16 Biggest Milk Companies in the US
In this article, we will be taking a look at the 16 biggest milk companies in the US. You can skip our discussion and see the 5 Biggest Milk Companies in the US here.
Americans are consuming more dairy products than they did in the early 2000s. Data by the USDA Economic Research Service shows that consumers have purchased a record number as part of a 50-year growth trend. The increase does not surprise as it includes the consumption of fresh milk and its other nutritious products, including cheese, butter, and yogurt.
In addition, dietary intake surveys have already shown that most Americans consume fluid cow's milk as a beverage, therefore, helping fuel its demand. With the average American consuming over 600 pounds of dairy products annually, the result has been some of the biggest milk companies generating millions of dollars in revenues.
Over the past five years, dairy farm revenue has grown at a compound annual growth rate of 6.8% to $58.9 billion. Milk prices have been volatile owing to fluctuating demand and stringent federal regulations. Before the pandemic struck, there was an oversupply of milk in the market, resulting in a significant decline in milk prices in 2019.
The COVID-19 pandemic led to a significant decline in milk prices as demand from schools and other large institutions shrunk as most people remained indoors. However, with life bouncing back to normalcy in 2021 and 2022, milk demand increased significantly, resulting in a significant price increase.
The U.S. dairy industry is one of the largest in the world, employing over 3 million people. In addition, the sector pays over $40 billion in wages and has an economic impact in the U.S. of about $750 billion. Consequently, the sector contributes to about 3% of the US GDP and about $67 billion in federal, state, and local taxes.
Fresh milk alone adds about $49 billion in direct economic impact, supporting nearly 60,000 industry jobs. Cheese, one of the byproducts, contributes about $55 billion to the economy by supporting 57,000 jobs, while Ice cream, another byproduct, supports 28,800 industry jobs with a $13.1 billion direct economic impact.
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As of 2022, the U.S. dairy industry was valued at about $120.5 billion. On the other hand, India is the world's largest milk producer, home to the largest dairy industry. The country produces 22% of the global milk, followed by the United States and China.
The ever-growing demand for milk and its products is forcing milk companies across the United States to expand their operations. Consequently, the way larger farms are managed and produce milk is changing right from the average size of the farms. In addition, there has been a significant shift from farms to non-traditional dairy regions.
The U.S. milk sector is also experiencing a significant shift towards large-scale operations with enhanced use of technology to enhance production. Most of the milk consumed in the U.S. is from farms with over 1,000 cows. The fact that the farms with over 2,000 cows enjoy reduced cost per hundredweight has seen most farms resort to large-scale operations.
Milk companies have every reason to expand their operation, as milk prices are projected to increase in 2023. Our previous report showed that a significant increase in dairy exports is poised to push milk prices even higher. The export forecast has increased due to strong demand for U.S. dairy products in the international markets.
Investors looking to bet on the U.S. milk sector can do so by investing in some of the companies with a vast line of dairy products.
Our Methodology
The US dairy industry is experiencing a major transformation amid increased focus on sustainability and the effects of the pandemic. With 88% of customers wanting to only deal with brands that help make a difference, milk companies have no option but to adapt. Supply chain fluctuations due to staffing shortages and transportation headaches are some of the sector's challenges. Innovation and the use of advanced technology have also had to come into play as companies look to maintain their competitive edge and shrug off competition.
When compiling our list of the top 16 milk companies in the US, we considered the array of dairy products and revenue the company generated in 2022. We also relied on data from Fortune 500 list to rank the companies.
16. Lactalis Group North America
Revenue in 2022: $90 million
Headquartered in Buffalo, New York, Lactalis Group is one of the world's largest dairy companies employing over 1,500 people. It operates four manufacturing facilities in Idaho. Its wide assortment of products includes cheeses, butter, and UHT milk.
The company generated over $90 million in revenue from its operations in the U.S. Some of its biggest dairy brands include Siggi's, Karoun, Black Diamond, Parmalat, and Galbani.
15. California Dairies
Revenue in 2022: $250 million
California is one of the biggest milk companies crowned by more than 300 dairy families. The company operates plans throughout California, therefore being able to produce a variety of dairy products to meet delivery needs domestically and abroad.
The company does produce butter milk powder and fresh milk under its own brand. It also contracts to manufacture and offers Challenge and Danish Creamery brands. The company generates over $250 million in revenues annually while employing over 750 million people.
14. Great Lakes Cheese
Revenue in 2022: $770 million
Ohio-based Great Lakes Cheese is one of the biggest milk companies in the U.S., supplying over 20% of all cheese consumed in the country. The company has grown rapidly through acquisitions, plant expansions, and investments in advanced technologies. It has over 2 million square feet of production space with over 1 00 production lines.
