By cutting out the middle man, Smiling Hill Farm may be dodging some of the crashing milk market’s bullets. But in the end, the Westbrook farm, which bottles its own milk, will face the same hurdles.
“We’re not immune to the undulations in the economics of the dairy industry,” said Warren Knight, spokesman for his family’s farm.
The decrease in demand for milk hasn’t directly affected Smiling Hill Farm, like it has other farms in the area that sell their milk to be processed by large dairies. However, according to Knight, eventually the price of milk at the store will go down, which means Smiling Hill will have to drop its prices, too.
When that does happen, he said, “we’re going to be affected like everybody else.”
“We don’t want to be the most expensive product on the shelf,” Knight said. “We have to remain competitive. In order to survive, we have to lower our price.”
The farm sells its glass-bottled milk, which is available in several flavors, at its own store and wholesale to chains like Hannaford and Whole Foods. At Hannaford, a half gallon of Smiling Hill Farm whole milk goes for $2.59, not including the $2 bottle deposit. The same size of Oakhurst milk costs $2.33 and Hannaford brand is $1.98.
Knight said the farm, which has been in operation since the 1700s, hasn’t experienced a decrease in demand for its milk.
“Its one of these products that people buy and will continue to buy,” he said.
However, sales for other dairy products that may not be considered as essential to people’s diets, like cheese and ice cream, have dropped, Knight said.
“The economy is what it is,” he said, and the farm has taken some steps to make up for the losses they’ve seen and the ones that are expected to come.
“There’s an overall awareness that every penny counts,” he said. “The family has taken a hit. I’m not getting paid what I did last year or the year before.”
Knight said they’ve kept a close eye on fuel and electricity expenses and have opted to patch up old equipment when it’s failed, rather than buy new pieces.
Currently, the Knights have no plans to reduce their herd of about 100 cows, but that’s something they will have to look at “if things get really bad,” he said.
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