Cuomo hosts 1st statewide 'yogurt summit'

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August 16, 2012

Cuomo hosts 1st statewide 'yogurt summit'

By Denise Richardson Staff Writer The Daily Star Thu Aug 16, 2012, 03:30 AM EDT

ALBANY -- Farmers, dairy industry leaders and politicians met Wednesday in the state's first "yogurt summit" to identify ways to smooth out the production of Greek yogurt and boost the economy.

Gov. Andrew Cuomo called the brainstorming session in Albany in response to the growing Greek yogurt industry statewide. Senate and Assembly agriculture leaders, state commissioners and staff listened to farmers and industry leaders speak at The Egg in Empire State Plaza.

By early afternoon, state officials announced a plan to cut some red tape pertaining to small dairy herds, which has prevented dairy farms from growing.

State Sen. James Seward, R-Milford, said he was pleased that the governor took "such a keen interest in the Greek yogurt explosion and, in turn, helped shine the spotlight on our dairy farmers."

Dairy farmers have been the backbone of the state's farming industry for generations, Seward, a long-standing member of the Senate Agriculture Committee, said in a media release.

Greek-style yogurt is creamier and less sweet than more-traditional yogurt and requires more milk to produce.

Since 2000, the number of yogurt processing plants in New York has increased from 14 to 29.

From 2005 to 2011, New York's yogurt plants doubled in production, Seward's release said, and during the same time period, the amount of milk used to make yogurt in New York increased from 158 million pounds to about 1.2 billion pounds.

As a result of the summit, Darrel Aubertine, state commissioner of agriculture, announced plans to ease regulations on feedlots, known as "concentrated animal feeding operation" permits, to apply to herds of 300 instead of 200 cows.

Cuomo later told reporters later the process will require public hearings.

Complying with current CAFO regulations costs hundreds of thousands of dollars and takes time, participants said Wednesday.

The measure would encourage small family farms to add cows, local lawmakers attending the summit said, but the change must be backed up by other initiatives to help dairy farms.

State officials pledged to keep Wednesday's dialogue going and to have a follow-up meeting in the fall.

Chobani, Fage and Alpina were among yogurt producers present, along with dairy farmers and representatives from dairy cooperatives.

Production of milk and Greek yogurt involves not only dairy farms and yogurt companies but also transportation and electricity providers, participants said, and yogurt companies need year-round sources of fruits.

James McConeghy, chief financial officer of Chobani in New Berlin, said as the No. 1 producer of Greek yogurt in the United States, the company was pleased to be at the summit and agreed with the governor's initiative to support the dairy industry.

"There is no yogurt without the farmers," McConeghy said. The firm has grown from six employees when it started in 2005 to 1,400 workers, he said, and two production challenges have revolved around access to power and disposal of whey.

The summit was "very good" because everyone was focused on growth and other issues, McConeghy said after the session. "It has to be helpful."

Seward, whose district includes the local Chobani site, described the company as a small business that blossomed into "an international sensation." The manufacturer, which employs 1,100 locally, has provided jobs in a region desperate for employment, Seward said, and now the state must help farmers meet the demand for milk for production.

"We must seize this momentum and cultivated this growing industry," Seward told summit participants.

Also, in Washington, D.C., on Wednesday, U.S. Sen. Charles Schumer, D-N.Y., called on state agriculture officials and the farming community to support legislation proposed earlier this year that would allow farmers to increase milk production to meet demand created by the growing Greek yogurt industry.

At the summit, New York Farm Bureau president Dean Norton said to become the "yogurt empire," the state needs to develop strategic, smart initiatives to address issues of agricultural and environmental regulations in the industry.

Cuomo said New York has an opportunity to develop a cluster economy around production of Greek yogurt through a public-private partnership, and he asked participants to identify obstacles to creating that synergy. Cuomo called for a 15-minute recess midday to meet with commissioners, who then returned to announce immediate outcomes, including the CAFO plan.

"I want those small farms expanding," Cuomo said.

Seward said the summit "took important first steps" that will help local farmers and identify longer-term needs. New York's Greek yogurt makers are using millions of pounds of milk daily, and it makes sense that they use milk from New York dairy farms, Seward said.

The New York Power Authority also work with the dairy and yogurt industries to lower energy costs by increasing and encouraging construction and use of anaerobic digesters, which turn waste produced on the farm into energy that can be used by the farmers, Seward said in his release.

Assemblyman Pete Lopez, R-Schoharie, said a point of summit success was that the governor made agriculture, not just yogurt, a priority. The next and crucial step, he said, is to take the goodwill and energy and translate it into profitability for family farms.

The state is applying an "entrepreneurial spirit" to government, Cuomo said at the summit, and seeks to be partners with businesses and farms involved with the dairy industry.

"This is a new day -- a new team," Cuomo said. "This is a historic day."