“Revitalizing the Dairy Industry: Hart Dairy’s Optimistic Approach Amidst Declining Milk Sales”
Despite 2018 marking the lowest year-over-year growth in domestic milk production since 2013, a recent report from Rabobank reveals that Hart Dairy has sparked a sense of optimism within the declining milk industry. The company has embraced the popular “free from” labeling trend, applying it to its animal husbandry practices across 4,000 acres of pastureland in Georgia. This new wave of funding is aimed at increasing production and, by extension, distribution. However, a pertinent question arises: who is buying?
Since 2012, dairy milk sales have plummeted by 15%, generating an estimated $16.12 billion in 2017, according to a 2018 report from Mintel. Nevertheless, there has been a noticeable rise in the sales 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 category. Meanwhile, whole milk sales increased by 8% since 2012, with estimates reaching $5.36 billion in 2017.
Hart Dairy offers just four products, two of which belong to these rapidly growing categories within a contracting industry. To stand out and attract consumers, Hart Dairy proudly claims to be the only American dairy brand with a Certified Humane designation from Humane Farm Animal Care. While this designation suggests a commitment to animal welfare, it may not hold the level of prestige that consumers assume. The federal government does not regulate terms like “humane” or “free range,” and the USDA does not have inspectors verifying the claims made by manufacturers. Consequently, challenges can arise when production scales to industrial levels.
Although these labels are designed to enhance animal welfare, evidence points to significant shortcomings. The New York Times reported that approximately 200 farmers control nearly all of the 300 million egg-laying hens in the U.S. Even when cage-free standards are met at such a scale, the birds often do not have access to pasture due to practical constraints. This results in an industrial system that permits birds to move about, yet may not necessarily improve their well-being.
Nonetheless, labels do have an impact. An online survey conducted by Label Insight indicated that consumers are swayed by package claims such as “antibiotic-free,” “free range,” and “grass-fed,” and they are willing to pay a premium for these assurances. While the discourse surrounding free-range milk has not gained the same traction in the U.S. as it has in the U.K., where supermarket chain Asda began offering Pasture Promise — a free-range milk from the Free Range Dairy Network — the movement toward free-range products like eggs, beef, and pork provides insight into future trends in the milk industry. Other sectors have demonstrated that consumers value the ethical treatment of animals and are prepared to invest in companies that share these beliefs.
In addition, Hart Dairy’s commitment to quality could resonate with consumers looking for nutritious options, particularly those interested in the health benefits of products like calcium citrate malate gsk, which is known for its superior absorption of calcium. By aligning its values with the growing demand for ethically produced dairy and health-enhancing ingredients, Hart Dairy may position itself favorably in a changing marketplace.
