![]() “Danone’s lack of transparency at every step, and their green-washing, does not surprise anyone. The phrase ‘smoke and mirrors’ accurately describes the way they have attempted to make consumers believe that something is being done to assist Northeast organic dairy farm families when it is not,” writes Maltby. “(Adamo) left many of us, and a few State Agriculture Commissioners, confused about exactly who would get what, when, and how. Third, Danone pledges $500,000 in new grants, administered by The Organic Center in 2023, to “support projects connected to the future of organic dairy and Northeast farming.” Recipients can be individual farms, groups representing farmers, non-profit organizations, academic institutions and universities, groups that provide agricultural technical assistance or groups that train and educate farmers on emerging agricultural topics. Maltby wonders: “Is this the transition payment that Danone already said it had paid to producers that they dumped? Or is it an increase in pay price for those farms they took on when they dumped their existing producers?” Second, a ‘market-premium price payment’ is included, whereby Danone commits to providing “direct financial support to farmers in the Northeast, along with additional pay price increases totaling approximately $3.6 million.” “Is this investment geared to making these farms more efficient to improve the supply of milk to Danone, or perhaps to improve their co-op’s infrastructure? How can producers access this money or is it just for processors?” “A year earlier, in December 2021, Danone maintained they were going to take on 50 new organic dairy farm suppliers to replace those farms they had dumped as part of improving their trucking logistics,” Maltby reflected. Pegged at $18 million, Danone’s package “is designed to drive meaningful impact in the region and the organic farming community in both the immediate and longer term,” Chris Adamo, Danone vice president of public affairs and regenerative agriculture policy, told the Northeast organic community in his December 2022 presentation.įirst, a partnership with dairy farming co-ops and processors to invest more than $14 million to “establish new relationships with more than 50 dairy producers in western New York.” The announcement that Danone may dump Horizon comes just before Danone’s fiscal 2022 earnings call, just before the final extensions expire on previously announced contract terminations for 89 Northeast Horizon Organic dairy farms, and just after Danone closed the book in its final negotiations under pressure from organic and consumer groups by presenting its 2023 Northeast Region Investment Package.Įd Maltby, executive director of Northeast Organic Dairy Alliance (NODPA), recounted the final communication. A 2012 spin-off separated WhiteWave from Dean, taking former Dean CEO Gregg Engles with it, until April of 2017, when Danone purchased WhiteWave, and Engles continued as a current Danone S.A. It became the first public organic food company in 1994 and was purchased by Dean Foods in 2004, where it became part of WhiteWave holdings alongside International Delight, Silk and other fake-milk brands. Horizon Organic is ubiquitous and foundational. Wallaby is an Australian-style organic yogurt found mostly in natural food stores as well as the Whole Foods chain throughout the U.S. ![]() Previously, Danone executives noted Horizon and Wallaby represent 3% of global revenues and have a “dilution impact on operational margins.” “That said, seen through the lens of our Renew Strategy, which requires us to stay disciplined in how we allocate our resources, they fall outside of our priority growth areas of focus.” “Both are strong, much-loved brands with compelling growth opportunities,” said Danone CEO Antoine de Saint-Affrique in a brief press release. ![]() ![]() organic dairy line - namely the Horizon Organic and Wallaby businesses. ![]() On January 26th, Danone announced it is exploring the “strategic option” of selling its U.S. PARIS, France - Danone put Horizon Organic on the proverbial chopping block last week, positioning itself to take another step away from real milk after spending the past several years building an operational runway to catapult the French-based global food and beverage giant even further into the world of fake-milk. By Sherry Bunting, previously published in Farmshine, February 3, 2023 ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |