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Price Sustainability and Stability – An Achievable Goal? A Case Study of Organic Valley

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  • Su, Ye
  • Cook, Michael L.

Abstract

Originating from a bold idea, Organic Valley currently reigns as the largest organic cooperative in North America. In 1988, from the non-glaciated, hilly part of Southwestern Wisconsin, seven progressive rural entrepreneurs started a courageous and visionary journey. The founders’ original objectives were to create an organization that would provide stable pay-prices to farmers and a sustainable family farm life style. For much of its more than 25 year history, Organic Valley has achieved this mission. However, in the past few years a more hostile economic environment emerged testing the resolve of George Siemon, CEO, and the Organic Valley leadership team. This case shares the evolution of a determined, idealistic group of mostly small rural producers leading a farmer owned firm from nothing but a dream to a complex international cooperative facing an important set of challenges. The current quandary: can the original mission of Organic Valley – to simultaneously deliver a stable producer pay-price and a sustainable life style to member suppliers – be maintained?

Suggested Citation

  • Su, Ye & Cook, Michael L., 2014. "Price Sustainability and Stability – An Achievable Goal? A Case Study of Organic Valley," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 174399, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea14:174399
    DOI: 10.22004/ag.econ.174399
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    References listed on IDEAS

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    1. McBride, William D. & Greene, Catherine R., 2010. "Organic Dairy Sector Evolves To Meet Changing Demand," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6.
    2. Greene, Catherine R. & Dimitri, Carolyn & Lin, Biing-Hwan & McBride, William D. & Oberholtzer, Lydia & Smith, Travis A., 2009. "Emerging Issues in the U.S. Organic Industry," Economic Information Bulletin 58617, United States Department of Agriculture, Economic Research Service.
    3. Dimitri, Carolyn & Oberholtzer, Lydia, 2009. "Marketing U.S. Organic Foods: Recent Trends From Farms to Consumers," Economic Information Bulletin 58615, United States Department of Agriculture, Economic Research Service.
    4. Dong, Diansheng & Stewart, Hayden, 2013. "Households' Choices Among Fluid Milk Products: What Happens When Income and Prices Change?," Economic Research Report 262226, United States Department of Agriculture, Economic Research Service.
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    Keywords

    Agribusiness; Community/Rural/Urban Development; Industrial Organization;
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