Open Markets Institute’s Comment to the Minnesota Department of Agriculture on the Socio-Economic Impact of Dairy Consolidation
Open Markets Institute submitted comments to the Minnesota Department of Agriculture warning that rapid consolidation in the dairy industry is pushing family-scale farms out of business while concentrating production in a small number of mega-dairies. The filing highlights Riverview, one of the nation’s largest dairy operators, arguing that its continued expansion illustrates how very large farms can gain advantages through scale, processing access, subsidies, and environmental credit programs while creating relatively few local jobs and shifting costs such as water use, manure management, pollution, and infrastructure strain onto surrounding communities.
OMI argues that this consolidation is not inevitable and calls on Minnesota policymakers to actively support a more competitive and resilient dairy sector. Its recommendations include restricting further mega-dairy expansion, strengthening protections for smaller producers in their dealings with processors and cooperatives, investing in independent processing infrastructure, expanding public purchasing from smaller Minnesota dairies, scrutinizing Riverview under the state’s corporate farming law, and limiting subsidies that disproportionately benefit the largest operations.