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Evaluating the impact of novel products to the dairy market on fluid milk utilization.

A. Crews

Abstract:

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Evaluating the impact of novel products to the dairy market on fluid milk utilization.
A. Crews*, J. Bohlen. University of Georgia Athens, GA.

In the last decade, the consumption of fluid milk has continued to drop in the United States as consumer preference for milk substitutes continues to rise. With increasing health concerns and diet trends, remaining consumers of fluid milk are pressuring for innovation in the market of dairy food production. Gallon jugs of milk are less desirable with smaller families and a short shelf stability limit its demand, especially when habitual breakfast is becoming less popular and the market for its complimentary good, cereal, is declining. It begs the question as to why fluid milk remains so highly regarded by cooperatives in regions such as the Southeast. Simply put, the mechanics and labor processing facilities value at too large of an expense to give reason to push for investment in an area such as the Southeastern United States with such an unsteady seasonal milk supply. Across the US but especially for producers in the southeastern United States, the need for increased fluid milk utilization is called for. This need for price increase and stabilization for dairy producers coupled with consumer driven markets ultimately calls for the reinvention of standard fluid milk. Novel products changing fluid milk utilization have focused on its inclusion in other products, refinement of the milk product, and more attractive packaging. These products include items such as milk-based coffee products to target a widely consumed product, A2 milk, and milk presented in glass bottles. Ultimately, the fluid milk industry will need to diversify its product offering and methodologies of presentation to remain profitable, and refinement and packaging offer opportunities for stabilization of dairy prices.

Keywords: fluid milk, market innovation, utilization.