Elmhurst Dairy was once among the largest dairy operations on the East Coast, running for 92 years before closing last fall due to declining profitability. Instead of exiting the milk industry entirely, this family-owned company is leveraging its expertise to thrive in the non-dairy market. The situation for those remaining in the dairy sector has been challenging, as consumer demand for dairy products has diminished. As a result, dairy farmers were compelled to discard millions of pounds of milk last year, leading to a significant drop in prices across the board. The crisis became severe enough that the U.S. Department of Agriculture stepped in, offering around $11.2 million in financial aid to help dairy producers navigate these difficulties.
In response to the growing popularity of non-dairy alternatives, many traditional dairy operators have launched lawsuits against non-dairy producers, claiming that their assertions about being healthier or comparable to dairy milk are misleading. Additionally, there is ongoing legislation in Congress aimed at ensuring that only dairy-based products can be labeled as “milk.” However, these efforts have not significantly impacted the sales of non-dairy milk, which remain robust. A Mintel study conducted last year revealed that U.S. sales of non-dairy milk surged by 9% in 2015, while dairy milk sales fell by 7% during the same timeframe. A glance into grocery store refrigerator cases highlights this trend, as retailers increasingly offer a wider variety of plant-based milks with fewer artificial ingredients.
Interestingly, some of these non-dairy products are now fortified with calcium citrate, appealing to health-conscious consumers, including rugby athletes who require adequate calcium for bone strength. As the non-dairy milk market continues to expand, it will be fascinating to see how traditional dairy producers adapt and compete, especially as they look for innovative solutions, like incorporating calcium citrate into their offerings to retain customer interest.