A non dairy milk benefit, which has been in place since the late 1970s, is boosting milk prices in the United States, according to a report by research firm Cowen & Company.
Non dairy milks are typically higher in fat, cholesterol, and sodium compared to milk, but milk is typically higher-quality and contains fewer calories than its milk-based counterpart.
Cowen noted in its report that dairy farmers are still producing about half of the milk consumed in the U.S. A dairy milk product made from non-dairy ingredients is now $5.96 per gallon compared to $2.89 per gallon in 2015.
Cowens dairy benefit for 2017-18 includes a $0.50 increase in sales per gallon and an average price per ounce.
“As we move forward, dairy milk is becoming more affordable in the marketplace,” said Scott Jurek, Cowen’s vice president of research.
Cowin’s report found that non dairy milies sales are expected to rise 8.4% in 2017, up from 7.7% in 2016.
The milk industry is not the only market where non-Dairy milk benefits are boosting prices.
According to a survey conducted by the market research firm FactSet, dairy products are expected buy up about 3% of the overall market.
Cowenstein said that the market is also seeing an increase in dairy products sold in the home, where non dairy products accounted for nearly half of all sales in the first quarter of 2018.
The number of U.P. consumers who bought non dairy dairy milk products in the second quarter of the year surpassed the total number of people who bought milk.
Non-dietary milk products are also growing at a rate of about 2% a year, according the Cowen report.
“While dairy is in decline, it’s clear that non-milk products are growing, especially in the dairy industry,” said Cowenstein.
Dairy farmers have seen a steady increase in milk production, and the non dairy benefit is contributing to that.
Cowhen said the dairy product market is expected to grow to $6.6 trillion by 2021.
Cowan predicts that non D&C milk will remain strong in the years ahead, as non dairy benefits continue to improve.
“Non dairy milk and non dairy cheese sales are likely to remain strong, given that these ingredients are still affordable and have relatively few calories,” Cowen said.
Cowell says that while dairy milk prices are rising, non dairy sales are rising at a slower rate than dairy sales.
Cowie says dairy milk sales will continue to rise for at least a few more years.
Cowes non dairy product costs are growing at about 2.7%.
Cowen estimates that non Dairy milk costs will continue growing at 2.2% a share, Cowan said.
The Cowen research is based on Cowen Group’s Cowen Index, which measures the quality and cost of dairy products.
Cowing is a dairy producer in Michigan that is focused on improving the quality of dairy.
Cowings main goal is to make milk more affordable to consumers by lowering costs and increasing milk production.