Sixteen people who reported drinking raw milk from Billy Goat Dairy in Longmont in the past three weeks have become ill, Boulder County Public Health reported Wednesday.

Two children have been hospitalized; one was released.

The health department ordered the dairy on Tuesday to stop distribution of its raw milk products while it investigates. Officials said the milk that has been sickening people was first consumed June 10.

Bill Campbell, who runs Billy Goat Dairy with his wife, said the news that his operation might be making people sick "breaks me up."

"If there's an illness associated with this and I'm doing something wrong, I am horrified," said Campbell, who milks 54 goats and has been certified to produce raw milk since January 2009.

He sells his unpasteurized milk to 43 households that participate in a goat-sharing program, in which individuals buy a share of a goat for $40 a month and in return receive one gallon of raw milk a week.

He said he has been trying to get answers from the county as to how it concluded that his raw milk product was contaminated.

"I've racked and racked and racked my brain," he said, insisting his operation is clean and that his farm is regularly inspected by state health officials. "If there is a problem, please, please, please let me correct it."

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County health officials have not been specific as to exactly where they think the contamination originated at the Billy Goat Dairy. They confirmed that lab tests have indicated the presence of campylobacter and E. coli 0157 in those who have reported getting sick. Both types of bacteria are found in the intestines of animals and can be passed into milk products that haven't been pasteurized.

"We strongly advise residents to avoid consuming any raw milk or milk products," said Murielle Romine, of Boulder County Public Health. "It can be extremely dangerous, particularly for young children and people with weakened immune systems."

The health department said it would be contacting every household that participated in the dairy's goat-sharing operation to determine if they became sick and to collect samples.

Campbell said two families have called him to say they would no longer be buying raw milk from him, but he said others have also contacted him to ask when he will be back in business again.

Billy Goat Dairy is listed on the Raw Milk Association of Colorado's Web site as having Grade A certification, which it states "gives the shareholder an extra layer of inspections from an educated outside source."

Billy Goat Dairy is also touted on the site for selling half of its milk to a commercial creamery that makes cheese.

Raw milk, which is illegal to sell to consumers in about a dozen states, can be sold in Colorado as long as the transaction is done as part of a herd share arrangement, be it cows or goats. Raw milk cannot be sold at the retail level in Colorado.

Raw milk advocates say conventional pasteurized milk, in which the milk is heated to 161 degrees Fahrenheit for at least 15 seconds to kill bacteria, can cause allergies and heart disease, while raw milk retains its natural flavor, richness and an assortment of good bacteria.

Opponents caution that raw milk dairies run too high a risk of contamination because harmful bacteria from animal waste can easily contaminate a facility unless the strictest measures of hygiene are used.

The Centers for Disease Control identified 45 outbreaks of illness that implicated raw milk products between 1998 and May 2005, according to Boulder County.

Contact Camera Staff Writer John Aguilar at 303-473-1389 or aguilarj@dailycamera.com.