Michigan Grass Fed Dairy Value Chains

Final Report

Submission Date

12/13/2016

Submitted By

Nicole Bartell, Monique Hemker, Janina Kavetsky

Project Summary

Conventional confinement dairy farms saturate Michigan’s dairy industry, creating ever-

decreasing milk prices for farmers. Grass-fed dairies sell milk for the same low price on the

commodity market, establish organic status and sell to an organic cooperative or producer, or

process milk on-farm since Michigan lacks a value chain for grass-fed milk. Research suggests

grass-fed dairy products offer economic, social, and ecological benefits to farmers, consumers,

cows, and the land. Such a product has potential to succeed with differentiated processing and

premium market designation. To determine the need for a grass-fed value chain and Michigan’s

capacity to establish one, we constructed a list and map of partially to 100% grass-fed dairy

farms and cheesemakers and interviewed a sample group from the list. Our search resulted in

58 grass-fed dairies and 15 cheesemakers. Interviews with six of the farms and two

cheesemakers illuminated potential for expansion of the grass-fed dairy value chain in Michigan.

For the market to reach its potential, work must be done to expand consumer and farmer

education, unify grass-fed standards, and establish differentiated processing of grass-fed milk.

We searched out-of-state for pre-existing grass-fed dairy markets and found a processor in New

York. Maple Hill Creamery built the precedent “Milkshed,” a network of over a hundred grass-fed

dairy farms that work closely with another and Maple Hill to improve best management practices

and expand the grass-fed market. All farms practices are unified by Pennsylvania Certified

Organic’s 100% Grassfed Certification, a certification created in part by Tim Joseph, a Maple

Hill Creamery founding farmer. An interview with Tim revealed education, location, and

processing capacity as integral aspects of establishment a successful grass-fed value chain in

Michigan. Moving forward, we recommend obtaining a full list of Michigan dairies from the

USDA to supplement our list of 58 farms, building a website to increase consumers’ access to

grass-fed facts and products, conducting further research on Michigan consumer preferences

for grass-fed dairy, contacting existing milk processors to determine ability and interest to

differentiate grass-fed milk, and maintain connections with Maple Hill Creamery to share

knowledge and experience of establishing grass-fed value chains.

Key words: cheese, cooperative (co-op), organic, supply chain

Introduction

According to the 2002 Census of Agriculture, one in 18 farms in Michigan is a dairy farm

(Conner et al., 2007). Of these dairy farms, seventy-three percent have 10-199 cows (Conner et

al., 2007) which accounted for 18% of Michigan’s dairy production in 2006 (Economic Research

Service). Nationwide, the number of small (less than 10 cows) and medium (10-200 cows) farm

sizes have been declining in dairy (Conner et al., 2007). Conventional farms often require

increasing economies of scale to maintain solvency, which results in a large farm size. In 2006,

large farms accounted for 39% of Michigan’s dairy production and 51.6% nationally Economic

Research Service). However, rural communities with more medium-sized farms score better in

various measures of well-being such as lower poverty, unemployment, and greater civic

engagement (Conner et al., 2007). With the dominance of dairy farms in Michigan's agricultural

economy, the resilience of small and medium dairy farms is important. Grass-fed dairies, due to

lower input costs, are more likely to maintain solvent at smaller scales. Encouraging support

and transition of grass-fed dairies is integral to foster scale diversity and halt farm number

decline in the state (Conner et al., 2007).

Benefits of grass-fed dairy typically fall into one of three categories:ecological,

economical, and sociological. The most universal benefits of grazing dairy production lie in the

ecological outcomes of such systems. The process of livestock grazing, especially that which

employs paddock rotation, improves soil conditions through higher organic matter content and

reduces soil erosion because of increased water holding capacity and vegetative soil cover

(Teague et al., 2011). In conventional cropping systems where large areas of soil are left bare,

carbon escapes into the atmosphere as carbon dioxide (a greenhouse gas); in a grazing

system, when carbon material (manure, decaying plant material) is introduced to the soil

surface, it is either directly absorbed by plants or incorporated into the soil matrix in a process

known as soil sequestration (Soussana, 2009). In addition to carbon sequestration, pasture soil

has greater resistance to drought events because the soil cover, organic matter, and water

infiltration capacity allow precipitation to filter through the soil and be held in place until it is

taken up by plant roots.

