WHY THE ORGANIC PASTURE RULE IS A GOOD THING

1. The large “organic” (meaning “fake”) operations will have to change (and already are). One of the major issues with organic dairy was the presence of essentially confinement operations in the West that did not allow animals access to pasture, or the pasture that was available was not adequate for dairy. Essentially the animals were fed their necessary ration for milk production in confinement, and then possibly allowed out for a short time (but didn’t eat anything). These large operations supplied major chains like Wal-Mart and others. Consumers were becoming more and more aware of this, and realizing what they thought “organic” meant was not what they were buying. This was extremely bad for the organic label.

2. Ruminant livestock in general will have to have more pasture in their diets. This absolutely is a good thing. Cows, sheep and goats are geared for grazing. The resulting meat and milk from these animals will be healthier. I know there will be those that disagree, but speaking as a producer and a processor I can tell the difference in a big way through taste and the health of my family.  One doesn’t have to look far to find study after study supporting the nutritional value and quality of organic foods vs non-organic. The information that refutes this is heavily influenced by large economic interests that profit off of confinement feeding with a lot of grain.

3.  The increase in opportunity. One opportunity that I can see is a custom grazing operation that would take replacement heifers from an organic dairy for the grazing season. This would have several positive benefits: (1) the dairy would realize a decrease  in labor in regards to not having to take care of those animals, (2) a decrease in feed requirement in terms of pasture,  and (3) an increase in pasture for the money-making milking herd OR additional land on the home farm for grain production. In addition, another local farm would have a good business helping the dairy adhere to the organic pasture rule and make some additional money. The more economic activity I see happening, the better it is for the local economy. I can attest to this: I graze a local dairyman’s replacements for the summer. It works very well, as I get paid per head/per day, the dairyman brings a grain mix as a supplement and minerals, I get animal impact on my pastures, and the dairyman can increase his milking herd and actually make more money in the long run.

WHY THE ORGANIC PASTURE RULE IS A BAD THING

1. The increased paperwork. One thing that grates on organic producers is the paperwork involved. It seems backwards that an environmentally better agricultural production model has to “prove” itself, when probably the reverse should be true.  I know for certain that the increased paperwork has resulted in organic producers making the decision to give up certification.  In the dairy world the increased paperwork has put off those that are on the fence of deciding to transition. Also, on the certification end of things that increased paperwork and scrutiny has resulted in increases in costs and fees, which increase the costs of certification — which could lead to an increase of cost to the end consumer. Someone has to pay for all of that.

2. The hit to the small guy. I say this with tongue in cheek, because the small guy needs to play by the rules as well. Already there is a move afoot to modify the Pasture Rule, only because of the unintended consequences to the small producer. HOWEVER, I think that generally speaking everyone needs to move towards increasing the amount of pasture ruminant animals have under their care for their enterprise to be certified organic.

This is just a short analysis of a very impactful ruling. One thing for sure that I believe will be the short-term result, and that will be a shortage of organic milk and organic meat. I havent’ even addressed the issue of pasture or access to pasture for organic chickens. That’s another story in itself.

Grassfed dairy products are much harder to profit by than meat or eggs due to the increased complexity in production and marketing. Interest of 100% grassfed raw milk are on the rise (but a very very very small percentage of the total milk that is produced out in the marketplace). Raw milk grassfed cheese and butter are  more feasible due to the storability of the product — butter can be frozen and cheese can be aged.  The biggest issues that grass-based dairymen face is marketing and useage – typically the volume of milk from a grass-based dairy is highest in the spring and early summer, and lowest in the late fall and winter (the typical reality of when grass is growing). The problem with this is the processors that buy the milk from these dairies have a glut of milk in April, May, June and part of July — right when school lets out. School lunch milk makes up a significant portion of milk useage. Also, consumption of bottled milk falls in the summer. Whereas non-organic milk makes up the bulk of school lunch dairy, this phenomenon effects all dairy – especially fluid milk.

So what you have is all this milk right when the processor and marketer doesn’t need it. To compound matters worse, people actually like to drink milk year round. They may drink more in the winter, but by in large not having milk available all the time is a very bad play for marketers. Grassfed dairies typically either stop producing milk or reducing the volume dramatically in the winter. This just does not work — processors, stores, marketers and consumers want what they want, and they want it all  the time.  Just like people want tomatoes and bananas all the time.

