says the dairy her father founded has steadily progressed over fifty years of existence. Agriculture, according to economists, is Marion County 's number one cash business. She says that in the 1930's, the federal government passed the Milk Price Protection Act. This was designed to prevent larger milk producers from fixing prices, a practice that could take out their smaller competitors. But says she never envisioned her biggest challenge coming from the federal government, "I was shocked to think that the United States Department of Agriculture would let a small business like us be jeopardized in this way."

The owners of Mallorie's are asking NW residents to visit the Web site www.keepmilkpriceslow.org to learn more about the story and contribute their thoughts on the matter. Mallorie's will in turn forward those thoughts to the USDA for consideration.

They say they remain hopeful that a decision can be reached that will not have such a negative impact on this Oregon agricultural business.

Charles Flanagan also encourages people to write directly, "We will send them whatever information they need.. Or, we can answer questions. The mailing address is PO Box 720 , Silverton , OR 97381 and we'd be happy to hear from people."

Mallorie's products can be found at locations throughout Oregon and beyond including Roth's IGA and Thriftway.

Mallorie's dairy products can be found throughout grocery stores in the NW.