Editorial Blog

You Can Be Sustainable Too

Fri, 20 Nov 2020 03:02:54 GMT

When I was growing up I was a huge Dallas Cowboys fan. I had a poster hanging in my bedroom of Ed “Too Tall” Jones and Harvey Martin standing around a Super Bowl trophy. Although I emulated them, I knew that I would likely never have the athletic ability to actually accomplish what they did as athletes.

I’m wondering if some dairy farmers feel the same way. You read stories about farmers who have excelled in developing sustainable farming and business practices, making significant investments in time and talent to accomplish great things, yet you wonder if you will ever be able to accomplish the same thing.

The answer is yes, you can. But, more than likely, you’re already there.

The dairy producer featured in our cover story (page 10), John Maxwell, started small. He started his dairy just when he got out of college and needed cheap feed “because I was dirt poor,” he says. So he read an Iowa State University Extension publication about using cover crops, and he harvested 10 acres of ryegrass that spring that he fed to his heifers and cows. He didn’t know he was being sustainable, but he was. That small act led to bigger and better things.

There are probably things you’re doing that lead to sustainability that you’re not even aware of. If you follow what your nutrient management plan says, you’re being sustainable. If you treat your cows with care and compassion, and your employees the same way, you’re being sustainable. If you sponsor your kid’s baseball team, post pictures on a Facebook page of a new calf being born, or just respond in a positive way when folks at church ask about what you do as a dairy farmer, you’re being sustainable.

You are also being sustainable if you take care of your finances, pay down your debt and make wise purchases. Then you’re being even more sustainable when you sit down with an attorney and draw up a succession plan so the next generation has a chance to be sustainable, too.

So you don’t have to invest millions of dollars in technology, hire someone to build a website or build a detailed investment portfolio. You just have to take care of the environment, your cows and your people, then be proud to tell your story when you get the chance.

While that may seem insignificant, it’s actually really important. Because consumers are listening (page 42) and whether you milk 40 cows or 4,000, what you do reflects on the greater dairy industry. That’s true for everyone, not just for the producers you read about in the paper.

Romaine, E. coli and food waste

Fri, 13 Nov 2020 05:25:17 GMT

How many thousands of pounds of “perfectly good” romaine lettuce have been tossed in the past ten days?

As recent media coverage details, Americans waste plenty of food without factoring in food safety scares.

In a study published in the Plos online journal and called “ Relationship between food waste, diet quality, and environmental sustainability ”, authors found that U.S. consumers wasted nearly one pound of food per person per day from 2007-14. Fruits and vegetables and mixed fruit and vegetable dishes accounted for 39% of food waste, followed by dairy (17%), meat and mixed meat dishes (14%), and grains and grain mixed dishes (12%).

Giving its latest update on the E. coli outbreak linked to Yuma-grown romaine lettuce, the Centers for Disease Control and Prevention on April 20 advised consumers this way :

“Unless the source of the product is known, consumers anywhere in the United States who have any store-bought romaine lettuce at home should not eat it and should throw it away, even if some of it was eaten and no one has gotten sick. Product labels often do not identify growing regions; so, throw out any romaine lettuce if you’re uncertain about where it was grown. This includes whole heads and hearts of romaine, chopped romaine, and salads and salad mixes containing romaine lettuce. If you do not know if the lettuce is romaine, do not eat it and throw it away.”

That’s prudent advice, considering the serious health risks if a consumer eats tainted romaine lettuce.
The answer to the question of how much “good” romaine lettuce was and is being thrown away is unknowable, of course, but it can only pad the stats of food waste in the U.S.

This morning, the fastest rising search terms relating to “romaine” this morning on Google Trends over the past seven days in the U.S. was #1: “ecoli virus symptoms.”

Highlights of the list were:

#4 “when can i eat romaine lettuce again”;
#5 “romaine recall 2018 brands”;
# 7 “cdc warning on romaine lettuce”;
#10 “is organic romaine lettuce safe to eat”;
#12 “what brands of romaine lettuce are being recalled”;
#13 “is romaine lettuce still recalled”;
#18 “can we eat romaine lettuce now”;
#20 “is all romaine lettuce contaminated”; and
#21 “i ate romaine lettuce.”

