Era of Limited Consolidation

Persistent Low-Grade Misery?

Return to Historic Relationship

Not Much $18 Milk @ <$4 Corn

Lost Fluid Sales

Alternative Sales Still Growing Alternative milk sales at ~$1.6 billon Not just beverage: big growth elsewhere in “dairy” section

Losing Out on Exports, Too

Especially High-Value Exports

And the US Needs to Export

Systemic Challenge

EU:+50 Billion Pounds in 10 Years

Herd Size US average herd size at 234 cows EU still at 33 cows Consolidation in EU won’t be much fun for anyone

€41B in Direct Payments per Year

€41B in Direct Payments per Year EU has a history of supporting agriculture through a variety of social and market disrupting programs Between 2015 and 2020, EU Commission plans to spend €293 billion in direct payments alone – about €41 billion per year. Direct Payment Types: Green Payments, Young Farmers Programs, Small Farmer Supports, Basic and Voluntary Payment Schemes Additionally, EU supports producers through programs like SMP and Butter Intervention and Private Storage Aid

US Policy to Dull Market Signals