Reflecting on Business Trends Throughout the Years

MELISSA FRYER PRESIDENT, NORTHEAST DAIRY SUPPLIERS ASSOCIATION

As I enter my 27th year in the dairy and food industry, I have found myself reflecting on the numerous business trends seen throughout the years. Some product trends have become staples, while others have come and gone. In either case, we are all anxious and eager to take advantage of the opportunities the latest industry trends will present. This includes being positioned to service the industry with any equipment and services these trends may require, for however long they last. Consistently throughout my career I have found that, despite economic downturns, consumers dependably drink milk, eat cheese, and drink beer. This trend should be encouraging to the dairy industry as we continue to navigate a challenging economic period.

A trend that is certainly here to stay is that of plant-based products. While some see these products as detrimental to the dairy industry, I believe there is room for and a place in the market for both products. For people who cannot tolerate dairy products due to allergies and intolerance, plant-based alternatives provide a suitable substitute. With the worldwide population hitting eight billion last fall, there continues to be a focus and concern on how to feed our ever-growing world. Supplementing dairy products with plant-based products may provide a sound solution to meet an individual’s nutritional needs, as well as provide positive economic growth for our industry. What should not happen to meet this goal is to demonize one product for the benefit of another.

Consumers should be provided with scientifically based, factual information so they may make informed and knowledgeable decisions. The recent FDA draft ruling on allow- ing plant based products to be called milk lacks some of this information and knowledge. It states that consumers are not confused with the fact that plant-based products do not contain dairy as a basis for this decision. However, the next paragraph states that many consumers are not knowledgeable about the differences in the nutritional composition of these products. Furthermore, the draft ruling only recommends putting the plant based source, such as soy or almond, in front of the word milk. I think the question that needs to be asked of consumers is: would you still purchase this product knowing that the nutritional qualities are substantially different or substantially diminished? Again, the draft ruling only calls for voluntary nutritional labeling when the product contains lower levels of nutrients than found in dairy milk. Hopefully, consumers will be curious enough to make scientifically based comparisons, and we as an industry should work to make the comparison ease.

Sustainability is one of those trends that is fast becoming (if it has not already) a way of life in the dairy and other industries. It is possible to develop processes and engineer equipment that cuts costs, while providing a benefit to the environment. Plant-based products utilize sustainability as a selling feature against dairy products. Unfortunately, the substantial amounts of energy savings garnered through sustainability practices on dairy farms and at processing facilities seem to go completely unnoticed and unreported in the headlines. For example, there are farms converting manure to fuel that is then used in vehicles transporting raw milk to processing facilities. Research is also being done on animal feed and breeding to reduce methane emissions from cows.

There is continuous improvement in the efficiency of processing equipment that reduces energy and water usage, as well as chemical and other products utilized in processing plants. These trends will have a direct benefit on farms, processing plants, suppliers, and ultimately, consumers and the environment.

Non-product related trends involving the economy, political landscape, labor, and regulatory changes all need to be paid attention to in 2023, and certainly as we move in to 2024. Many of these topics go hand-in-hand, and directly affect how our industry operates. New York state, where I reside, just recently adopted new farm labor wage standards relating to overtime rules. Without question, this will have a negative effect on New York state dairy farms, and experts studying this issue expect farms across the state to shrink or potentially close altogether, jeopardizing the entire New York dairy industry. New laws and regulations are often enacted in the name of sustainability or labor fairness, seemingly without due regard for the impact they will have on dairy farms and

Wednesday, July 12, 2023

Annual Dairy Customer Appreciation Clambake and Pig Roast and the Bruce W. Krupke Memorial Golf Tournament

the dairy industry. The effects go beyond the direct economic impact to dairy farms, but also spread to the various ancillary businesses that depend on a strong and robust dairy industry to survive.

The upcoming association events will provide all members a good opportunity to share and discuss trends in the dairy industry. The Dairy Blender, being held at the Aloft Hotel in Buffalo on May 17, and the Bruce W. Krupke Memorial Golf Outing and annual association Clambake, being held on July 12, provide excellent settings for professional exchange.

On behalf of the entire Board, thank you for your continued support of our association and we hope to see you all at these events.