In addition to the above search terms, there was a smattering of consumer searches of lettuce brands asking, for example, “Is (insert name here) safe to eat.”

I was talking to a couple of friends over the weekend and one of them was incredulous that the government doesn’t know what farm the romaine lettuce came from. Certainly, as the Google Trends reflects, folks want to know.

All should want the FDA to get it right if they implicate a brand, but how long will it take? And how many pounds of romaine will be wasted - and long-term demand diminished - in the meantime?

It’s easier to make a deal than to make a deal work

Fri, 13 Nov 2020 05:30:14 GMT

Studies published in Business Week show that 62% of mergers and acquisitions fail to achieve the negotiated revenue, market share and profit increases.

These failures are significantly due to poor planning and integration activities, rather than negotiating the price or terms of the deal.

The fact is that it is easier to make a deal than to make a deal work.

We’ve all read about the litany of woes with poorly handled ones: financial setbacks, frustration, confusion, resistance and poor morale. But it is possible to beat the odds. While a period of uncertainty is normal, an organized and well thought out transition ends with customers, employees and owners who are optimistic, engaged and excited to build a highly profitable future.

Let’s say you are an owner of a business that’s sold, and the deal has closed. What should you do to prepare for this day?

The seller now enters into a multi-year transition phase. It details additional compensation if the business achieves targets for financial growth, a description of the executive’s role and strict restrictions on competitive activities.
The owners who fare the best have also prepared themselves psychologically for the next phase of their life. What will you do after the sale and earn out period? Are you ready to lose control of the business? Are you and your family prepared for sudden wealth?

Besides getting in the right mindset, what should an owner handle before the sale becomes public?

Remember that what gives a business value is the expectation of future earnings. The only way to achieve that is through people – especially those who would be difficult to replace. It’s human nature to be nervous when control changes hands and you don’t want key people to be open to other offers of employment.

Retention or “stay bonuses” are one management tool to keep employees who are critical to success. For key leaders, some form of equity is often used as a positive reinforcement to keep them in place and fully engaged going forward. These arrangements should be negotiated before the deal closes and can come from either side of the table - or both.

Now the former and new owners, senior leaders and key people are on the same page – what next?

It’s time to announce.

The message should be clear and simple:
1) what is happening
2) why it’s happening
3) how we’ll proceed.

Key points of the communication should include the vision, benefits of the new entity along with comments about the cultures and core values that will guide the next phase.

New ventures are always exciting. But there is one thing that owners and senior leaders consistently underestimate. You are coming out of due diligence hell and deal fatigue, but in many ways your work is just starting.

Uncertainty brings anxiety, and you will be handling people-problems galore when you have the least amount of energy to do so. You’ll need patience and fortitude to weather through the next period of transition as you are bombarded with the hopes and fears of customers, suppliers, trade, press, employees and family members. Gear up.

Does it sounds like the real work of integration starts right after the announcement?

That is the No.1 mistake of all deals!

Integrating business entities with different processes, goals and unique cultures is difficult and the stakes are high. Once “deal fever” sets in, people become attached to getting it done rather than making it work afterwards.

Top executives are relieved about closing the deal and just don’t have the energy or focus for the most critical element – achieving the revenue and profit targets used to negotiate the terms of the deal. So transition plans must be prepared before the deal closes – afterwards is too late as you risk losing the momentum that you need to drive change.
The No.2 most common mistake is that the focus becomes so inward that customers become an annoyance. When this happens the door gets opened for competitors who will take advantage of the situation.

No.3 on the list is that changes are decided on at the executive level with little or no input from those at lower levels. This is a recipe for disaster as people will not support needed changes if they are not engaged and involved.

And No.4 isn’t a common mistake but a deadly sin called “magical thinking.” Some sellers are naive – they think that someone is going to give them big bags of money, and things will somehow remain the same. You are no longer in control. You do not own the business. You have been well paid.

