CONSUMERS
The consumer dollar can make or break the small-scale dairy industry. While many consumers may know the industry is in decline, they probably are not aware of how crucial each of their decisions is to local farmers. Continue reading explore the pros and cons that shoppers need to weigh before making their next purchase.
According to The National Farmer's Union, for each gallon of milk bought farmers only receive $1.63 dollars of each $3.49. While consumers alone cannot upheave all the issues that contribute to this discrepancy, they can be a more socially conscious shopper and choose to put that money in the pocket of a smaller-scale farmer.
THE BENEFITS OF SHOPPING LOCAL
Access to healthier and fresher meats and produce
Reducing carbon footprints
Supporting small scale agriculture
THE DRAWBACKS
Goods can be more costly than at traditional grocery stores
More frequent shortages of perishable goods due to seasonal changes
Often not ideal for whole-house shopping
CONSUMERS TRENDS
Surveys similar to the following ones conducted by McKinsey & Company on the behaviors of the American dairy consumer are key in predicting future shopping patterns and the outlook for small farmers.
The survey results convey that consumers who are looking for healthy products, will, therefore, search for items that are "all-natural," "low sugar," and "organic." Therefore, it is important that dairy farmers who meet these standards, advertise as such to gain more revenue.
McKinsey & Co's data proves that Millenials buy more "premium," or niche, dairy products than other ages. However, both a Millenials and all age ranges report that they still predominantly buy store brands.
This survey was taken from 56 dairy CEO's, and demonstrates the heightened trends of plant-based competition. This would include products such as nut-cheese, and nut-milks. In the short span of three years, 15 of the 36 questioned, became convinced that the competing market is sizeable and will continue to grow.