Greek Yogurt Helping N.Y. Dairy Farmers
Posted: June 14, 2011
Greek-style yogurt is the new food trend these days, and that’s been good news for dairy farmers, particularly those in New York.
A decade ago, the domestic market for Greek yogurt, a thicker, more protein-laden version of traditional mass-market yogurt, barely existed. Within the past five years, however, it has exploded, and that’s been great news for New York’s dairy farmers. That’s because it can take three pounds of milk to make one pound of yogurt.
“It’s a milk-rich product,” said one industry spokeswoman.
Fage, which began flying its yogurt in from Greece in 1998, suspected the market was big enough to justify a plant in the United States. That plant opened in Johnstown, N.Y. in 2008. Meanwhile, another Greek-style yogurt plant, operated by Norwich-based Agro Farma, began producing Chobani Greek yogurt at a former Kraft Foods plant in South Edmeston, N.Y., in 2007.
Today, Chobani says it has become the best selling yogurt in the United States. Fage says it isn’t far behind, ranking fourth. The boom comes despite their steeper prices.
And dairy farmers are scrambling to meet demand.
“For the first time in over a decade, we have reason to be optimistic about dairy in the state of New York,” said Julie Suarez, director of public policy for the New York Farm Bureau.
Both companies, meanwhile, have plans to expand.
Production of yogurt in New York increased by 57 percent from 2004 to 2010, according to figures from the state Department of Agriculture and Markets. But the amount of milk used in manufacturing yogurt statewide quadrupled, rising from 149 million pounds in 2004 to 665 million pounds in 2010, reflecting the relative gains by Greek-style yogurt.
While Chobani labels its products “Greek yogurt,” Fage officials say their company, based in Athens, produces true Greek yogurt. Whether Greek or Greek style, the yogurt’s production is a boon for dairy farmers.
“Greek-style yogurt uses a lot of milk,” said Jessica Ziehm, spokeswoman for the state Department of Agriculture and Markets. “It uses three to four times the amount of milk that regular yogurt requires.”
And the result has been popular with consumers.
“What people are enjoying most about Greek yogurt is the flavor and the rich texture,” said Mona Golub, spokeswoman for Price Chopper supermarkets. But she said the health benefits also are a strong selling point.
It’s natural, with no artificial flavors or ingredients, and it has little or no fat or cholesterol. Referring to Chobani, she said the probiotics — beneficial bacteria that help digestion — are another attraction.
And Greek-style yogurts are typically low in sodium.
Full story here.
Source: Times Union
Photo Credit: Cooking in Pajamas Blog
A Farmer in NY Said,
June 14, 2011 @ 9:58 pm
Unfortunately, if you look at the mailbox milk price mail in Hoard’s Dairyman magazine at http://www.Hoards.com the milk prices that NY farmers receive are well below prices paid to farmers in all surrounding states. Not sure if or when this will change, it has been like this for years.
Jackie Schmidts Said,
June 16, 2011 @ 10:12 am
Baloney, the price dairy farmers receive in NY state are among the highest in the U.S. Currently the uniform price they receive is above $20/cwt. This is a very good price and has been there for a while now and is expected to continue through the year.
The world market is sucking up excess production like crazy. Become world players and dairy farmers will do well. Create supply management programs and watch them crash and burn.
Sonja Hedlund Said,
June 20, 2011 @ 4:56 am
Does Chobani buy milk from other states? At $20.00/cwt the cost of production in NYS is barely met. How likely is it that prices won’t fluctuate as in the past?
Floyd Hall Said,
June 25, 2011 @ 11:40 pm
If Chobani want to purchase more raw milk, they have to get out from under the 100% contract they have with Dairylea, then they will beable to purchase raw milk from independent dairy farmers or independent co-operatives. The raw milk is here in New York, they just have go bargain for a price to get the raw milk.
As far as Jackie saying that $20.00 milk is a very good price, well she hasn’t looked at the USDA ERS cost of production figures lately for New York. Last year the New York cost of production figure were between $25.00 and 27.00 per hundred weight. If you don’t beleive me, give me your e-mail address amd I’ll send you the figures, I have them all for twelve months. Know the price for everything the dairy farmer has to purchase to operate their dairy farm hsa gone up 30 to 40 percent.
What A Farmer in NY Said is right. The Hoards Dairyman mailbox price announced for New York June 17 for March 2011 was $20.01, their was two states and one parcel state that was lower and they were Southern Missouri, New Mexico and California.
So far this year the USDA average cost of production figures are Jan. $23.22, Feb, $23.00, Mar. $22.62, Apr $22.62, May $23.17 and these figures are by the USDA-ERS
The raw milk is here, they have to go find it.
Floyd Hall
Ag & Dairy Activist