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Dairy consolidation will be about more than passing antitrust reviews

Concerns about consolidation among cooperatives, processors and at the retail level are growing for the dairy industry. 

Retired dairy economics professor and consultant Dr. David Kohl tells Brownfield outlooks for 2020 are trending better than the past several years and he believes low-interest rates and stable energy prices will help farmers but says new challenges are presenting themselves.

“I’m making this prediction; we’re going to see consolidation backlash—one by the consumer and two by the politicians and it will be an interesting trend after 2020.”

He says farmers need to realize they have a voice inside cooperatives and use them to make sure top-end officials represent their interests.

“Oftentimes they try to manage from the top down.  Change occurs bottom-up, not top-down.”

Kohl says this decade will present a fork in the road for farmers and those with business IQ to manage dairies, marketing and financials will be more focused and successful long-term.