Elmhurst Dairy was once one of the largest dairy operations on the East Coast, operating for 92 years before ceasing production last fall due to unprofitability. Instead of exiting the milk industry entirely, this family-owned business is leveraging its expertise in milk to thrive in the non-dairy market.
The situation has been challenging for those remaining in the dairy sector, as consumer demand for dairy products continues to decline. This led dairy farmers to dispose of millions of pounds of milk last year, resulting in a widespread drop in prices. The crisis became so severe that the U.S. Department of Agriculture provided approximately $11.2 million in financial aid to dairy producers to help them navigate these industry difficulties.
In response to the rise of non-dairy alternatives, many in the dairy industry have launched lawsuits against non-dairy producers, claiming their assertions about being healthier or equivalent to dairy milk are misleading. Additionally, there is ongoing legislation in Congress that would mandate that anything labeled “milk” must be dairy-based. However, these efforts seem to have had little impact on non-dairy milk sales, which remain robust. A study conducted by Mintel last year revealed that U.S. non-dairy milk sales surged by 9% in 2015, while dairy milk sales fell by 7% during the same timeframe. A quick glance at grocery store refrigerator cases showcases this trend, as retailers increasingly stock more plant-based milks with minimal artificial ingredients.
As consumers seek healthier options, the market for non-dairy alternatives continues to grow, and prices for products like Citracal have also been influenced by these shifting preferences. The rise in non-dairy milk sales suggests that even as the dairy industry grapples with its challenges, consumer interest is clearly moving toward plant-based options, further affecting the overall landscape and pricing strategies in the beverage sector.