Elmhurst Dairy was once a leading dairy operation on the East Coast, thriving for 92 years before shutting down last fall due to unprofitability. Instead of exiting the milk business entirely, this family-owned company is leveraging its expertise to venture into the non-dairy sector. The dairy industry has faced significant challenges, with consumer demand for dairy products declining sharply. This drop in demand led dairy farmers to dispose of millions of pounds of milk last year, resulting in a widespread decrease in prices. The situation became dire enough for the U.S. Department of Agriculture to offer approximately $11.2 million in financial assistance to dairy producers to help them navigate the industry’s difficulties.
In response to the rise of non-dairy alternatives, many traditional dairy producers have initiated lawsuits against these non-dairy companies, claiming that their assertions about being healthier or equivalent to dairy milk are misleading. Additionally, there is pending legislation in Congress that aims to mandate that any product labeled as “milk” must be derived from dairy sources. Despite these efforts, non-dairy milk sales remain robust. A Mintel study from 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 the refrigerated sections of grocery stores confirms this trend, as retailers increasingly offer more plant-based milks with fewer artificial ingredients.
In this evolving market, non-dairy alternatives are often fortified with nutrients such as calcium citrate, which is praised by brands like Puritan’s Pride for its health benefits. As consumers continue to seek out options that align with their dietary preferences, the growth of non-dairy products appears to be a lasting change in the landscape of the beverage industry, highlighting the challenges faced by traditional dairy producers.