Investing in Regenerative Agriculture and Food 404 Joe Tomandl – CAFOs have caught up, can regenerative dairy still win?
We are at an interesting moment in the dairy sector. For years, smaller farmers with around 200 cows, who were also great graziers, could undercut the costs of large concentrated dairy operations, keeping costs low, taking healthy margins in good years, and surviving the bad ones.
But something has changed: CAFO dairies have grown bigger and bigger (10,000 cows is now normal, and 100,000 is no longer an exception) and their economies of scale mean they are undercutting the grazers. Of course, this leads to massive manure lagoons, animal welfare disasters, and all kinds of other externalities, but nobody is paying for that yet. Not to mention that you can only push biology so far before it literally breaks.
So what’s next for regenerative grazing? Joe Tomandl, 4th generation dairy farmer, founder and director of the Dairy Grazing Alliance, argues instead for focusing on the transition of mid-size farms with 300– 700 cows that have surrounding land which could be grazed but currently isn’t. You need grazing experience and a long-term offtake agreement, but it can be done.
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In Investing in Regenerative Agriculture and Food podcast show we talk to the pioneers in the regenerative food and agriculture space to learn more on how to put our money to work to regenerate soil, people, local communities and ecosystems while making an appropriate and fair return. Hosted by Koen van Seijen.
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The above references an opinion and is for information and educational purposes only. It is not intended to be investment advice. Seek a duly licensed financial advisor or investment professional before making any financial decisions.
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