Agriculture
MegaMilk: Charting Consolidation in the U.S. Dairy Industry
MegaMilk: Charting the Consolidation of the Dairy Industry
Today’s dairy industry looks very different to how it did just 30 years ago.
Milk production in the U.S. has increased by a whopping 50% over that time frame—yet, the total number of dairy farms has dropped by three-quarters.
Fewer and larger farms now have the lion’s share of all U.S milk cow inventory. While they have the ability to produce more competitively priced dairy products and provide more value to consumers, it is causing financial devastation for small farmers.
The graphic above uses data from the USDA to chart the rapid consolidation of the American dairy industry between 1992 and 2017.
The End of the Small Dairy Farmer?
In the U.S., the dairy industry is one of the fastest consolidating industries in comparison to almost all other agricultural sectors.
Between 1992 and 2017, small commercial farms with 10-99 cows saw an average decline of 70%. These farms accounted for 48.5% share of all U.S. milk cows in 1992. In 2017, that number stood at just 12.2%.
Over time, small farm production has been replaced by that of bigger and more consolidated “megafarms”—a move that can be attributed to the many benefits that scale brings, such as lower costs of production and the potential to compete in the international market.
Share of U.S. milk cow inventory (by year) | ||||||
---|---|---|---|---|---|---|
Herd size | 1992 | 1997 | 2002 | 2007 | 2012 | 2017 |
1-9 milk cows | 0.9% | 0.7% | 0.6% | 0.4% | 0.4% | 0.4% |
10-49 milk cows | 19.5% | 13.8% | 9.2% | 6.8% | 5.9% | 3.6% |
50-99 milk cows | 29% | 24.5% | 19.1% | 13.8% | 11.1% | 8.6% |
100-199 milk cows | 19% | 18% | 15.4% | 12.8% | 10.6% | 9.4% |
200-499 milk cows | 13.7% | 15.3% | 14.7% | 13.8% | 12% | 12% |
500-999 milk cows | 8% | 10.2% | 12.2% | 12.5% | 11.3% | 10.7% |
>999 milk cows | 9.9% | 17.5% | 28.8% | 39.9% | 48.7% | 55.2% |
Total | 100% | 100% | 100% | 100% | 100% | 100% |
The Need For a Survival Strategy
While small dairy farmers simply cannot keep up with larger farms encroaching on their turf, they also have fluctuations in dairy prices to contend with. Milk prices fell in 2018, narrowing the gap between milk prices and feed costs so much that another wave of farm closures ensued.
To make matters worse, many small dairy farmers are close to retirement age, and according to the USDA, exits are more likely if the farm operator is 60 or older.
Despite the hardship facing small dairy farmers, analysts suggest that consumer backlash against large-scale production could present opportunities for small dairy farmers to create premium artisanal products. However, such initiatives would be entirely dependent on the state of the economy and where consumer’s values lie.
The Wider Implications
With milk production shifting to larger farms, a range of both direct and indirect impacts are being felt across the country.
For example, milk production is now predominantly focused in fewer states such as California and Wisconsin, which together accounted for almost 33% of all U.S. milk production in 2018.
In larger farms, the herds are typically confined to tight spaces— rather than grazing in pastures—making animal welfare an issue for many of these farms. Concern over waste contamination and air pollution also brings the environmental sustainability of larger farms into question as they come under more pressure to reduce their impact on the planet.
Changing Tastes
Looking beyond the production of milk, changing consumer preferences could result in the most transformative effects on both large and small scale dairy farmers.
While rising populations are increasing the demand for dairy, per capita milk consumption declined by 24% between 2000 and 2017 in the United States. Consequently, the largest dairy producer in the country, Dean Foods, filed for bankruptcy in 2019, followed by another major milk producer, Borden Dairy, just two months later.
Experts claim that changing consumer preferences, along with competition from other beverage categories, are responsible for 90% of the total dairy decline.
No Country for Old Farms
The confluence of changing economics and an aging population of farmers has brought the U.S. dairy farming industry to a tipping point, and the near future is likely to bring a fresh wave of dairy farm closures.
I don’t see anything that would give them hope at this point. The best advice I can give to these folks, dairy farmers, is to sell out as fast as you can.
– Joe Schroeder, Farm Aid
As smaller farms continue to disappear from America’s rural landscape, the impacts of consolidation will not only affect dairy farmers, but entire rural communities too.
