The dairy industry produces and sells milk, milk products, and substitutes. Small and large farms supply raw milk to processors who pasteurize and homogenize it. The industry also produces by-products and supports the economy through job opportunities and tax payments.
Dairy products are produced by the dairy industry for sale to consumers. The dairy industry produces and markets milk, milk products and milk substitutes. Part of the broader economic landscape, this industry includes small and large dairy companies, dairy producers, and those companies involved in the marketing, sale, and transportation of dairy products.
Small and large family farms supply raw milk to processors. These farms tend to the herds of cows that produce the raw milk that the company sells for a profit. Very small farms may milk the cows by hand, while larger farms use machinery to help milk the cows on a regular basis.
In the dairy industry, dairy processors pasteurize and homogenize raw milk. This process is used to remove harmful bacteria from raw milk, making it safe for the public. Dairy producers also package the finished product and sell it to grocery stores and restaurants.
In addition to making milk safe for the general public to drink, dairy farmers also provide another important service. Milk by-products – including butter, cheese, sour cream, yogurt and cream – are also produced in milk processing plants. Other by-products manufactured by milk processing plants include dry, evaporated and condensed milk products.
Dairy substitute producers also represent an important segment of the dairy industry. These manufacturers use soybeans and other non-dairy substitutes to produce products that are in demand by a wide range of consumers. These products are popular among people who cannot or do not want to drink ordinary cow’s milk. Along with milk substitutes, they include non-dairy cheeses, yogurts, and ice creams, among other products.
Some farms may choose to offer organic products, whether on a local, regional or global scale. Organic milk, cheeses and cream can be found in grocery stores. Farms specializing in the production of organic dairy products refrain from using antibiotics, hormones and synthetic chemicals.
Transportation companies, retailers and consumers play an important role in the dairy industry. Without proper transportation and storage equipment, the dairy industry would be limited to local markets. Resellers provide the mechanism to sell the final product and can react to consumer demand by ensuring an adequate supply.
Operating in all 50 US states, the dairy industry supports the economy in several ways. It provides funding for community development plans through tax payments and enables hundreds of thousands of job opportunities. Additionally, the dairy industry affects the economic viability of many other types of businesses, including veterinary medicine, machinery, and banking, to name a few.
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