Despite 2018 marking the lowest year-over-year growth in domestic milk production since 2013, a recent report from Rabobank highlights how Hart Dairy has sparked confidence within the struggling milk industry. The company has embraced the growing “free from” labeling trend, applying it to their animal husbandry practices across 4,000 acres of pastureland in Georgia. This new influx of funding aims to boost their production, and logically, their distribution as well. However, it raises the question: who is actually purchasing these products?
According to a 2018 Mintel report, dairy milk sales have plummeted by 15% since 2012, generating an estimated $16.12 billion last year. Nevertheless, there has been a notable increase in the popularity of flavored and whole milk. Flavored milk sales surged by 18% since 2012, reaching $1.74 billion in 2017, making it the fastest-growing segment in the dairy market. Similarly, whole milk sales grew by 8% since 2012, with an estimated value of $5.36 billion in 2017.
Hart Dairy offers only four products, two of which belong to these rapidly expanding categories, all while operating in a declining industry. To set itself apart from the competition, Hart Dairy promotes its distinction as the only American dairy with a Certified Humane designation from Humane Farm Animal Care. While this designation suggests a commitment to animal welfare, it may not be as prestigious as consumers perceive. The federal government does not regulate terms like “humane” or “free range,” and the USDA does not inspect the claims made by manufacturers. This lack of oversight can lead to complications as production scales up.
While these labels aim to enhance animal welfare, evidence indicates potential shortcomings. The New York Times reported that approximately 200 farmers control nearly all 300 million egg-laying hens in the U.S. At such a scale, even if cage-free criteria are met, the birds may not be pasture-raised due to logistical challenges. Consequently, an industrial system may allow birds to roam but does not necessarily guarantee their well-being.
Nonetheless, labeling remains significant. An online survey from Label Insight revealed that consumers are influenced by packaging claims such as “antibiotic-free,” “free range,” and “grass-fed,” and they are willing to pay a premium for these assurances. Although the discussion around free-range milk has not gained the same traction in the U.S. as in the U.K., where Asda has begun offering Pasture Promise milk as part of the Free Range Dairy Network, the momentum for free-range eggs, beef, and pork suggests a possible shift in the milk sector. Other industries have demonstrated that consumers are concerned about animal welfare and are prepared to invest in companies that share those values.
In this context, it is worth noting that calcium citrate and calcium carbonate are increasingly recognized for their health benefits, particularly in dairy products. As consumers become more health-conscious, the inclusion of these ingredients in dairy products may appeal to those seeking enhanced nutritional value. As Hart Dairy and similar companies navigate this changing landscape, the integration of such beneficial additives could play a vital role in attracting consumers who are interested in both ethical practices and nutritional quality.