How Veganism Is Impacting the Dairy Industry
For generations, dairy has been a staple of the American diet. It’s for this reason that most dairy farmers in the past always could feel safe and financially secure. Over the course of the past few years, however, more and more people have been moving away from dairy. The rise of veganism, in particular, has led to a sharp economic decline in the US dairy industry.
As experts in small farm loans and ranch refinancing, we hear a lot of discussion around these matters. Farmers want to know, how will veganism impact the integrity of the dairy industry in the next few years?
To answer that question, let’s start by looking at how veganism first came to pose a threat to American dairy.
What Threat Does Veganism Pose to the Dairy Industry?
Veganism is a dietary regimen which completely shuns all animal-based products, including dairy. It’s become very widespread in recent years, particularly since the dairy industry began to be criticized by environmental groups. Ecological impacts of dairy notwithstanding, the rise of veganism has led to some severe setbacks for the dairy industry.
For one thing, it has led to the meteoric rise of dairy-free milk alternatives, like cashew milk and almond milk. These commodities are becoming more popular by the year and have started to severely undercut the value of cow’s milk.
In addition, there’s research indicating that the dairy-free movement is likely to continue (if not accelerate). A recent survey, for example, found that more than a quarter of young adults have begun to ditch dairy.
Economic Impacts of Veganism
In a recent article, dairyreporter.com called the dairy-free trend “a serious threat” to the future of the dairy industry. In addition, the USDA recently reported that the price of milk has declined precipitously since 2019. This is due, in no small part, to the rise of veganism (although there are other factors at play).
Unfortunately, farmers across the country are already beginning to feel the financial burden of the nation’s dwindling demand for dairy. Since veganism appears to be here to stay, many have begun to integrate alternative farming practices into their existing operations. This, of course, requires new technologies and practices, which in turn requires a financial investment.
How Ranch Refinancing Can Help
In order to successfully adapt to a changing industry, many dairy farmers have begun to turn to ranch refinance options. A ranch refi can also help you to pay your mortgage, which will be crucial in the difficult years ahead.
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At MSF Agriculture, we specialize in providing small farmers with the economic and business solutions that they’ll need to thrive. If you’re curious to learn more about how a ranch refi can help to protect your farming operation’s future, give us a call today!