The intriguing thing about the discussion following my previous post is that the discussion is taking place at all. That discussion couldn’t have taken place a year ago, when Organic Pastures was shut down (by state and federal investigators seeking a link to children’s illnesses) and Michigan authorities were in the late-planning stages for their Richard Hebron sting.

So now here we are a year later, assessing the best growth strategies for the American raw milk industry. Because, as Don Neeper says, California sets the tone for the entire country. If venture capital flows into Organic Pastures and it revs up production, well, why might there not be capital flowing into other dairies in other states? (By the way, Mark McAfee has said that he has only acquired cream from outside his dairy; no raw milk…yet from Wisconsin, as Steve Bemis speculates.)

All that being said, I share the concerns of those who worry about the potentially corrupting influence of corporate-type money on a raw-milk dairy. The industry, as it were, has only achieved the kind of credibility whereby a venture capital firm would even consider investing, based on building up sufficient confidence with growing numbers of consumers about quality and safety.

The best comparable example I can think of in terms of predicting an idealistic company’s future direction once it obtains outside capital is Whole Foods. Its predecessor in the Boston area was a chain known as Bread & Circus. When B&C (as it was known locally) grew during the late 1970s and 1980s, its offerings consisted mainly of organic vegetables and fruits, and the famous grain/nut bins. It wouldn’t stock any foods with caffeine, refined sugar, white flour, corn syrup, or artificial sweeteners, and it didn’t sell alcohol, meat or fish—all in the interests of good health.

Gradually, as it expanded throughout the Northeast in the late 1980s, the prohibitions fell (I don’t remember the exact order). By the time it was acquired by Whole Foods in 1992, it had pretty much done away with everything, except perhaps corn syrup and artificial sweeteners. According to the Whole Foods history page, it was the same story with  Mrs. Gooch’s in the Los Angeles area, and presumably other retailers the Austin company acquired in its expansion kick. About the only prohibitions today at Whole Foods, from what I can see, are the artificial sweeteners and mass-market chips, sodas and diet sodas.

Yes, the produce quality and bins are still heads and tails above other chains. But you have to take nearly as much care in the center of a Whole Foods as you do in other major grocery chains. And the CEO is under investigation by the Securities and Exchange Commission for weird stock trading practices.

The reality for Whole Foods has been that no matter how dedicated the founders, the pressure has been on from investors to “expand the market” by offering more products and more convenience. Consumers want choices and discounted pricing. Applying that progression to raw milk, it wouldn’t surprise me if, going down the road, we see similar merchandising and corner cutting–say “pasteurized light” or “partially pasture-fed” or "acidopholus added." You know the accountants will do cost analyses to determine how far they can go in supplementing grain, and perhaps offering discounts for “feedlot fed.”

The real attractions in expanding the market are not only in the benefits dairy farmers would gain, but the improvement in health consumers could see. But if the product isn’t what it should be, then the health benefits could be illusory–and raw milk would be labeled as just so much hype.

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As Don Neeper points out following my previous post, that press release that the Food and Drug Administration asked Mark McAfee to try writing—concerning a recall of 21 pints of raw cream—is getting special play in Kentucky. A variation on the FDA press release quotes the state’s director of the division of public health as follows: “Healthy individuals may suffer from symptoms such as high fevers, severe headaches, stiffness, nausea, abdominal pain and diarrhea,” said Guy Delius, acting director for the division of public health and safety. “Listeriosis can cause miscarriages and stillbirths among pregnant women. Because there have been worldwide phone order sales for this product and possibly some in Kentucky, we wanted to make sure local families were aware of the withdrawal of this product, and that if purchased, it should not be consumed.” If the FDA and Kentucky bureaucrats were reading this blog, they wouldn’t be talking about miscarriages and stillbirths, or any listeria illnesses from raw milk– as reported here, the Centers for Disease Control’s own statistics show no illnesses from listeria in raw milk between 1973 and 2005.