Cabot Creamery
Encyclopedia
The Cabot Creamery Cooperative is an American dairy
agricultural marketing cooperative, wholly owned by the Agri-Mark Cooperative.
Originally started as Cabot Farmers Cooperative Creamery in 1919 by farmers in Cabot, Vermont
, it was taken over by the Agri-Mark Cooperative in 1992. Agri-Mark started a new corporation, Cabot Creamery Cooperative, in Michigan.
Following a decline in membership, the Cabot Farmers Cooperative Creamery merged in 1992 with Agri-Mark, a large New England
and New York
milk handler and manufacturer, and was re-incorporated in Michigan as Cabot Creamery Cooperative Inc., a wholly owned subsidiary of Agri-mark.
In 2008, Cabot had facilities in various locations, including Cabot, Route 100
in Waterbury
and a store in Quechee
. The cheese-making facilities in Cabot offer tours and information, and sell souvenirs.
There are, , about 1,350 members in Vermont and the nearby part of upstate New York
. The cooperative still follows the Rochdale Principles
.
Cabot began marketing cheese internationally in 2007.
Wine Spectator
magazine selected a Cabot cloth-bound cheddar as one of its "100 great cheeses" of the world in 2008. That same year the American Cheese Society selected Cabot Monterey Jack to receive one of the 33 national awards. The Vermont Agency of Agriculture Food and Markets has approved Cabot aged cheddars for display of the Vermont Seal of Quality
.
In 2008, there were about 400 Cabot farms in Vermont belonging to Agri-Mark.
In 2009, Agri-Mark had 1,300 farmer-members.
and therefore have no right under Delaware statutory law to inspect the corporation's books and records. Only the board of directors hold a share of stock and so are owners under Delaware law.
The co-op retains much of the excess profit, up to $150,000 per farmer, as equity in the form of non-interest bearing loans. For farmers departing the co-op, this equity is repaid over seven years. Dividends in excess of the retained equity are returned to the members.
The Delaware stock corporation signs yearly marketing agreements with the farmers who produce milk. They can decline to re-sign any producer without reason at the end of the contract.
after an ammonia
spill killed thousands of fish in the Winooski River
, in July 2005. The spill destroyed all aquatic life for 5.5 miles (8.9 km).
In 2011, the Vermont Attorney General's office alleged that some Cabot products made in 2009 and 2010 could not be certified as free of rBST
, a hormone that helps cows produce more milk. Cabot settled with the state, agreeing not to make such representations, to pay a $65,000 fine, and to donate $75,000 worth of dairy products to local food banks.
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7145603 - Boycott Cabot Creamery
Dairy
A dairy is a business enterprise established for the harvesting of animal milk—mostly from cows or goats, but also from buffalo, sheep, horses or camels —for human consumption. A dairy is typically located on a dedicated dairy farm or section of a multi-purpose farm that is concerned...
agricultural marketing cooperative, wholly owned by the Agri-Mark Cooperative.
Originally started as Cabot Farmers Cooperative Creamery in 1919 by farmers in Cabot, Vermont
Vermont
Vermont is a state in the New England region of the northeastern United States of America. The state ranks 43rd in land area, , and 45th in total area. Its population according to the 2010 census, 630,337, is the second smallest in the country, larger only than Wyoming. It is the only New England...
, it was taken over by the Agri-Mark Cooperative in 1992. Agri-Mark started a new corporation, Cabot Creamery Cooperative, in Michigan.
History
The original plant had an investment of $3,700 in total, which was paid by 94 farmers in proportion to the number of cattle which each owned. The cooperative started out making butter with the excess milk produced, and began shipping its products south. In 1930 they started making cheese. By 1960, the cooperative had 600 member farmers.Following a decline in membership, the Cabot Farmers Cooperative Creamery merged in 1992 with Agri-Mark, a large New England
New England
New England is a region in the northeastern corner of the United States consisting of the six states of Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut...
and New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
milk handler and manufacturer, and was re-incorporated in Michigan as Cabot Creamery Cooperative Inc., a wholly owned subsidiary of Agri-mark.
In 2008, Cabot had facilities in various locations, including Cabot, Route 100
Vermont Route 100
Vermont Route 100 is a north–south state highway in Vermont, United States. Running through the center of the state, it travels nearly the entire length of Vermont and is long...
in Waterbury
Waterbury, Vermont
Waterbury is a town in Washington County in central Vermont, in the United States. It is also the name of a village within that town. The population was 4,915 at the 2000 census.-Economy:-Industry:...
and a store in Quechee
Quechee, Vermont
Quechee is one of five unincorporated villages in the town of Hartford, Windsor County, Vermont. Quechee is also a census-designated place. It is the site of the Quechee Gorge on the Ottauquechee River and is also the home to the Quechee Lakes planned community initiated in the late 1960s, which...
