Discusses the restructuring of the food production, processing and retailing sectors in the USA. Describes different methods of vertical and horizontal integration that have occurred. Goes on to discuss the consolidation of business in retailing in particular. Refers to the relationships that are being formed between the supermarket chains, for example Wal‐Mart and Kroger, and dominant food‐chain clusters. Considers whether or not smaller retail chains and wholesalers should feel threatened by this consolidation. Takes the dairy sector in the USA as a case study in the restructuring of the retailing and processing sectors.