Traditions run 100-years deep at
Tillamook County Creamery
By Anne Todd
USDA Rural Development
he two photos were
taken 93 years apart.
But the grainy, blackand-
white photo taken
on the Hurliman dairy
farm in 1915 and the color digital photo
snapped at the same location in 2008
tell a story of an unbroken chain of
traditional, pasture-based dairy farming
and cooperation among producers in
the Tillamook Valley of northwestern
Oregon.
For 100 years now, the story of dairy
farming in this beautiful slice of coastal
Oregon has been the story of the
Tillamook County Creamery
Association (TCCA), a dairy
cooperative that is celebrating its
centennial anniversary all year long.
The technology in the milking parlor
may have changed greatly over the
years, but it all still boils down to dairy
farmers who know their craft and
maintain well-cared-for dairy herds that
produce high-quality milk, then
processing it into a line of awardwinning
cheeses sold under the farmers’
own brand.
Nick Hurliman’s family has a
relationship with TCCA that stretches
back four generations, almost to the
very beginning of the cooperative. In
1915, Hurliman’s great-grandfather and
his two sons bought their dairy farm in
Woods, on the northern coast of
Oregon, about a mile from the Pacific
shore and 20 miles south of Tillamook.
TCCA was formed in 1909, just six
years before the Hurlimans started their
farm. At the time, many small,
independent cheese plants dotted the
county. Ten of these independent
cheese producers founded TCCA,
deciding to join forces in a farmerowned
cooperative that could control
cheese quality.
Another goal of the new co-op was
to market cheese as a product coming
from the county itself, instead of one
coming from the various individual
plants.
The Hurlimans’ farm is pasturebased,
as are most of the co-op’s dairy
farms. Cows graze outside and are
milked twice daily. The family milks
about 80 to 85 cows, mostly Holsteins,
and has 120 acres of bottomland, 90
acres of hill land and rents 80 acres
from neighbors.
Like other dairymen across the
country, Tillamook farmers have been
affected by the steep drop in milk prices
this year and the overall economic
downturn. “Obviously, we’re not
making as much as we have in past
years,” Hurliman remarks. “But we live
conservatively and we’ll get through it.
Farming has always been an up-anddown
occupation.”
Early days of co-op
The TCCA story begins in the
1850s, when the first settlers arrived
and began establishing farms. But it
took a giant leap forward in 1894, when
a successful dairy entrepreneur named
T. S. Townsend started the first
commercial cheese plant in Tillamook.
He took 30 orders for cows from local
farmers, then went to Portland, Ore., to
purchase the cows and equipment he
would need to start a milk pool and run
a cheese plant. He also hired Canadian
cheesemaker Peter McIntosh, who was
experienced with the cheddaring
process and brought a recipe for
cheddar cheese with him.
By 1909, when the TCCA
cooperative was launched, Tillamook
County was already well known for its
cheese. Although Townsend was the
first in the county to establish a
commercial cheese plant, other
organized, commercial cheesemakers
settled there too. By 1904,
cheesemaking in Tillamook County had
advanced in quality to the extent that a
cheese from Tillamook County won
first place at that year’s St. Louis
World’s Fair.
In the late 1940s, four of the larger
independent plants in the county
merged. In partnership with TCCA,
they built a large, centrally located
plant north of the town of Tillamook.
This plant is still part of the TCCA
facility today.
By 1968, all of the smaller local
cheese plants in the county had merged
and consolidated their operations under
TCCA and had moved their cheese
production to TCCA’s central plant.
This marked the beginning of the
cooperative’s operations as a single unit
with all of the smaller plants unified as
one organization.
Hurliman’s grandfather, father and
younger brother have all served on the
Tillamook board of directors at various
times in the past. Hurliman, an avid
outdoorsman, attends all member
meetings and says he feels that his voice
is heard on important issues. “We get
very good communication from
Tillamook. They have a really good
management team,” he says.
Marking the anniversary
Little did the 10 producers who
banded together in 1909 to protect the
quality of their Tillamook cheese know
that they were creating a cooperative
and product that would grow over the
years into an award-winning, nationally
recognized brand.
TCCA has scheduled events
throughout the year to mark the
centennial. The co-op launched a new
website, TillamookFanClub.com, that is
an on-line resource center and
community for fans of Tillamook
products. They also launched an online
store that offers cheese, Tillamook
apparel and other gifts. It is also
offering a special limited-edition
anniversary cheese.
“The name Tillamook is pretty
famous,” says Hurliman. “I feel
privileged to belong with Tillamook.
It’s farmer-owned, dependable and gives
us good prices.”
Today, the TCCA cooperative is
owned and operated by 110 family dairy
farmers living in the Tillamook region,
such as the Hurlimans, who work the
land, milk the cows and set the policies
and direction. Profits from the
cooperative go back to the farmerowners
to help them keep their dairies
economically sustainable.
In addition to its premiere cheeses —
including several varieties of cheddar,
mozzarella, colby, flavored cheeses,
Monterey jack, pepper jack and colby
jack cheese — TCCA has expanded its
dairy offerings to include ice cream,
butter, sour cream and yogurt.
Tillamook cheese is available in
groceries throughout the United States,
but availability of other products
currently is mostly limited to the
western states.
Significant plant improvements were
made in the 1990s, including the
addition in 1990 of a new cheesemaking
room and the transition to a new, fully
automated cheddaring system known as
the “Cheddarmaster,” a stainless-steel
piece of equipment that drains the whey
from the curd and aids in the
cheddaring process.
State-of-the-art visitors center
Tillamook is also home to the
Tillamook Cheese Factory’s Visitors
Center, the most visited tourist
attraction on the Oregon Coast,
according to the Tillamook Area
Chamber of Commerce. It started in
the 1950s when the co-op added a small
cheese shop for visitors at the plant.
In 1979, TCCA opened an expanded
Visitors Center for the public, which
provides an observation area, an
educational slide show, a museum, deli
and fudge counters, and an ice creamdipping
counter.
The Visitors Center accommodates
nearly 1 million tourists each year.
TCCA’s farmers strive to produce
the highest quality milk possible. In
order to achieve this, they must meet
many rigorous quality requirements set
by their co-op. One major factor that
has led to the co-op’s success in meeting
this objective is its focus on animal care.
All Tillamook cheese and other dairy
products are produced with milk from
cows that are not supplemented with
artificial growth hormones (rBST).
In keeping with Tillamook’s guiding
principles, Hurliman considers himself
a good steward of the environment.
“Lately, farmers have been ‘branded’ as
the problem, but farming is
environmental,” he says. “If you don’t
take good care of your cows and your
land, you don’t make any money.”
The Tillamook tradition
TCCA considers cheesemaking an
art form, and the co-op works hard to
carry on the traditions and values
started by its founders many
generations ago. The co-op is also
committed to improving the economic,
social and environmental well-being of
the communities in which it operates.
TCCA has reaped many dividends
from its business practices and
commitment to its members and the
community. For example, the
cooperative won six awards for its
cheddar cheeses at the 2008 National
Milk Producers Federation annual
cheese contest. For the third year in a
row, TCCA was recognized by the
Portland Business Journal as a Most
Admired Company in Oregon for
agriculture or forestry products.
The foundation for this century of
success, of course, is the co-op’s farmerowners,
such as Hurliman.
“Farming gets into your blood; it’s
what I know. I wouldn’t know what else
to do,” Hurliman says. He hopes to pass
the family dairy tradition to his son,
who is 34 and has two children of his
own. “It’s hard to think about it now,
since things are tough right now,” he
says. But he is optimistic about the
future of dairy farming in Oregon and
of his co-op.
Asked if he thinks Tillamook County
Creamery Association will still be
around in another 100 years, Hurliman
replies: “I hope so. I really hope so. A
lot depends on the decisions made in
Washington. But we’ll keep taking care
of the farm for future generations, and
Tillamook is a well-run co-op. So I
think so.”
For more information about TCCA,
its centennial activities and products,
visit its Web site at www.tillamook
cheese.com or contact them at 4175
Highway 101 North, Tillamook, Ore.
97141, phone (503) 815-1300.
Tillamook’s commitment to community
includes environmental stewardship
Tillamook County Creamery Association’s commitment to
maximizing the potential of its members’ dairy farms would
mean little were it not for its equal commitment to their
communities and the environment. Indeed, corporate
America, for the most part, has a long way to go before it will
ever match the type of commitment to community practiced
for so long by cooperatives such as Tillamook. These
member-owned businesses have long realized that their coops
are only as strong as the local communities in which
their members live and work.
The cornerstone of Tillamook’s commitment to the
community is the cooperative’s “no-net-loss of farmland”
policy.
“This is a rural county and we are committed to sustaining
it,” says Tillamook CEO Harold Strunk. “We also believe in
the stewardship of the natural resources in our community,
so we partner with our local Soil and Water
Conservation District, the Watershed Council
and the Tillamook Estuaries Partnership to
improve water quality and salmon habitat and
to mitigate flooding. We do this through
leadership opportunities and funding.”
For the past 20 years, the co-op board has
funded an environmental stewardship program
that finances individual projects to protect the
environment. This April, the State Land Board
presented a streamside project award to
TCCA, the Tillamook Estuaries Partnership and
four other partners for a joint project to remove
the Coal Creek Dam, owned by TCCA, and to
restore more than two miles of stream habitat.
