Now, we’ve all consumed milk at some point in our lives. As a baby, it was likely one of our daily meals, and today, well, it’s in many foods. From cheese to cakes and more, milk is an essential ingredient we often overlook. The process of transporting, storing, and even the earlier steps like milking the cow are production factors in a more significant overall industry – one that has been slowly changing over the past few decades considering technological advances. Years ago, people would make their milk at home, and some would sell it for a living, making a career as milk and dairy farmers. However, since the industrial revolution, this “domesticated” production of milk has slowed, and today, well, it’s nearly gone. The last remaining pockets of small family farms, which extended their life from capitalizing on the organic craze of the 21st-century, are now losing their last stand to more giant corporations out west – where land is more abundant. For example, regional farms like Glendon Mehuren’s Faithful Venture Farm are losing business to larger companies like Aurora Organic, which owns 27,000 dairy cows on four farms in Colorado and Texas.
With a rise in large-scale farming, do you think the milk and dairy industry is one you would add to your portfolio? Or does the idea of losing these regional farms upsetting, potentially lowering the ESG scores of these investments. Wherever you stand on this, it is apparent change is occurring, and as investors, it is up to us to navigate it.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.