Cooperative Regions of Organic Producer Pools

Although CROPP is best known for its dairy operations, it started with produce. In 1987, George Siemon gathered a few of his farming neighbors in the Coulee Region of southwest Wisconsin to brainstorm cooperative ways to strengthen their position as organic vegetable producers. America’s heartland was then in the throes of the Farm Crisis, and George and his neighbors were concerned that they were not getting the prices they needed to make ends meet. Wisconsin’s short growing season compounded their concerns. George argued that there was a growing market for quality organic produce that could yield a premium price.

George’s early vision was a bit risky, yet positioned CROPP for future success. “CROPP started at a time when the organic food industry was literally in its infancy,” explains Jerry. “There were no—or very few—regulations around organics, and very few certifying agencies.”

But Jerry doesn’t accept that CROPP was just the beneficiary of good timing: “In some fundamental ways we were a real part of the advancement of organic as a food category in this country, and we had a large part to play in getting consumers to realize it is an important and viable option.”

The “a-ha” moment came as more dairy farmers joined the cooperative. When they became the majority interest group, the business took off, and today, dairy remains CROPP’s biggest pool and signature product line.

“I don’t think anyone had a clear vision that we’d be a dairy- dominated business,” says Jerry. “We were equally seeking out opportunities on produce and dairy side. But early on, we were able to make some inroads on the dairy side, so that started to create some momentum. On the other side, for produce, the limited growing season was a real impediment to really being able to establish the Organic Valley brand to grocery stores. They weren’t interested in gaps in availability. With dairy, that isn’t an issue. You better milk those cows twice a day!”

To get off the ground, CROPP developed a partnership with the National Farmers Organization (NFO). With a $450,000 loan from NFO, CROPP was able to develop dairy processing and shipping infrastructure, meet their farmer payment obligations, and build a cheese line. By 1991, CROPP repaid the loan, and a good working relationship continues to this day. Many CROPP members are NFO members and vice versa. The organizations also share board members.

In 1988, CROPP began distributing its organic cheeses under the label North Farm, a brand developed by a natural foods distributor in nearby Madison, Wisconsin. Securing a national market was a big leap for CROPP’s Wisconsin-based dairy pool. A year later, however, North Farm stopped ordering the cheese. In response, CROPP quickly developed its own label, Organic Valley Family of Farms, which it felt better represented the product line and the company’s mission. Cheese was the first product to go out under the Organic Valley label and within four years, the brand was extended to market butter, milk, and eggs.

In the mid 1990s, CROPP made two decisions that helped strengthen its market niche. First, CROPP banned the recombinant bovine growth hormone, or rBGH, from all of its dairy products, just as it was being widely incorporated throughout the conventional dairy industry. “That was a watershed moment for us,” remembers Jerry. “A lot of consumers started looking at this and saying they didn’t want synthetic growth hormones in their food.” Second, the company employed a pasteurizing process that safely extended the shelf life of many of its dairy products. “This was a smashing success,” says Jerry. “Buyers loved the fact that we could deliver a product to them with an additional few weeks of code date to reduce spoilage. It opened the door to a lot of larger retailers, and that drove volume for us.”

In 1995 CROPP started its first “remote” regional pool and partnership with a processing facility in the Pacific Northwest. That same year, CROPP announced formal partnership with Oregon Tilth Certified Organic (OTCO) and began voluntarily certifying most of its products organic. CROPP continued to establish other regional production centers in the United States. By the end of the decade, CROPP had launched the Organic Valley brand of organic meat (certified by OTCO), known today as Organic Prairie.