Additionally, pasture agricultural systems contribute to habitat preservation. In

conventional animal production, feed is sourced from crops which require intense tillage and

chemical inputs that damage or discourage native biodiversity. Many wildlife species coexist

with livestock in a grazing system, and when adequate pasture rotation is employed, there is

minimal impact to habitats that overlap the grazing system. The ecosystem services provided

through habitat preservation, carbon sequestration, and soil health can improve the overall

sustainability of the dairy production system. (Audubon Dakota)

The economic benefits of grass-fed dairies are realized through lower costs and can

benefit from premium market designations. Grazing dairies require less startup capital such as

infrastructure and management, and less ongoing costs per cow such as feed cost and

reproductive services. Because feed is the largest expense for conventional animal farms,

grazing dairies have a higher income per cow (Conner et al., 2007). Investing in technology

such as robotic milkers or fence gate timers can reduce labor costs. Grazing cows have lower

rates of lameness and metabolic disorders as well as improved fertility, which can result in lower

veterinary expenses (Karcher&Siegford, 2016). Ultimately, numerous opportunities exist for

value added premium markets that increase profit, but are not necessary to reach satisfactory

net-income in grazing systems (Conner et al., 2007).

The major selling points with consumers for grass-fed dairy lie within the nutritional

characteristics of the products (Paine, 2009). Nutritional characteristics of grass-fed dairy

products are typically divided into health and taste related aspects. Grass-fed dairy products

have an altered fatty acid profile that typically takes the form of a greater ratio of Omega-3 to

Omega-6 fatty acids than conventional dairy products (Ruxton et al., 2004). Grass-fed dairy

products also have higher protein and fat than conventional dairy, making them better suited for

cheese and butter. However, the strongest selling point for dairy products lies in differences of

product taste and texture (Paine, 2009). The unique characteristics of climate, soil, and forages

of an area affect the flavor of grass-fed dairy. Studies have shown that grass-fed dairy has

different flavor and texture compared to products made from milk of conventionally fed cows

(Paine, 2009). This aspect provides great opportunity for artisanal processors and local

producers to market premium products based on their unique place-based flavors and textures

along with the nutritional benefits.

Successful markets advertise toward the consumers’ preferences. While the freshness

and taste of dairy products receive the most attention by consumers (Pirog, 2004), Connor

(2008) determined consumers value that grass-fed dairy is environmentally friendly, free of

antibiotics and hormones, and humanely raised. Consumers care less about marketing related

to the farm such as its location and family heritage (Pirog, 2004). Communicating messages

about farm scale benefits as well as the benefits of grass-fed dairy may resonate with

consumers making choices for their tables.

Due to established labeling and developed consumer markets, organic cow’s milk is the

only reliable premium price market. The beneficial chemical and physical characteristics of

grass-fed milk could contribute to the creation of grass-fed milk’s own premium market.

However, challenges exist for creating this value-added market for grass-fed milk products.

Product inconsistencies such as flavor and color due to differences in climate, season, forage,

and supplemental feed sources create challenges in marketing to consumers. Marketing is a

large time commitment for the farmers. The most successful farmers spend a considerable

amount of time marketing and advertising their products (Paine, 2009).

Currently, most dairy farms operate as part of a supply chain; farmers provide the raw

milk to a cooperative (co-op) or processor. At this point in the system, the farmer loses further

control and engagement with how the final milk products are made, marketed, and sold. Existing

market structures for grass-fed milk were examined in Wisconsin. Three types of structures

identified were direct sales farmstead businesses, milk co-ops, and existing processors. Milk co-

ops combine milk from multiple farms before moving to the next step in the value chain. In a

conventional co-op, grass-fed dairies are not differentiated from conventional dairies. By selling

to organic co-ops, grass-fed dairies can receive a premium price, but they must comply with

organic certification rules, adding time and expense to dairy management. Farmstead

businesses sell milk or milk products directly to consumers, which can net a larger portion of the

sales to the farm, but also demands more marketing investment from the farmer. A third market,

which may relate to a co-op, is where a value-added processor develops a specialty grass-fed

product line. In all of these markets, processing can be a limiting factor for value-added

products. For a farmstead business, the farm must invest in expensive processing equipment; a

co-op can have difficulty finding a processor willing to differentiate grass-fed milk for small-batch

processing, and established processors fail to communicate grass-fed dairy product benefits to

consumers in large retail stores. (Paine, 2009).

A trend in grass-fed dairy farms is to avoid processing link of value-chain by producing

raw (un-pasteurized) milk. Raw milk is currently considered unsafe by the government, and sale

of it is illegal in Michigan. Since the law does not restrict consumption of milk by individuals that

is sourced from cows they own, farms have adopted a herd share or cow share model to

operate within this provision (Campaign for Real Milk, 2014). Because raw milk dairies are often

using grass-fed management, they are considered a part of the grass-fed dairy industry. While

there are differing opinions on the safety of raw milk, the purpose of the report is to consider

grass-fed product value chains and consumer interests.

Rationale

Conner (2007) discovered that the biggest reason Michigan consumers do not purchase

grass-fed products is because of its lack of availability. Additionally, there is a gap between the

producers and the consumers. No public list of grass-fed dairies and retail stores in Michigan

currently exists, and many grass-fed dairies still operate within a conventional market. The

support and strengthening of a grass-fed value chain can have numerous benefits for

stakeholders in a grass-fed dairy system.

