Packer and ag consolidation is a huge problem, but the underlying issue here is climate change and long-lasting droughts; some of the issues with herd size — the smallest since about 1950 — come from COVID hangover when cows weren’t getting processed and price-per-head plummeted, but the immediate problem is that ranchers can’t support large herds due to lack of rain and cost of feed. We’re looking at long-term cost trends that are unlikely to reverse or even be significantly ameliorated anytime soon.

> the immediate problem is that ranchers can’t support large herds due to lack of rain and cost of feed

Ranchers that can support large herds (2,000+) are those who earn a net profit [0] and are consolidating because processors do not want to support small farms.

While environmental factors do play a role, saying it's the primary reason is greenwashing of the real oligopolies tendencies arising in American Ag industry.

[0] - https://www.thebullvine.com/news/will-your-dairy-farm-surviv...