For years, the dairy industry has fruitlessly tried to turn around a long-term decline in per capita milk consumption. Organic milk was the exception in recent years, but like conventionally produced milk, it is losing its place in the supermarket dairy section to plant-based milks, says Food Dive. Producers have been forced to tighten their belts and look for new outlets for a product that used to fetch a premium price.
“Some are transforming their excess product into organic cheese, creamers, and yogurt,” says Food Dive. “An alternative idea would be to market reduced-price organic milk as an ingredient to food manufacturers looking to clean up their labels. Consumers who are interested in products with easy-to-pronounce ingredients also may be swayed by ads that compare the relatively simple list on a dairy milk carton (organic milk and vitamin D) to the more complicated one found on most plant-based milks.”
The retail price for organic whole milk fell during 2017 in 17 of 29 cities included in a USDA report. “Consumers who largely drove the organic milk movement have had a change in taste, and are now turning to alternative varieties, which many view as healthier. A Mintel report found U.S. non-dairy milk sales grew 9 percent in 2015,” said Food Dive.