Dairy Foods logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Dairy Foods logo
  • NEWS
    • DAIRY REGULATIONS
  • PRODUCTS
    • New Products
    • Butter
    • Cheese
    • Cultured Dairy
    • Frozen Desserts
    • Ice Cream/Novelties
    • Milk
    • Non-Dairy Beverages
    • Sales Data
    • Whey, Milk Powder
    • Dairy Alternatives
  • INGREDIENTS
    • Cocoa
    • Colors/Flavors
    • Cultures/Enzymes
    • Fiber
    • Gums, Stabilizers, and Texturants
    • Inclusions
    • Omegas/Lipids
    • Prebiotics
    • Probiotics
    • Sweeteners
    • Other
  • OPERATIONS
    • SUSTAINABILITY
    • Equipment
    • Processing
    • Packaging
    • Food Safety & Sanitation
    • Membrane Technology
  • MEDIA
    • Dairy Foods TV
    • Podcasts
    • Webinars
  • DIRECTORIES
    • Buyers Guide
    • Dairy Plants USA
  • MEMBRANE FORUM
  • MORE
    • Associations
    • Dairy Foods' News & Views Newsletter
    • Blogs
    • Case Studies
    • Classifieds
    • Custom Content & Marketing Services
    • Dairy Foods Store
    • Market Research
    • Supplier Spotlights
    • Tradeshows and Events
    • Strategy Guides
  • AWARDS
    • Dairy Plant of the Year Award
    • Breakthrough Award
    • Dairy Processor of the Year
  • EMAGAZINE
    • eMagazines
    • Archive Issues
    • Contact
    • Advertise
    • SIGN UP!
    • Columnists
    • Dairy 100
    • State of the Industry Report
    Dairy Foods & BeveragesNew Dairy Products

    Insights: Strong sales despite high prices

    By Jerry Dryer
    August 1, 2005
    It was a mixed bag product-by-product, but total dairy sales were strong during 2004.

    It was a mixed bag product-by-product, but total dairy sales were strong during 2004.

    Total milk and dairy product usage nearly matched year-earlier levels despite record-high prices during 2004, according to preliminary per-capita consumption data recently released by USDA. On a milk equivalent, milkfat basis, per-capita consumption of all dairy products totaled 592 pounds during 2004, according to USDA. That's down just two pounds versus 2003 when consumption hit a 15-year high.

    In fact, sales of several dairy products did decline under the weight of sharply higher milk prices. Cheese, butter and yogurt usage, however, helped hold up total per-capita consumption.

    After very modest gains for the past several years, per-capita cheese use jumped up eight-tenths of a pound to total 31.2 pounds during 2004. American-type cheeses enjoyed four-tenths of a pound of growth and all other varieties another four-tenths.

    USDA doesn't publish more detailed data for numerous varieties until later in the year, but other data suggest that Hispanic cheese varieties were big contributors to the growth.

    Butter usage climbed one-tenth of a pound higher for the second year in a row. At 4.6 pounds per capita, butter sales were the highest they have been in five years.

    Fluid (primarily beverage) milk and cream usage, which includes yogurt, totaled 207 pounds per capita; just one pound less than a year earlier. Other data indicate that retail sales of beverage milk plunged last year as prices marched sharply higher during the first half.

    Other data tell us, however, that yogurt had a very good year as manufacturers scrambled to meet the low-carbohydrate-diet phenomena head on and the carb-fad faded.

    Meanwhile, the meter measuring cottage cheese usage appears to be stuck. It has hovered between 2.6 and 2.7 pounds per capita for the past 10 years. One of the original "diet" foods, cottage cheese usage stood at nearly 5 pounds per capita back in the mid 1970s.

    A shortage of hot summer days and the low-carb craze teamed up to push ice cream sales lower during 2004. In fact, regular ice cream usage fell a full pound to 15.4 pounds. Per-capita sales of all frozen desserts-regular and reduced fat ice cream, sherbet, etc.-totaled 26.4 pounds; down from 27.1 pounds during 2003 and down from 29 pounds as recently as 1998.

    FYI: Nonfat dry milk "per capita usage" increased nearly a pound to 4.3 pounds during 2004. No, you didn't miss out on some new U.S. fad. It's just a quirk in the data. U.S. manufacturers exported a record-shattering 260,000 metric tons of skim milk powder last year and the USDA database simply divides total disappearance by the US population.

    As US exports grow, the database may require an overhaul, but for the moment all is fine. The total pounds of per-capita dairy usage are calculated on a fat basis, so skim milk powder isn't much of a factor.

    While the sales of some dairy products struggled last year, others did quite well and the bottom line read strong volumetric sales in the face of very high prices.

    Share This Story

    Looking for a reprint of this article?
    From high-res PDFs to custom plaques, order your copy today!

    Jerry Dryer
    Marketing Analyst
    www.dairymarketanalyst.com
    Tel: (800) 243-7037
    Read Jerry's Bio

    Recommended Content

    JOIN TODAY
    to unlock your recommendations.

    Already have an account? Sign In

    • Lifeway Organic Kefir in different flavors inside a refrigerated grocery shelf.

      Dairy Foods names Lifeway Foods 2025 Processor of the Year

      Lifeway Foods donates $10,000 to wildfire victims,...
      Dairy Processor News
      By: Brian Berk
    • Two female farmers are standing in a field, holding a large milk canister, looking at several cows at dairy farm.

      Honoring Women Leaders Shaping the Dairy Industry

      For the fourth consecutive year, Dairy Foods is proud to...
      Dairy Foods & Beverages
      By: Barbara Harfmann
    • Main feature for State of the Industry with dairy products album cover with a gradient circular--patterned backgorund.

      2025 State of the Dairy Industry

      Welcome to the 2025 State of the Industry report. For...
      Dairy Foods & Beverages
    Manage My Account
    • eMagazine Subscription
    • Dairy Foods News & Views Newsletter
    • Online Registration
    • Manage My Preferences
    • Subscription Customer Service
    • Connect with Dairy Foods

    More Videos

    Popular Stories

    Close up of a whipped frozen dessert with a light green color.

    The keys to high-protein dairy formulations

    A young Asian mother holding her son and a sippy cup, an older woman is in the blurred background.

    Finding the right infant formula is crucial to a baby’s growth and development

    A row of Frios Gourmet Pops with a tie dye pattern as a background.

    How Frios Gourmet Pops delivers happiness

    Outlook Report: Women in Dairy

    Products

    Probiotic Ice Cream: Science and Technology

    Probiotic Ice Cream: Science and Technology

    See More Products
    Let's Talk Dairy podcast promo

    Related Articles

    • High Prices, Global Demand Impact Changing Industry in 2007

      See More
    • A close-up of stacks of cheese on a table with a blurred background.

      Belgioioso and Bel Brands notch strong sales in cheese

      See More
    • State of the Dairy Industry: High butter prices open the door to imports

      See More

    Related Products

    See More Products
    • high temp.jpg

      High Temperature Processing of Milk and Milk Products

    See More Products

    Events

    View AllSubmit An Event
    • September 10, 2025

      Turn Insights into Strategy: Bring Dairy Back to the Table

      On-Demand This session will also cover strategies for manufacturers to innovate and align with these trends, helping position dairy as a versatile, health-forward choice in the modern food landscape.
    • March 31, 2015

      Raising the bar with in-line mixing and blending technologies: high output with flexibility and low costs

      On Demand In this webinar, you will be introduced to advanced in-line blending, dosing and mixing technologies that offer high flexible productions, reduced product losses, shorter batch times, uniform products, and reduced ingredient costs. As a result, Food Manufacturers can optimize their productions and increase their profitability.
    View AllSubmit An Event

    Related Directories

    • Ag Price

    • Price's Creamery Inc.

    • High Lawn Farm

    ×

    Stay ahead of the curve. Unlock a dose of cutting-edge insights.

    Receive our premium content directly to your inbox.

    SIGN-UP TODAY
    • RESOURCES
      • Advertise
      • Contact Us
      • Directories
      • Store
      • Want More
    • SIGN UP TODAY
      • Create Account
      • eMagazine
      • Newsletter
      • Customer Service
      • Manage Preferences
    • SERVICES
      • Marketing Services
      • Reprints
      • Market Research
      • List Rental
      • Survey/Respondent Access
    • STAY CONNECTED
      • LinkedIn
      • Facebook
      • YouTube
      • X (Twitter)
    • PRIVACY
      • PRIVACY POLICY
      • TERMS & CONDITIONS
      • DO NOT SELL MY INFORMATION
      • PRIVACY REQUEST
      • ACCESSIBILITY

    Copyright ©2026. All Rights Reserved BNP Media, Inc. and BNP Media II, LLC.

    Design, CMS, Hosting & Web Development :: ePublishing