Dairy Industry

Economics 309 -- Humboldt County Wealth Indicators Project 2001

Lisa Miller

Sources:

Employment Development Dept., Anita Alexander, lmid.aalexander@edd.ca.gov

Food, Fiber & Flowersî Spring 2000 by the Humboldt County Farm Bureau

Humboldt Creameryís CEO Rich Ghilarducci (707) 725-6182

How are we doing?

According to the Humboldt County Farm Bureau, "Humboldt dairies grossed about $40 million in 1998, making dairy the largest agricultural industry in the county. While they produce just one percent of the state's milk, Humboldt dairies are very important to the local economy." Dairies consistently provide jobs for more than 400 people in Humboldt County. Humboldt Creamery "pays prevailing industrial wages and provides full benefits to its more than 100 employees" (Food 2000). The dairy industry supports many other industries in Humboldt including "feed stores, hay shippers, and other trades, not to mention viable, long-term careers in agriculture for the families who own them" (Food 2000).

Dairy Farms pay the lowest wages within the Dairy Industry, but have increased steadily from 1991-1999, while the number of people employed fluctuates by season and year. In 1999, the average wage was $17,000. The poverty threshold for a family of four is an income of $15,000. This means that many of the people employed by dairy farms are just barely living at or above the poverty line. The fluid milk and cheese processing pays the best, rising from an average of $24,000 to $34,000 per year from 1991-1999, and seems to steadily employ about 100 people. The production of dairy products excluding dried and canned milk seems to be the least stable. Average wages dropped between 1993 and 1998, but are starting to come back up. The number employed has risen slightly and averages 30-35 employees per year.

Why is it important?

While dairies consistently provide jobs for approximately 400 people, they are also part of the culture and lend to the aesthetic beauty of Humboldt County. The ranches also provide habitat for ducks, geese, egrets and migrating shore birds.

What I find to be most important, however, is the healthy and ethical environment the cows are raised in. "In the San Joaquin Valley and other major dairy regions, dairies with 2000 cows or more are common. These large dairies confine their animals in mechanized barns where all feed and water is conveyed to the cows" (Food 2000). The stress and close confinement causes the cows to get sick more often. In order to prevent illness before it occurs, the cows are injected with antibiotics. Also, many large dairies inject their cows with Bovine Growth Hormone (BGH) in order to get more milk production out of their cows. Many people are concerned about the effects that injected antibiotics and BGH have on the humans that drink the milk from these cows. Some scientists are currently researching whether BGH in milk is causing girls to start menstruating at early ages (sometimes as early as 6 or 7 years old). "Humboldt County dairies are smaller, typically running herds of 200 to 400 head; and local dairies keep their animals on pasture most of the year" (Food 2000). These conditions reduce the stress and illness prevalent in large confinement run dairies, thus eliminating the need to give the cows antibiotics unless they actually become ill. Nor does Humboldt creamery allow the use of BGH in its milk. In addition, Humboldt Creamery recently became certified to process organic milk and four of their dairies are currently in the process of becoming certified, which will add value and a competitive edge to Humboldt Creamery milk. According to Rich Ghilarducci of Humboldt Creamery, most of their dairies are "practically organic already." This is important because it is ethical, maintains the integrity and beauty of the land, and protects the health of the consumer.

Another issue regarding the natural capital of Humboldt County dairies is waste management of cow manure. Some dairymen have invested in sophisticated manure storage ponds and distribution systems. "They've also started spreading their manure on larger acreages, even leasing neighbors land just for that purpose. These practices maximize the nutrient value on the land and protect water quality" (Food 2000). Other dairy operators feel they can't afford to invest in these technologies. John Hunnum of the Regional Water Quality Control Board is trying to get voluntary compliance from the farmers but occasionally has to rely on formal enforcement. Overall, it seems Humboldt County is managing well.