Footnotes
1 Amy M.
Lando, Michael C. Bazaco, Cary Chen Parker, and Martine Ferguson, "Characteristics of U.S. Consumers Reporting Past Year
Intake of Raw (Unpasteurized) Milk: Results from the 2016 Food Safety Survey and
2019 Food Safety and Nutrition Survey," National Library of Medicine,
July 1, 2022.
2 Event ID: 95990, US FDA,
December 13, 2024.
Readers of a certain age may recall—possibly with fondness or even with a big white milk mustache above their upper lip—the "Got Milk?" ads from the late 1990s and later. Whether one recalls the professional athlete, actor, or even politician sporting a white milk mustache, those ads were ubiquitous in the media of the day.
While those ads were essentially commissioned by the California Milk Processor Board to stimulate sagging milk sales, one thing they basically did not need to worry about was whether or not the milk was raw or pasteurized. This is because, in 1987, the US Food and Drug Administration (FDA) prohibited the distribution of raw milk across state lines for direct sale or distribution to consumers. 1
While simply passing a law or prohibiting the sale or distribution of a certain product may impact the actual sales and distribution of such, we know from history that prohibition is not the answer if one wants to completely outlaw a product. Regardless, it is not the purpose of this commentary to take a stance one way or another regarding the efficacy of raw versus pasteurized milk or even the outlawing of one particular product or type of milk over the other. It is the intent of this article to shed some light on the topic as well as to share some insurance perspective on the overall debate of raw versus pasteurized.
As I was sharing with a fellow the other day, I came to this topic with no proverbial "dog in the hunt." I literally cannot recall the last time I had a glass of milk. I am not opposed to the consumption of the product; it is just not my liquid of choice or preference. I am more of a water, coffee (black, if you please), beer, wine, bourbon, and gin guy. I just wanted to set the record straight, if you will.
"Milk" Defined
I think the first thing we should do is provide a simple definition of what "milk" is. Merriam-webster.com defines "milk" in this manner:
The US Department of Agriculture (USDA) defines milk in its "Commercial Item Description: Fluid Milk and Milk Products" as follows:
Milk, in its various definitions and uses, as well as for our purposes (at least when it comes from animals), generally will separate itself into two categories: raw and pasteurized.
Again, according to the USDA, "pasteurized milk" means as follows:
Why these distinctions are important at this point in our discussion is to simply separate the two basic forms of "milk" and to have some sort of an agreement as to what we will be discussing in the following paragraphs.
What's the Beef?
As I started this commentary with a reference to a previous advertising punchline of "Got Milk?," I think it is appropriate to continue along that same vein by paraphrasing a prior ad campaign (again to my own purposes) in using the "What's the Beef" question as opposed to the original question asked in the 1984 Wendy's commercials of "Where's the Beef?"
The essential "beef," if you will, between the two "milk camps" is the overall safety and efficacy of raw milk versus pasteurized and homogenized milk. In the US, pasteurization is required at both the federal and state levels for interstate milk sales. Raw milk sales within states are subject to state laws and are prohibited in some 17 states.
US Federal Regulation 21 CFR 1240.61 states as follows:
Since some 17 states prohibit the sale of raw milk for human consumption, a simple math application would then indicate that some 33 states do not prohibit the sale of raw milk to the consumer. A cursory review of the applicable state laws regarding the sale of raw milk to the consumer would show a number of considerations regarding those sales. Some of those considerations would include the following items. However, while this is a compilation of some state restrictions or allowances, various state laws will potentially be in conflict with other state laws and is also by no means a complete listing of considerations at the allowable state level sales of raw milk. Here are just some of those restrictions and considerations.
So, one can readily see that on a "state-to-state" basis, the laws are multiple and may not necessarily agree with one another. That's the sole point of this illustration and listing.
What's the Concern?
A simple Google search will bring up a number of potential issues, almost all of them health-related. Just as one can say that "life is not without risks," one can also say, "consuming milk is not without risks." That said, there does seem to be a preponderance of health concerns that center more around the consumption of raw milk than pasteurized milk, even knowing that both products can cause allergic reactions when used.
According to the Mayo Clinic:
This is different from protein or lactose intolerance; intolerance does not involve the immune system.
But aside from milk allergies, the main concern seems to focus on the excess number of illnesses that arise from the consumption of raw versus pasteurized milk. Now, I am not saying that one cannot get sick or ill from the consumption of pasteurized milk. Yes, it does occur. But it does not occur with the same regularity, if you will, as with raw milk products.
One such recent recall of liquid milk occurred earlier this year. Horizon Organic Milk was recalled because of the potential for premature spoilage during its shelf life. 2 The recall was initiated on December 13, 2024, and was considered to be an ongoing concern, ergo the recall of products with "best by" dates of March 3–7, 2025. It was reported that the cause of the recall was "heat damage" during the processing of the milk. The recall was not related to allergens, pathogens, or microorganism contamination issues.
The primary concerns are the spread of germs attributed to salmonella, E. coli, listeria, campylobacter, and other foodborne illnesses in raw milk consumption.
That does not mean that all raw milk is bad. Like any other food product, when properly harvested and processed, raw milk can be considered safe to consume. But it does have a significantly higher degree of germ-related problems than pasteurized milk does.
Enter Insurance
Most insurers choose to utilize "raw milk" exclusions. Both of the major insurance advisory organizations, Insurance Services Office, Inc. (ISO), and American Association of Insurance Services (AAIS) publish exclusions for the use of their member organizations. Let's take a look at what these state.
ISO's three exclusions for the purposes of this article are the following.
Each of these uses the same definition of raw milk:
The farm liability exclusion states as follows:
It, thus, modifies the language in the Farm Liability Coverage Form to completely exclude liability losses from "raw milk" as defined. I consider it similar to a total pollution exclusion in the regard that it fully expects to exclude any potential liabilities assigned to the insured from "raw milk."
Both the farm excess liability exclusion and the farm umbrella exclusion have similar intent and language.
The AAIS exclusion with which we will concern ourselves is the Exclusion—Raw Milk (GL 4000 01 17). The exclusion reads as follows:
Finally, one national farm insurer with whom I have familiarity (and who was kind enough to share their form with me) uses their own proprietary exclusion. It reads as follows:
One can readily recognize that these exclusions intend to apply to the use of and the inclusion of raw milk products in literally all of their uses. Whether or not they pass muster at the judicial level is a determination yet to be made, at least to my knowledge.
As I stated earlier in this commentary, it is not my intention to tout one product over the other. It is my intent to point out the risks surrounding raw milk and the possible insurance implications. That's my cup of tea.
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