Maine’s Own Organic Milk Company
Encyclopedia
Maine’s Own Organic Milk Company, or MOOMilkCo, is a partly farmer-owned limited liability company set up to achieve low-profits while acting as a kind of cooperative
for milk
producers in Maine
, U.S. It was established with 10 organic
dairy farms that were dropped by H.P. Hood, a large dairy product distributor.
The company allocates 90% of profits back to the farms as payment for their milk, and "the remaining 10% will be retained for the business end of the company, which is a joint effort of the Maine Farm Bureau and the Maine Organic Farmers and Gardeners Association."
, Stonyfield Farm
and Organic Valley
, as well as local producers, about the possibility of selling milk to them, but were rejected. In April 2009, the group made an agreement with Smiling Hill Farm
, a local milk producer, for processing, and Oakhurst Dairy
agreed to transport the products. Funding for MOOMilk, which needed $500,000 to begin operations, was provided by the state of Maine, as well as from private sources, including Stonyfield Farm. At its beginning, MOOMilk sold milk to Hannaford
, Associated Grocers of Maine
and dozens of independent stores, and larger chains such as Wal-Mart
and Shaw's Supermarkets were considering stocking the product.
The company began selling milk in January 2010, but within a year ran into financial troubles. Its revenue was inadequate, and it relied on a mix of private investment and grant money to continue operating. With a minimal advertising budget, the company struggled to find consumers willing to purchase its milk, and several of its founding members left. By September 2010, with only $1,400 in cash assets, the company was forced to partially stop production of milk. At the time, the company was able to pay bills to its farmers, but was unable to cover its overhead costs
. In December 2010, Whole Foods Market
stores in Massachusetts began selling MOOMilk products, but even so, the company still needed outside money in order to survive.
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
for milk
Milk
Milk is a white liquid produced by the mammary glands of mammals. It is the primary source of nutrition for young mammals before they are able to digest other types of food. Early-lactation milk contains colostrum, which carries the mother's antibodies to the baby and can reduce the risk of many...
producers in Maine
Maine
Maine is a state in the New England region of the northeastern United States, bordered by the Atlantic Ocean to the east and south, New Hampshire to the west, and the Canadian provinces of Quebec to the northwest and New Brunswick to the northeast. Maine is both the northernmost and easternmost...
, U.S. It was established with 10 organic
Organic milk
Organic milk is defined by the USDA as milk from cows that have been exclusively fed organic feed, have not been treated with synthetic hormones, are not given certain medications to treat sickness. [Citation Needed]- Comparison with regular milk :...
dairy farms that were dropped by H.P. Hood, a large dairy product distributor.
The company allocates 90% of profits back to the farms as payment for their milk, and "the remaining 10% will be retained for the business end of the company, which is a joint effort of the Maine Farm Bureau and the Maine Organic Farmers and Gardeners Association."
History
After Hood stopped buying milk from the farms involved, they approached several other companies, including Horizon OrganicHorizon Organic
Horizon Organic®, founded in 1991 in the United States , is a certified dairy that produces and supplies organic milk products. Horizon Organic is owned by Dean Foods and its products are distributed by WhiteWave Foods.-Current status:...
, Stonyfield Farm
Stonyfield Farm
Stonyfield Farm, also simply called Stonyfield, is an organic yogurt maker located in Londonderry, New Hampshire, USA. Stonyfield Farm was founded by Samuel Kaymen in 1983, in Wilton, New Hampshire, as an organic farming school...
and Organic Valley
Organic Valley
Organic Valley is the largest cooperative of organic farmers in the United States, based out of La Farge, Wisconsin.-Company history:Organic Valley was originally founded in 1988 under the name CROPP Cooperative...
, as well as local producers, about the possibility of selling milk to them, but were rejected. In April 2009, the group made an agreement with Smiling Hill Farm
Smiling Hill Farm
Smiling Hill Farm is a 500 acre traditional New England farm encompassing parts of the municipalities of Westbrook, Scarborough, and Gorham, Maine. Founded in 1720 as the homestead of Nathaniel Knight, the 12th generation descendents continue to operate the farm today. Known as the "Knight Farm",...
, a local milk producer, for processing, and Oakhurst Dairy
Oakhurst Dairy
Oakhurst Dairy is a company in the dairy industry that sells mostly milk products, as well as juices. It was founded in 1921, and is headquartered in Portland, Maine.-History:...
agreed to transport the products. Funding for MOOMilk, which needed $500,000 to begin operations, was provided by the state of Maine, as well as from private sources, including Stonyfield Farm. At its beginning, MOOMilk sold milk to Hannaford
Hannaford Bros. Co.
Hannaford is an American supermarket chain based in Scarborough, Maine. Founded in 1883, Hannaford now operates stores in New England and upstate New York. Formerly known as Shop 'N' Save, Hannaford is owned by the American subsidiary of the Belgian Delhaize Group, Delhaize America, which owns over...
, Associated Grocers of Maine
Associated Grocers of Maine
Associated Grocers of Maine was a retailers' cooperative serving independent supermarkets in Maine, New Hampshire, Vermont, and Massachusetts, USA. It was founded in 1953 and was a member of Retailer Owned Food Distributors & Associates. It distributed Shurfine products in its stores. It went into...
and dozens of independent stores, and larger chains such as Wal-Mart
Wal-Mart
Wal-Mart Stores, Inc. , branded as Walmart since 2008 and Wal-Mart before then, is an American public multinational corporation that runs chains of large discount department stores and warehouse stores. The company is the world's 18th largest public corporation, according to the Forbes Global 2000...
and Shaw's Supermarkets were considering stocking the product.
The company began selling milk in January 2010, but within a year ran into financial troubles. Its revenue was inadequate, and it relied on a mix of private investment and grant money to continue operating. With a minimal advertising budget, the company struggled to find consumers willing to purchase its milk, and several of its founding members left. By September 2010, with only $1,400 in cash assets, the company was forced to partially stop production of milk. At the time, the company was able to pay bills to its farmers, but was unable to cover its overhead costs
Overhead (business)
In business, overhead or overhead expense refers to an ongoing expense of operating a business...
. In December 2010, Whole Foods Market
Whole Foods Market
Whole Foods Market is a foods supermarket chain based in Austin, Texas which emphasizes "natural and organic products." The company has been ranked among the most socially responsible businesses and placed third on the U.S...
stores in Massachusetts began selling MOOMilk products, but even so, the company still needed outside money in order to survive.