Record 2006 sales of $334 million put more dollars where they belong: farmer members' pocketbooks
Farmer members of Organic Valley are used to getting a monthly check from their cooperative for an amount that typically far exceeds conventional pay prices. But recently, they received a surprise delivery in the mail: a 13th check that added another $.75/cwt to their pay price for 2006.
"I've never been so proud to be part of Organic Valley as I am today," said Theresa Westaby, who runs an organic dairy farm with her husband, Delmar, in Stockton, Ill. "I've always had a lot of pride in our co-op, but when I recently showed the 13th check we received to our banker, he reminded me how special Organic Valley is. He said, 'I wonder how many conventional farmers got a bonus check this year?' I replied, sadly, 'none.' I'm grateful to the co-op for giving us the freedom to farm and live how we want."
Organic Valley, the nation's largest organic dairy cooperative, experienced record sales in 2006 of $334 million, a 38 percent increase over 2005. CROPP dairy farmers received a total of $68.5 million in organic premium payments during 2006. In addition, farmers received bonuses—profit sharing, mid-year pay increases, production bonuses, dividends and a 13th check—totaling $8 million. In 2007, Organic Valley expects sales to increase by 36 percent to $450 million.
"This is a true testament to the power of the cooperative business model," said Mike Bedessem, chief financial officer for Organic Valley. "The business had an unprecedented year, and that good fortune goes right back to the farmers, where it belongs."
Organic Valley's cooperative structure is a democratic model. Its farmer members own the business, are actively engaged in making decisions and give recommendations to the co-op's management. Each regional pool of farmers elects a representative to serve on their pool's Executive Committee, which makes recommendations to the Board of Directors, consisting of seven farmer members. The farmer Board governs the co-op, so the voice of the farmers is clearly heard.
After receiving their 13th checks, Organic Valley farmers nationwide expressed gratitude for the unexpected payments, which amounted to thousands of dollars for farmers.
"Organic Valley has been a true blessing in our lives," said Susan Burkhalter, a dairy farmer in Rosburg, Wash. who has been a member of Organic Valley since May 2006. "My husband is encouraged by the higher milk price, and it's wonderful to see our hard work and commitment to excellence being rewarded."
"If I was part of a corporation that had a profitable year, all I'd get is the news the CEO got a bonus," said Travis Forgues, a farmer owner from Vermont. "With Organic Valley, we're all in it together and the farmer is the one who benefits. That's true cooperation."
Organic Valley/CROPP Cooperative: Independent and Farmer-Owned
Organic Valley Family of Farms is America's largest and oldest cooperative of organic farmers and is one of the nation's leading organic brands. Organized in 1988, it represents over 960 farmers in 27 states and one Canadian province and realized a record $334 million in 2006 sales. Focused on its founding mission of keeping family farmers farming, the cooperative produces 200 organic foods, including organic milk, soy, cheese, butter, spreads, creams, eggs, produce and juice. Its sister brand, Organic Prairie (www.organicprairie.com ), produces delicious organic pork, beef, chicken and turkey. Look for Organic Valley and Organic Prairie in leading supermarkets, natural foods stores and food cooperatives nationwide. For more information, call 1-888-444-MILK or visit www.organicvalley.coop .
