Letter to Shane Grant, Chief Executive Officer of Danone - As Upstate Ny Organic Dairy Farmers Continue to Recover from Pandemic, Schumer Fights for Answers on Terminated Danone Contracts; With Impacted Farms Left Searching for Answers, Senator Calls on Danone for Explanation and Aid for Impacted New York Organic Dairy Farms

Letter

Dear Mr. Grant,

I write to inquire about Danone's recent decision to terminate a reported eighty-nine contracts with organic dairy farms in the Northeast. According to the Albany Times Union report from September 17, 2021, more than half of the farms impacted --forty-six--are located in Upstate New York, including seventeen in just Washington County -- nearly 20% of the county's farms. Considering the significant impact to Upstate New York farms, communities, and local economies, most in the North Country region, I ask that you provide some detailed information regarding Danone's recent decision to terminate the contracts, how this decision was reached, the projected timeline, and what communication and resources have been and will be provided to the impacted farms across the state.

With Danone North America located in White Plains, New York, I'm confident that Danone is aware that New York's organic dairies produce some of the best organic dairy products in the nation and our dairy farmers are a vital part of our state's culture and economy. As of 2019, New York had approximately 600 organic dairy farms which produced more than 386 million pounds of milk and represented about $121 million in sales. Many of the New York organic farms Danone contracted with made the transition to organic farming specifically to work with Danone in order to secure a reliable and sustainable income source and become more environmentally-conscious to combat the ever-growing challenges presented by climate change. Losing contracts with Danone will create additional hardships for our organic dairy farmers, many of whom are still struggling to recover from the supply chain disruptions, shifts in consumer demands, and other economic hardships exacerbated by the global health and economic crises of the past year.

I seek to gain clarity regarding Danone's recent decision. Your replies to the following question would be deeply appreciated:

Can you please confirm the number of New York farms that have been notified of contract termination and their locations across the state?
What is the timeline and process for termination?
Can you explain why the contracts were terminated and what process Danone underwent to come to this decision?
What services, opportunities, and/or relief will be provided to the impacted farms and farmers?
What aid, if any, will Danone be giving to the impacted farms to gain employment or contracts elsewhere?
Once these contracts are complete, how many farms in New York State will Danone be working with and what is the average herd size at those farms?
As you may know, the United States Department of Agriculture (USDA) recently reopened their comment period regarding the Origin of Livestock rule. Currently, the statute is somewhat vague and has created an unequal playing field for organic producers in New York. What, if any, role did the USDA's Origin of Livestock rule play in this decision?
In New York our organic dairy farms are sewn into the very fabric of Upstate New York. It is critical that these organic dairy farms receive the support they need to remain in operation and the information necessary to map out their futures.

Thank you for your attention to this important matter. I look forward to receiving your response.

Sincerely,

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