Horizon Organic, to terminate contracts with Vermont farmers [View all]

Danone, a global food company and the owner of Horizon Organic, plans to terminate contracts next year with all of its organic dairy farmers in Vermont and other parts of the Northeast, leaving farmers without buyers for their milk.

Other buyers in the area, including Stonyfield Organic, Organic Valley and Upstate Niagara Cooperative, appear to have limited capacity to accept new producers.

More than two dozen of Vermont’s small- to medium-sized organic farmers received letters from Danone last week that say their contracts will end on Aug. 31, 2022.

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The move represents the latest blow to an industry that has been struggling for years from rising production costs that have outpaced consumer prices. The number of dairy farms in Vermont has decreased by 37% in the past 10 years and by 69% in the past 24 years, according to a 2021 report from the Vermont Department of Financial Regulation.

Organic dairy farms decreased by 8% between 2010 and 2020. Vermont had a total of 181 organic dairy farms at the end of 2020, according to the Northeast Organic Farming Association of Vermont.

Representatives from Danone did not respond to requests for comment. Danone bought Horizon Organic five years ago.

One farmer, located in the northeast region of the state, said he heard rumors about Danone’s decision three months ago. He began calling around to other milk companies, but everyone, including non-organic buyers, was full. He spoke on the condition of anonymity because he was concerned that Danone could act against him.

“Right now, we have no options,” he said.

https://vtdigger.org/2021/08/23/danone-owner-of-horizon-organic-terminates-contracts-with-vermont-farmers/