Everything is about to change - get behind it.

What is the basic framework of an integration plan?

People need a structured and time-bound plan with clarity around goals, responsibilities and expectations. Without one there is typically a high level of chaos, and people become dysfunctional and frustrated.

Each integration plan is unique depending on the nature of the deal and the objectives of the buyer. While one size does not fit all - the cake gets baked in 90 days. Effective plans set goals for 30/60/90 day increments and address people, processes and products. You do not want a protracted “work in process.”

Also remember, the buyer is looking to create value and start recouping their investment as quickly as possible. So there is intense pressure to perform.

Is it different with a private equity group vs. another produce or food business?

Very different. It’s not the intention of a PEG to own a business forever. After a period of time, many will need to cash in and show investors profits. This can happen with an IPO, a strategic sale to a competing company or even to another private equity company. PEGs have seen many businesses and are able to execute different approaches to growth. So their efforts are less “integration” than initiatives that drive short and long-term profitability.

An acquisition by another food or produce business involves a more classic integration. Approaches range from allowing complete autonomy - to combining certain pieces of the business model - to a complete takeover.

As we all know, the secret sauce here is the culture. And while books have been written about culture match or clash, people can sometimes force a deal to fit in the face of extraordinary wealth, ignoring big differences in corporate culture. When this occurs, the integration can still work, but it is a very arduous process.

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In 2017, Julie Krivanek of Krivanek Consulting Inc. in Denver and Steve Grinstead of The Grinstead Group in Dallas partnered to help owners looking to sell their businesses. This is part four of four in a series of stories for produce businesses and their business partners, written by Krivanek and Grinstead.

You have worked so hard to build your company — what’s next?

Fri, 13 Nov 2020 05:28:36 GMT

What has changed in the industry to make this a crossroad to explore taking on an investor or exiting your business?

Produce companies have traditionally been somewhat illiquid due to limited suitors. Today, there is significant interest from financial investors like Private Equity Groups, Family Offices, etc. This financial focus combined with many strategic buyers’ strong desire to grow via acquisition has created a perfect opportunity for maximizing the value for what you have built.

This space has gotten lots of attention lately … what should an owner look for in choosing the right advisor for exploring this opportunity?

In a word — experience.

More specifically, the right experience!

There are many people and firms focused on certain components, but relatively few have the full solution that includes best management practices, strategic planning, financial and deal making expertise combined with vast knowledge of the fresh produce industry. The fresh produce industry is tight knit and confidentiality of information is critical. Finding the right trusted advisors is the key to success in this process.

How did you get the idea for this joint venture?

We have been in the industry for most of our careers and have always had a strong mutual respect for each other. Julie was helping companies improve their strategy for profitable growth and, I was helping companies take on an investor or sell their business. We came up with the idea that if you combined what Julie and I were doing, it could provide a 1+1=3 solution for business owners in our industry.

How would a business owner begin the process of exploring the option of selling part or all of their business?

The first step begins with reaching out to either one of us. It’s a consultative process to help you understand the realistic options that would make the most sense for your particular business. This may include doing nothing, but at least you make a conscious decision to do nothing. If you decide a particular option is right for you, then we develop a road map on how to get there and how to maximize your value proposition.

What about owners who are wondering about the future but need help making their decision?

We’ve designed a proprietary process called The Stress Test that we use to laser in on the strengths of the business, areas of improvement, and a preliminary look at valuation. We visit the company on site for a full day analysis – report card and assessment of whether we’re the right solution for the owner.

Many business owners long-term strategy is one of succession planning, is this still a good strategy?

Succession can be a strategy for some family businesses. In the past, most produce companies provided great lifestyles but did not have much market value. They were fairly easy to pass down from generation to generation. Today, many of these companies are quite valuable, and it takes calculated legal, financial and tax preparations to make it happen. It’s a complicated endeavor, and still doesn’t address the question: Is it the right decision from a leadership perspective?”

Finally, in this first part of the series, what relevant experience do the two of you bring to the industry and to your clients?

