They didn't know the secret sauce, but said they are able to negotiate better prices with the creameries due to their volume, and they use their own milk hauling trucks. It's also an open secret all their regular farmworkers are illegal aliens (i.e. cheap labor).
With their volume I believe they're also able to pay better rates for other contracted work like feed harvesting, fertilization, etc. as well. But I don't fully comprehend it myself.
How do they keep an arm's length away from that hot potato? Contracted through a temp worker agency?
I know this because I married the daughter of the (Mexican) guy who started the Mexican immigrant labor pipeline at that CAFO, when they first were starting to get big and transitioning to large milking parlors.
AFAIK unless something has changed in the past few years, it is worse than that. It is illegal for employers to challenge documention that is at surface level in order. Source: a friend that is a resturant owner told me that if a dishwasher applied for a job using suspicious but superficially consistent documents with all the blanks filled in, he could be penalized for asking for further proof. He knew he had illegals working for him, but had a file drawer full of correct documentation in case the INS came calling.
Ya think? :) Of course he knows, everyone knows. Even La Migra knows. Who is going to wash dishes for $x an hour and not complain? In US that's slave wages. So every once and a while they do a little raid here and there but otherwise close both eyes and ears. Good for them, good for USA.
https://www.greenindustrypros.com/business/article/12121235/...
Of course outside of the 19 states where eVerify is required, you’re hurting your bottom line by opting into the program. Not only are you shrinking your labor pool but you have to go through extra steps even to hire a legal worker.
And some unfortunate American can't finish their taxes because they end up with an extra W-2 they don't claim, because they didn't earn the money. Or when they go to claim SS benefits and the Social Security office notices that 25 people have been using their number and that they need to produce the last 40 years of their work and pay history to quickly resolve the matter. More victim less crimes.
It used to be that they would migrate seasonally and go back home during the off season. But since the 1980s it has gotten increasingly expensive to cross the border, which means that migrant workers must stay in the US longer to pay for the crossing, which means that during the off-season those migrants find other jobs (in factories, restaurants, as janitors, gardening, ....) which they then keep instead of going back to agricultural work the next season. Agriculture then needs to recruit a fresh batch of immigrant workers every season.
Ironically, making the border harder to cross thus works as a kind of ratchet which prevents seasonal workers from moving back and forth, and ends up increasing the total number of undocumented immigrants in the country.
https://www.dairyherd.com/article/dozens-more-farmers-lose-m...
https://www.nbcnews.com/news/amp/ncna887941
It works for large scale operations, because they can use milk as a loss leader. That means they can squeeze producers for the lowest price possible, rendering margins so thin that you basically have to be a hyperoptimized producer to even be able to compete.
It's an example of large businesses creating value deserts, and unfortunately, the political/economic climate hasn't been terribly up to the task of doing anything to slow or stop it.
A value desert is the situation created where an actor corners and optimizes so much of an industry such that meaningful competition in that vertical becomes dead from the start. This puts the actor in an advantageous position since there is no rational reason to disrupt that vertical, which makes it easier to coast along as a major player.
Google/Alphabet has been used as an example of the phenomenon with regards to the digital advertising market. Wish I could find the citation, but I think I first heard of it from an NPR spot.