Dealing with Dairy: Resilience in a Changing Market

Written By Hannah Fuller

In the wake of our articles about alternative dairy products (check out Dairy Pt. 1 and Dairy Pt. 2!) we’d like to dive into some complicated consequences of the rise of the alternative dairy options, and how different members of the food system are showcasing resilience and innovation in the face of change.

cow face

Both Ben and I went to school in upstate New York, a place where 14% of the population that works in agriculture works on dairy farms[1]. This means we’ve seen the faces, families and culture that surrounds a strong dairy economy. The majority of these farms are small family owned and operated farms that have been in the region for over a hundred years. Like we mentioned in our previous articles: 

“Dairy products have been an important asset to many communities/cultures/civilizations for millenia, both as a dietetic resource and an economic one. However, as is often the case, the most significant issues with dairy and the dairy industry are in relation to the current scales of production and consumption.” 

Over time the dairy industry, like most agricultural industries around the world, has grown in scale in order to meet growing needs. Unfortunately, dairy supply in the U.S. has surpassed demand and farmers are receiving less and less for their high quality product. Instead of scaling back as an industry, individual dairies continue to scale up, trying to outpace the market. Unfortunately, more production means more expensive technology and higher costs for farmers, along with a growing milk surplus. This phenomenon is known as Cochrane’s Agricultural Treadmill (if you’re real nerdy like me and want to learn more you can read about it here).

While all this is happening, alternative dairy products are on the rise, making demand for milk, cheese and other dairy goods go down. Retail sales of dairy products have fallen continuously since 2005[2] and 42,000 dairies have gone out of business since 2000[3]. Most of these are small dairy farms as a few big farms continue to take over large portions of the market. But what about the farmers behind these big numbers? Dairy may be a nasty industry from an environmental and animal rights perspective, but these are also families losing their jobs and rural communities being stripped of a feasible economy. The industry is problematic, but the people behind it are hardworking farmers who believe they are feeding America, a noble job and an attitude that allows us to live with fully stocked grocery stores year round. 

Many farmers and their families do not have the options of those that we feature below. Many families sold their land when it was too late, faced bankruptcy, and now do not have many options. Many farmers do not have the capital to convert from a dairy to some other kind of production. Much of the land that we use for grazing could not be converted directly into production of another crop—a 1-to-1 switch that many people outside of agriculture assume is possible. But we would like to feature a few outlying examples of some creative solutions to a changing food system. The three examples below showcase the resilience and collaboration that is making the future of farming more sustainable and economically viable for farmers. 

Elmhurst Dairy, now known as “Elmhurst Milked”: 

Elmhurst Dairy was established in 1925 in Queens, NY and was a profitable dairy farm for over 125 years. But in 2016, the owner Henry Schwartz decided that the business his grandfather had started needed to change. He ended milk production, and by 2017 was producing plant-based milks that now lead the sector. Rather than stay in a market that is increasingly struggling, he joined a growing market where his company is creating and expanding new offerings. Read the full story about Elmhurst Milked in this awesome NPR article. 

Miyoko’s Creamery: 

Miyoko’s Creamery is a plant-based cheese company based out of Sonoma, California run by Miyoko Schinner. Schinner is also the founder of Rancho Campasión, an animal sanctuary for rescued farm animals. Rather than fight against farmers, Schinner is trying to reach “across the aisle” to dairy farmers and work with them rather than against them. While their products do “replace” dairy cheeses, Schinner is working with dairy farmers on converting their land to crops Miyoko’s Creamery need for their products. Alternative dairy products often have very specific needs, a certain species of potato for example, and by working with farmers they can guarantee a supply, and support farmers in transitioning away from dairy.[4] This is an interesting example of how, if the soil conditions allow, farmers and ranchers can transition away from raising cows to producing crops that directly feed into a new food economy. 

Check out some of our recommendations for their products in our latest article about alternative cheeses! 

Giacomazzi Dairy: 

Late last year, the 125-year-old dairy company in California known as the “oldest dairy west of the rockies” decided to convert to trees. Their owner said, “you’re better off putting your money into trees…almonds, pistachios, grapes. There’s a lot of alternatives that provide a higher return than milking cows.”[5] This is a common option as the price of new equipment and labor goes up, and prices for milk goes down. Giacomazzi Dairy is lucky to live in a region where their land is easy to convert to different crops that are currently in high market demand. While this decision is largely based on the economics of their operations, it’s clear in interviews that losing their identity as dairy farmers is not a simple swap for this family. 

cows in field

We hope these stories help show a way that the dairy industry has shown its resilience and innovation in the face of a changing food system. If you know a local dairy that you enjoy buying products from, supporting them and supporting your local economy is still a wonderful thing to do. But, the industry is large and looming and unsustainable economically and environmentally. Maintaining the status quo is leading to turmoil for dairy farmers, and adaptation, like the farms above, is necessary for farmers to continue to feed our planet and their own families as well. 

Hannah Fuller
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On Carrot-Eggs: Food as a Connection with Cultural and Ethnic Identity
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Dealing with Dairy, Part 2 : Cheese