Business Insights

Dairy, a longtime staple of the country’s ag economy, finds itself in the middle of a seismic transition. You could even go so far as to call it the bad, the good, and the ugly.

Americans’ hunger for organic food and beverages persists. Even though many thought the trend peaked more than decade ago, its popularity continues to surge, outlasting consumer fads like the South Beach Diet. 

The pandemic couldn’t have come at a worse time for the dairy business. Even before the economic collapse, this bedrock American industry faced strong headwinds.

To say 2019 was a big year in the food, beverage, and dietary supplements segments would be an understatement. Sales in the food and beverage space surpassed $7.8 billion, a 3.8% jump over 2018.

Instances of food contamination and allergic reactions have become all too common when the technology and regulations put in place to prevent them have never been more robust. 

The USDA’s National Agricultural Statistics monthly Milk Production report, released on Feb. 20, 2020, showed the most significant annual decline in the number of licensed dairy operations since 2004. 

Dairy, a longtime staple of the country’s agriculture economy, is an industry struggling to find its way amid a sea of change. This past year didn’t make things any easier.

This year crammed enough news to fill more than a mere 12 months. From the World Cup to a royal wedding to devastating wildfires out west, there’s been no shortage of headlines in 2018.

Tariffs are suddenly all the rage. You can hardly make it through a single news cycle without hearing about them. In August 2018, China announced a new round of 25% tariffs on U.S. goods worth about $16 billion.