By DOUG GRAVES

Ohio Correspondent

MERCER, Pa. — In February, more than 100 dairy farmers in Ohio, Indiana, Kentucky and five other states received a letter from Dean Foods, informing them their milk contracts were being terminated.

The dramatic drop in milk prices is forcing many Ohio dairy farmers to leave the business at a higher than usual rate, according to Ohio State University’s College of Food, Agricultural & Environmental Sciences. While some farmers retire and give up their dairy licenses every year, there has been an uptick recently. In March, there were 2,253 licensed dairies in Ohio, a drop of 59 farms in five months.

A handful of dairy owners, however, have sought help and received it. In Ohio, Scott Higgins, Ohio Dairy Producers Assoc. and the American Dairy Assoc. Mideast CEO, credits the Dean representatives in Sharpsville, Pa., for helping 10 farmers in his state find a new home for their milk.

“They found a home for all of the farms except for two, which were planning to sell out this summer anyway,” he said. ”We continue to keep strong relationships across the dairy industry, from the farmers to the milk haulers to the processing plants … that helps.”

Paula Snyder, who farms in Mercer County, Pa., along the Ohio border, was devastated when she received the notification. “I was beside myself when I got the letter,” she said. “I could have given up four years ago and chose not to. I thought, ‘What am I going to do now?’

“Every day I called places. I got a lot of ‘I’m not sure,’ but I just kept fighting. Some people were telling me I should start to get rid of my mixed herd of 35 head. I just couldn’t do it. They are part of my family. I guess I was just going to hold on until the very end.”

Snyder began networking. She reached out to Dairy Farmers of America (DFA), but it couldn’t help. Then, her efforts led her to Melissa Anderson, programs and operations manager with the Center for Dairy Excellence in Harrisburg, Pa.

“If it wasn’t for her and the center, I wouldn’t have gotten where I’m at today,” Snyder said.

That particular contact led to an April 28 meeting with Bill Schneider, owner of Schneider’s Dairy in western Pennsylvania. In the end, Schneider’s took on six dairies that would add a full tanker every other day to its processing facility, one being Snyder’s dairy farm. She will begin sending her milk to Schneider’s Dairy on June 1.

At the farm of Warren and Donna Cheek in Nelson County, Ky., a processor needs to be found soon or their 69-year-old family dairy will be out of business. The Cheeks and 18 other dairy farmers in this state were among those who received certified letters from Dean Foods.

The reason for the cut is that Walmart no longer will buy Dean’s milk for its Great Value house brand, cutting the production needed at Dean’s Louisville plant, which the company announced will be shut down soon. Walmart has built its own production facility in Fort Wayne, Ind.

The prospect of losing Dean’s semi-monthly milk check has already forced five of the 19 impacted Kentucky dairy farms to sell out. As of February, the state had 562 permitted dairy farms.

Maury Cox, executive director of the Kentucky Dairy Development Council, said farmers there and parts of southern Indiana have had little luck getting DFA or another cooperative to pick up their contracts. Farmers got a brief reprieve last week when Dean extended the deadline until the end of June.

The Cheeks hold onto hope, though, that Select Milk Producers (a cooperative that supplies milk to Kroger) might pick them up. “We’re down to the ‘is-a-miracle-going-to-happen?’ stage,” Donna Cheek said.

Kroger spokeswoman Erin Grant said discussions are continuing with Select, but the grocery giant hasn’t settled on its next steps. Indiana Director of Agriculture Bruce Kettler said state officials are looking at other options for farmers to sell their dairy products.

Walmart is opening a 250,000 square-foot dairy processing plant near Fort Wayne. Doug Leman, executive director of Indiana Dairy Producers, says it’s good news for the Hoosier dairy industry.

“This facility is not going to end all our woes in the state, but it is certainly a good start,” he said.

“It’s a very difficult situation and worst time for this to happen,” said Dianne Shoemaker, OSU extension field specialist in dairy production economics. “We’re trying to get them all the help that we can.

“The answer is not as simple as downsizing the herd. Even if you know there is too much milk in the marketplace, you have to make enough milk to be a profitable business. That doesn’t translate into farms milking fewer cows.”

Reace Smith, Dean director of Corporate Communications, said too much milk being produced is one of the main factors contributing to the decision, adding that Dean will continue to purchase milk from 12,000 producers across the country.