Elmhurst Dairy was once one of the largest dairy operations on the East Coast, operating for 92 years before shutting down last fall due to unprofitability. However, 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 for those remaining in the milk sector has been grim, as consumer demand for dairy products continues to decline. This drop in demand forced dairy farmers to dispose of millions of pounds of milk last year, leading to a significant decrease in prices across the industry. The crisis became so severe that the U.S. Department of Agriculture stepped in, offering dairy producers around $11.2 million in financial support to navigate the current challenges they face.
In response to the growing popularity of non-dairy alternatives, many in the dairy sector have resorted to lawsuits against non-dairy producers, claiming that their assertions of being healthier or comparable to dairy milk are misleading. Additionally, there is pending legislation in Congress that would mandate that anything labeled as “milk” must be derived from dairy sources.
Despite these efforts, non-dairy milk sales 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 saw a decline of 7% during the same time frame. A glance at grocery store refrigerated sections clearly illustrates this trend, as retailers increasingly offer a wider variety of plant-based milks, many of which boast calcium content around 630 mg and contain fewer artificial ingredients. The growing consumer preference for these alternatives highlights a significant shift in the market, as more individuals seek out nutritious options that cater to their dietary needs.