A steady stream of challenges has battered the dairy industry over the last decade. Based on the latest numbers from the U.S. Department of Agriculture, 2019 saw the largest annual drop in licensed dairy operations since 2004. The global pandemic – and its economic impact – presents even more challenges. Commercial demand fell as restaurants, hotels, and schools closed their doors. The sudden loss of foodservice income left dairy producers stuck with a surplus of milk products.
Despite these hurdles, optimism persists. As Phil Tong, Director of Dairy Science, Education, and Research at the American Dairy Products Institute (ADPI), says the dairy business is as healthy as it’s ever been.
More people are stocking up on staples, and the industry has benefited as a result. Retail sales of milk, butter, and cheese are all up as more consumers have turned to baking at home, while shoppers continue to scoop up other dairy mainstays to stock their pantries.
While the market has shifted along with consumer sentiment, the opportunities are more significant than the obstacles, from an exploding export business to a growing direct-to-consumer market.
Download our eBook to find out how companies can take advantage of these new opportunities.
In this eBook, readers will learn: