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Eleven years after turning a dairy farm into a milk company that does everything -- from raising Holsteins to inventing seasonal milk flavors -- the Shatto brand has become a must-have for ...
These challenges are related to seasonality of farming business and low population density in rural areas. Some agricultural activities involve long gestation periods up to several years (for tree crops). Many require large capital investments, for example for farm equipment. This leads to a slow rotation of the invested capital.
The company allocated 90% of profits back to the farms as payment for their milk, and "the remaining 10% will be retained for the business end of the company, which is a joint effort of the Maine Farm Bureau and the Maine Organic Farmers and Gardeners Association." [3] On May 17, 2014, the company ended production.
The Dairy Production Stabilization Act of 1983 (P.L. 98–180, Title I) authorized the Dairy Promotion Program. The national dairy checkoff started in 1983 as an optional program for dairy farmers to contribute to increase demand for dairy products. As of 2011, the program was no longer optional; dairy producers must contribute to the program.
Small farmers are often absorbed into factory farm operations, acting as contract growers for the industrial facilities. In the case of poultry contract growers, farmers are required to make costly investments in construction of sheds to house the birds, buy required feed and drugs – often settling for slim profit margins, or even losses.
The dairy industry in the United States includes the farms, cooperatives, and companies that produce milk, cheese and related products such as milking machines, and distribute them to the consumer. By 1925, the United States had 1.5-2 million dairy cows, each producing an average of 4200 lb of milk per year.