> I’m okay with small dairies being pushed to close though. Their worker wages are lower (as the article mentions), and we shouldn’t be keeping them around for nostalgia.
Hypothetically sure, if it was a free market. But if dairies are closing because a handful of large processors have destroyed any chance for cooperative or localized models which have a similar cost (as the article itself shows), then that hyperconsolidation is oligopolic
If you are fine with payment processing consolidating amongst two players or English language search engines consolidating amongst 3-4 players, then arguing in favor of consolidation irrespective of industry makes sense. Otherwise, it's fairly hypocritical.
In action, a cooperative model with no consolidation amongst processors does outcompete the hyperconsolidated North American model [0]
What this implies is that oligopolic control of the American dairy industry at the processor level is not market efficient.
Also, processors do not own cattle - they just process and distribute milk. As such, oligopolic control at this level leads to processors being able to set input prices with little competition. Like I said above, if you are fine with this model for ag, then you should be fine with this in the tech industry as well.
> Humans don’t require bovine milk, it is not a necessity nutritionally
Milk absolutely is a critical source of multiple nutrients [1] and is a critical component for most cooking and foodstuff in the US. Even the creatine in protein supplements is synthesized from diary. Furthermore, 84% of Americans consume dairy or products with dairy inputs [2].
A retort like the above is very much a "let them (not) eat cake" style response.
Furthermore, 15 years ago, people were saying the same thing about automotive and legacy ICs. Yet look at what happened during COVID and after.
Hypothetically sure, if it was a free market. But if dairies are closing because a handful of large processors have destroyed any chance for cooperative or localized models which have a similar cost (as the article itself shows), then that hyperconsolidation is oligopolic
If you are fine with payment processing consolidating amongst two players or English language search engines consolidating amongst 3-4 players, then arguing in favor of consolidation irrespective of industry makes sense. Otherwise, it's fairly hypocritical.
In action, a cooperative model with no consolidation amongst processors does outcompete the hyperconsolidated North American model [0]
What this implies is that oligopolic control of the American dairy industry at the processor level is not market efficient.
Also, processors do not own cattle - they just process and distribute milk. As such, oligopolic control at this level leads to processors being able to set input prices with little competition. Like I said above, if you are fine with this model for ag, then you should be fine with this in the tech industry as well.
> Humans don’t require bovine milk, it is not a necessity nutritionally
Milk absolutely is a critical source of multiple nutrients [1] and is a critical component for most cooking and foodstuff in the US. Even the creatine in protein supplements is synthesized from diary. Furthermore, 84% of Americans consume dairy or products with dairy inputs [2].
A retort like the above is very much a "let them (not) eat cake" style response.
Furthermore, 15 years ago, people were saying the same thing about automotive and legacy ICs. Yet look at what happened during COVID and after.
[0] - https://www.thebullvine.com/dairy-industry/from-extinction-t...
[1] - https://nutritionsource.hsph.harvard.edu/dairy/
[2] - https://www.mckinsey.com/industries/agriculture/our-insights...