It’s not a new practice.
“We’ve been doing this for over 100 years,” says David E. Hargrove, president of the California Association of Advertiser Services.
“It’s been around for over 150 years, it’s just gotten a little more mainstream.”
A lot of this has to do with the way the industry has grown over the years.
“They’ve gotten more sophisticated, they’ve gotten a lot more sophisticated,” Hargraves says.
“But the big thing has been how quickly they’ve been able to scale.”
And that’s led to a growing industry that has become even more lucrative over time.
The Big Cheese and Farm Bureau in the U.S. have become the largest dairy farmers in the country, with an estimated revenue of $20 billion a year, according to the Associated Press.
“These companies, we’re talking about billions and billions of dollars of sales,” says Hargreve.
“The bigger the market share, the more money that’s going to come to them.”
In California, there are three dairy producers that are worth more than $1 billion, and those three are the largest, Hargrey says.
One of those three, Humboldt Valley Dairy, was established in 1937.
Its $6 billion annual revenue is enough to buy the entire town of Santa Monica.
“A lot of these dairy farmers are small farmers, they’re not big-time, they don’t have the name recognition,” Hager says.
The dairy industry is also growing fast in other parts of the U, where there are about 150,000 dairy farms.
The largest of these is in New York state, with more than 4,000.
But the other two are in California, and the three that have the largest farms are the Big Cheese, which has nearly $7 billion in annual revenue, and Farm Bully, which is worth $3.5 billion.
“There are now three dairy farms in the state of California that are over $1.5 [billion],” says Hager.
“And the big companies that are really pushing for this are those that are already in the business.
They’re really pushing to get bigger.”