Home Back Issues February 2011 Numbers don't add up for dairies

Numbers don't add up for dairies

| Print |  Email
Articles - February 2011
Thursday, January 27, 2011
0211_MalloriesMilkThe closing of a longtime Oregon dairy has delivered another blow to an already fragile industry suffering from declining milk prices and rising feed costs. Five years ago Oregon had about 330 dairy farms that produced and sold milk. Today it has 280.

Silverton-based Mallorie’s Dairy closed last month after more than 50 years of producing and distributing milk to Mid-Willamette Valley grocers. Officials for the dairy said the combination of low milk prices and rising feed costs made it difficult to remain profitable.

“It was a very well run operation, extremely efficient,” says Jim Krahn, executive director for the Oregon Dairy Farmers Association. “What was sobering about Mallorie’s was that they had been in existence for a long time, and had been a legend in the industry to that extent.”

The dairy was founded in 1954 by Robert Mallorie and remained a family-run operation when his children, Rick and Teri, continued to run the company after his death in 1996. The business employed more than 50 people full time and had around 3,000 dairy cows.

In Oregon and across the rest of the U.S., dairy producers have been facing declining milk prices while suffering from rising feed costs since late 2008, along with an oversupply problem.

“[When] the economy went south in ’08 we lost a lot of exports,” says Krahn. “Our surplus built up and we are still sitting on it. We simply have too much of it.” In 2009, Oregon’s dairy farm production was valued at $307 million.

While Krahn emphasizes the optimism of dairy producers, he is beginning to admit the current climate is making it harder for producers to stay hopeful.

“It’s hard to be optimistic over this length of time,” says Krahn. “I know many people have said, if [Mallorie’s] can’t make it, how can we? It’s causing people to take a second look, if they are going to get through this or not.”

MAX GELBER
 

More Articles

The Backstory

October 2014
Thursday, September 25, 2014

In our cover story this month, Wendy Collie, CEO of New Seasons Market, and Kim Malek, owner of Salt & Straw, discuss their rapidly growing businesses and Portland’s red hot food scene. The conversation provides an interesting lens through which to explore trends in the grocery store and restaurant sectors.


Read more...

Shipping News

September 2014
Tuesday, August 26, 2014
BY JENNIFER MARGULIS

In 2012 The Dalles, a city of some 14,400 located 75 miles east of Portland and often seen as the poor cousin to adjacent Hood River, completed a massive project to revitalize its dock.


Read more...

Two sides of the coin

Contributed Blogs
Monday, August 25, 2014
0825 thumb moneyBY JASON NORRIS | OB GUEST BLOGGER

Ferguson Wellman’s investment views on the economy and capital markets.


Read more...

Tight and Loose

September 2014
Wednesday, August 27, 2014
BY JENNIFER MARGULIS

As schools implement more rigorous academic standards, holistic and flexible approaches to K-12 education flourish.


Read more...

Gone Girl

News
Monday, September 29, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Wehby disappears, Kitzhaber fails to disclose and Seattle gets bike share before Portland.


Read more...

Semiconductor purgatory

News
Monday, October 06, 2014
roundup-logo-thumb-14BY LINDA BAKER | OB EDITOR

Intel's manufacturing way station; Merkley's attack dog; Diamond Foods gets into the innovation business.


Read more...

How to add positivity to your team

Contributed Blogs
Friday, September 12, 2014
happy-seo-orlando-clientsBY TOM COX | OB BLOGGER

I often talk about what leaders can do. What about followers? If you’re a team member and you’d like to add positivity to your team, what might you do?


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS