BN 09:34 Land O'Lakes Sued Over Feed After Alpaca Deaths on Ohio Farms
Land O'Lakes Sued Over Feed After Alpaca Deaths on Ohio Farms
By Mary Wisniewski
June 25 (Bloomberg) -- Land O'Lakes Inc., the largest U.S. animal feed maker, has been sued for hundreds of millions of dollars in damages over a batch of alpaca feed that farmers claim killed up to 140 animals, including one worth $500,000. The alpaca feed, sold in Ohio, contained an antibiotic that can be lethal to alpacas and cause heart, liver and kidney damage, say farmers who filed seven suits against Land O'Lakes. The most recent suit was filed in federal court in Cleveland last month. Arden Hills, Minnesota-based Land O'Lakes recalled the feed last year after word of injuries began to surface.
The U.S. alpaca business has grown from about 400 to 4,000 farms in the past 10 years, mostly in Ohio. Alpacas, South American animals with soft, light wool, can cost between $10,000 and $250,000 each. Starting an alpaca farm can require millions of dollars in capital. Animals that survived the feed lost value because of possible health problems in the future. ``It's like having a car with a salvage title,'' said James Kelley, an attorney for Frost Family Co., which has sued Land O'Lakes for $8 million. ``It's brought business to a staggering halt for these people. It's a taint on their farm and a on a lot of Ohio farms.''
Land O'Lakes spokeswoman Lydia Botham said the company could not comment on pending litigation.
Doug Bartman, an attorney for Magical Farms and Majestic Meadows, which together are seeking $72 million in damages, said that Land O'Lakes ``has not offered one dime in settlement'' and has taken a hard line in the litigation. ``They've accused our clients of misusing the product,'' Bartman said, scoffing that all farmers did was feed the animals food that they didn't know was poisonous.
Salinomycin
The farmers allege that the alpacas were injured by salinomycin, an ionophore additive used to kill parasites in pigs and chickens, which was somehow added to the feed. As many as 140 animals died over a period of a few weeks in March 2003, said Dr. David Anderson, an Ohio State University veterinarian who coordinated the treatment of the injured animals. Jerry Forstner, 62, owner of the 1,350-head Magical Farms in Litchfield, Ohio, said he found three dead alpacas in three different fields. ``It was three different water sources, three different hay sources, so we nailed it down to the feed,'' he said. Forstner lost about 100 animals because of the feed, he claims.
``They started dropping like flies,'' he said. ``Every day there were six or eight dead. They're like pets. I went out in the fields every day, found the dead ones and helped drag them in. It was probably the worst few weeks of my life.''
A Recall Letter
In a letter to customers dated March 28, 2003, Land O'Lakes recalled the ``contaminated'' feed batch. The letter, from John Hodler, director of feed manufacturing for Land O'Lakes Farmland Feed, said the company is ``working aggressively to respond to customer concerns.'' The letter was included as part of an $85 million suit by Alpaca Jack's Suri Farms in Findlay, Ohio. One of the animals it lost was a vicuna, an animal similar to an alpaca, worth about $495,000, according to the farm's lawyer, Gregory Arnold.
Alpacas, related to llamas, have been domesticated for more than 5,000 years and were first imported to the United States in 1984, according the Web site of the Alpaca Owners and Breeder's Association. There are about 55,000 alpacas in the United States, Forstner said, who is on the association's board of directors. Alpaca wools sells for up to $5 an ounce and is used in sweaters, coats and scarves. Alpacas normally live for 15 to 20 years.
According to the association, alpaca farmers include doctors, educators and financial advisers. Famous alpaca owners include Philadelphia Phillies baseball pitcher Billy Wagner. The average household income of an alpaca farmer is $75,000, Forstner said.
Something Different
Forstner, who owns a chain of 43 Lube Stop oil changes centers in Ohio, got into alpaca farming about 10 years ago. ``My wife was looking for something to raise that wouldn't kill her,'' Forstner said, noting that the creatures are known for their gentle natures.
The cases mentioned are Frost Family Co. v. Land O'Lakes, 04-794, Northern District of Ohio; Alpaca Jack's Suri Farms v. Land O'Lakes, Hancock County, Ohio, 03-316; and Magical Farms v. Land O'Lakes, 03-2054, Northern District of Ohio.
--Editor: Oster.
Story Illustration: For a slide show of screens related to Land O'Lakes performance, see {CNP10769620109 <GO>}. For Land O' Lakes Web site, see http://www.landolakesinc.com/
To contact the reporter on this story:
Mary Wisniewski in Chicago at (1)(312) 692-3743 or
mwisniewski1@bloomberg.net
Copyright (c) 2004, Bloomberg, L. P.
To contact the editor responsible for this story:
Patrick Oster at (1) (212) 893-4088 or poster@bloomberg.net.
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