Franklin County Faces Dairy Industry Turmoil and Economic Shifts

Franklin County, Vermont, faces significant economic shifts as traditional industries like manufacturing, tourism, and agriculture confront new challenges. The dairy sector, a cornerstone of the local economy, is particularly vulnerable due to national and international trade disputes and cost-cutting measures. In late August, trade negotiations between the U.S. and Canada collapsed, leading to a 50% tariff on Canadian goods and a reciprocal tariff on U.S. goods. These tensions, along with the potential threat of energy supply cuts from Canada, could severely impact Vermont’s dairy farmers, who rely heavily on Canadian electricity.

The Dairy Farmers of America (DFA) co-op plant in St. Albans is set to close pending litigation and union negotiations, a move that could leave 80 workers unemployed. Tim Smith, executive director of the Franklin County Industrial Development Corp, noted that Vermont has lagged behind neighboring states in supporting the dairy industry, making recovery difficult. The closure of the DFA plant will force local farmers to pay more for milk transportation, adding to their financial strain.

Meanwhile, New York is expanding its dairy production with Chobani’s $1.2 billion facility in Rome, which will create over 1,000 jobs. In contrast, Vermont’s dairy industry struggles with regulatory challenges and environmental issues, as highlighted by St. Albans Mayor Trudy Cioffi. She expressed disappointment in DFA’s decision to leave, citing ongoing efforts to mitigate odor problems at the plant. Vermont Senators Bernie Sanders and Peter Welch have urged DFA to reverse its decision, calling it a potential act of union-busting and illegal retaliation.

Adding to the economic turmoil, the Franklin Foods cream cheese plant in Enosburg Falls closed earlier this summer, displacing 100 workers. Local industry veteran John Ovitt has taken over the facility, relaunching it as Franklin County Cheese with a lean team of 20 workers. The new company will focus on producing specialized dairy ingredients, preserving some of the region’s dairy production capabilities.