Our primary goal of this project is to collect information on grass-fed dairies in Michigan

for further understanding of their influence in the dairy market chain. We aim to gather

information on all grass-fed dairies in Michigan as well as grass-fed cheese producers,

processors, and retailers in Michigan. We then intend to explore the potential for a grass-fed

value chain market.We are partnering with the Center For Regional Food Systems located at

Michigan State University, which will utilize our report for further assessment and possible

establishment of grass-fed premium market in Michigan.

We value community participation including but not limited to: consumers’ respect and

understanding of a farmer’s work, a farmer’s value of a pasture system as an investment to the

broader environment, and clear communication pathways among all stakeholders. This will be

accomplished by constructing a dynamic network that provides all stakeholders with access to

one another’s knowledge and skills.

Throughout our project, it is important to remember that the dairy industry has high

productivity but low profitability in the existing markets. Profit is necessary to sustain farmers

and their families, as well as provide investment capital for the next year. Farmers manage

natural resources and must balance quality and quantity of inputs. Farmers are also

knowledgeable in their systems and value having a voice in any changes that may occur.

Therefore, conversations with farmers and other stakeholders in the grass-fed dairy system are

crucial for studying current and future market systems. We must respect each farmer’s

worldview as we complete our objectives.

Activities

Since there is not a public list of all grass-fed dairy producers and cheesemakers in

Michigan, we conducted internet searches to create such a list in Microsoft Excel. In this list, we

included as much general information (e.g. business name,contact information, website) as we

could gather about each grass-fed dairy producer. Two lists were created: one for grass-fed

dairy farms (see appendix A) and one for grass-fed cheese farmers, processors, and retailers

(see appendix A). For both lists, we included farmers that were only partially grass-fed because

of the seasonality of Michigan’s grazing period.

From a consumer’s viewpoint, finding these grass-fed dairies is not as simple as

googling “Michigan grass-fed dairies/cheese.” That search will produce some results, but most

the farms were discovered by searching in specific websites that would require the consumer to

have more knowledge of dairies (e.g. breed directories). We found the producers from raw milk

websites, Eat Wild’s website, breed directories, organic websites, Michigan Cheesemakers’

website, MSU extension contacts, and our own knowledge of farms. However, once a consumer

finds a grass-fed dairy or cheesemaker on one of those websites, generally, products the

producer offer or contact information is obtainable.

Off a simple website search, it was difficult to determine if a cheese retailer or processor

sourced grass-fed cow milk. Therefore, the cheesemaker list only contains cheesemakers in

which a website search advertised grass-fed cheese. Potentially, there are more cheesemakers

in Michigan sourcing grass-fed milk. Likewise, we cannot assume that all farms have a web

presence, making the dairy farm list incomplete.

Overall, we identified 58 grass-fed dairy farms and 15 cheesemakers. Of those 58 farms,

28 have cows shares which provide raw-milk for the share owners. Of the 58 dairy farms, 11 are

known to have cheese as a final product of their milk, three of which have a farmstead business

in addition to the farm. Only four retail-only stores sourced grass-fed cheese; this does not

mean the product is advertised as grass-fed. The cheese list includes all farms that had a

known final product of cheese regardless of how that cheese is sold (e.g. by farmer or in a

supply chain) because some sell their farm products in farmers markets or other local retail but

the products sold at these markets are not specified.

Upon completion of the lists, a Google Earth map of the dairy farms and cheesemakers

was created (see appendix B). The dairy farms are symbolized by a cow head and the

cheesemakers are represented with a cheese block. The 11 farms that have a final product

ofcheese were given both symbols. Most of the farms are in the southern half of the lower

peninsula of Michigan. There is only one farm in the upper peninsula. All the cheese producers

are in the lower peninsula, and there is no visual trend for the location of the cheese farm stores

and retail businesses.

Producer Interviews

After collecting contact information for several Michigan dairy producers, we selected six

farmers to cold call for an interview. We selected farmers based on social networks (priority was

given to those whom we have a connection in order to increase likelihood of participation) and

farm management (emphasis was placed on surveying farms featuring a variety of herd sizes,

feeding regimens, and milk distribution). Due to inaccurate contact information and lack of

contact (perhaps due to an unfamiliar caller or poor timing), our final list of farms interviewed

evolved into the following six farms: Twelve Oaks Farm, Cambria Farms, Firesign Family Farm,

Shetler Dairy, Evergreen Dairy, Grassfields Cheese.

All six farms took time to share insight by means of a ten to twenty-minute phone

interview. Each farm was represented by one owner or worker during the interview, and each

interview stemmed from the same set of questions (see appendix C). We met some hesitation

at the beginning of some calls, but after learning our use of the information, the correspondents

shared their experiences more openly. While brief phone interviews provided a foundation for

future research, in-person interviews and online surveys will provide deeper understanding of

the specific needs of the grass-fed dairy system in Michigan.

