Lactose-Free and Grass-Fed Milk Sales Are Increasing

In the not-so-distant past, cow milk was a commodity that you could expect to find in almost every American home. However, data shows that Americans today are drinking less milk – and are in fact consuming less dairy – than past generations. This trend has severely strained the US dairy industry in recent years, even pushing it to the brink of collapse.

And yet as demand falls for one commodity, another will reliably emerge to take its place in American homes. Today, those commodities are lactose-free milk and grass-fed milk.

Are you curious about growing your dairy farming operation through a farm or ranch loan? If so, you may want to consider moving towards lactose-free and grass fed milk. In this article, we’ll introduce you to this emerging trend and what it might mean for the US dairy industry.

Lactose-Free and Grass Fed Milk: Potential Beacons of Hope?

The US dairy industry has been struggling for years, but the last few months have dealt a particularly crushing blow. In November, 2019, Dean Foods – the nation’s largest milk producer – filed for bankruptcy. Two months later, Borden – another major producer – did the same. There are a myriad of reasons, both political and economic, behind the decline of the country’s dairy industry. A crucial factor, however, has been the rise of dairy-free alternatives like almond milk, cashew milk, and hemp milk.

But all is not yet lost. Though consumers are gradually beginning to shun traditional dairy, lactose-free and grass-fed milk both appear to be on the rise.

What Does the Future Hold for the Dairy Industry?

It isn’t yet clear how these microtrends will impact the future financial security of the US dairy industry. Consumer preferences are fickle, after all, and establishing the price of dairy products is notoriously tricky. (There’s an old saying: only five people in the world know how milk is priced in the US – and four of them are dead.) 

Still, the fact that sales are increasing for innovative new dairy products suggests that the dairy industry may yet survive. In fact, it may even thrive if it can properly adapt to the new and rapidly-changing demands of American consumers.

Grow Your Business Today with a Farm and Ranch Loan

So if you have a dairy business, don’t despair: hope is not yet lost! Today, dairy farmers are being challenged to adopt new business models using lactose-free and grass-fed milk products as a foundation. A shift of this kind will obviously require some operational changes and some considerable financial investments. Thankfully, MSF Agriculture’s farm and ranch loans can put you on the path to financial security in an ever-changing industry!

Learn More About Farm and Ranch Loans

At MSF Agriculture, we specialize in providing small farming operations with essential financial tools and advice. To learn more about how we can help to grow your business, contact one of our expert lenders today!