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by Miche on October 25, 2007
I've said it before, and I'll say it again - in business, it's all about the money eventually.
Time warp to 2003, Aurora Dairy gets a big $18 million investment to help finalize the company's transition from conventional milk to organic milk production (why chemical infested modern milk is called "conventional" I'll never know), and created a "separate legal entity" Aurora Organic Dairy. This put them as one of the largest organic milk producers in the country, second only to Horizon Organic Holding Corp.
The Senior VP of Marketing, then and now, Clark Driftmier, is quoted in that article several times stating things to the effect of "we're more competitive now because we can label our milk organic." Additionally, investors were attracted to Aurora because of their "low cost production, achieved through the large scale of the farm." And lastly, "Whether more Aurora Dairy operations are converted to organic production remains to be seen."
A quick glance at Horizon Organic Holding Corp's history shows they got into trouble shortly after Aurora took on the market. Even though revenue had more than doubled in the past year, they were seeking to merge with Dean Foods in order to "accelerate this growth and take advantage of new opportunities."
I'm no milk market expert, but this says to me Aurora and Horizon were fighting hoof and utter to get and keep a large share of the market.
Yet again, I'm no milk market expert, but if Horizon were seeking to accelerate growth, wouldn't they merge with a financially well-off company? Either Horizon or Dean Foods was in trouble - take your pick, but the milk smells spoiled. Also in that article there was already speculation about Aurora's ethics and questionable ties. The reader response is an interesting read too.
Now fast forward to today. Long story short, the USDA conducted a year-long investigation, found 14 willful violations of "organic" code, and filed a Notice of Proposed Revocation of Aurora's organic certification. Aurora, instead of appealing (which is standard procedure for these things), negotiated with the USDA, and kept their certificate intact in exchange for a one year probation.
By the way, Aurora is now the largest organic milk producer, and can get away with the Senior VP of Marketing, Clark Driftmier, saying such things as "If we have valid certification, our milk is organic" and threatening to sue anyone who says otherwise. In response, Aurora is under fire of a class action suit.
Time warp to 2003, Aurora Dairy gets a big $18 million investment to help finalize the company's transition from conventional milk to organic milk production (why chemical infested modern milk is called "conventional" I'll never know), and created a "separate legal entity" Aurora Organic Dairy. This put them as one of the largest organic milk producers in the country, second only to Horizon Organic Holding Corp.
The Senior VP of Marketing, then and now, Clark Driftmier, is quoted in that article several times stating things to the effect of "we're more competitive now because we can label our milk organic." Additionally, investors were attracted to Aurora because of their "low cost production, achieved through the large scale of the farm." And lastly, "Whether more Aurora Dairy operations are converted to organic production remains to be seen."
A quick glance at Horizon Organic Holding Corp's history shows they got into trouble shortly after Aurora took on the market. Even though revenue had more than doubled in the past year, they were seeking to merge with Dean Foods in order to "accelerate this growth and take advantage of new opportunities."
I'm no milk market expert, but this says to me Aurora and Horizon were fighting hoof and utter to get and keep a large share of the market.
"But Dean Foods, which completed a phased buy-out of Horizon in January of this year, has recently been struggling to maintain profits. Earlier this week it announced plans to consolidate Horizon Organic with two other divisions, White Wave soy products and Dean National Brand Group, in an effort to improve profitability." - Source: The New Farm, August '04
Yet again, I'm no milk market expert, but if Horizon were seeking to accelerate growth, wouldn't they merge with a financially well-off company? Either Horizon or Dean Foods was in trouble - take your pick, but the milk smells spoiled. Also in that article there was already speculation about Aurora's ethics and questionable ties. The reader response is an interesting read too.
"Some of the concern among smaller dairy farmers stems from the fact that Aurora Organic has strong ties to the number one organic milk producer, Horizon Organic holding corporation. Aurora Organic's president, Mark Retzloff, was a co-founder and former president and chairman of Horizon Organic, while the CEO and founder of Aurora, Mark Peperzak, is also a major stakeholder in and former chairman of Horizon. In addition, Horizon Organic's main production site, a 4000-acre farm in southern Idaho, used to belong to Aurora Dairy Group.
Horizon's Idaho facility has attracted criticism over the past several years for allegedly probing the lower limits of federal organic standards-by providing only limited access to pasture for its cows, for instance. Almost immediately, Aurora Organic's newly-certified Colorado farm faced similar allegations: that only heifers and dry cows-not milking cows-would have access to pasture, and that the operation was structured to continuously convert conventional heifers to organic instead of raising its own organic calves to replenish the milking herd."
By the way, Aurora is now the largest organic milk producer, and can get away with the Senior VP of Marketing, Clark Driftmier, saying such things as "If we have valid certification, our milk is organic" and threatening to sue anyone who says otherwise. In response, Aurora is under fire of a class action suit.
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