Feedlot Operations Irk Farmers, Consumers

Jeff Riesgraf talks about the family's organic dairy farm as cows graze on lush green grass near Jordan, Minn., May 31, 2006.The Riesgraf family owns a stake in the cooperative that processes and markets their milk, giving them a bigger share of the profits. (AP Photo/Jim Mone) (Jim Mone - AP)

The Organic Trade Association says the U.S. organic dairy sector racked up $2.1 billion in sales last year, up 24 percent from 2004. The OTA says organics now make up 3.5 percent of all dairy products sold in the U.S.

While Scalzo said the boycott has had "very, very little" effect, he acknowledged Horizon has had to spend time explaining its position to stores.

While Broomfield, Colo.-based Horizon has taken the most heat, the critics also slam Aurora Organic Dairy, of Boulder, Colo., which provides private-label organic milk to chains including Costco, Safeway, Giant and Wild Oats.

Aurora says it milks about 4,100 and 3,500 cows at its farms near Platteville, Colo., and Dublin, Texas, respectively and will open a 3,200-cow operation near Kearsey, Colo., this fall.

The company says its approach is unique in the organic dairy sector, allowing it to keep prices affordable while producing the highest quality milk. Aurora says its cows get a balanced diet that includes organic grain and hay, as well as grazing on organic pasture.

Aurora spokeswoman Amy Barr said organic standards shouldn't be based on an "image of Old MacDonald's Farm" held by people who may never have been on a farm. Pasture is important, but it's not the only measure of animal welfare, nor is an all-grass diet necessarily the best for a cow's health, she said.

Horizon milks about 4,000 cows at its farm near Paul, Idaho, and about 450 at its farm near Kennedyville, Md. But Scalzo said Horizon gets over 80 percent of its milk from 340 family farms, all but three of them with herds of 500 cows or fewer.

"Farms of all sizes are going to be needed _ at least for the foreseeable future, the next two to five years _ to meet demand," Scalzo said.

Executives with Austin-based Whole Foods Market Inc. recently toured Horizon's Idaho farm and were pleased with improvements made there, said Margaret Wittenberg, vice president of communications and quality standards.

"The cows looked in good health. They were certainly curious, which is always a good sign. They're being taken care of," Wittenberg said

Whole Foods was not impressed, however, by Aurora's Colorado farm.

"It remains unacceptable for us," she said, declining to elaborate.