Got milk? For the past 50 years, Americans have been drinking milk less and less. Dairy farms are disappearing, and some farmers have ditched cows altogether.
How did we get here, and is this the end of the line for milk? 👇
Around 150 years ago, drinking milk was often dangerous. It was teeming with bacteria and quick to turn sour.
The invention of pasteurization and discovery of milk's nutritional value impacted its popularity, and demand surged during World War I.
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After World War I, farmers were left with massive surpluses and little demand for milk.
So the USDA started "milk for health" campaigns, which promoted milk as the solution to undernourishment in children.
Milk prices plummeted during the Great Depression. Dairy farmers in the Midwest dumped milk to try and force prices back up.
In 1937, Congress stepped in to guarantee farmers a minimum price for milk, and that system is basically the same one we use today.
Demand for dairy products rose again during World War II. When the war ended, the government made sure prices didn't crash by buying product.
Much of it went to school lunch programs, but a lot of it was stored in caves.
The government buying and storing dairy wasn't the only problem. Analysts also blamed inflated minimum milk prices for incentivizing overproduction.
To try and solve this, the government offered to pay farmers to slaughter or export their herds.
But production showed no signs of slowing down, and milk consumption was declining. The dairy industry knew it had to do something.
In 1993, the California Milk Processor Board funded an ad campaign that would become an instant classic.
The "Got milk?" campaign did improve sales, for a while at least. But it wasn't enough.
Meanwhile, milk production increased even as consumption sunk lower. The cost of producing milk had been increasing, meaning many farmers were losing money.
In early 2020, disruptions to supply chains and closures forced many farms to dump their milk. But even as they recover, farmers still face a tough market. Some blame competition from plant-based milks.
The market for dairy alternatives is projected to grow to over $37 billion by 2025.
Research also now estimates that 68% of adults globally can't properly digest dairy. But it's not all over for milk.
Americans are eating more cheese than ever before, but production still outpaces demand.
The USDA purchased $20 million of cheddar cheese in 2016. How long can the US government keep supporting an industry that is producing more than we need?
For more Rise and Fall videos, visit @BusinessInsider's YouTube channel.
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