My son's in that business, one of the few with a degree. He's into the value added part: hard cheese (award winning, even the stuff not up to his standard is good), fresh cheese & ice cream. Labor (WA has the highest Min wage in the US) & transport are killers. The regulators do not like dealing with the little guys, their bosses get more campaign donations from the big guys

. 16 hour days are the norm, but that's what he chose, also takes no govt. handouts

. I admire his independence. Though he feeds very little grain his grain has more than doubled in 4 years - ethanol being the driver, which cause farmers to rotate out of small grain into corn more often, creating a shortage of all commodities.
Most of the stores get their produce & fresh stuff from the same wholesaler - they profess to but don't want to deal with the small guys. Makes a good advertising slogan. As a consumer I source what I eat & will pay more for wholesome products where the animals & farming conditions are a priority to the producer. I can tell the difference as I was raised organic but in those days we just called it food
$17/cwt will give you about 8 1/2 gallons of whole milk from the farmer. The value added people will skim some cream & manufacture various other commodity like products to make their bottom line presentable but it's a tough business. I have a picture showing a warehouse full of macaroni cheese in a salt mine in MO. Most Cheddar is sold in 100 pound wheels for around $2.00/lb. You do know that if someone advertises bSrt free, that the only one who could verify that is the outfit selling the stuff as there is no test to determine usage or not!
I'm on an auction list - there are manufacturing facilities going under regularly - big & little ones alike.