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Sullivan Funding Corp looks to help dairy farmers

Patricio Robayo - Staff Writer
Posted 6/11/18

MONTICELLO — During a special meeting of the Sullivan County Funding Corp (SCFC), the board discussed the plight of the dairy farmers that have been on the hearts and minds of many in the county.

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Sullivan Funding Corp looks to help dairy farmers

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MONTICELLO — During a special meeting of the Sullivan County Funding Corp (SCFC), the board discussed the plight of the dairy farmers that have been on the hearts and minds of many in the county.

As of June 30, six dairy farms in western Sullivan County are going to lose their contracts with Marcus Dairy Inc., a milk processor based in Conneticut.

The farms that will be affected are the Dan Peters Farm in North Branch, Kays' Farm in Callicoon, two Diehl farms in Callicoon, Weissman Farm in Callicoon Center and Myers Century Farm in Jeffersonville. Although these farms were recently awarded by the co-op two additional weeks to see if they could sell their milk somewhere else, uncertainty remains.

The Funding Corp. authorized $22,000 to hire a dairy industry consultant in order to offer assistance and to conduct a feasibility study. A resolution was passed that the amount should not exceed $25,000 for the consultant.

“Is this a lost cause or will this will money make a difference?” asked Howard Siegel, Treasurer and CFO of the SCFC.

On the same note, SCFC member Paul Gunther asked, “Are we putting our money in the right place?”

On hand was Michelle Lipari, Cornell Cooperative Extension of Sullivan County Agriculture Subject Educator. She said that the money will be used to do a feasibility study on creating a co-op with the six dairy famers. At this time there is no timeline for the study to be conducted.

“The study that this consult will do will be paramount to what these famers need,” said Lipari. “They need to see how and where they can market their milk.”

The consultant, Philip Gottwals will be hired through the Hudson Valley Agribusiness Development Corporation (HVADC). According to Walter Garigliano, legal counsel for the SCFC, the study will first be tasked with seeing if these dairy farms have the resources and the means to create a co-op and if they want to be a part of it. In task two, the consultant will identify the current cost of milk and how it affects the dairy farms.

“He [Gottwals] has more capability in his pinky finger than all of us combined in the dairy business. If there is something that can be done, he will figure it out,” said Garigliano.

According to Lipari, “The study will hopefully find what works best,” said Lipari. “Gottwals is a veteran in this field and has helped start co-ops. I think the study is really essential to start off on the right foot.”

In conclusion, “It's important for us to understand the market,” said Ira Steingart Chairman of the SCFC. “We realize it's a horrible business model and we need to find a chance to do something slightly different.”

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