Twelve Oaks Farm, contact person: Samantha Engelhardt (herdsman)Medium, conventional/organic

Follow the Herd● grass-fed with partial mixed ration

(PMR) of organic grain and minerals● 120 head: Jerseys (chosen for high

butter fat and protein), some Holstein, some Jersey-Holstein crossbreds

Milk Production and Distribution● year-round production● milk currently sold to Michigan Milk

Producers Association (MMPA), a conventional milk co-op

● in transition to sell to Organic Valley (CROPP Co-op) next year

● milk is made into cheese and yogurt

Marketing: ● currently indistinguishable ● may be marketed as grass-fed by

Organic Valley, but organic implies at least partially grass-fed

Challenges and Opportunities:● organic inhibits use of antibiotics, which

limits disease prevention and treatment● all farmers, regardless of labeling or

certification care about their animals and put them first; “Happy cows make better and more milk!”

(personal communication, November 15, 2016)

Cambria Farms, contact person: John VanderhoffMedium, conventional co-op

Follow the Herd● grass-fed with total mixed ration (TMR),

prioritize getting cows on grass in the summer

● 70 head and growing towards 140: primarily Holstein/ Fresian with some crossbreds

Milk Production and Distribution● year-round production● sells milk to Dairy Farmers of America

(DFA), a conventional co-op● milk may be used for powdered milk

Marketing● currently indistinguishable● hopes to process on farm with “GMO-

free, grass-based, natural” designationChallenges and Opportunities

● would like to see expansion of grass-fed, conventional market

● Michigan lacks investment in local, specialized processing

● finds value in opening farm to the public in order to educate on the value of grass-fed dairy and create a niche market

(personal communication, November 19, 2016)

Firesign Family Farm, contact person: unspecifiedSmall, herd-share

Follow the Herd● grass-fed in summer with grain in winter● 2 Jerseys

Milk Production and Distribution● year-round production● herd-shares are sold, owners pick up

milk on the farm● some milk is used for soap, cheese,

yogurt, kefir, and butter, though the majority is consumed as fluid milk

Marketing● participates in small, personal niche

marketing

● thinks grass-fed market would benefit consumers and producers, but contentwith their current niche market

Challenges and Opportunities● law on unpasteurized milk make it

difficult to share raw milk● strict regulations on handling and

management of raw milk could replace a complete ban on sales

● customers must be willing to take part in the process of raw milk and pay premium price for a premium produc

(personal communication, November 19, 2016)

Shetler Dairy, contact person: unspecifiedMedium, on-farm processing

Follow the Herd● grass-fed with supplemental hay and

silage● 40 head: Brown Swiss, some Guernsey

and Holsteins, chosen for cream production

Milk Production and Distribution● year-round production● milk is processed on-farm for fluid milk,

yogurt, kefir, butter, cream, half and half, and smoothies

● sells out of farm store and delivers to 65 customers within 60-mile radius

Marketing● Products are marked “grass-fed based”● prefer to continue in their personal

market rather than join larger specialty market

Challenges and Opportunities: ● small dairy producers struggle in the

current milk processing system as expenses tend to outweigh profits

(personal communication, November 21, 2016)

Evergreen Dairy, contact person: Chris Warden (farm owner)Large, conventional co-op

Follow the Herd● grass-fed with TMR added during

milking season (winter)● 400 head: primarily Holsteins due to

good genetics for high milk volumeMilk Production and Distribution

● seasonal production- cows graze and calve in the summer and get milked during colder months

● milk sold to Michigan Milk Co-op● made into butter, cream, and

evaporated milkMarketing

● currently indistinguishable

Challenges and Opportunities: ● diverse marketing through co-ops and

private contracts for value-added products is the key to bridging the cost-income gap of MI milk producers

● hope to see market develop for grass-fed dairy in order to go completely off grain and earn premium to cover costs

● all milk is wholesome- pasture raised cows offer varied flavor profile and experience different animal care to align with consumer preferences

(personal communication, November 28, 2016)

Grassfields Cheese, contact person: farm-store employeeMedium, mixed processing

Follow the Herd● grass-fed, corn/ soy-free● certified organic● 100 head: Holstein-Jersey-Normandy

CrossbredsMilk Production and Distribution

● year-round production● milk goes to cow-shares, is kept on-farm

for processing of cheese (haven't made cheese in 4-months), or sent off-farm in milk truck- unconfirmed destination

● cheese sold primarily at specialty stores or in Grassfields’ farm store

Marketing● cheese is marketed as “grass-fed

organic raw milk cheese” and sold at a premium as a specialty product

● milk sent off-farm is indistinguishableChallenges and Opportunities

● difficult to reach low-income families with specialty products

● it is more difficult to produce and costs the farmer more in effort

● believes it’s worth it because of how the cows are raised--if the cows are healthy we [the consumers] are healthy.

(personal communication, November 19, 2016)Interview Findings

Speaking with representatives from the six farms illuminated the following trends. All six

farms graze their cows at least part time, and only two farms do not feed any additional grain.