What can be done? In my thinking, 100% grassfed bottled milk is not feasible now, not until the mainstream consumer dramatically changes their eating habits. When you see Wal-Mart doing anything, believe that the groundwork was laid a long time ago for acceptance in the marketplace. What I do see is the potential for 100% grassfed cultured products like butter and cheese — BUT, this requires the industry to absorb the excess of these dairies out of the goodness of their own hearts — which is not something to base a business plan on.  Farmers that are wanting to be 100% grassfed should focus on local sales if possible, and develop strong relations with normal marketing channels like local dairies that will work with them. Consumers should understand the hit that these pioneers get financially, and should work overtime to support them.

Raw pastured eggs add a good dose of protein, as well as “good fats”. Coconut oil is also a source of beneficial oils. Here is short listing from the website “Organic Facts” concerning coconut oil  and good fats (http://www.organicfacts.net/organic-oils/organic-coconut-oil/health-benefits-of-coconut-oil.html):

The health benefits of coconut oil include hair care, skin care, stress relief, maintaining cholesterol levels, weight loss, increased immunity, proper digestion and metabolism, relief from kidney problems, heart diseases, high blood pressure, diabetes, HIV and cancer, dental care, and bone strength. These benefits of coconut oil can be attributed to the presence of lauric acid, capric acid and caprylic acid, and its properties such as antimicrobial, antioxidant, antifungal, antibacterial, soothing, etc.

We are not promoting kefir specifically persay, but more sharing the benefits of probiotics and getting those from sources that are readily available and healthy. Yogurt is another cultured milk product, but if someone is anti-dairy there are products such as kombucha that also are good (we make our own as well). I like using local organic whole milk as well as our own eggs because its one step in the direction of a more sustainable life, even though the presence of bananas and coconut oil are not “local” by Iowa standards.

If anyone has other sources of probiotics or comments, please share!

Well, times are changing. While I’m not against large farms, I personally do expect organic livestock operations to adhere to a pasture-based system. If a large farm can pull that off, then more power to them. It’s hard though. Pasture means land, and land can be expensive in certain areas. There is a reason that dairy in general is concentrated in areas such as the Upper Midwest, New England and parts of the Mid-Atlantic, and the Pacific Northwest — due to the climate. Those areas can be built up commercially, and land can be difficult to obtain in the amounts necessary to run a viable operation.

Here in Kalona, Iowa there is a large Amish/Mennonite community. While some Amish communities focus on other businesses, the Kalona  Amish “business” is an organic farm, with a focus on organic dairy.   These are not large farms, but there is enough land to generally support a large family.  However, with the new pasture rule out, these dairies don’t necessarily have enough land to meet the requirement for all their animals (that’s a change in the new rule).  And here is where I come in — I’m offering to custom graze their calves and replacement heifers during the growing season to free up pasture for their main milking herds. It’s a great partnership, and helpful to me as well as I’m converting all of my 60 acres to pasture.

The next blog post will be focused on the rudiments of grazing animals.

Prior to the economy taking a nose-dive, there were three large buyers of organic milk nationwide. These were Organic Valley, Horizon Organic, and Kemp’s (a subsidiary of HP Hood). All three competed with each other in various markets for farmers (meaning milk supply). Last year Hood pulled out of the market, dropping routes and farms at almost a moment’s notice for some (and honored other contracts until the end). This painful restructuring has caused consternation in the supply chain — what does the industry do when there is too much milk overall? It is easy to shut dairy farms down (just stop picking up their milk), but it is extremely hard to start them back up.  Milk by definition is highly perishable, and organic milk is not only highly perishable but relatively expensive as compared to conventional milk. Compounding the problem is the age-old dairy issue: cows give milk every day.  And that milk has to go somewhere.

In a recession people stop going out to eat and eat at home. Usually, a recession is good for the food industry. However, organic food is higher priced, so recessions are bad because while people need food to survive, they do have a choice between conventional and organic food. If organic is a lot higher priced, then it is easy to just “buy down” until times get better — which is exactly what has happened over the last year or so.

There has been a shakeout of the number of organic dairy farms that are continuing to operate.  Recently the industry got a wake-up call when there were two large back-to-back major snowstorms on the east coast of the US. People generally panicked and bought up food supplies to keep them going while being snowed in. Shelves were stripped of food, milk in particular, and all of sudden everyone began asking for more milk. Ironically, there was little to be had.  While this has been a short-term event, it’s highlighted a growing concern for a more long-term perspective.

We are now coming out of a period of over-supply, and entering into a phase of under-supply. With the mainstream consumer becoming more and more aware of the impact that food has on one’s health coupled with the general easing of the recession, I foresee the pendulum swinging back the other way soon — organic milk will be in demand and there will not be enough farms to supply it.