The consolidation in the dairy industry not only reduces the number of dairy farms but complicates consumers’ ability to trace the origin and production of their food.
With more than 60% of milk produced by farms with over 2,500 cows, the local landscape of dairy farming is heavily skewed towards large operations.
The Federal Milk Marketing Orders established in 1937 aimed to regulate milk pricing, but challenges remain, impacting small farmers significantly today.
Pricing structures based on milk usage categories (Class 1 for bottled milk, Class 2 for yogurt, etc.) shape the economics of dairy farming, affecting profitability.
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