Consolidation is not a new phenomenon in the dairy industry. But, in the interest of what is most desirable, this author looks at dairy farms from the perspective of size. He notes the number of cattle is not getting smaller even as the number of farms is dropping dramatically.
Dairy farms in the U.S. are consolidating at a faster rate today than any other agricultural commodity and its not just on the farm.”
Source: The Bullvine, June 178, 2021. Link. Summarizing the author says:
- The dairy industry of the future will not succeed if decisions are solely based on size.
- The dairy industry of the future will not succeed if decisions are based solely on sentimentality.
- In dairy consolidation, the whole is greater than the sum of its many dairy parts.
- A relevant dairy farm must be actively engaged with suppliers, professionals, local communities and consumers.
It is time to decide if dairy industry totals are temporarily readjusting or being permanently left behind.”
INSIGHTS: This is an excellent situation analysis depicting the challenges of dairy ownership, production and decisions about the industry’s future. Consider sharing and discussing it with dairy producer customers and clients.