Dairy plants on the decline

The closure of the yogurt plant in North Lawrence and the presumed demise of the kosher cheese plant in Ogdensburg leave one large-scale dairy manufacturer left in St. Lawrence County.

St. Lawrence, Lewis and Jefferson counties are collectively the state's largest dairy producers, but milk manufacturing has been in slow decline for years. Among those left standing are McCadam Cheese in Chateaugay, Great Lakes Cheese in Adams, Crowley Foods in LaFargeville and Kraft Foods in Lowville.

The state Department of Agriculture & Markets has suspended operations temporarily at Tubroville in New Bremen for possible safety violations. Its sister plant, Tubroburg, Ogdensburg, which has struggled for years to stay afloat, halted operations a few weeks earlier after National Grid cut off its electricity for nonpayment.

In St. Lawrence County, that leaves Losurdo Foods, Heuvelton, which moved its production of hard cheese several years ago to Vermont. The Heuvelton plant continues to make ricotta, fresh mozzarella and curd, but it also was harmed by the closing of North Lawrence Dairy, which disposed of Losurdo's whey, a byproduct of cheese-making, in its biodigester.

"Now, they've got to find a way to deal with that whey," Farm Bureau President Jon R. Greenwood said. "Land spreading is not a good option."

While a few smaller artisanal cheese-makers carve out niche markets, gone are the days of a cheese factory on every rural corner.

PROXIMITY A PROBLEM

The reasons behind the decline of dairy manufacturing in the north country have as much to do with individual company decisions as any overall trend.

"It does seem that manufacturing is consolidating. As they consolidate, they're doing it closer to metropolitan areas, which is where their markets are," said Darrel J. Aubertine, acting commissioner of the state Department of Agriculture & Markets. "It's really difficult to put your finger on any one reason. All too often, the rationale for doing it is made somewhere else."

Global competition in dairy is fierce, said Judith A. Aldrich, a legislative aide for Assemblywoman Addie J. Russell, D-Theresa.

"That's accelerated in today's economy," she said. "This country hasn't invested in selling its products like other countries do. It becomes very difficult to navigate the food market."

Manufacturers have little problem moving away from where their raw material — milk — is produced because farmers pay the shipping to the plant. At the same time, the north country's transportation system is lacking in interstate and rail connections for manufacturers to ship goods in and their product out.

"The farms are left because we can't pack up and move," Mr. Greenwood said. "We're producing raw product to be manufactured elsewhere. It's like timber or anything else. If we want all the benefits, we're not getting that."

The end result is that the region does not enjoy the value added to a raw material when it is made into something else.

"We sell cheap and buy back at a premium," Cornell Cooperative Extension agent Brent A. Buchanan said. "We need a paradigm shift, a way to create jobs along every rung of the ladder."

Keeping what manufacturing is left and attracting others would take effort.

"We haven't developed an agricultural park like an industrial park that would cater to the needs of agriculture," Ms. Aldrich said. "Once you're off the interstate, it costs more to get anything delivered. I don't think anybody's even thought of shipping out of the ports."

If manufacturers paid for the shipping of milk, they might find it handier to locate closer to the raw product.

"There ought to be somewhere in the chain of events where there is a line of demarcation where ownership changes hands. If milk is commingled on a truck, it would seem that's where the processing starts," Mr. Aubertine said. "Wherever it is, there should be a place where you point to. From that point forward, then the logic falls pretty quickly on who would pay the hauling."

THE POLITICS OF BUSINESS

Officials should not be too eager to make business unhappier than it is, St. Lawrence University economics professor Brian E. Chezum said.

"The question people need to ask is why are similar areas successful in keeping manufacturing and New York is not. This isn't just a St. Lawrence County problem," he said. "It's the regulatory environment. A lot of states have rules. Here there are multiple enforcers, which makes it more difficult."

The state is moving in the right direction under Gov. Andrew M. Cuomo, Mr. Aubertine said.

"They're taking a look legislatively to help not only cheese plants but all small businesses," he said. "Gov. Cuomo has talked about regulatory reform. I think the administration is on the right track to lower the cost of doing business in the state."

Officials are hopeful a buyer is found soon for North Lawrence Dairy so that its closure is short-term.

Expansion of service by St. Lawrence Gas to the plant will make it less expensive to run.

"I think the North Lawrence plant obviously had had a great deal of upgrades and increased their efficiencies," Ms. Aldrich said. "That plant has the potential to be marketed for soft products. It's finding either a niche that somebody isn't filling or a company that wants to make its presence known.