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Sunday, August 31, 2008

Real California Milk: A real loss to local dairies



Kim Lamb/LVN photo Jersey cows eat hay at the Christoph Dairy on Thursday. Bill Christoph said he and several other dairymen in Churchill County have thinned their herds because of the Real California Milk® campaign and lack of processing capacity in California, where a large portion of local milk was shipped.
Kim Lamb/LVN photo Jersey cows eat hay at the Christoph Dairy on Thursday. Bill Christoph said he and several other dairymen in Churchill County have thinned their herds because of the Real California Milk® campaign and lack of processing capacity in California, where a large portion of local milk was shipped.ENLARGE
Kim Lamb/LVN photo Jersey cows eat hay at the Christoph Dairy on Thursday. Bill Christoph said he and several other dairymen in Churchill County have thinned their herds because of the Real California Milk® campaign and lack of processing capacity in California, where a large portion of local milk was shipped.
Churchill County dairymen are starting to feel the effects of the Real California Milk campaign that was launched in September 2007.

The California Milk Advisory Board introduced the Real California Milk (RCM) seal last year which certifies the dairy products bearing the seal are made with California milk exclusively, according to the board's Web site.

Locally, that means milk processors located in California who have signed onto the RCM program won't accept milk from Lahontan Valley dairies.

To compound the problem, there is a shortage of milk processing capacity in California which results in processing plants limiting the amount of Nevada milk they receive, according to local dairyman Bill Christoph.

The Dairy Farmers of America is an intermediary cooperative that markets milk for member dairymen, and most Churchill County dairies belong to DFA. Christoph said since the California market is awash in milk and cannot, or will not, accept Nevada milk, restrictions have been placed on the amounts of milk accepted before a penalty is imposed on producers. The penalty represents a surcharge to ship the product long distance to other processors.

"In order to pay the transportation costs to ship the milk long distances, the costs are reflected to producers," Christoph said.

While Nevada is home to bottling plants Model Dairy in Reno and Western Dairy Specialties in Yerington, both plants already receive enough milk to meet their customers' demands and cannot accept more milk from Fallon.

"Some dairies have dumped milk alongside the road because they couldn't sell it," said Eric Grimes, executive director of the Churchill Economic Development Agency. "I've got dairymen selling off one-quarter to one-half of their herds."

Grimes and CEDA was brought into the dairy crisis to find a solution and a possible market for Fallon milk. He said he was directed by city and county officials to make his primary mission that of finding relief for local dairymen.

To that extent, Grimes has been working with a group of dairymen to find suitable alternatives. While the group wishes to keep its complete plans under wraps for now, Grimes said they are considering approaching companies to expand to Churchill County to establish a plant producing something other than fluid milk.

Grimes said the group is moving forward rapidly to protect their personal investments and had a site selector in the area on Friday.


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