Dozens of Vermont dairy farmers gathered on Grand Isle on July 2 to discuss the recent shutdown of the St. Albans processing plant and the broader challenges confronting the state’s dairy sector. The meeting, attended by Lt. Gov. John Rodgers and state agency representatives, highlighted how high overhead costs, aging infrastructure, and competition from lower‑cost states are squeezing local farms.
Rising costs and shrinking profits
Analysis of USDA data by VTDigger shows Vermont dairy farms lose $8.65 for every 100 pounds of milk produced, the largest margin of loss among 19 states studied. By contrast, California farms enjoy a $2.49 profit per 100 pounds. Some Vermont operators report monthly overheads as high as $72,000.
Local voices describe the burden
“I’ve spent a lot of time trying to figure out how to budget those numbers, and I can’t move them. It’s really just because of where we’re located,” said Kylie Chittenden, who runs a family dairy farm in Shoreham. She cited transportation surcharges caused by poor road conditions as a unique expense that puts Vermont producers at a disadvantage.
Kassie Stannard, a small‑scale dairy producer, called the situation “heartbreaking” and warned that many farms can no longer meet overhead demands.
Plant closures accelerate the crisis
The latest blow came when Dairy Farmers of America announced the idling of its St. Albans milk processing plant and adjoining creamery, eliminating roughly 80 jobs. Earlier closures this year included HP Hood’s Booth Bros. plant in Barre and Franklin Foods’ facility in Franklin County. Even Perrigo’s infant‑formula plant in the same county shut down, affecting more than 400 workers.
Kevin Kouri, chair of the Vermont Dairy Producers Alliance, warned of a continuing exodus of dairies and the ripple effect on rural employment and allied businesses such as feed suppliers.
Industry consolidation and market dynamics
Vermont’s dairy herd has declined nearly 50 % over the past decade, with the number of farms falling from dozens to just a handful in many towns. Larger operations elsewhere can produce milk at lower per‑unit costs, while Vermont’s smaller farms struggle with fixed expenses.
Tom Bellavance, a Vermont board member of the national cooperative Dairy Farmers of America (DFA), explained that milk production rates in the state have been flat while national demand for protein‑rich dairy products has risen about 60 % since 2010. He noted that processors have invested $11 billion in new facilities across 19 states through 2028, but Vermont was left out due to aging infrastructure and higher construction costs.
Future outlook and calls for action
Bellavance urged Vermont to “embrace those changes” and adapt to the evolving milk market, suggesting that doing so could deliver higher‑value returns to farmers. However, the immediate impact of the St. Albans plant idling is increased hauling costs, as members must now transport milk to DFA facilities in neighboring states.
Vermont dairy farmer Josh Blake questioned the cooperative’s accountability after a $30 million upgrade to the St. Albans plant sat idle, adding that the facility had previously faced civil penalties exceeding $200,000 for wastewater violations.
Mary White, president of the Vermont Farm Bureau, contrasted Vermont’s aging plants with the ability of states like Texas to build new, cost‑effective facilities, emphasizing that regulatory and climate‑related requirements further burden older structures.
Economic significance
Dairy remains a cornerstone of Vermont’s economy, contributing roughly $5.4 billion annually—about 12 % of the state’s gross domestic product. The industry’s decline threatens not only farm incomes but also the broader rural communities that depend on dairy‑related jobs and services.
Stakeholders at the Grand Isle meeting called for state and federal leaders to consider targeted investments in modernizing Vermont’s dairy infrastructure, reducing transportation burdens, and creating a more competitive environment for local producers.
Original reporting: Texarkana Gazette — read the source article.