“We are also committed to supporting the youth in our
community,” says Strunk. “One of our more exciting
partnerships involves inviting students to use our wetlands
property as an outdoor classroom to study and prepare for a
career in the science and environmental field. We also offer
five, $2,000 “Excellence in Leadership” scholarships to
students in Tillamook and Morrow counties each year to
encourage higher education.
TCCA is the largest employer in Tillamook County and,
counting the 110 independent family-owned dairies that dot
the countryside, it has a large impact on the local economy
and its ability to thrive.
“You can also look at our impact from the standpoint that
the city of Tillamook is able to host a hospital and other basic
services for its citizen because of our employee base,”
Strunk says. “The farms support the veterinarians and the
equipment dealers and employ workers as well. We are also
large contributors to the nonprofits in the
county,” he adds, noting that the co-op has
a long-standing relationship with the local
food bank and its member dairy farmers
and employees are among the largest
contributors to the United Way.
“It is also important to factor in the impact
of tourism on the local economy,” Strunk
says. “The Tillamook Cheese Factory
Visitors Center draws approximately
1 million visitors to the Visitors Center
annually. This impacts local restaurants,
hotels and other recreational activities in
the area.”
100-Year Milestones
1909 Ten cheese factory operators form Tillamook County Creamery
Association (TCCA) cooperative to control product quality.
1911 TCCA starts cow testing to ensure use of clean, healthy cows, remove
poor quality ones and help with feed rations and breeding.
1917 TCCA hires ad agency and starts campaign in Los Angeles, San Francisco
and Portland. Credited as first community to advertise cheese under a
brand-name.
1921 The Tillamook brand is on all cheese and trademarked.
1946 TCCA starts making rindless cheese.
1947 TCCA starts bottled milk production.
1949 Four TCCA factories consolidate and build new central plant.
1966 TCCA redesigns packaging for better recognizability.
1968 Seven cheese factories consolidate and move operations to Tillamook
central plant. This brings all formerly independent county plants into
TCCA.
1972 TCCA starts a Premium Ice Cream line.
1978 TCCA starts using refrigerated trucks to haul products to market.
1979 Tillamook opens Visitors Center.
1990 TCCA starts new automated “Cheddarmaster” cheddaring system.
1994 TCCA expands Visitors Center to accommodate more than 900,000 annual
tourists. Starts low-fat yogurt line.
1998 TCCA starts fat-free yogurt line.
1999 Co-op launches www.tillamookcheese.com Web site.
2001 Co-op expands facilities and doubles cheesemaking capacity.
2005 Co-op starts another expansion to increase output by 50 percent.
Launches yogurt smoothie and vintage, 100-day-aged white medium
cheddar products.
2006 TCCA completes expansion project. The new vintage white cheddar takes
top honors at National Milk Producers Federation cheese contest.
2007 TCCA introduces three new flavored cheddars. Names Harold Strunk as
president/CEO.
2008 TCCA launches two more flavored cheeses.
2009 TCCA celebrates 100 years as a farmer-owned co-op.
A conversation with Tillamook
President/CEO Harold Strunk
- Question: How important has the co-op business
structure been to the long-lasting success of
Tillamook? What do you consider to be the greatest
strength and weakness of the co-op business model?
Harold Strunk: “The cooperative has allowed the
dairy industry to survive in Tillamook County. Absent
the ability to band together and produce a high-quality
dairy product under a brand name, the dairy industry
in the county would not have been able to survive.
The weakness is that given the strong brand that has
developed, the co-op structure provides some
constraints to growth. The members have the burden
on their shoulders of carrying the capital requirements
for growth. The members have an investment in the
operation of their own farms and the capital required
to operate the creamery.”
- How has your marketing strategy evolved or
changed in recent years? Do you have any new
products or marketing efforts planned for the start of
your second century?
“The Tillamook brand marketing strategy is
evolving significantly heading into our second century.
Our strategy recognizes that Tillamook plays a very
important role in the lives of people…as both a lifestyle
brand and a great-tasting food product. To capitalize
on this, we are utilizing two key marketing programs
that allow us to build direct, personal relationships that
have an impact with our targeted consumers: social
media and grassroots events.
In recognizing the power of the Internet, we are
connecting daily with current and potential Tillamook
users via direct, one-on-one social media web
programs. These programs include our Tillamook Fan
Club website, Facebook, Twitter and YouTube. The
information we share about our brand via these web
tools inspires people to become brand enthusiasts; they
then motivate others to connect with us.
We have built an extremely unique, customized
experiential tasting program that will excite both
consumers and our retail customer-partners. We will
put our great-tasting cheese in the mouths of hundreds
of thousands people via a national tour that launches in
August 2009 and will run throughout 2010.”
