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Structural Change In The U.S. Dairy Industry: Growth In Scale, Regional Shifts In Milk Production And Processing, And Internationalism

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  • Dobson, William D.
  • Christ, Paul

Abstract

Structural changes in the U.S. dairy industry from the early 1980s to the late 1990s included familiar increases in concentration, industry adjustments to serve large supermarkets, the emergence of two national fluid milk firms (Suiza Foods and Dean Foods), and the emergence of two national dairy cooperatives (Dairy Farmers of America and Land O'Lakes, Inc.). Shifts in the location of milk production in the U.S. to the Western states have caused new dairy product manufacturing plants to locate in those states. This development promises to intensify battles over market share in the expanding U.S. cheese market between Western firms and Upper Midwestern firms. Foreign direct investment in the U.S. dairy industry--especially by European Union firms and a large Canadian firm--increased during the 1980s and 1990s. Facing challenges to expand dairy exports or shrink, the U.S. dairy industry probably will gravitate toward the latter unless government price support and trade policies change to increase price incentives for U.S. firms to export dairy products.

Suggested Citation

  • Dobson, William D. & Christ, Paul, 2000. "Structural Change In The U.S. Dairy Industry: Growth In Scale, Regional Shifts In Milk Production And Processing, And Internationalism," Staff Papers 12611, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    • Handle: RePEc:ags:wisagr:12611
    DOI: 10.22004/ag.econ.12611
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    References listed on IDEAS

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    1. Ling, K. Charles & Liebrand, Carolyn Betts, 1994. "Marketing Operation of Dairy Cooperatives," Research Reports 279986, United States Department of Agriculture, Rural Development.
    2. Ling, K. Charles, 1999. "Marketing Operations of Dairy Cooperatives," Research Reports 280014, United States Department of Agriculture, Rural Development.
    3. Ling, K. Charles & Roof, James B., 1989. "Marketing Operations of Dairy Cooperatives," Research Reports 313024, United States Department of Agriculture, Rural Development.
    4. W. D. Dobson, 1992. "Competitive strategies of US fluid milk processors: A case study," Agribusiness, John Wiley & Sons, Ltd., vol. 8(5), pages 425-444.
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    Cited by:

    1. Dobson, William D. & Wilcox, Andrew, 2002. "How Leading International Dairy Companies Adjusted to Changes in World Markets," Discussion Papers 37655, University of Wisconsin-Madison, Babcock Institute for International Dairy Research and Development.
    2. Boland, Michael A. & Amanor-Boadu, Vincent & Barton, David G., 2004. "Land O' Lakes," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 7(2), pages 1-13.
    3. Jean-Philippe Gervais & Olivier Bonroy & Steve Couture, 2008. "A province-level analysis of economies of scale in Canadian food processing," Agribusiness, John Wiley & Sons, Ltd., vol. 24(4), pages 538-556.

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    Keywords

    Livestock Production/Industries;

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