Business & Tech
Ten Organic Dairies Leave Clover-Stornetta Over Prices
About two thirds of organic milk producers will now sell their milk to Wilsconsin-based cooperative
Ten local organic dairies have decided to leave in favor of a Wisconsin dairy cooperative, pulling a significant portion of the organic business from the local producer in exchange for more stable prices.
Marcus Benedetti, president of Clover-Stornetta, confirmed the decision in an email to Petaluma Patch.
“A portion of Clover’s organic farms have decided to ship their milk elsewhere, he wrote. "While their business decision is unfortunate, I respect it. They are excellent dairies with great families and we wish them well."
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Fifteen local organic dairies were selling their milk to Clover Stornetta, so the departure means a loss of about 66 percent of the organic business. The farms will begin selling to Organic Valley of Wisconsin, effective Aug. 1.
“We’re thrilled to have that beautiful milk from the Petaluma area,” said Theresa Marquez, chief marketing executive for the 23-year-old co-op with $670 million in sales and 1,700 dairy farmers in 33 states.
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A complete list was not available Wednesday, but is believed to include Triple C, McClelland, DeBernardi and two Stornetta dairies (not connected to Clover Stornetta.) Calls placed to numerous dairies were not immediately returned Wednesday afternoon.
Marquez said that the change had been in the works for more than six months and that Organic Valley told Clover-Stornetta of the contact from their farmers.
“We don’t steal other people’s farmers. They came to us,” Marquez said.
The void will create an opportunity for conventional milk producers to switch to organic, which pays more. Clover has been dealing with too much organic milk and the change gives the company a change to strike a balance between production and sales, according to industy insiders.
“Clover honors our relationship with our remaining dairies, and looks forward to welcoming new organic and conventional dairy farms to the Clover family," Benedetti said. "Our supply of Clover products to customers will remain uninterrupted and Clover’s mission remains unchanged—we will continue to provide quality dairy products to our customers and their families."
Stay tuned as we update the story throughout the day.
