Three of the largest dairy co-ops market the vast majority of milk sales; some have expanded into milk processing and other parts of the dairy industry. Farmers say these organizations \u2014 created to serve them \u2014 have developed interests of their own.<\/strong><\/span><\/h2>\nDecades of consolidation have pushed thousands of dairy farms out of business, as rising costs for feed, fertilizer, labor, and other inputs have made it increasingly difficult for smaller operations to survive. As of 2022, industrial-scale farms with at least 2,500 cows account for about 45 percent of all U.S. milk sales<\/u><\/a>.<\/p>\n![\"\"](\"https:\/\/republish.spectralwebservices.com\/r\/c38b99af-c1c5-4248-99d8-c52880937e49\/a-handful-of-cooperatives-control-the-us-milk-market.gif\")
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But consolidation is not limited to farms. The dairy cooperatives that represent farmers have also grown larger, increasingly operating more like corporations<\/u><\/a> than the small, farmer-focused organizations they once were.<\/p>\n![\"Dairy-cooperatives-milk-Investigate-Midwest\"](\"https:\/\/www.agdaily.com\/wp-content\/uploads\/2026\/10\/Dairy-cooperatives-milk-Investigate-Midwest.jpg\")
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Most dairy farmers sell their milk through cooperatives. But the number of dairy co-ops has fallen from more than 1,900 in 1952 to 107 in 2023, according to the most recent available data. Three of the largest \u2014 Dairy Farmers of America, Land O\u2019Lakes and California Dairies \u2014 market about 83 percent of all milk sales, according to Food and Water Watch<\/u><\/a>.<\/p>\nAs co-ops have merged and expanded into other parts of the dairy business, some farmers argue that the organizations created to serve them have developed interests of their own. In some cases, co-ops have purchased the very processing companies that farmers sell their milk to. Some producers have sued their co-ops, alleging that these arrangements create conflicts of interest.<\/u><\/a><\/p>\nThis trend is something that the government took notice of in 2019. The U.S Government Accountability Office (GAO) wrote in a report<\/u><\/a>: \u201cAs a cooperative grows and encompasses potentially competing interests, some farmers may feel that they have lost control over the cooperative\u2019s priorities and strategic direction.\u201d<\/p>\nJuan Vassallo covers agribusiness and the meat industry in Oklahoma for Investigate Midwest. Investigate Midwest is an independent, nonprofit newsroom. Our mission is to serve the public interest by exposing dangerous and costly practices of influential agricultural corporations and institutions through in-depth and data-driven investigative journalism. Visit us online at www.investigatemidwest.org<\/a>.<\/em><\/p>\n <\/p>\n
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But consolidation is not limited to farms. The dairy cooperatives that represent farmers have also grown larger, increasingly operating more like corporations<\/u><\/a> than the small, farmer-focused organizations they once were.<\/p>\n Most dairy farmers sell their milk through cooperatives. But the number of dairy co-ops has fallen from more than 1,900 in 1952 to 107 in 2023, according to the most recent available data. Three of the largest \u2014 Dairy Farmers of America, Land O\u2019Lakes and California Dairies \u2014 market about 83 percent of all milk sales, according to Food and Water Watch<\/u><\/a>.<\/p>\n As co-ops have merged and expanded into other parts of the dairy business, some farmers argue that the organizations created to serve them have developed interests of their own. In some cases, co-ops have purchased the very processing companies that farmers sell their milk to. Some producers have sued their co-ops, alleging that these arrangements create conflicts of interest.<\/u><\/a><\/p>\n This trend is something that the government took notice of in 2019. The U.S Government Accountability Office (GAO) wrote in a report<\/u><\/a>: \u201cAs a cooperative grows and encompasses potentially competing interests, some farmers may feel that they have lost control over the cooperative\u2019s priorities and strategic direction.\u201d<\/p>\n Juan Vassallo covers agribusiness and the meat industry in Oklahoma for Investigate Midwest. Investigate Midwest is an independent, nonprofit newsroom. Our mission is to serve the public interest by exposing dangerous and costly practices of influential agricultural corporations and institutions through in-depth and data-driven investigative journalism. Visit us online at www.investigatemidwest.org<\/a>.<\/em><\/p>\n <\/p>\n
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