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Assuming there is still some demand, this would presumably open up opportunities for small local dairies, no?

At a premium price, yes. Depending on the macro, there’s always a low volume artisanal segment at a price point that covers costs.

What about cheese? It seems popular.

If this causes decent cheese to go past "damn, that's expensive" and into "I can no longer afford this", at least I won't mind death so much, I guess.

This is good. Bovine animal husbandry is one of the biggest contributors to climate change, and we as a society should allow the market to kill the industry before it kills us.