“Big Dairy.” One of the strangest terms attached to the industry. As seen in fear-mongering headlines, Big Dairy is used to de-personalize individual dairy farmers and imply some large, faceless force foisting an agenda on unsuspecting consumers. So, who exactly is it? Maybe by figuring out what Big Dairy is – or isn’t – some light could be shed on what’s real, and what’s contrived, in debates about dairy and its presence in the marketplace.
That rules out farmers. But what about dairy corporations? The dairy industry boasts some impressive-sized businesses. Land O’Lakes is ranked #212 on the Fortune 500, and Dairy Farmers of America would make the list too, if it were publicly traded. That might be Big Dairy, except – DFA and Land O’Lakes are farmer-owned cooperatives. If that’s what people mean when they talk about “Big Dairy,” then Big Dairy contains an awful lot of small and medium-sized family farms. And these cooperatives are tiny compared to, say, Big Healthcare, (four entries among Fortune’s top 10 companies) Big Oil (four of them in Fortune’s top 25), or Big Tech (six in the top 50).
But maybe it’s not about raw size. Maybe Big Dairy is a myth invented by those who want to make family dairy farmers seem “big” to advance some contrasting image of their competitors – who want to be seen as plucky, usually plant-based, upstarts taking on Big Dairy with highly touted “innovation.”
Let’s explore this. Take, for example, Perfect Day, allegedly just a humble innovator with nothing to offer but a thousand $20-a-pint tubs of imitation ice cream … and startup funding from Temasek – a venture-capital arm of the government of Singapore — and Archer-Daniels-Midland, an agri-business behemoth with $64 billion in annual sales that ranks #49 on the Fortune 500. Other plant- and cell-based alternatives are financed by Jeff Bezos (worth roughly $115 billion, the world’s richest man at the end of 2019) and Bill Gates (net worth over $100 billion) – not exactly little guys, to say the least. In fact, if you added up the gross receipts of all 40,000 dairy farmers in the United States last year (an estimated $39.9 billion), you’d only be worth about two-fifths as much as Jeff Bezos. So-called “Big Dairy” will never compete with that.