WEEKEND EDITION

Greek Yogurt Comes with a Price for New York

| August 9, 2012 4:00 AM video

There is an increasing demand for Greek-style yogurt, which is high in protein and low in carbs and makes for a tangier, less sweet, creamier and healthier snack. With New York  State’s Greek yogurt maker Chobani getting national air-time as a Team USA Olympic sponsor, it has the attention of New York State’s milk producers. They’d like to take advantage of consumers’ new taste for Greek yogurt, but the expense of producing milk is a conundrum that has been dubbed “The Chobani paradox” by The Wall Street Journal.

“There’s a lot of opportunity and we would like to see New York farmers take a first shot at it,” said Cathy Mural, Senior Associate Director of Public Policy, New York Farm Bureau.

In order to take advantage of the state’s developing yogurt industry, extra milk production is needed, which isn’t an easy or low-priced task for dairy farmers. The New York Farm Bureau estimates farmers would need to increase milk output by 15 percent just to keep up with consumer demand.  More milk production means more cows, and feeding those cows. But the cost of corn feed on the open market has skyrocketed thanks to demand from the ethanol industry, combined with this year’s drought.

WATCH VIDEO:

The Capitol Report’s Susan Arbetter reports on the obstacles New York State dairy farmers face if they want to increase their milk production. The “Chobani paradox” refers to the success of Greek-style yogurt in the current market, but the high cost of producing more milk.

Another cost has very little to do with mother nature.

“There’s too many regulations,” explained Assemblyman George Amedore, candidate for NYS Senate. “Here’s a business, a farmer who’s got up to 200 head of cattle and cows to milk, if they go beyond that, to 201 heads of cattle it puts them completely in a different category.”

If farmers want to expand their herd to over 200 cows, they must meet an additional level of compliance and the costs are currently considered too high by many. Even a popular and profitable company like Chobani doesn’t want to deal with the cost. Instead of expanding in New York, the business decided to expand to Idaho where there is cheaper land and larger dairy farms.

New York dairy farmers plan to explore the issue in Albany next week at the “Yogurt Summit” hosted by Governor Andrew Cuomo.

 

  • http://www.facebook.com/people/Jackie-Schmidts/100003472084288 Jackie Schmidts

    It can’t be said enough, there are complex regulations and laws that inhibit commercial growth, manufacturing and business in NY State.  This is a prime example, the environmental laws are strangling growth on dairy farms. 

    We need more milk production to fill our dairy processing and manufacturing plants. We shouldn’t have government programs that inhibit milk production growth!

  • StanChaz

    Too many regulations? Hmmm…where have I heard that before? The fracking industry? Before the banking  meltdown? Before the  Fukushima meltdown? Please…no more meltdowns.

  • http://twitter.com/NYFarmer NYFarmer

    NY’s dairy farmers receive the lowest pay price of all states in the northeast. Pay us at least what the farmers in other states adjoining us get and there will be more milk. Why can’t we get the same pay as neighboring states?

↑ Back to top

About Us    Contact Us    The MetroFocus Team   Mobile   WNET Pressroom   Privacy Policy    Terms of Service

Mutual of America

Funders

MetroFocus is made possible by James and Merryl Tisch, Rosalind P. Walter, Charlotte and David Ackert, Jody and John Arnhold and the Dr. Robert C. and Tina Sohn Foundation. Corporate funding is provided by Mutual of America.
© 2014 WNET    All Rights Reserved.    825 Eighth Avenue    New York, NY 10019