. The cheese-making facilities in Cabot offer tours and information, and sell souvenirs.
There are, , about 1,350 members in Vermont and the nearby part of upstate New York
Upstate New York
Upstate New York is the region of the U.S. state of New York that is located north of the core of the New York metropolitan area.-Definition:There is no clear or official boundary between Upstate New York and Downstate New York...
. The cooperative still follows the Rochdale Principles
Rochdale Principles
The Rochdale Principles are a set of ideals for the operation of cooperatives. They were first set out by the Rochdale Society of Equitable Pioneers in Rochdale, England, in 1844, and have formed the basis for the principles on which co-operatives around the world operate to this day. The...
.
Cabot began marketing cheese internationally in 2007.
Wine Spectator
Wine Spectator
Wine Spectator is a lifestyle magazine that focuses on wine and wine culture. It publishes 15 issues per year with content that includes news, articles, profiles, and general entertainment pieces...
magazine selected a Cabot cloth-bound cheddar as one of its "100 great cheeses" of the world in 2008. That same year the American Cheese Society selected Cabot Monterey Jack to receive one of the 33 national awards. The Vermont Agency of Agriculture Food and Markets has approved Cabot aged cheddars for display of the Vermont Seal of Quality
Vermont Seal of Quality
The Seal program has been discontinued. The seal was being abused by being used by companies that were sourcing their products from out of state while Vermont farmers who produced products entirely in state were being denied the right to use the seal. This caused anger in the farming community and...
.
In 2008, there were about 400 Cabot farms in Vermont belonging to Agri-Mark.
In 2009, Agri-Mark had 1,300 farmer-members.
Ownership
As a co-op, Agri-Mark is a membership organization incorporated in Delaware on April 21, 1980. The members of the Agri-Mark cooperative, who supply Agri-Mark's equity capital and directly elect its directors, are not stockholders of recordStockholder of Record
Stockholder of record is the name of an individual or entity that an issuer carries in its records as the registered holder of the issuer's securities. Dividends and other distributions are paid only to shareholders of record. Stockholder of record may be also called shareholder of record or...
and therefore have no right under Delaware statutory law to inspect the corporation's books and records. Only the board of directors hold a share of stock and so are owners under Delaware law.
The co-op retains much of the excess profit, up to $150,000 per farmer, as equity in the form of non-interest bearing loans. For farmers departing the co-op, this equity is repaid over seven years. Dividends in excess of the retained equity are returned to the members.
The Delaware stock corporation signs yearly marketing agreements with the farmers who produce milk. They can decline to re-sign any producer without reason at the end of the contract.
Operations
In 1994, when the two companies merged, they had $30 million in sales. This reached $350 million in 2008.Legal violations
On several occasions, Cabot has been penalized for pollution incidents by the Vermont Agency of Natural Resources. In 2000, Cabot was cited for a "minor violation of [its] indirect discharge permit and land use permit." In 2007, Cabot paid a $50,000 fine with an additional $50,000 funding of a Supplemental Environmental Projects. In 2007, Cabot also pled guilty to violating the Clean Water ActClean Water Act
The Clean Water Act is the primary federal law in the United States governing water pollution. Commonly abbreviated as the CWA, the act established the goals of eliminating releases of high amounts of toxic substances into water, eliminating additional water pollution by 1985, and ensuring that...
after an ammonia
Ammonia
Ammonia is a compound of nitrogen and hydrogen with the formula . It is a colourless gas with a characteristic pungent odour. Ammonia contributes significantly to the nutritional needs of terrestrial organisms by serving as a precursor to food and fertilizers. Ammonia, either directly or...
spill killed thousands of fish in the Winooski River
Winooski River
The Winooski River is a tributary of Lake Champlain, approximately long, in northern Vermont in the United States. Although not Vermont's longest river, it is one of the state's most significant, forming a major valley way from Lake Champlain through the Green Mountains towards the Connecticut...
, in July 2005. The spill destroyed all aquatic life for 5.5 miles (8.9 km).
In 2011, the Vermont Attorney General's office alleged that some Cabot products made in 2009 and 2010 could not be certified as free of rBST
Bovine somatotropin
Bovine somatotropin , or BGH, is a chain of amino acids produced by the cow's pituitary gland. Like other hormones, it is produced in small quantities and is used in regulating metabolic processes...
, a hormone that helps cows produce more milk. Cabot settled with the state, agreeing not to make such representations, to pay a $65,000 fine, and to donate $75,000 worth of dairy products to local food banks.
External links
- www.cabotcheese.coop – official website
- Cabot Cheese – at website of Agri-Mark parent co-operative
http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x7145603 - Boycott Cabot Creamery