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

Two Sides of the Coin

Contributed Blogs
Friday, September 26, 2014
0926 iphone6-thumbBY JASON NORRIS | GUEST BLOGGER

This post focuses on the recent release of the new Apple iPhone as well as Alibaba's IPO, the largest U.S. IPO in history.


Read more...

College Conundrum

October 2014
Thursday, September 25, 2014
BY KIM MOORE

University and college tuition fees have been rising for more than a decade, while state funds for higher education have steadily declined.


Read more...

Podcast: Interview with Pete Friedes

Contributed Blogs
Wednesday, August 27, 2014

082714-thumb friedesbookTom Cox interviews Pete Friedes, author of "The 2R Manager," about becoming a Best Boss.


Read more...

Measure 91: What Oregon Businesses Need to Know

Contributed Blogs
Wednesday, October 15, 2014
91 thumbBY DIANE BUISMAN

Some common misconceptions employers have about marijuana.


Read more...

Gone Fishing

October 2014
Thursday, September 25, 2014
BY LORI TOBIAS

Business has been good to Laura Anderson, leading some to suggest she must be awfully lucky to find such success in a business notorious for failure. But luck’s had little to do with it.


Read more...

Fork & Bottle

October 2014
Thursday, September 25, 2014

National media can’t get enough of Oregon’s pinot noir, artisan-food purveyors and lively, independent film scene.


Read more...

What I'm Reading

October 2014
Thursday, September 25, 2014

Nick Herinckx, CEO of Obility, and Jake Weatherly, CEO of SheerID, share what they've been reading.


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