Dairy Farmers

Senator Bernie Sanders on Monday invited Dean Foods' chief executive officer to come to Vermont and meet with dairy farmers. "The dairy industry has been, and remains, a vital part of Vermont's economic engine and a central part of the fabric of our communities.  All Vermonters understand that if family-based dairy farming is to continue in any significant way in our state and throughout the country, America's dairy farmers must receive fair prices for the products they produce," Sanders said in a letter to Dean Foods CEO Gregg L. Engles.  Dean processes and markets such well-known brands as Dean's, Garelick Farms, and Horizon Organic. It sells processed milk to major retailers such as Wal-Mart Supercenters, Sam's Club, Giant, and Stop & Shop.

"As a company that controls approximately 70 percent of the dairy market in New England and 40 percent nationally, I believe that it is both your responsibility and in your best interest to ensure that America's family dairy farms continue to thrive," Sanders added.

According to the U.S. Department of Agriculture, the All Milk Price paid to dairy farmers dropped over the last year from $19.30 per hundredweight to $11.40 per hundredweight. In other words, in June 2008 farmers were receiving nearly 70 percent more per gallon of milk than they were in June 2009.  Prices that dairy farmers are receiving today are at the same level as they were three decades ago, even though the costs of production and every other expense facing farmers has gone up many times over that period.

The drop in prices paid to farmers has not coincided with a drop in prices for consumers. While New England dairy farmers receive just $1.00 per gallon of milk, Americans are paying on average $3.01 per gallon at their local store. 

"In other words, while milk prices for dairy farmers are plummeting, the profits of Dean Foods are soaring," Sanders said. 

A meeting of farmers and the dominant dairy processor in New England, Sanders added, would allow all parties "to discuss how we might work together to ensure that dairy farmers in Vermont receive a fair price for their product and are able to stay in business."

To read Sanders' letter, click here.