The four largest farms send at least a portion of their milk off-farm for processing, while the

smallest two farms process all milk on-farm (a third farm processes some milk on farm). Of the

four farms sending milk off-farm, only one receives a premium price for the milk and special

labeling for the final value-added product – this farm sells organic milk to Organic Valley and

value-added products are marked “organic.” All three farms that process some or all of their milk

on-farm market their products as a premium product (e.g. grass-fed, grass-fed based, raw). Of

the four total farms with specialty marketing, three produce milk for cheese.

The findings suggest a correlation between farm size, location of processing, marketing,

and end product. Larger farms may tend to send milk off-farm (typically to a co-op) for

processing where the milk is immediately mixed with milk from several other farms; the milk no

longer can be distinguished as even partially grass-fed. Smaller farms may have more capacity

to process milk on-farm or may need to process value-added products to increase income in

relation to their smaller supply. In general, processing milk on-farm gives farms the ability to

market and price the value-added products to accurately represent the management involved in

producing the product. There may be a preference or existing market for grass-fed milk in

specialty cheese as that was the dominant product of grass-fed milk that received special

marketing (as opposed to yogurt, butter, or fluid milk).

Cheesemaker Interviews

After finalizing our cheesemaker list, we contacted Farm Country Cheese House and

LeeLanau Cheese to learn about their milk sources and consumer preferences.

Farm Country Cheese HouseLakeview, MI

Milk Source● 97 small Amish farms● all milk comes from grass-fed,

hormone/antibiotic-free cows● cows are hand-milked, milk collected in

old-style milk cans and brought to FCC six days a week

● 16-24 thousand pounds of milk comes in per day

Cheese Facts● 26 flavors of Amish-style, handmade

cheese● produce 2-4 vats per day--maxing out

production right now● marketed as “Antibiotic Free, Hand-

milked and Grass-fed”

Distribution● sell from FCC building, a couple larger

distributors, local stores, ship across USA

Challenges and Opportunities:● Inspected by state and FDA, so

consumers aren’t worried about lack of third-party certifications--currently not worth paying extra for or looking into grass-fed certification

● Consumers come for the health benefits- no hormones, no antibiotics, “all natural”

● more education will increase consumer interest in grass-fed products

(personal communication, November 22, 2016)

LeeLanau CheeseSuttons Bay, MI

Milk Source● single-sourced from Garvin Farm in

Cedar, MI● cows are on grass part-time in warm

months with additional hay and grain throughout the year

● LeeLanau Cheese picks up milk daily from the farm in their “Milky Way” truck

Cheese Facts● only locally sourced cheese option in the

area● rooted in Swiss and French traditions● marketed as “specialty homemade

cheese”Distribution

● their cheese can be found in local grocery stores, ordered online, or picked up from the creamery

● primary consumers are regular, local customers

Challenges and Opportunities● limited milk supplier options near

LeeLanau, and none who offer fully grass-fed

● would like to make grass-fed cheese if there was a local milk source and greater demand--selling to Traverse City Co-op would likely increase demand as those customers are more conscious of and interested in grass-fed benefits

● organic and other specialty milk is so expensive that the cheese has to be even more costly for the cheesemakers to make a profit--trying to keep prices low to increase reach

● Desire for specialty cheese to be more than a souvenir (personal communication, November 22, 2016)Our interviews indicate existing consumer interest in grass-fed cheese. One specialty

cheesemaker offers only grass-fed cheese with milk sourced from several small grass-fed

dairies. No grass-fed certification is used as the customers trust the producer and the producer

trusts their suppliers. The cheese is marketed as “Antibiotic Free, Hand-milked and Grass-fed.”

The other specialty cheesemaker currently does not produce grass-fed cheese due to

their location. This cheesemaker expressed difficulty in finding a grass-fed milk supplier in the

northern part of the state. She also reported a minimal demand for grass-fed cheese in their

locale as most customers live nearby and lack knowledge of grass-fed benefits. She believes

geographically expanding their market (specifically to Traverse City) may increase the number

of customers interested in grass-fed products.

Problems

Michigan currently lacks a co-op or facility to process grass-fed milk; farms must choose

to process milk on-farm, sell milk to a conventional co-op or processor for a standard price, or

raise certified-organic cows and sell to an organic co-op or processor. There is little incentive for

farms to raise 100% grass-fed cows when selling the milk for off-farm processing. The milk is

non-differentiated so the farmer does not earn a premium price despite the difference in milk

components and smaller quantity produced per cow. This also leaves the consumers without

the option of a premium product.

Not every partially grass-fed farm is interested in 100% grass-fed milk, however. To

some, organic status is more cost effective and aligns better with farm values, while others

value the benefits of a partially to fully grass-fed, non-organic diet. Without unified grass-fed

standards, individual farm practices obscure the principles of grass-fed management to

consumers.

