Stonyfield Farm CEO touts sustainable business
Gary Hirchberg might have lost out on in his bid to become the executive director of Maine Audubon back in 1992, but he bears no grudge. In fact, the loss helped propel him to his next venture, leading to his current position as CEO of Stonyfield Farm, a $365 million company and the biggest organic yogurt manufacturer in the country.
Hirshberg was the keynote speaker at a gathering at Audubon's Gilsland Farm Center in Falmouth to thank its corporate partners, a new alliance between the environmental group and 63 private sector partners that has provided $116,000 in support in its second year. His speech, titled "Green Business: The Next Frontier," outlined the success his company has had embracing a sustainable model and how it can work for others.
"Corporate partnerships with NGOs is the only real hope for this world," says Hirshberg, who has family roots in Lewiston-Auburn's shoe industry.
When he started Stonyfield, Hirshberg says he had a simple goal: "to see if business could be part of the solution rather than contributing to the problem."
Today he knows the answer is a resounding yes, as his company has sustained a 23% annual compounded rate of growth, while pursuing even more efficiencies to reduce waste. The company recently announced a yogurt container made entirely of plant materials that lowers its carbon footprint by 48%.
"It's cost neutral to us but profitable," he says. "You can do the right thing ecologically and make more money."
Central to Stonyfield's business philosophy is supporting its suppliers -- organic dairy farmers -- rather than looking for looking for the cheapest source commodities possible. The company offers a business assistance program and loans to help conventional dairy farms convert to organic, an agricultural sector that has strong growth opportunities, says Hirshberg. As more consumers realize organic products are better for their health and better for the environment, their sales will increase.
In fact, Hirshberg was sitting with the Secretary of Agriculture recently and colleagues from Whole Foods and Organic Valley. Combined, the businesses represented more than $13 billion in revenue. That gives them clout to take on huge agribusiness conglomerates in battles in grocery aisles and political arenas.
"Monsanto spent $28 million on lobbying alone in Washington, D.C., since Obama's election," says Hirshberg, referring to the Missouri-based agricultural biotech company that leads production in genetically engineered seed. "They only want to preserve the status quo."
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