Shatto Milk Co.: Profiting by Differentiation
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Code : COM0064
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Region : USA
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A Difficult Period for the Small Farms The dairy farms in the US are mostly small family run businesses. For these dairy farmers, waking up at 4 a.m. everyday to milk the cows and making sure that the entire herd is taken care of is the way of life. Children grow up on the farm and learn the family business at a very young age. And these dairy farms have played an important economic, cultural, and land management role in traditional dairy belts of Wisconsin, NewYork, Pennsylvania, Minnesota, Michigan, and Vermont... Shatto Milk Co.: Milking its Past Shatto Milk Co. is a 100-year-old, family owned and operated, dairy farm located in Osborn, Kansas City metropolitan area. Robert Shatto (Shatto) and his wife, Barbara were the third generation dairy farmers in their family. They mostly had Holstein cows, the black and white cows that gives more milk and less cream. When the milk prices began to fall in the eighties Shatto, like all the other farmers in his area, began selling his milk to the cooperatives... Challenges in Emulating the Experience But it is not all that easy, as it seems for other farms to emulate the success of Shatto Milk Co. Profitability could be achieved either by increasing the total production or by selling the product at a premium. But with low prices being paid by cooperatives, dairy farmers have been experimenting with glass bottles, galvanized steel buckets and signature containers besides a range of value added products tomark their product as a premium product... |
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