Like an estimated two-thirds of the worldās population, I donāt digest lactose well, which makes the occasional latte an especially pricey proposition. So it was a pleasant surprise when, shortly after moving to San Francisco, I ordered a drink at Blue Bottle Coffee and didnāt have to askāor pay extraāfor a milk alternative. Since 2022, the once Oakland-based, now NestlĆ©-owned cafe chain has defaulted to oat milk, both to cut carbon emissions and because lots of its affluent-tending customers were already choosing it as their go-to.
Plant-based milks, a multibillion-dollar global market, arenāt just good for the lactose intolerant: Theyāre also better for the climate. Dairy cows belch a lot of methane, a greenhouse gas 25 times more potent than carbon dioxide; they contribute at least 7 percent of US methane output, the equivalent emissions of 10 million cars. Cattle need a lot of room to graze, too: Plant-based milks use about a tenth as much land to produce the same quantity of milk. And it takes almost a thousand gallons of water to manufacture a gallon of dairy milkāfour times the water cost of alt-milk from oats or soy.
But if climate concerns push us toward the alt-milk aisle, dairy still has price on its side. Even though plant-based milks are generally much less resource-intensive, theyāre often more expensive. Walk into any Starbucks, and youāll likely pay around 70 cents extra for nondairy options.
. Dairyās affordability edge, explains MarĆa Mascaraque, an analyst at market research firm Euromonitor International, relies on the industryās ability to produce āat larger volumes, which drives down the cost per carton.ā American demand for milk alternatives, though expected to grow by 10 percent a year through 2030, canāt beat those economies of scale. (Globally, alt-milks arenāt new on the sceneācoconut milk is even mentioned in the Sanskrit epic MahÄbhÄrata, which is thousands of years old.)
What else contributes to cow milkās dominance? Dairy farmers are āpolitical favorites,ā says Daniel Sumner, a University of California, Davis, agricultural economist. In addition to support like the āDairy Checkoff,ā a joint government-industry program to promote milk products (including the āGot Milk?ā campaign), theyāve long raked in direct subsidies currently worth around $1 billion a year.
Big Milk fights hard to maintain those benefits, spending more than $7 million a year on lobbying. That might help explain why the US Department of Agriculture has talked around the climate virtues of meat and dairy alternatives, refusing to factor sustainability into its dietary guidelinesāand why it has featured content, such as a 2013 article by thenāAgriculture Secretary Tom Vilsack, trumpeting the dairy industry as āleading the way in sustainable innovation.ā
But the USDA doesnāt directly support plant-based milk. It does subsidize some alt-milk ingredientsāsoybean producers, like dairy, net close to $1 billion a year on average, but that crop largely goes to feeding meat- and dairy-producing livestock and extracting oil. A 2021 report by industry analysts Mintec Limited and Frost Procurement Adventurer also notes that, while the inputs for dairy (such as cattle feed) for dairy are a little more expensive than typical plant-milk ingredients, plant alternatives face higher manufacturing costs. Alt-milk makers, Sumner says, may also have thinner profit margins: Their āstrategy for growth is advertisement and promotion and publicity,ā which isnāt cheap.
Starbucks, though, does benefit from economies of scale. In Europe, the company is slowly dropping premiums for alt-milks, a move it attributes to wanting to lower corporate emissions. āMarket-level conditions allow us to move more quicklyā than other companies, a spokesperson for the coffee giant told me, but didnāt say if or when the price drop would happen elsewhere.
In the United States, meanwhile, itās a waiting game to see whether the government or corporations drive down alt-milk costs. Currently, Sumner says, plant-based milk producers operate under an assumption that āprice isnāt the main thingā for their buyersāas long as enough privileged consumers will pay up, alt-milk can fill a premium niche. But itās going to take a bigger market than that to make real progress in curbing emissions from food.
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The industry got too big and too reliant on subsidies. A reckoning will occur at some point, itās just a matter of whether itās announced ahead of time or surprises everyone.
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Every day the reckoning will be worse than it would have been the day before. Thatās why it should be planned and not A) ripped off like a bandaid or B) have it fail on its own.
Right now the government is doing practically the opposite and reassuring and strengthening the bandaid despite the inevitable need for it to come off.
I get it. Iām also on board with UBI. Hell, Iām even a vegan that isnāt calling for an immediate end to all subsidies for the ag industry even though a vast majority of it is in support of a practice that I believe to be highly unethical and horrendous. But I get that it canāt change overnight, but that doesnāt mean to keep kicking the can down the road either.
The human cost then will be more than the human cost now. It just will be āfutureā humans instead of the current ones so they so keep supporting it and making it someone elseās problem.
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Ok, leave a note behind to explain to your childrenās family why theyāre in extreme poverty because some folks didnāt want to gradually remove a subsidy in a controlled fashion. Again. Youāre just punishing more future people. But I guess since you donāt have to meet them, youāre ok with sacrificing their livelihood.
You will never get a UBI while large amounts are subsidizing specific industries. Wanna know where you can get that money though?
The thing is, I donāt even think we disagree that much. You just are taking the one approach I advocated against (but still argued would be better than doing nothing; ie keeping the subsidies) and pretending thatās my whole argument. I argued for gradual removal of subsidies to correct the market over time. You are advocating for a scenario that likely will never occur without some other large scale disaster or giant swing in public consciousness (UBI will never occur prior to ag having a market bubble popā¦ one will never happen during our life, one has a chance to).
āItās not a good time right nowā - the party in power at the time
Too big and too reliant on subsidies is a feature, not a bug. You want your farmers producing a fairly large surplus most of the time, because the harm resulting from a major food shortage is catastrophic. A widespread drought, disease, natural disaster, crop failure, or other shortage needs to be made up with other foodstuffs.
Subsidization incentivizes production even when market rates fall below profitability, which is what happens when production is significantly greater than actual demand.
Sorry, but thatās horseshit.
Taking away dairy subsidies would drive up milk and milk product prices, pushing more people to buy alternatives instead. Any loss of employment in the dairy industry is balanced by new jobs in manufacturing plant milks and dairy alternatives. This isnāt people being replaced by robots, itās cows being replaced by plants. You still need pretty much the same workforce to package and distribute it regardless.
New Zealand and Australia virtually eliminated agricultural subsidies and their industries are doing just fine.
Only 1% of americans work in the primary sector and that is not only comprised of farmers. Furthermore, there are more farming products than dairy, oats for oat milk have to be farmed somewhere as well.