• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
RetailAgriculture

How A Huge Dairy Is Solving A Major Pollution Problem

By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
By
Beth Kowitt
Beth Kowitt
Down Arrow Button Icon
January 27, 2016, 9:00 AM ET
Photograph by Ryan Donnell for Fortune

Though city dwellers may not realize it, agriculture is a big source of carbon emissions. That’s because of livestock’s production of methane, how manure is handled, and soil management (something as simple as tilling the soil releases greenhouse gases). Dairy geniuses Mike and Sue McCloskey, partners in one of the country’s biggest dairy operations, have come up with an elegant approach to tackling several of these problems at once in the hopes of creating a zero-carbon footprint dairy farm. At the heart of the operation: a process that turns their dairies’ tons of cow manure into natural-gas fuel. Here’s how it works.

Photographs by Ryan Donnell

Dairy.Oaks.Farm.14

Mike McCloskey, the co-founder of Fair Oaks Farms in Indiana and the mastermind of the stool-to-fuel project, with his cows. Politico once described him as “the closest thing to a rock star in the industry.”

Dairy.Oaks.Farm.18

A worker puts out feed for some of the 36,000 cows that live on the 12 family-run dairies that make up Fair Oaks. The McCloskeys and a partner own half of Fair Oaks’ farms.

Dairy.Oaks.Farm.13

This pile of feed in the foreground is made up of a carefully calibrated recipe of about a dozen ingredients, including the mountain of corn in the background. Many of the ingredients, including the corn, are grown on Fair Oaks’ 36,000 acres.

A worker attaches milking hoses to cows during their time on the rotary milking machine at Fair Oaks Dairy in Fair Oaks, Ind., on Janurary 7, 2016.

Milking is done on a rotary system, which the McCloskeys believe is more efficient and less disruptive for the cows. An electronic tag identifies each cow, and her milk is measured as it flows and then compared to the average of the last five milkings. Big discrepancies in the amounts can help indicate if the cows are sick.

Dairy.Oaks.Farm.6

The cows’ stalls are designed so the cows can only defecate and urinate in confined alleyways. The set- up keeps their sand bedding (and in turn their udders) clean and makes it easier for workers to collect the manure.

Dairy.Oaks.Farm.10

The manure is collected three times a day when the cows leave their quarters to be milked. The manure is then taken to the farm’s anaerobic digesters.

Dairy.Oaks.Farm.8

Inside the control room for one of digesters. The manure spends 21 days in the digesters, replicating the process that takes place inside a cow’s stomach.

Dairy.Oaks.Farm.17

The pipe that collects the biogas created during the digestion process. Some of the biogas, which is 60% methane, is used to power the farm, including the digesters.

Dairy.Oaks.Farm.21

The rest of the biogas is “cleaned” by this system to 99% methane, which is the renewable natural gas that runs the farm’s fleet of trucks.

Dairy.Oaks.Farm.20

A flare burns off any excess biogas so it’s not emitted into the atmosphere.

Dairy.Oaks.Farm.7

Fair Oaks’ trucks fill up at the farm’s compressed natural gas (CNG) filling station. The fleet of 42 trucks all run on the farm’s CNG and travel 24/7 to tally an average of 270,000 miles a year—an unheard of distance in the trucking industry.

Dairy.Oaks.Farm.16

The slop that’s left over after the digestion process. It’s rich in nitrogen and phosphorus, which are great nutrients for the soil.

Dairy.Oaks.Farm.15

Water is then pressed out of the slop to make this denser paste. The paste will go to a fertilizer plant that’s being built on site by a third party. Some of the resulting fertilizer will make its way back onto the fields that grow feed for the cows.

Dairy.Oaks.Farm.19

Before the team figured out how to press the water out of the slop, the leftovers would go into the farm’s lagoon. The solids would settle at the bottom, allowing workers to drag-line it and use it as fertilizer. The process was extremely inefficient and costly.

Carlos Hernandez, a plant operator, checks water clarity in a seperation tank at Fair Oaks Dairy in Fair Oaks, Ind., on January 7, 2016.

The McCloskeys want to run this tea-colored water that’s pressed out of the slop through an artificial wetlands where they’ll grow something like high-protein duckweed to feed the cows. Their dream is to distill the potable water that will be filtered through the wetlands and use it to brew beer called—of course—Shitty Beer.

Dairy.Oaks.Farm.5

Fair Oaks has opened itself up to the public to help consumers better understand where their food comes from. Half a million people visit Fair Oaks every year to see a working farm in action.

Kimberly Corning helps a customer pick out cheese made from the dairy's cow milk in the cafe and gift shop at Fair Oaks Dairy in Fair Oaks, Ind., on Janurary 7, 2016.

Inside the café at Fair Oaks. Some of the milk from the dairy is used to make cheese, yogurt, and ice cream, which can be purchased on site.

Dairy.Oaks.Farm.12

The cows go to market once they are about six or seven years old. Since they are the ideal breed for producing milk and not necessarily for high-end meat cuts, they end up primarily supplying the fast food industry. Fair Oaks also has certain cows bred for meat, which is served in the recently opened Farmhouse restaurant.

About the Author
By Beth Kowitt
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon

Latest in Retail

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Retail

EBay soars on report that GameStop is preparing a takeover bid
Investingecommerce
EBay soars on report that GameStop is preparing a takeover bid
By Spencer Soper, Cecilia D'Anastasio and BloombergMay 1, 2026
1 day ago
Photo of a bowl of mac and cheese
LawFood and drink
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
1 day ago
Two women examine cleaning products
RetailInflation
Your laundry bill is about to get more expensive—and Unilever says the Iran war is partly to blame
By Sasha RogelbergApril 30, 2026
2 days ago
Aerie built a $2 billion brand by rejecting Victoria’s Secret’s old playbook. Now it wants to win the AI backlash
C-SuiteRetail
Aerie built a $2 billion brand by rejecting Victoria’s Secret’s old playbook. Now it wants to win the AI backlash
By Phil WahbaApril 30, 2026
3 days ago
Starbucks is winning customers back after investing $500 million in workers and stores
Workplace CultureFortune 500
Starbucks is winning customers back after investing $500 million in workers and stores
By Phil WahbaApril 29, 2026
3 days ago
starbucks
Retailearnings
‘A little touch of luxury, it goes a long way’: Starbucks CEO sees the turn in the turnaround as human touch sings
By Nick LichtenbergApril 29, 2026
3 days ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
1 day ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
1 day ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
1 day ago
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
North America
China dominates the world's lithium supply. The U.S. just found 328 years' worth in its own backyard
By Jake AngeloApril 30, 2026
2 days ago
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
Success
Apple cofounder Ronald Wayne—whose stake would be worth up to $400 billion had he not sold it in 1976—says that at 91, he has no regrets
By Preston ForeApril 27, 2026
5 days ago
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
Economy
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisMay 2, 2026
8 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.