Milk is Being Dumped While Stores are Selling Out
Mother Nature has her ways of giving us advice. Sometimes that advice is subtle and sometimes it is brutal. This time she was pretty direct, and she did not mix her signals. Consolidated, centralized food systems have not been able to adapt to the rapid changes brought on by the COVID19 pandemic.
The Standard American Diet and its production, processing, logistics and delivery systems have failed. American farmers that serve this highly consolidated food system are dumping 3 million gallons of milk per day; meanwhile American supermarkets are stripped clean of dairy products. The dairy processing industry which was previously supplying milk to schools and restaurants cannot rapidly adapt to bottling and delivering milk for retail sales.
For many years, the demand for fluid pasteurized milk has been dropping at a rate of ~1% per year. During this long decline, bottling plants have been closed and cheese plants have been opened. When America was asked to stay at home in response to COVID19, much of the food service industry was stopped, restaurants were idled, and schools were closed.
At home, kids wanted cereal and needed three meals every day. They wanted milk! The demand for milk raged upwards. Yet the supermarkets could not meet that demand. Panic-buying made matters even worse, with store shelves remaining sporadically empty for weeks, and even now milk is being rationed in many places.
Meanwhile, dairymen are dumping truckloads of milk. The market price of milk is dropping like a rock from $18 per hundredweight (CWT) to $14 CWT or even lower. The break-even price for dairymen is around $18-$20 CWT. Thus, dairies are continuing to fail at an unprecedented rate while stores are not able to meet the demand for milk. It is an unmitigated disaster.
“Get Big or Get Out”
This is the 50 year old story of “Get Big or Get Out”. This philosophy of feeding the world and starving the American farmer was started in the early 1970’s by Earl Butz, who was Secretary of Agriculture under Nixon. Butz’s idea was that the most efficient farmers would overtake the smaller farmers, prices would drop, and supply would increase.
This structure concentrates power into the hands of a few aiming at cheap food for all, with an abundance which America would then export into the world markets. We would feed the world. This design has become part of the America farm culture and has led to a massive decline in the number of dairies.
Massive Decline in Number of Small Dairies
In 1940, America had over 4 million dairy farms. By the late 1990’s, that number had dropped to just over 100,000 dairies in the USA. Currently, there are only about 30,000 dairies left, and we are losing an additional 5% of dairies every year.
According to USDA data, there has been a sharp decline in the number of dairies with 30-200 cows; meanwhile, the number of large dairy farms is increasing. From 1992-2012, “the number of dairy farms with at least 1,000 cows more than tripled.” One future-thinking dairy leader has projected that America will have only 100 dairies in 20 years. America would still have its 9+ million cows, but those cows would be contained in massive concentrated animal feeding operations (CAFOs) with 90,000 cows each.
Consumer polls clearly indicate that consumers don’t want their milk coming from 90,000 cow massive CAFO operations. The environmental impact from large CAFO operations is devastating. The manure lagoons are the size of lakes and the smell is horrendous. There are no pastures. The feedlots go on and on forever! This system has many flaws, and more of those flaws showed themselves to the world in the last 6 weeks during the COVID19 pandemic.
Consolidated Food Systems Lack Resilience and Adaptability
COVID19 has demonstrated that a consolidated food system fails the American public in times of crisis. Consolidated massive operations and their logistics can not adapt and they are not resilient. These operations cannot adjust to changing market conditions and they fail when the consumer demands change. The consolidated milk industry failed to meet the needs of Americans because it was not able to respond and adapt in the face of rapid change. Similar issues have arisen in consolidated vegetable industries and meat industries during this crisis.
The food chain stress test has been performed. The results are in and America’s big food systems have failed miserably. This has become a serious threat to American national food security!
Food security is seriously jeopardized with milk going to just a handful of milk processors. That’s the future of “Get Big or Get Out” and it is smelly, ugly, and does not work to serve America. Additionally, with so much of this system relying on imports and exports, when countries close their borders, this system cannot function.
Consumer Connected Farmers Are Thriving
The local farmer-to-consumer system has also been tested during this time of crisis, and the results have been quite different. Farmers who sell directly to consumers are thriving. The comparison of this market to the CAFO-driven market is dramatic.
Farmer–to-consumer sales are highly adaptive and resilient, because the farmers are connected to their consumers. They know and hear one another! Farmers can adjust quickly to changes in consumer demand. During the COVID19 pandemic, many dairy farmers who sell directly to consumers saw a huge increase in the demand for milk. They were able to meet this demand by diverting milk which would have been used to make butter and cheese into bottled milk instead. Both the farmers and consumers benefited from this ability of the farmers to adapt to the changing demand.
Farmers who sell directly to consumers produce fresh foods which are unprocessed or less-processed. These fresh foods support and build immune systems through nourishing healthy gut biomes. Up to 80% of the immune system makes its home in our gut and is powered by a biodiversity of bacteria and the whole foods that feed them. These foods come from sundrenched rich soils and local ethical farmers that connect directly to consumers. This food system is thriving and growing.
In contrast, highly processed foods with long shelf life, which are filled with preservatives and antibiotics, are destructive to the gut biome. Consumers have begun to understand this.
Within the dairy community, farms such as cow share programs, micro dairies that produce raw milk, and dairies with their own processing plants have been able to quickly adapt and respond to the changing demand from consumers and stores. These food systems are responsive, adaptive, nutritionally rich, and economically alive.
You Vote With Your Food Dollars
America must make a decision about its fate. Food systems are very much a part of our America. Will America thrive, be resilient and adapt to threats? Will America continue to become even more economically, environmentally, and immunologically compromised and depressed? Or will America embrace smaller local farms who produce nourishing whole foods? Will America embrace disease-prevention and whole food nutrition? Will it build or suppress its innate and adaptive immune systems?
Each dollar spent on food directs America’s future. Where we direct our food dollars is a very personal question. Will we have healthy children or not? Will we take personal responsibility for our own health with whole food nutrition or will we continue to vote for “Get Big or Get Out”?
The food system stress test results are in. Let’s move beyond “Get Big or Get Out.” Let’s invest in illness prevention with farm-direct local, unprocessed, whole foods that build our immunity. It’s a personal gut microbiome choice. Let’s adapt and become resilient. The alternative is a dead end.