All grass-fed (value-added) products sell for a premium price when differentiated from

conventional milk. While many farmers earn their living on that premium, they acknowledge the

consumer gap in the market. Lower income families cannot afford the premium price of specialty

cheese, and therefore may miss out on higher quality products or greater nutrition.

Solutions

Consumer education may contribute to establishing a grass-fed dairy market. For

example, one farm plans to establish public hours for visitors to tour the farm and experience

the differences in a grass-fed dairy. The American Grassfed Association in conjunction with

several grass-fed dairy stakeholders (Organic Valley, Maple Hill Creamery, Trickling Springs,

PCO, NOFA-NY Certified Organic, Dreaming Cow, Cabriejo, and Whole Foods Market) formed

the Grassfed Dairy Working Group to establish national grass-fed standards (AGA, 2016, March

15). The workgroup reached consensus in April 2016 and turned the standards over to

stakeholders for review (Grassfed, 2016, April 28). As of December 2016, the workgroup

continued the review process with input from the USDA Food Safety and Inspection Service

(FSIS) (AGA, 2016, October 19). Unified grass-fed standards will provide a clear a definition for

consumers and expand potential for exclusively grass-fed milk processing in Michigan.

Additionally, the Savory Institute works to develop a new land-to-market program. The

organization provides education, networking and management training for grass based farms

and ranches using holistic planned grazing (a type of rotational grazing meant to improve the

overall farm and ranch ecosystem). This program offers a unified management standard for

producers using regenerative grazing management whereby their milk, meat and fiber products

can be sold under the Savory label. This label offers consumer increased transparency of

knowing exactly how the animals were raised and their products were produced. (Kerston)

Maple Hill Creamery Interview

While our focus is Michigan, we looked to other states for different grass-fed value

chains and markets and found one in New York. Maple Hill Creamery began as a 250-acre dairy

farm in New York under the name Stone Creek Farm. Owners Tim and Laura Joseph bought 64

cows in 2004 and began making yogurt for their family. In 2007, they chose to follow certified

organic practices; however, the family could not afford organic grain, so they turned to the

pastures to provide feed for their cows. In 2009, the Joseph’s expanded their dairy processing

and sold their first yogurts as Maple Hill Creamery at local markets and out of a small store

front. Grass-fed was not on the consumer radar at the time, so the Josephs market their yogurt

as artisanal and local. Two other local farms invested in Maple Hill the next year by supplying

milk for increased yogurt production. In 2012, the Josephs sold the farm and relocated their

yogurt business to the Hudson Valley, specifically Stuyvesant, NY, to focus on processing

grass-fed products. Maple Hill Creamery became a full-time processor of value-added dairy

products; yet without cows on site, the Josephs needed to find grass-fed milk producers to meet

the demand for their yogurt. (Timeline)

Tim Joseph worked with Pennsylvania Certified Organic (PCO), a USDA-accredited

third-party organic certifying agency to establish a 100% Grassfed Certification. This certification

helped Maple Hill establish a reliable network of grass-fed milk farms, now called the “Milkshed,”

that meet their standards. To achieve certification, farms must submit an application and pass

an inspection. PCO ensures after weaning, cows consume only pasture or forage defined as

organic, non-grain (unless fed during vegetative state), non-pelletized or concentrated. Hay,

haylage, molasses, kelp, and trace vitamins may supplement pasture grazing. (PCO, 2015)

According to an interview with Tim, the Milkshed is a tight-knit community of small, New

York farms that share the same philosophy of grass-fed management. Farms work together to

improve economic, health, and ecological benefits from the ground up. The New York Milkshed

grew very slowly at first, ensuring reliable business between supplier and processor. Tim noted

that personal recruitment and local advertising got Maple Hill’s name out to farms and made

sure the supply did not outgrow the demand. This was important to building trust between Maple

Hill and their supplying farms. With a strong foundation, the Milkshed grew exponentially. Maple

Hill now outsources milk-collection to a third party that runs eight routes to over 100 farms

throughout New York and each drop is still 100% Grassfed Certified. The Milkshed supplies milk

to Maple Hill Creamery, which makes all of Maple Hill’s yogurt products, Stonyfield, Organic

Valley, and two cheesemakers that make Maple Hill grass-fed cheese. Contrary to conventional

dairy products, all products made from the Milkshed’s milk can be traced back to Maple Hill and

the New York family farms that supply it. Because, consumers around the country can purchase

Maple Hill products at local stores, Tim believes packaging offers brief, yet valuable educational

opportunities. He explained that Maple Hill is constantly expanding their product reach and

grass-fed awareness, while maintaining a grassroots farm support system in New York. The

Maple Hill Creamery website also offers a thorough explanation of each aspect of grass-fed

dairy farming for the interested consumer or farmer (100% Grass-fed).

To establish a grass-fed milkshed in Michigan, proximity is key. There must be multiple

interested grass-fed farmers in close proximity for routes to work efficiently. A product or brand

is also necessary to anchor the milkshed. This anchor must be able to utilize the system.