Julie — I began my career in a Fortune 10 energy company eventually rising to a Vice President position. My experience includes planning, strategy and membership on the mergers and acquisitions team - from sitting at the negotiating table through the integration after closing. After 15 years in the publicly traded arena, I launched Krivanek Consulting, now in its 28th year specializing in the produce industry. I’ve created strategy plans and strengthened the management processes and for over a dozen global businesses that went on to sell and start new growth paths for the future.

Steve — Of my 44 year career in the fresh food industry, the last 28 years were spent in C-suite positions. Much of that time identifying, negotiating, closing, and successfully integrating several dozen acquisitions of privately held fresh food companies. For the last several years, I have been very involved in the Private Equity, Family Office and Investment Banking arena and have developed strong relationships with many investment groups as well as excellent relationships with many potential strategic suitors.

In 2017, Julie Krivanek of Krivanek Consulting Inc. in Denver and Steve Grinstead of The Grinstead Group in Dallas partnered to help owners looking to sell their businesses.

This is part one of four in a series of stories for produce businesses and their business partners, written by Krivanek and Grinstead.

Cauliflower top winner in per capita vegetable gains for 2017

Fri, 13 Nov 2020 05:21:28 GMT

Having taken a quick look this morning at the recently updated per capita numbers for fresh vegetables, I am here to tell you the winners and losers.

At least according to the U.S. Department of Agriculture’s Economic Research Service , that is.

Winners:

Cauliflower; rice, rice baby! Per capita consumption of fresh cauliflower is estimated at 2.18 pounds in 2017, up 38% from 1.57 pounds in 2016 and up 63% from 1.33 pounds in 2010.

Over the past five years, Google Trends reports peak search activity for cauliflower occurred in late January this year, with top related searches listed as:

skinnytaste cauliflower rice
keto cauliflower pizza crust
cauliflower mac and cheese keto
cauliflower fried rice tasty
how to cook riced cauliflower

Onions! Feel the heat. The USDA reports fresh onion per capita consumption is 21.19 pounds in 2017, up 15% from 18.98 pounds in 2016 and up 12% from 19.58 in 2010.

Over the past five years, Google Trends shows the top search activity for onions occurred late November 2017.

Top related searches for onions in the U.S. in the past year were:

no crumbs left marinated onions
are cooked onions bad for dogs
pee smells like onions
onions and bacteria
instant pot caramelized onions.

Fresh sweet corn. How sweet it is! Per capita availability of fresh sweet corn was 7.52 pounds in 2017, up 5% from 7.19 pounds in 2016 but down 19% from 9.25 pounds in 2010. Top Google Trends related searches were for:

sweet corn festival 2017
sweet corn festival 2016
sweet corn festival 2015
sweet corn cobette
Millersport sweet corn festival 2014

Other fresh vegetables with per capita gains in 2017 included:

Bell peppers. 11.39 pounds in 2017, up 3% from 2016 and 10% up from 2010;
Asparagus, 1.58 pounds, up 2% from 2016 and up 1% from 2010 and
Fresh cabbage, 5.98 pounds, up 2% from 2016 but down 20% from 2010.

I’ll go over some of the per capita vegetable laggards of 2017 in a coming blog post....

You need to invest in your business before looking for a buyer

Fri, 13 Nov 2020 05:29:11 GMT

Business owners in the produce industry face a convergence of factors that make this a unique time to exit their business. For some it’s age and energy. Others lack interested family members or prepared successors. And some simply do not have the capitol to invest in the improvements needed to stay relevant or competitive.

Economic conditions have also never been better, and we’ve read with great interest about the merger and acquisition activity in our industry and others.

So we scratch our heads with dollar signs in our eyes wondering …. Is it time to cash out?

How do business owners even begin to grapple with their decision?

During my first executive career, I worked with Stephen Covey, author of The Seven Habits of Highly Effective People. His second principle, Begin with the End in Mind, tells people to think about their ideal future so they can work and plan toward it.

Easy right? Not so fast.

