09/04/2020
How can you sell your raw milk?
Usually, there are four legal ways to sell raw dairy products worldwide: retail sales, farm direct sales, herd shares, and pet food. Otherwise, it's illegal to sell raw milk.
Adam Klaus, the successful small dairy farmer and book writer from the USA, advocates that herd shares model is the best way. He explains why in his book "Dairy Farming: The Beautiful Way":
"A Raw Milk Share is a simple business agreement between farmer and consumer. Practically speaking, the system works much like a club membership. The one-time herdshare purchase is like buying a membership to join the club; the monthly boarding fee is like the monthly dues.
The Raw Milk Share system is similar to a traditional farm Community Supported Agriculture membership. CSA’s are based on a financial commitment from the customer to receive product on a regular and recurring basis. This guarantee is good for the farmer, who will be milking and feeding the cows daily, regardless. The similarity to the CSA model gives the farmer a sure income stream, and gives the customer a certain supply of farm fresh raw milk.
The relationship begins with the farmer selling the customer a ‘share’ in their cowherd. The customer now technically owns a small fraction of the cows in that herd. The purchase of a share in the cowherd is a one-time expense, good for life. Once a shareholder, the customer then pays for the daily care of their share of the cowherd; this is the monthly ‘boarding fee’.
As a dividend of ownership, the customer receives milk, from their cow, on a weekly basis. The customer is billed monthly, with the amount due depending upon the agreed upon amount of milk they receive each week. The Raw Milk Share model includes a formal contract that describes the customer’s monthly boarding fee. In this way, it is no different than boarding a horse at the stable.
The customer pays for the regular care of their cow, not the milk itself. If a customer misses their milk pickup, they are still responsible for their full monthly boarding fee. The fresh milk is considered a dividend that the customer receives, as a byproduct of caring for their share in the cowherd. Sometimes it takes a little explaining for the customer to understand that they are not actually buying raw milk.
Ultimately, the system is straightforward, and is modeled on other common business arrangements with which the customer is already familiar.
The milk share system remains flexible, so that if needed, customers can change their subscription level on a monthly basis. During the winter dry period, when no milk is available, the customer is not charged anything. When the cows freshen in the spring, the milk share program starts back up again, monthly dues resume, and milk is once again provided on a weekly basis. The Raw Milk Share program works seamlessly throughout the year."
What model of raw milk selling is the best for you?