Farmer education is also important; Maple Hill Creamery focuses on spreading the knowledge

of the best practices from the farms in the milkshed to help grass-fed farmers’ productions and

promote farms to obtain PCO. Having an open mind to producer and consumer preferences will

increase the flexibility of the milkshed; Tim did not intend to have a statewide specialty

creamery. However, Tim does recommend having a long-term view; there should be a goal that

the market is always trying to achieve in order to guide its improvements. (Tim Joseph, personal

communication, December 9, 2016).

Future Work

The existing grass-fed dairy market has room for improvement. There is a gap between

the consumer and the grass-fed dairy products. A website with information on where consumers

can obtain grass-fed dairy in Michigan could reduce that disparity. To further determine

Michigan’s potential for a grass-fed dairy market, discussions with grass-fed farmers and

Michigan Milk Producers Association should occur, utilizing an education strategy similar to

Maple HIll Creamery’s strategy. These conversations will determine farmers’ interests in a

grass-fed certification and a premium market which MMPA may be interested in facilitating. A

complete list of grass-fed farmers should be obtained from the United States Department of

Agriculture to carry out these conversations.

During that process, more information should be gathered on consumer preferences for

grass-fed dairy. A follow-up with Maple Hill Creamery on its research of consumer preferences

will give a basis for a more complete survey of Michiganders since past studies did not

encompass all aspects of grass-fed dairy. Progress on the establishment of certification

standards that Maple Hill Creamery and the American Grassfed Association are collaborating

about can be utilized in the farmer conversations.

Acknowledgements

None of this would have been accomplished without the guidance of Julie Cotton,

advisor for Sustainable Agriculture and Food Systems at Michigan State University (MSU). We

would also like to give a special thanks to Tim Joseph from Maple Hill Creamery for providing

his insight on grass-fed value chains and offering to provide additional help in the future of this

project. Therefore, we also thank the Center For Regional Food Systems at MSU for partnering

with us to carry out a Michigan grass-fed dairy value chain evaluation.

References Cited

Conner, D. S., & Oppenheim, D. (2008). Demand for pasture-raised livestock products in

michigan: Results of consumer surveys and experimental auctions. Journal of food

distribution research, 39(1), 45. Retrieved from

https://core.ac.uk/download/pdf/6499295.pdf

Conner, D., Heller, M., Coccocciarelli, S., & Hamm, M. (2007). Opportunities in Grazing Dairy

Farms: Assessing future options. Retrieved from

http://foodsystems.msu.edu/uploads/files/Opportunities_in_Grazing_Dairy_Farms.pdf

Economics Research Service, Profits, costs, and the changing structure of dairy farming, USDA.

Retreived from

https://www.ers.usda.gov/webdocs/publications/err47/17034_err47b_1_.pdf

Joseph, L. (n.d.). Our Story. Maple Hill Creamery. Retrieved from

https://maplehillcreamery.com/story/

Karcher, Elizabeth. (2016). Animal Science 301: Animal Health Management. MIchigan

State University

Kerston, C. (n.d.) Join the savory institute consumer revolution. Retrieved from

https://www.indiegogo.com/projects/join-the-savory-institute-s-consumer-revolution-food-

clothing#/

Paine, L. (2009). Grass-based dairy products: challenges and opportunities. UW-Madison

Center for Integrated Agricultural Systems. Retrieved from http://www.cias.wisc.edu/wp-

content/uploads/2009/09/gbdairyreportfinallowres.pdf

Pennsylvania Certified Organic. (2015). PCO 100% Grassfed Certification Manual (3rd

ed.). Spring Mills, PA.

Pirog, R. S. (2004). Consumer perceptions of pasture-raised beef and dairy products: an

internet consumer study. Retrieved from http://lib.dr.iastate.edu/cgi/viewcontent.cgi?

article=1134&context=leopold_pubspapers

Seigford, Janice. (2016). Animal Science 305: Animal Behaviour and Welfare. Michigan State

University

Teague, W. R., Dowhower, S. L., Baker, S. A., Haile, N., DeLaune, P. B., & Conover, D. M.

(2011). Grazing management impacts on vegetation, soil biota and soil chemical,

physical and hydrological properties in tall grass prairie. Agriculture, Ecosystems &

Environment, 141(3), 310-322.

