Sponsored by Forest Grove Economic Development
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

Why I became an Oregon angel investor

Guest Blog
Monday, July 14, 2014
AngelInvestBY TERRY "STARBUCKER" ST. MARIE

I really didn’t know that much about angel investing, but I did know a lot about the entrepreneurial spirit.


Read more...

Oregon Business wins awards

News
Monday, June 30, 2014

ASBPEOregon Business magazine won two silver awards for excellence in writing in the National American Society of Business Publication Editors Western region competition.


Read more...

Poll Wrap-Up

News
Friday, August 15, 2014

2014 NewPoll-report-newsletterthumbIn this week's poll, we asked readers: "Who should pay for the troubled Cover Oregon website?" Here are the results.


Read more...

Q&A: David Lively of Organically Grown Co.

News
Tuesday, July 01, 2014
OGCLogoBY HANNAH WALLACE | OB BLOGGER

Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.


Read more...

Community colleges and sustainability

Contributed Blogs
Thursday, July 31, 2014
sustainabilityBY MARY SPILDE | OB GUEST CONTRIBUTOR

Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.


Read more...

Trends in business succession

News
Thursday, July 03, 2014
TrendsBY TED AUSTIN & MIKE BAELE | GUEST CONTRIBUTORS

The Office of Economic Analysis announced that Oregon is currently enjoying the strongest job growth since 2006. While this resurgence has been welcome, the lingering effects of the 2008 “Great Recession” continues to affect Oregon businesses, especially with regard to estate planning and business succession.


Read more...

Green Endeavor cleans up

News
Wednesday, August 06, 2014
080614 ULnew greenendeavorBY LINDA BAKER | OB EDITOR

Portland startup Green Endeavor strikes gold, inking a partnership with Underwriters Laboratories, an Illinois-based consulting and certification company with offices in 46 countries.


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