In a recent survey of private business owners considering an exit strategy, many reported being stuck. Here’s why:

● 27% said their retirement and estate plans were non existent or out of date
● 35% said they had partnership or family issues
● 38% said the business was not ready

Years ago, many entrepreneurs had an aggressive and clear entrance strategy but are now in unchartered territory thinking about an exit strategy. So they worry, procrastinate, ignore Father Time or cross their fingers hoping for an offer they just can’t refuse.

In other words – they stay stuck.

Let’s say the business owner wants to exit – what are their options?

In very basic terms, there are three avenues for exit: 1) family or employee succession 2) sale to a private equity group 3) sale to another produce or food company wishing to advance its own strategic position.

But if the business is not prepared and positioned, the owner may be facing option No.4 – fire sale.

How does someone prepare to get the most value out of the their company – can’t they just put it up for sale?

The best analogy is one that most of us have experienced – selling a house. A house with an outdated kitchen and bathrooms can still be sold, but the offers will be lower and reflect the investment the buyer will need to bring it up to date.

And what if there’s water damage in the basement and hail damage on the roof? Again, the offer price will take into consideration the cost of making these repairs.

Business owners in the best position have continually invested in the business – whether in operations, people, technology, new products, culture or the customer experience. Not investing in the business but expecting a huge return at the end just doesn’t happen.

You should also develop a confidential strategic plan to sell if that is the option that you choose. Leaks of information can be damaging to your company’s employees, customers, and suppliers if it gets out before you are prepared.

Besides keeping a business updated, are there any business practices that add value?

The presence or absence of best business practices and fundamentals also impact whether an investor looks at your company as an opportunity or a fixer upper. During the time-frame before a potential transaction, I look at any gaps that can be closed in the leadership team, company culture, financial performance, sales and customer growth plans, new product development, annual budgets, performance metrics, etc.

So many owners just focus on the EBITDA (earnings before interest, taxes, depreciation and amortization) multiple rumor du jour — not realizing it’s the whole package that impacts value and return. Having best business practices and taking the time to strengthen them where needed will add value.

Let’s say a company has a strong business practice foundation – is that enough to create a good financial return for an owner?

Again, we are talking about how to create maximum return. The time-tested vehicle to take a business beyond basics is a Strategic Plan. In simple terms, a Strategic Plan is an articulation of the future and specific actions needed to get there. Don’t get lost in consultant jargon or approach – what you’re looking for is whether the sustained profitable growth path of the business is clearly defined, successfully executed and shared with everyone in the company.

The catalyst for growth is created with a proprietary model I built for the industry that aligns best practices with the strategic plan direction and integrates it into the everyday work and focus of the entire organization.

If an organization does not take the time and devote the resources to define and build something exciting for tomorrow, it is just running a day-to-day transactional business – with nothing more in sight. Would you want to buy a company with no future?

What final thoughts would you like to share with owners who find themselves at the crossroad of the future?

You gave birth to the first version of your business, and now it’s time to usher in the next one. The possibilities for owners, employees and customers are exciting and endless - but realize that it’s not going to happen without the best management practices aligned with a strategic plan.

In 2017, Julie Krivanek of Krivanek Consulting Inc. in Denver and Steve Grinstead of The Grinstead Group in Dallas partnered to help owners looking to sell their businesses.
This is part two of four in a series of stories for produce businesses and their business partners, written by Krivanek and Grinstead.

Know what your post-sale future will look like

Fri, 13 Nov 2020 05:29:42 GMT

Once the management practices and strategic plan is solid, and you have positioned the business to move forward with a liquidity event, what are the next steps?

We continue the consultative process with the ownership group to clearly understand their goals from a transaction.

There are numerous variations to each of these, but the following are the basic options:
● Strategic Buyer - These are industry players that have a strategic reason for acquiring your business. They typically are interested in buying 100% of your business, but some will take a minority or slight majority position with the rights to purchase more of the company at a later date. Pro - This type of deal allows you to be part of something on a scale that you never even imagined. Con - Typically, you lose much or all of your companies identity in this type of deal.

