Leonard Polzin, Dairy Markets and Policy Outreach Specialist for the University of Wisconsin–Madison Division of Extension, recently spoke with Shelly Mayer of The Dairy Signal to discuss the Dairy Situation and Outlook for 2024.
Topics covered during the January 18 livecast
Dairy Processing Investment
Future Growth
Expectations of significant growth in dairy processing happening through 2025. Estimated $7 billion investment in dairy processing across multiple product categories. Expansion could potentially increase cheese production by 2% or more.
Supply and Demand
New processing capacities could change the market absorption of raw milk supply. The amount of ‘pre-allocated’ vs ‘current’ raw milk supply that is utilized by new processing could noticeably impact producer pay price.
Products to Watch
Beyond the focus on standard dairy product categories, products that had a breakout year in 2023 were cottage cheese(+~26%).
Milk Alternatives on Dairy Market
As incomes rise, so does the willingness to pay for specialized food attributes, including dairy alternatives. Traditional dairy remains dominant in market share. Despite the presence of milk alternatives, dairy, especially fluid milk, continues to hold a strong market position, with sales volumes significantly outpacing plant-based dairy free alternatives. While fluid milk consumption per capita is declining, overall dairy consumption in milk equivalents is increasing, indicating a shift towards consuming dairy in forms other than fluid milk, with cheese being a notable area of growth
About The Dairy Signal
Developed by PDP for dairy farmers and industry leaders, The Dairy Signal™ is an online resource to provide insights to make informed decisions. Each week, The Dairy Signal is broadcasted live every Tuesday, Wednesday and Thursday from 12:00-1:00 PM CT. During these live broadcasts, viewers have the opportunity to engage and interact with industry experts through open Q&A. Episodes are also available on-demand and for download.