Agriculture
What’s Behind The Rise Of Food Prices?
Many variables contribute to the rising cost of global food. Let’s take a look at two major factors influencing food prices in recent years.

The Rise Of Food Prices
The World Food Price Index reached an all-time high in March 2022 before gradually falling for nine months to December 2022. But what caused this surge?
There are many variables contributing to the rising cost of global food, but supply chain disruptions and climate change are two major drivers for the spike in prices over the most recent years.
The above graphic from Brazil Potash explores how these two factors are contributing to the most recent rise in food prices.
1. Supply Chain Disruptions
The COVID-19 pandemic and Russia’s invasion of Ukraine have caused major disruptions to global food systems, altering trade patterns, production, and consumption of commodities.
The pandemic placed unprecedented stress on global food systems through a variety of factors, including a change in consumer food consumption, workforce restrictions, and trade pattern disruptions, causing food prices to rise.
Then, on February 24, 2022, Russia invaded Ukraine, blocking vital exports of commodities for international food systems, and causing a sharp spike in food prices.
Ukraine was the fourth largest global exporter of cereals before the invasion. Combined, Russia and Ukraine export around 28% of the world’s wheat and 15% of its maize.
Simultaneously the fertilizer industry has also felt the strain, with the trade of essential fertilizers for crop production impacted by both the COVID-19 pandemic and the war in Ukraine.
2. Climate Change
As global temperatures rise and weather patterns become more unpredictable, we are seeing an increase in extreme weather events that are having a devastating effect on crops around the world.
India’s rice crop fell by around 8% in 2022 due to a lack of rainfall, while drought conditions in the EU have resulted in grain yields that are approximately 16% below the five-year average.
According to NASA, if greenhouse gas emissions continue to rise at the current rate, maize yields are projected to decline by 24% by 2030, in contrast, wheat may rise by around 17%.
The below video details NASA predictions for maize yields.
Weather conditions have a direct impact on crop production, which in turn affect food prices.
The Role of Fertilizer
Rising food prices are a concern as they directly impact food security. When prices rise, it becomes more difficult for people to afford enough food to meet their needs. This can lead to hunger, malnutrition, and social and political instability.
There are steps that can be taken to mitigate the effects of rising food prices, such as increasing and diversifying the global fertilizer supply. Diversifying the fertilizer supply can alleviate pressure caused by supply chain disruptions.
Additionally, using fertilizers that improve plant resistance to environmental stress factors such as drought and can help to increase crop yields.
Brazil Potash will produce a vital crop nutrient that improves plant resistance to environmental stress factors such as drought, enabling greater yields to feed a growing population.
Click here to learn more about fertilizer and food production in Brazil.

-
Energy1 hour ago
Visualizing U.S. Consumption of Fuel and Materials per Capita
Wealthy countries consume large amounts of natural resources per capita, and the U.S. is no exception. See how much is used per person.
-
Economy2 hours ago
The $16 Trillion European Union Economy
This chart shows the contributors to the EU economy through a percentage-wise distribution of country-level GDP.
-
VC+3 hours ago
Get VC+ Before Prices Increase on February 1st
Prices for our premium memberships will be increasing on Feb 1st. Act now and get VC+ at its current rate.
-
Automotive1 day ago
The Most Fuel Efficient Cars From 1975 to Today
This infographic lists the most fuel efficient cars over the past 46 years, including the current leader for 2023.
-
Technology3 days ago
Ranked: The Top 50 Most Visited Websites in the World
In this visualization, we rank the top 50 websites that receive the most internet traffic, from Google to CNN.
-
Markets4 days ago
Charted: The Dipping Cost of Shipping
After a dramatic spike during the pandemic, shipping costs have now fallen back to Earth. What does that mean for shippers and the economy?
-
Economy2 hours ago
The $16 Trillion European Union Economy
-
Markets2 weeks ago
The Biggest Global Risks of 2023
-
Energy1 hour ago
Visualizing U.S. Consumption of Fuel and Materials per Capita
-
Markets4 weeks ago
Top Heavy: Countries by Share of the Global Economy
-
Politics1 week ago
Visualizing the World’s Top 25 Fleets of Combat Tanks
-
Money4 weeks ago
U.S. Inflation: How Much Have Prices Increased?
-
Energy1 week ago
The Periodic Table of Commodity Returns (2013-2022)
-
Misc4 weeks ago
Infographic: The Longest Lasting Cars, in Miles