4-8 IAT Fluid Milk Sales

 The decline in fluid milk sales over the past several decades remains a major challenge facing the dairy industry. With an explosion of beverage choices, and consumers making more on-the-go food purchases, milk consumption continues to decline, especially gallon and half-gallon options, and with a lack of innovation in other areas. Dairy producers, through their checkoff investment, are leading an industry-wide effort to help reverse this trend. Tom Gallagher, CEO of Dairy Management Inc, which manages the national dairy checkoff says the dairy industry needs to change how it handles, prices, and markets fluid milk to help reverse decades of declining sales.  Gallagher said change can occur, but it requires a commitment from the entire industry.

“What really needs to occur is a re-thinking of the entire fluid milk industry and how we move to market. That is the key thing that the Checkoff has been working on with milk processors, retailers, suppliers, and new entrants into the marketplace including Pepsi and Coke, who used to be thought of as our competitors. We really need to not look at the short-term, small, incremental consumption opportunities, but rather we really need to look at everything. Put everything on the table from packaging to plant structures, to standards of identity, to other regulatory matters and really take a look at can we change a four decade long consumption trend.”