Saturday, April 20, 2019

Vertical Integration for Dairy?

A comment in this twitter thread suggested that some form of vertical integration would be coming for the dairy industry, as it has for poultry and hogs.

That makes sense to me.  Dairy is under more and more pressure--the other day I found not 3 but 5 thermos of "milk" at the Starbucks counter--to the usual nonfat, milk, and half and half they'd added soy and another "milk" which I forget now.  

With the divorcing of cows from pasture and the proliferation of robotic milkers the capital cost is only going up.  

And finally there seems to be closer ties between outlets, like Walmart, and their suppliers. 

Maybe another 15 or so years there will be only smaller, "truly organic" dairies feeding a niche market and perhaps encouraging tourists who experience nostalgia, and the big operations with 5 digits worth of cows.  

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