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by molloy
2674 days ago
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Oh, I was bringing up the price in comparison to the price of plant milks from a consumer's standpoint—while plant milks seemingly have a high markup from raw materials to product (transportation and storage costs aside), our perception of what makes it expensive has an unrealistic anchor in the subsidized cost of cow's milk. Paying $12 for a gallon of cow's milk vs. $5 for a gallon of oat milk changes the picture a bit. |
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Leaving aside the issues with directly comparing plant milk with actual milk, the economics are not what you lay out. Oat milk is really yet another industrial corn product. The caloric content isn't cloudy stuff squeezed into water, it's fructose from corn. In the quest for price stability, corn subsidy is one of the main knobs used by USDA from a subsidy and policy standpoint.
I haven't done a deep analysis of this, but I do buy milk from a farm with a smallish herd and a direct-to-producer model that allows the farmer to actually operate his own dairy and sell milk at a profit. Even with the small scale of the operation, milk costs about $6/gallon. When you buy milk from a scaled dairy operation, the economies of scale are massive... you have 1-2 processing plants handling the milk of tens of thousands of cows.
The plant milk phenomenon is all about allowing massive agribusiness to take over a big product category that has remained regional.