IMG_1485.JPGWhen you stand back a little, one of the truly amazing things about the decline in the number of dairies—really, the consolidation of the dairy industry—is the active opposition of the state agriculture officials to small dairies trying to achieve sustainability by producing raw milk–and potentially reversing the forces of economic stagnation.

It’s amazing because state agriculture officials are charged with promoting their state’s agriculture products. Yes, from New York to California, they have turned the raw milk issue from one that could be economically exciting to one that is completely ideological and political. New York State’s Department of Agriculture and Markets states on its home page, “Our mission is to foster a competitive food and agriculture industry that benefits producers and consumers alike.”

California’s Department of Food and Agriculture is similar: It says it “strives to support this tradition of innovation and agricultural diversity by working with private industry, academia and public sector agencies.”

Raw milk is a hot product, as are the products that can be produced from it, like yogurt, kefir, butter, buttermilk, and heavy cream. The ultimate in "agricultural diversity." In his comment on my previous post, Steve Bemis captures well the irony of raw milk in today’s agriculture system–that it is less costly to produce in terms of resources, and thus financially attractive to small farms.

Yet one of the big issues in states that allow limited sales of raw milk, like New York and Pennsylvania, concerns whether small dairies can produce the high-value follow-on products that can take farms beyond commodity production. Raw milk dairies want desperately to produce such products because customers are constantly requesting them.

If you’re in business, one of the most frustrating situations is to be unable to supply high-value products or services related to your main offerings, which are in big demand. Usually, it’s because you can’t obtain the items or provide them at a reasonable price. In the case of raw milk dairies, it’s because the state won’t let you sell them.

That problem is what underlies the entire Meadowsweet Farm case. Barb and Steve Smith turned their dairy into a limited liability company largely as a way to make followon raw milk products available to consumers (and as a way to get out from under the department’s increasingly tough, and arbitrary, approach to inspections).

New York’s Department of Agriculture and Markets in its brief to dismiss the Smiths’ court suit sought to apply regulations that the followon products are “adulterated” and “misbranded,” “because they were made from raw milk in violation of the applicable standards of identity for such foods which require that those products be made from pasteurized milk.”

Gary Cox, the Farm-to-Consumer Legal Defense Fund lawyer representing the Smiths, argued that much of the terminology underlying regulation of raw milk is imprecise—for example, suggesting that the Smiths operate “a milk plant,” since milk plants are used in the regulations to describe places that use pasteurized milk.

I have written a lot about this issue as one involving basic rights. But I must say, it offends the business sensibilities as well–that in times of economic stress, our government officials are ready to sacrifice economic opportunity for the nation’s oldest industry to the interests of ideology.