The concept of perverse incentives pops up regularly on HN, and the dairy industry is a great example. You get paid by the gallon, but Bessy produces a limited

The concept of perverse incentives pops up regularly on HN, and the dairy industry is a great example. You get paid by the gallon, but Bessy produces a limited number of gallons. So what do you do, you breed Bessy to the point that her milk is little more than white water, unrecognizable to previous generations of milk drinkers, and in doing so your supply outpaces demand. The point is, the struggles of the dairy industry are entirely their own making. They ignored the potential for diversification, with loads of family farms going out of business because they wouldn't move beyond fluid milk -- same concepts of value-add and vertical integration exist in dairy just like in other businesses. Before Chobani, good luck finding "greek" yogurt. After Chobani, good luck finding anything not "greek" yogurt. But where's the Quark? Where's the Creme Fraiche? Where's the "real" greek yogurt made with sheep milk? Dairies thought they could keep producing sub-standard Holstein water and didn't need to actually think like competitive businesses.