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"There are a number of exciting things
going on in the dairy industry," said Mike Hutjens as he reviewed it
on the approach of June Dairy Month.
Consumers have seen a new campaign
aimed at increasing dairy consumption. The "Three-a-Day" program
emphasizes the importance of three servings of dairy each day and is
funded by Dairy Management Inc., the national marketing organization
for dairy.
"We'll also see increased emphasis of
the role of dairy products in combating osteoporosis," he said. "We
may also see a nutraceutical cheese product that helps the body's
immune system, and the Chinese are promoting a cosmeceutical -- a
yogurt-based skin conditioner."
Hutjens noted that milk vending
machines with flavored milk and string cheese in schools have been
successful, paying for themselves within six months by offering
students dairy products in varying flavors.
Organic milk currently has a 1 percent
share of the U.S. market. Soy-based milk, too, will continue to
increase its market share, due to its low saturated oil image, the
general positive impression of soy products and the fact that it is
sold in the dairy case.
Americans consumed 586 pounds of milk
equivalents per person in 2002, the latest year for which figures
are available. About 33 percent of that is consumed as fluid milk,
38 percent in cheese, 14 percent in butter and about 9 percent in
frozen dairy products. The remainder was split among several dairy
products.
Wisconsin continues to lead the country
in cheese production at 2.2 billion pounds, followed by California
at 1.7 billion pounds. Illinois has a claim to fame itself, being
the No. 2 state in production of cream cottage cheese and the No. 4
state in production of low-fat cottage cheese.
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Milk products on the rise include
flavored milk, for which use is up 14 percent during 2002, the
latest year for which data is available; yogurt, up 5.7 percent;
cheese, up 2 percent; and sour cream, up nearly 3 percent. Dropping
were frozen desserts, by 2 percent; buttermilk, down nearly 5
percent; and fat-free milk, down 3.5 percent.
The No. 1 U.S. milk drinkers live in
Des Moines, Iowa, consuming on average 19.1 gallons yearly. Right
behind them are the citizens of Green Bay, Wis., who swallow 17.5
gallons on average per year. Chicago milk drinkers down 9.2 gallons
yearly, which is below the U.S. national average of 11.6 gallons.
In the past year, 35 companies have
introduced a total of 16 new milk flavors, including 30 varieties of
chocolate and 26 of vanilla. New flavors being tested include peach,
raspberry, eggnog and lemon.
Des Moines folks also top the ice cream
eating category at 2.8 gallons per year per person, compared with
the U.S. average of 1.9 gallons. Vanilla is the No. 1 flavor, with a
25.5 percent share of sales.
Mexico and Japan are the best customers
for U.S. milk products.
Hutjens said milk prices have gone up
50 cents to 80 cents per gallon, cheese up 60 cents to $1 per pound
and butter $1.20 to $1.50 per pound.
"Consumers should know, however, that
when milk was $2.50 per gallon, the dairy farmer only got about 40
percent of the price. Even when the price rose to $3.50 per gallon,
the producers still received only about 40 percent of the price," he
noted.
"Consumers
can expect milk prices to decline by about 25 cents per gallon in
late August and 50 cents a gallon in early winter, based on the
Chicago futures market."
[University
of Illinois news release]
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