Consequently, it can provide a full line of high-quality cheese, including cheddar, Swiss, Colby, Mozzarella, Muenster, Provolone, Pepper Jack, Blue, and Feta, among others. The family-owned company employs over 3,000 people. In 2022 the company generated nearly $770 million in revenues.
13. Borden Dairy
Revenue in 2022: $1.2 billion
Deans is one of the biggest milk companies based in Dallas, Texas. The company has been serving fresh and delicious dairy products across the country. The farmer-led cooperative offers an assortment of dairy products, including our cream, cottage cheese, dips, and more.
It distributes its products across all 50 states. The company employs over 3,000 people and generated $1.2 billion in revenues in 2022.
12. Glanbia Nutritional's, U.S.
Revenue in 2022: $1.2 billion
Glanbia is a nutrition company that manufactures and sells sports nutritional and lifestyle nutrition products worldwide. It is one of the biggest players in the U.S. dairy industry, offering a slay of dairy products. It employs about 2,000 people in the US and generated about $1.2 billion in revenues last year
While the company is based in Kilkenny, Ireland, its Chicago branch focuses on creating all kinds of cheeses. It also offers whey protein for customers. In addition, the company delivers high-quality cheese products focusing on flavor, texture, and functionality.
11. Leprino Foods
Revenue in 2022: $1.6 billion
Denver, Colorado-based Leprino Foods is the world's biggest producer of mozzarella cheese. The family-owned company also produces whey protein and dairy ingredients that it supplies to companies worldwide.
The company's success is down to its access to high-quality milk, which has made it one of the most prominent players in the dairy industry. The company employs over 5,000 people across the country and generated $1.6 billion in sales in 2022.
10. Prairie Farms Dairy
Revenue in 2022: $3 billion
Farmer-owned Prairie Farms Dairy is one of the biggest milk companies in the U.S. The company has been in operation since 1938 and has over 600 farm families from where it sources fresh milk. In return, it produces high-quality dairy products while providing fresh, safe, and nutritious milk.
The company produces lactose-free milk, cream cheese, fresh milk butter, and cottage cheese, among other products. Based in Edwardsville, Illinois, the company employs over 1,900 people. Its peak revenue in 2022 was $3 billion.
9. Schreiber Foods
Revenue in 2022: $6 billion
Schreiber Foods is one of the biggest dairy companies in the U.S., specializing in producing and distributing natural cheese, processed cheese, cream cheese, and yogurt. In addition to cheese, the company also offers Ghee dairy desserts, butter, and condensed skim milk.
Based in Green Bay, Wisconsin, The company employs over 9,000 people in the U.S. and partners with some of the biggest retailers, restaurant distributors, and food manufacturers to distribute its dairy products. The company generates nearly $6 billion in sales annually, affirming its status in the U.S. dairy industry.
8. The Kroger Co (NYSE:KR)
Revenue in 2022: $8 billion
The Kroger Co (NYSE:KR) is best known for operating one of the biggest grocery chain stores in the United States. In addition, it is one of the most prominent players in the milk industry, with various dairy offerings, including milk, cottage cheese, sour cream, and frozen daily treats. With a market cap of $34 billion, it is ranked 21 in the Fortune 500 list of the biggest companies in the U.S.
The Michigan Dairy, operated by the company, produces a good chunk of dairy products from milk produced by over 13,000 cows. As a result, private-label milk sales account for a good chunk of Kroger's sales, totaling over $8 billion. The company also generates more than $8 billion in sales from its natural cheese products.
7. Unilever PLC (NYSE:UL), North American Operations
Revenue in 2022: $8.3 billion
Unilever is one of the largest consumer goods companies in the world, with significant operations in the U.S. With a market cap of $138 billion, it is ranked 205 in the Fortune 500 list with one of the biggest frozen dairy products brands that include Breyers, Popsicle, Klondike, Good Humor, Magnum.
The company generates over $6 billion in revenues from dealing in dairy products. Last year the company made over $8.3 billion in the dairy sector, which could increase after it started a new health and well-being business.
6. Conagra Brands, Inc. (NYSE:CAG)
Revenue in 2022: $12.21 billion
Headquartered in Chicago, Illinois, Conagra Brands, Inc. (NYSE:CAG) is one of the biggest companies with exposure to the milk industry. With a market cap of about $18 billion, it comes in at position 331 in the Fortune 500 list. The company operates one of the biggest refrigerated and frozen food segments, mostly made up of dairy products.
Some of its iconic dairy brands include Reddi-Wip, Blue Bonnet, Parkay, Swiss Miss, Snack Pack, Wish-Bone, and Healthy Choice. The company generated revenues of $12.21 billion for the 12 months ended February 2023.
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Disclosure: None. 16 Biggest Milk Companies in the U.S. is originally published on Insider Monkey.