● Financial Buyer - These potential suitors are Private Equity Groups, Family Offices, etc., that may or may not have any other businesses in our industry. They will sometimes take a minority position in the company but are typically interested in a majority position and sometimes 100% of the company. The most common model being used today is for them to take a strong majority position in the company but look for the previous owner to retain about 20% of the business. Pro - This model provides the primary owner(s) with a liquidity event with the next generation or management team having a vested interest in the future success of the company, but with a strong partner from both financial and resource perspectives. Con - Financial groups have a less personal decision making process that isn’t typically found in the private ownership environment. This often becomes a pro but the change can be painful for an organization.

There are many Pro’s and Con’s to each option, and it’s important for the ownership group to understand these relative to their own personal objectives.

What are the most important things for ownership to consider when making their decision on these options?

Sellers and buyers should clearly know the opportunity points which may include:
● Shared resources
● Expanding market share or brand
● Enhancing functional and leadership capabilities
● New capital to invest in expansion and growth
● Competitive advantage
● Enhancing the customer and consumer experience and reach new ones
● Expanding into new domestic and/or global market channels
● New product growth

The culture and behaviors of an acquirer are also critical to consider. It’s imperative that you know what you are signing up for, and what the post closing future will look like. Successful businesses in our industry are all about the people. Cultural and behavioral differences are often the culprit of unsuccessful deals.

Overall, business fit and strategy drive deals, but the alignment of culture, people, and core values get you to the finish line and help indicate future success for all parties going forward.

This can be a difficult and emotional process to go through, so here’s our advice to clients: This will be one of the most emotional experiences in your professional life, and usually will happen just once. There are many complexities, frustrations and a personal investment during the negotiation, due diligence, closing, and post-transaction. It will be an emotional roller coaster as you work through the process, but experienced advisors can help you prepare and navigate these unchartered waters to your benefit.

Many people ask us how long the deal process typically takes. The length of time varies, heavily depending on the focus and sophistication of both sides, but once the value enhancing process is completed, a deal typically takes 120 to 180 days to complete from start to finish.

It is important to think about the closing of a deal as a new beginning versus an end. Typically, you are going to have a vested interest going forward for some period of time.

It’s great to take some chips off the table, but this new beginning can be fun and a breath of fresh air when approached correctly. Having been a part of dozens of deals, our experience can successfully guide you through an earn-out, or with your next bite at the apple depending on the type of transaction you choose.

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In 2017, Julie Krivanek of Krivanek Consulting Inc. in Denver and Steve Grinstead of The Grinstead Group in Dallas partnered to help owners looking to sell their businesses.
This is part three of four in a series of stories for produce businesses and their business partners, written by Krivanek and Grinstead.

Make SNAP healthy (for the first time)

Fri, 13 Nov 2020 05:26:01 GMT

Make America’s Food Stamps Healthy .

No, it is not as catchy as “Make America Great Again” but a new poll by the vegan diet-promoting Physicians Committee found public support for “focusing on healthful foods” in the SNAP program.

Congress is engaged in the farm bill debate and GOP provisions to up SNAP work requirements are some of the friction points that could stall progress. Sweeping changes to what foods are eligible for purchase in SNAP seems flatly impossible, but the topic makes for interesting discussion.

The poll, according to a news release, finds 80% agree that SNAP should emphasize foods such as vegetables, fruits, beans, and grains that prevent diabetes and other diet-related diseases. The poll of U.S. adults was completed by Lincoln Park Strategies, according to the release.

The group said 80% of those polled support a proposal to improve the health of SNAP participants by focusing on healthful dietary staples like fruits, vegetables, beans, and grains “instead” of soda, chips, meat, cheese, and energy drinks.

Proposed legislation that would give SNAP participants a higher benefit for purchases of fruits and vegetables gets support from 78% of respondents, according to the poll.

Earlier this year, U.S. Representative Matt Cartwright, D-Pa., introduced the SNAP Healthy Incentives Act . That legislation would create financial incentives for people on food stamps to purchase fruits and vegetables.

