Greek Yogurt Boom Leaves New York Looking For More Milk

Morning Edition:

Greek yogurt leaders Chobani and Fage started the boom in 2007 and 2008, and production has tripled since then. Now there are more than 40 yogurt plants scattered across the state, surpassing even California's yogurt industry. Steve Hyde, who directs the Genesee County Economic Development Corp., calls New York "the Silicon Valley of yogurt."
But can New York's dairy farmers keep up?
New York Gov. Andrew Cuomo and the state Legislature have passed all kinds of programs to induce dairy farmers to meet the milk demand. There are grants for modern milking equipment, new business plans and anaerobic digesters that turn manure into electricity.
But even with all that, New York's dairy herd is no bigger than it was last year.
Mike Kiechle, a small dairy farmer, says he's one of the ones who would like to expand but can't.
One big problem is that milk doesn't obey the laws of supply and demand. A federal formula sets the milk price farmers are paid by region. And that price because there are a bunch of Greek yogurt plants looking for milk nearby. So to add, say, 50 cows, Kiechle's looking at a frightening risk.
"I'm going to have to have some more land," Kiechle says. "My equipment's not big enough. My barn's not big enough. And the return that we've had the last 10 years, you've got to think twice before you invest your money there."
Despite the challenges small farmers are facing, New York is producing about 3 percent more milk. Farmer Shelly Stein says that's because a lot of bigger dairy farms are milking smarter. They're encouraged by the Greek yogurt future, so they're investing in new technology and bigger, cleaner barns that make the cows more productive.

I like the dairy farmer's take on it.  After 10 years of getting his ass kicked, he's supposed to sink a ton of money into the latest diet trend?  Sounds like a bad idea to me.  And, "the Silicon Valley of yogurt"?  Yes, oh so cutting edge.