According to a report by SupplySide Beverage Insights, the U.S. dairy industry is underperforming and not meeting its potential. Large segments of the sector are in a long-term decline and many are less developed and less innovative than in other first world countries. Antiquated industry and regulatory structures established long ago to deal with conditions that do not exist any longer are shielding parts of the dairy sector from competition in the market and discouraging cooperation between participants within the industry. The report cites four harmful regulatory and industry-culture factors that need addressing – notions that limit innovation and expansion, class pricing, the industry price support structure, and the farmer-centric frame of reference in the original dairy regulatory legislation.
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