Big Island dairy farmer Behnam "Ben" Sadeghi looked over an empty feed alley Wednesday at his Ahualoa Dairy.
Going sour
Three Big Island dairy farms may
go out of business if they can't raise
milk prices sooner, a farmer says
KAILUA-KONA >> Five dairy farms on the Big Island have won approval from the state Board of Agriculture to raise milk prices for the first time in 13 years, but that was three months ago, and state requirements could delay it from taking effect until at least the end of the year.
That may be too late for three of the farms, one dairyman says.
Big Island dairy farmers asked for a milk price increase of 25.8 cents per gallon in December, which averages out to just 2 cents a year since the last hike, notes Behnam "Ben" Sadeghi, president of Ahualoa Dairy.
The board gave its preliminary approval to the increase in April.
But before the price increase can take effect, it must be cleared by the Department of Agriculture, the attorney general, the Small Business Revenue Board and the governor, said Randy Kamiya, Department of Agriculture Milk Control Program specialist. A public hearing is also required, he said.
"I wish we could get it through faster, but we can't just talk story and approve it," Kamiya said. "There are other factors and individuals involved."
Dairy farmers were told the price increase may not take effect until at least November.
But three of the farms may have to close down by then, Sadeghi said.
"This isn't the first time we've been legally and politically denied," he said. "Still, with the new administration, we had hope -- that is, until they began railroading us. At least, the previous administration had guts to say, 'Go screw yourselves,' instead of using delayed tactics."
Sadeghi and the presidents of Clover Leaf Diary, Island Dairy, Kamuela Dairy and S&S Dairy scheduled a meeting in May with state representatives in May to discuss the dairy industry's crisis. But no lawmakers turned up, Sadeghi said.
Dairy farmers say their operation costs have risen over the years. Transportation and shipping costs through Matson, Young Brothers and Horizon Lines grew by 51 percent, approximately $800 per container, they said. The prices of fuel, health insurance, workmen's compensation, feed, utilities, labor and operational supplies also increased, according to a statement prepared by the dairy farmers.
"Nothing has been done to protect the dairy industry," he said.
"We're just the little guys. Because we don't fill pockets with big business money, they don't care, nor do they understand."
Kamiya said the Department of Agriculture is aware that rising costs have been "rough" on farmers.
"It creates a burden," he said. "We understand that. We know farmers are a different kind of breed that tries to preserve their way of life without making times tough for the consumer.
"But we can't snap our fingers," he said. "The process is moving along -- as slow as it seems."
The Big Island is considered "self-sufficient" in milk, which means it doesn't rely on reprocessed imported milk, Sadeghi said. Oahu, Kauai, Maui and Molokai import milk from the mainland. The Big Island produces approximately 10,500 gallons of milk a day.
Sadeghi's dairy produces about 500 gallons of milk a day, down from 700 gallons a day two years ago.
"We were getting 45 cents per dollar in 1991," he said. "Today, we have shrunk to 30 cents per dollar. Now, somebody, tell me: How am I expected to produce local, fresh, high quality, naturally produced milk without the use of hormones? It's becoming impossible."
State Department of Agriculture
www.hawaiiag.org/hdoa
