Unless I am mistaken the WSJ reporter means by "raw", unprocessed bulk milk. It requires a special license to sell raw milk for human consumption and at last count there were only two dairies selling raw milk in California--one in Fresno and one in Watsonville.
Raw milk requires superior sanitation and animal health. Pasteurized milk can contain large amounts of dead bacteria killed by heat.
Raw milk (for human consumption) producers get very high prices for their milk, from $65 to $100 per cwt. and the demand is much higher than current supply.
This is what http://www.cremedelamoo.com did. They were able to sell in stores last year, then the dairy union came after them.