- With only 110 members, you probably know
virtually every one of them on a first name basis. Does
that make member relations
and communications easier
than for a co-op with, say,
1,000 members?
“Yes, it is easy to keep your
finger on the pulse of what is
going on. Conversely, members are very interested in
the detailed workings of the company, which means we
have 110 bosses. A large part of our communications is
keeping our members informed about the constantly
changing business environment.”
- You are celebrating the co-op’s 100th birthday in a
year that has seen milk prices plummet severely.
What’s the situation there in the Pacific Northwest?
“Yes, it is difficult in the Pacific Northwest, as it is
everywhere in the country. Milk prices are below
production costs. We have been fortunate that the
Association has been able to maintain a good financial
performance due to strong performance of the
Tillamook brand.
This has allowed us to pay our members a
substantial premium for their milk. However, it is still
not enough of a premium to cover their production
costs during this very low milk market.
It is hard to celebrate such a milestone in our coop’s
history when the situation on the farms is so tough
for our members. However, we feel it is very important
to celebrate this achievement. The co-op, during its
history, has done a great job looking into the future
and has made good business decisions, which allowed
TCCA to reach our 100-year anniversary, and for that
they should be proud. This is a great cooperative with
a strong and growing brand.”
- The co-op has a state-of-the-art visitors center and
gift store adjacent to the main plant in Tillamook.
Does that generate much profit for the co-op, or does it
fall more under the realm of promotion and
advertising?
“The Tillamook Cheese Factory Visitors Center is
for-profit, but it is a minimal profit. The Visitors
Center is our most important and effective marketing
resource. It is the epicenter of our brand, where our
consumers and fans can enjoy a rich and
multidimensional brand experience
Visitors can see our cheese being
made and packaged, sample our cheese
and order meals prepared using our
cheese. They can purchase any product
that we market, including fresh cheese
curds (which we only sell at the Visitors
Center). Visitors can view our special
exhibits to learn about the history of
the co-op and the brand. They can also
purchase branded merchandise that
provides an on-going reminder of their
Tillamook experience.
The popularity and success of the
Visitors Center is exemplified by the
nearly 1 million visitors who pass
through the center annually.”
- How is the cheese industry changing,
and how is Tillamook cheese poised to
change with it? What percent of your
milk goes to cheese vs. other dairy
products?
“The artisan and craft cheese
business is growing and consolidation of
the larger players is taking place.
Tillamook Cheese is a true niche player
in the cheese category because we are a
naturally aged cheese. It is a strong and
growing segment of the market, which
positions us well for growth.
About 85 percent of our business is
cheese. We make ice cream at our
Tillamook facility, but ice cream
accounts for a very small portion of our
business. It is only distributed in
Washington, Oregon and in some areas
of Northern California.”
- Like most co-ops, Tillamook has had
to wrestle with the use of bovine growth
hormone, ultimately deciding a few
years ago to ban its use. Did you lose
any members over that?
“Ultimately, we did not lose
members. However, it was a very
controversial and emotional decision for
our cooperative. If you look at where
the market is today, we made a sound
decision. It was the right decision to
make given the expectations our
consumers have for our brand.”
- What is the turnover rate like
among your 550 fulltime employees?
How do you attract and keep qualified
workers?
“It is difficult to recruit employees to
our facilities in both Tillamook and
Boardman. In both cases, we are located
in rural areas with limited amenities,
and TCCA is one of the larger
employers in the area. This means
opportunities for a spouse to find work,
other than with TCCA, are limited.
You are asking recruits to make a
lifestyle change in moving to a small,
rural community. Some are willing to
embrace that, others do not see it as a
benefit.
However, with that said, we have a
relatively low turnover rate in the nonmanufacturing
areas of both facilities.
Our highest turnover rate is in our
packaging operation in Tillamook.”
- Some of your members have joined
forces to operate a methane gas
digester, to turn manure into
renewable energy. How successful has
that project been, and do you see the
concept expanding to include more
farmers?
“Participation by some of our
members in the community methane
digester project is a good example of
our member dairy farmers working
proactively to address developing
industry issues. In this case, several of
our dairy farmers have partnered with
the Port of Tillamook Bay to develop
and operate an anaerobic digester that
converts manure to energy.
The technology is working well, but
the financial return to the participants is
minimal. It is hoped that as the national
cap and trade legislation develops these
early adopters of green technology will
benefit from the resulting carbon and
greenhouse-gas markets. If the market
for carbon credits and greenhouse gas
offsets mature to the point that
participation in the methane gas
digester program is financially
sustainable, I expect to see more
farmers interested in participating in
the program.
In a related effort, TCCA staff is
working with the Port of Tillamook
Bay to develop a business model that
will expand the operation of the existing
digester to include additional feedstock
from non-dairy sources as well as
additional manure from more dairy
farms.”
