Danone revealed it would be ending contracts with 89 small dairy farms in Maine, New Hampshire, Vermont and New York this past August, devastating farmers, organic advocates and residents in the Northeast region. Civil Eats explains how the decision was not only a blow to an industry that has been struggling for years, but also mirrors a greater national conversation around corporate consolidation and monopolies in agriculture.
Basically, big organic dairies in Western states are able to produce cheaper organic milk as well as take advantage of loopholes in the organic process that allow them to further cut costs; Danone appears to have taken note of this and is essentially replacing its small farms with these huge Western CAFOs.
Cost of breakfast commodities hits 10-year high
The prices of ingredients for classic breakfast products are rising consistently thanks to challenges facing global food production, processing and transportation coupled with higher demand from the pandemic rebound.
Futures prices for coffee, milk, sugar, wheat, oats and OJ have increased 26% since mid-year and 63% since 2019, and some industry analysts believe that persistently higher costs will keep prices food prices elevated well into 2022.
The growing consumer shift from “just in time” buying to “just in case” buying is creating scarcity in wheat, coffee and sugar, while the breakfast at home trend has cemented a firm demand for milk and orange juice. The Food Institute has the data.