Timeline. (n.d.) Maple Hill Creamery. Retrieved from: https://maplehillcreamery.com/timeline/

(2016, April 28). Grassfed Dairy Standards Working Group Reaches Consensus on Provisional

Production Standard. Retrieved from http://www.americangrassfed.org/grassfed-dairy-

standards-working-group-reaches-consensus-on-provisional-production-standard/

(2016, March 15). AGA takes the lead on new industry-wide grassfed dairy standard. Retrieved

from http://www.americangrassfed.org/aga-takes-the-lead-on-new-industry-wide-

grassfed-dairy-standard/

(2016, October 19). AGA Responds to FSIS Grassfed Guidance, Encourages Readers to

Comment. Retrieved from http://www.americangrassfed.org/aga-responds-to-fsis-

grassfed-guidance-encourages-readers-to-comment/

100% Grass-fed Milk Facts. (n.d.) Maple Hill Creamery. Retrieved from

https://maplehillcreamery.com/grass-fed/

Appendix A

The contact list for dairy farmers and cheesemakers is on a Google document under this link:

https://docs.google.com/spreadsheets/d/1xLKWFOgGMDiyOBWNm-

F1Mmlv4jXmQ4Lr5ScPm1VQu_U/edit#gid=0

Appendix B

The Google Earth image of grass-fed dairy farmers and cheesemakers.

Appendix C

Dairy Producer Interview Questions:

1) Is your farm fully grazing based or do you also provide supplemental feed? If so, what kind

of feed management do you use?

2) Does your farm have seasonal or year-round milk production?

3) What type of cattle do you have on your farm and why?

4) What is your herd size? Are you currently looking to expand or maintain those numbers?

5) Where does the milk produced on your farm end up?

6) If your milk is sold to a milk market or co-op, does your net return cover our costs of

production?

7) What products are made from your milk?

8) Which retailers or vendors sell products made with your milk?

9) Are any of your products marketed as grazing or grass-fed?

10) Would you like to see your grass-fed dairy sold as a specialty or premium product similar to

organics? Why?

11) What are some challenges you have observed in the current dairy purchasing and

marketing system?

12) Do you have any ideas that might mitigate those challenges?

13) Is there anything specific you have observed which stands in the way of (their words)

occurring?

14) Is there anything else you would like to note or suggest about value-added grass-fed dairy

products in Michigan?

15) What messages would you like to relate to consumers about grass-fed dairy products?

Moving Udders

#Grasscowscheese

By: Monique Hemker, Nicole Bartel, Janina Kavetsky

In CSS 424: SAFS Integration and Synthesis, we partnered with the Center For Regional

Food Systems (CRFS) located at Michigan State University to research Michigan’s grass-fed

dairy system and its potential for a value chain.

First, we researched background information on the dairy industry. We discovered that

conventional confinement dairy farms saturate Michigan’s dairy industry, creating ever-

decreasing milk prices for farmers. Grass-fed dairies sell milk for the same low price on the

commodity market, establish organic status and sell to an organic cooperative or producer, or

process milk on-farm since Michigan lacks a value chain for grass-fed milk. Research shows

grass-fed dairy products offer economic, social, and ecological benefits to farmers, consumers,

cows, and the land. Such a product has potential to succeed with differentiated processing and

premium market designation.

To determine the need for a grass-fed value chain and Michigan’s capacity to establish

one, we constructed a list and map of grass-fed dairy farms and cheesemakers and interviewed

a sample group from the list. Our search resulted in 58 partial to 100% grass-fed dairies and 15

cheesemakers that source grass-fed milk. Interviews with six of the farms and two

cheesemakers illuminated potential for expansion of the grass-fed dairy value chain in Michigan.

Additionally, we searched out-of-state for pre-existing grass-fed dairy markets and found

one in New York. Maple Hill Creamery built the precedent “Milkshed,” a network of over a

hundred grass-fed dairy farms that work closely with another and Maple Hill to improve best

management practices and expand the grass-fed market throughout New York. All farms

practices are unified by Pennsylvania Certified Organic’s 100% Grassfed Certification, a

certification created in part by Tim Joseph, a Maple Hill Creamery founding farmer. An interview

with Tim revealed education, location, and processing capacity as integral aspects in

establishing a successful grass-fed value chain in Michigan.  

In order for a grass-fed dairy market to reach its potential, work must be done to expand

consumer and farmer education, unify grass-fed standards, and establish differentiated

processing of grass-fed milk in Michigan. Due to the interest of a new market as seen in the

farmer interviews, we recommend obtaining a full list of Michigan dairies from the USDA to

supplement our list of 58 farms, building a website to increase consumers’ access to grass-fed

facts and products, conducting further research on Michigan consumer preferences for grass-

fed dairy, contacting existing milk processors to determine ability and interest to differentiate

grass-fed milk, and maintain connections with Maple Hill Creamery to share knowledge and

experience of establishing grass-fed value chains.

Overall, this project gave us knowledge and experience working in a food system. We

learned valuable lessons and confidence for conducting interviews with experts in the subject

matter of the interview. Most importantly, we learned how to keep an open mind throughout the

research experience, allowing us to overcome obstacles that impeded the completion of our

goals.

Picture Captions:

Figure 1: We sampled Maple Hill Creamery’s product during our final presentation, giving our

classmates the opportunity to physically understand our goal.

Figure 2: The Google Earth image of the grass-fed dairy farmers and cheesemakers that we

found in Michigan for the contact list. We observed that the majority of farmers are in the

southern half of the lower peninsula.