Grocery retailers like Kroger, Walmart and Albertsons, have started their own milk-bottling plants in a quest to cut costs through vertical integration.
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Panoramic view from above of a modern dairy farm. Holstein dairy cows are lined up in stabling during milking.

However, companies entering the bottling industry are placing a threat to other large-scale operators, The Wall Street Journal reports.

Both Dean Foods and Borden Dairy, two of the country’s largest producers were sold this year after filing for bankruptcy.

Additionally, dairy alternatives, water, and juice have decreased the demand for cow’s milk.

In the past forty years, annual per capita milk consumption has dropped by 40 percent.

Highway closures force Okanagan dairy farmers to dump milk as it can’t get to Coast for processing.

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  1. These companies have been producing their own bottles for their own facilities for many years, this is nothing new regarding vertical integration. There are some companies that do have a complete integration facility, from cow to container.

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