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Abstract
Structural changes in the dairy industry such as the adoption of Total Mixed Rations in
place of manufactured complete feeds and declines in milk production in the areas
served by locals are bringing these cooperatives to a crossroads where they must
decide who will be their core customer. The ramifications of this choice are increased
through market segmentation which enables cooperatives to more precisely meet the
needs of producer-members but simultaneously increases diversity among members
and, potentially, among locals themselves. Survey results from 247 locals indicated
small producers (cl00 cows) made up 80 percent of their clientele. The production
practices of these producers appeared to lag significantly behind the innovators and
large producers (>l 00 cows) observed by locals as well as the small producers studied
on a nationwide basis by USDA’s National Animal Health Monitoring System. To
survive themselves, locals will need to take a more aggressive and informed approach
to sustaining small producers.