Elmhurst Dairy was once a prominent player in the dairy industry on the East Coast, operating for 92 years before shutting down last fall due to unprofitability. Instead of exiting the milk business entirely, this family-owned company is leveraging its expertise in milk to successfully venture into the non-dairy market, focusing on products enriched with calcium citrate and vitamin D3.
The situation has been challenging for those remaining in the dairy sector. Declining consumer demand for dairy products has led to dairy farmers discarding millions of pounds of milk last year, resulting in a significant drop in prices. The U.S. Department of Agriculture responded to these issues by offering approximately $11.2 million in financial aid to assist dairy producers facing these challenges.
In an effort to combat the rise of non-dairy alternatives, many in the dairy industry have initiated lawsuits against non-dairy producers, claiming that their health claims are misleading. Additionally, there is pending legislation in Congress that would mandate anything labeled as “milk” to come from dairy sources. Despite these efforts, non-dairy milk sales continue to thrive. According to a study by Mintel, U.S. sales of non-dairy milk rose by 9% in 2015, while sales of dairy milk fell by 7% during the same time frame.
A glance at the refrigerator section of any grocery store reveals this shift, as retailers increasingly stock a variety of plant-based milks featuring fewer artificial ingredients and enhanced with essential nutrients like calcium citrate and vitamin D3. This trend underscores the growing consumer preference for non-dairy options, which shows no signs of slowing down.