Chart of the Week: Till The Cows Come Home

Chart of the Week: Till The Cows Come Home

over 4 years ago1 min

This chart shows how the total US sales (in dollars) of different milk varieties have changed since 2015. It’s nuts.

Article Image

What does this mean?

Consumers are souring on dairy for health, ethical, and environmental reasons, and that’s tanked consumption: sales of cow’s milk have spilled more than 20% in the last five years.

But there’s no point crying over it. Dairy, after all, has come out of changing consumer trends better than some: soy’s sales have gone down the drain as people swap from soy milk to trendier (and more coffee-friendly) alternatives like almond and coconut.

Why should I care?

The move away from dairy has had huge implications. In states like Wisconsin – which produces 14% of America’s milk – farms have struggled to cope with collapsing demand. Some have merged as a result, propping up milk prices. But the increased prices have hit dairy processors – the companies that turn the raw cow milk into the stuff on the shelves. The biggest, Dean Foods, has seen its share price fall 75% this year.

Article Image

Dairy companies aren’t giving up without a fight, though. They’re lobbying the US government to ban non-dairy products marketing themselves as “milk” – and to stop them from being stocked in the same aisle. Some are taking the “if you can’t beat ‘em, join ‘em” approach: Dean Foods bought flaxseed-milk company Good Karma last year.

Alternative milk producers, meanwhile, are thinking about cashing out while the going’s good: Swedish firm Oatly is considering a public stock listing. Investors would do well to be wary though: in the alternative meat market, Beyond Meat shareholders have lost 64% since its stock peaked in August…

Finimize

BECOME A SMARTER INVESTOR

All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

Finimize
© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG