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Milk products: what’s selling?

January 3,2018-

Screen Shot 2018-01-03 at 4.01.24 PMSome rare good news for milk producers, organic milk sales in California are up about 3% in 2017 through November reports the CDFA.

Nationally, stories are circulating that organic milk sales have lost their mojo.

“Organic milk sales have cooled as the very shoppers who drove demand for the specialty product not long ago move on to newer alternatives, leaving dairy sellers and producers grappling with oversupply.”

Fluid milk of all kinds has seen a steady decline in popularity in part because we are all eating less ready-to-eat cereal with its own drop of 3.3 percent per year.

But organic whole milk continues to grow in popularity in the Golden State with sales up about 10% in 2017 through November. That compares to conventional whole milk sales that are up a more modest 1%.All varieties of conventional milk suffered a decline of 3.5% while all categories of organic milk sales are up around 3%.

One category seeing higher milk sales is flavored milk – up over 3% this past year; Buttermilk is up over 3% and yogurt is the strongest player – up over 20% Not doing well are frozen milk products, down about 6% year-over-year.

Also down this year is butter with sales down around 5% this year. Cheese sales are about even with 2016 sales with cheddar cheese seeing a 5% rebound, mozzarella (about 60% of all cheese sales) reporting a 1% decline.The much smaller category of Hispanic cheese sales are up around 10% and whey protein is up by 5%.

CDFA says comparing the first half of 2017 to the first half of 2016, total cheese production in California increased 0.4 percent, yogurt production increased 28.2 percent, butter production decreased 6.9 percent, and nonfat dry milk production (for human consumption) decreased 6.3 percent. In addition, from January through June of 2017, total sales of Class 1 fluid milk products (including half-and- half ) in California decreased 3.3 percent, compared to the same period in 2016.

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