Stay current with news and opinions about the dairy processing industry. The weekly free-standing insert report tracks dairy promotional activities. Editor in chief Jim Carper recaps the people, products and companies making news each week. Guest bloggers share their opinions.
The long-term prospects for dairy processors and dairy producers look promising because of opportunities at home and abroad. In the short-term, however, the dairy industry faces uncertainty with its trading partners.
These are good times to be in cheese. It is a dairy food that consumers like and it can be packaged in formats that fit an on-the-go way of life. Dairy processors are investing in capacity to keep up with demand.
Chicago retailer Marshall Field famously said, “Give the lady what she wants.” A related axiom is “The customer is always right.” Here’s more good business advice: “Don’t insult your customers” and “Play it straight with consumers.”
It’s easy to find creativity in dairy processing. Look at the people involved in formulating, processing, packaging and marketing of dairy foods and beverages. Their innovations meet consumers’ calls for convenience and new flavors.
One size fits all never works. Dairies understand that consumers want options. That’s why milk processors offer the four fats (whole, 2%, 1% and nonfat), ice cream makers churn no-sugar-added varieties and cheesemakers cut their products into slices, chunks and shreds.
The world was turned upside last month for those of us in the Northern Hemisphere. It’s winter south of the Equator where Brazil hosted the summer Olympics. That gave me a different perspective on current events.
In 2015 Alibaba Group founder Jack Ma told a CNBC interviewer that the time to worry about next quarter was two or three years ago. If you are thinking today about what you are going to do in the next three months, you’ll be in trouble, he said.
The 100 largest dairy processors in North America clearly are planning ahead. They are building new plants and adding to existing ones, even though at least 30% of the companies reported lower sales in 2015 than in 2014. They are not going to let a one-year blip derail their plans for the future.
In head-to-head comparisons, nutrient-dense dairy foods beat their analog counterparts. Perhaps the new FDA labeling requirements will help the dairy industry to push back against claims by plant-based products.