Likewise, the Physicians Committee noted that the American Medical Association recently passed a resolution requesting that “the federal government support SNAP initiatives to (a) incentivize healthful foods and disincentivize or eliminate unhealthful foods and (b) harmonize SNAP food offerings with those of WIC.”

The Physicians Committee believes in both the carrot and the stick. On the group’s website , there is a story about the Republican Study Committee . That group of more than 150 House Republicans, has introduced its budget resolution for fiscal year 2019, which includes a proposal that would require states to restrict Supplemental Nutrition Assistance Program purchases to healthy foods.

“More than 150 members of Congress are essentially recommending that SNAP incorporate the Physicians Committee’s Healthy Staples plan to provide participants more fruits, vegetables, grains, and legumes,” Physicians Committee president Neal Barnard said in the release. “We applaud Republican Study Committee members and Republican Study Committee Chairman Rep. Mark Walker for including this critical nonpartisan reform in their budget resolution.”

Healthy Staples, according to the group, is “inspired” by the USDA’s Women, Infants and Children program, which is based on the use of approved foods packages.

Certainly limiting SNAP benefits to healthy foods alone would play to the strengths of the fresh produce industry, but a safer play and a simpler game plan for industry lobbyists is to push for greater incentives for fruit and vegetable purchases in the SNAP program.

Oxpeckers And Zebras

Fri, 13 Nov 2020 05:50:39 GMT

There are dozens of instances where smaller animals coexist with much larger animals. African oxpeckers, for example, feed on the backs of zebras, elephants, hippopotamuses and other large African animals, according to Cosmos magazine. The relationship isn’t all symbiotic, as the Oxpeckers are actually vampire birds that do eat ticks, but then suck the blood out of open-tick wounds.

Over the past several weeks I’ve sat in on presentations by a number of small, startup companies that produce and market alternative food products. One product was produced from grass-fed Guernseys. Another yogurt was made from family-owned organic dairies in Oregon.

One of the more interesting presentations came from Miyoko Schinner, CEO and founder of Miyoko’s, a company that makes vegan cheeses. We decided to interview Schinner and provide her remarks for everyone to see. You can read her comments here .

As you read the story, you may feel your heartbeat accelerate, your face get red and an anger well up inside you, because she says things that drive dairy people nuts. The fact that she calls her vegan products cheese, for example, even though there’s no dairy in them. Or that they milk cashews. Or that she calls our current methods of food production unsustainable.

One might ask why in the world we decided to print such false information. Good question.

A colleague once told me that it is important to keep your friends close and your enemies closer. I think what he meant was we need to know as much as possible about those who have opposing views so we can see things from their viewpoint, and thereby learn in the process.

I’m not calling Schinner and her company enemies, by any means. I think they are more like the oxpecker, living off of the much larger dairy industry. Had the dairy industry not laid the brand development groundwork for things like artisan cheese and yogurt it would be hard to imagine that Schinner’s product or other products in that category would be successful.

That being said, I would assume that the larger dairy industry derives at least some benefit from these smaller, niche market products. If someone is eating yogurt because it comes from milk from grass-fed, locally owned Guernseys, at least they are eating dairy products. And maybe if someone eats a vegan cheese that tastes like high-end cheddar, they will at least appreciate what full-fledged cheddar tastes like.

Even though the dairy industry is huge and these startups are very small in comparison, it does accentuate the fact that a considerable effort needs to be made to educate consumers about modern agricultural practices. Swisslane Farms has developed a Dairy Discovery center to educate kids and their parents about life on a dairy. It’s also comforting to have experts like those at the National Dairy Council to make sure dairy is prominent in dairy nutrition guidelines.

While I appreciate that these small companies are trying to carve out a niche for themselves, I could do without the disparaging remarks these companies make against modern production agriculture. They’re playing on uneducated consumer emotions to gain differentiation, and that’s not right. After all, you’d never hear the oxpecker say a disparaging word about a zebra.

What do you think? Should dairy alternative companies be allowed to market their products as dairy? Send me your comments at mopperman@farmjournal.com