The competitive grocery retail landscape is quickly changing and there are two primary trends behind this changing environment: a changing consumer, who is bringing new purchase decision triggers into the marketplace, and a changing competitive marketplace which has put new pressures on traditional grocery retailers.

The U.S. Marshals Service seize dry nonfat milk powder and buttermilk powder worth nearly $4 million produced by Valley Milk Products, a unit of the Maryland and Virginia Milk Producers Cooperative Association. 

It was not long ago that domestic demand afforded dairy producers a premium for their milk compared to their international counterparts. Similarly, domestic end users of dairy products such as cheese and butter can no longer look to the likes of Europe and New Zealand for cheap fat and protein alternatives.

If you were hoping that this clean label thing would have blown over by now, you can keep hoping. Or just throw in the towel and accept it. Market researchers Innova found that in the dairy sector, items with one or more clean-label claims accounted for 49% of 2016’s launches to date, up from 41% in 2015. Innova counted claims related to natural, organic, non-GMO or no-preservatives/additives.

Many fluid milk processors manufacture juices, iced tea and coffee beverages. They have the necessary processing equipment and they have relationships with retailers who often want a second brand or control brand to put in their nondairy refrigerated cases. These nondairy beverages represent additional sales opportunities for a dairy.

Retail sales of branded butter showed gains on private label butter in the last year. Though dollar sales of private label butter increased 3.4%, unit sales decreased 1.3%, suggesting that retailers raised prices.

Dean Foods and the dairy cooperative CROPP (owner of the Organic Valley brand), are partnering in to bring organic milk to retailers through Dean Foods' processing plants and direct store delivery distribution system.

Ice cream is back. Retail sales in the last year rose 6% and production rose 3.7% in 2015 from 2014 levels (the latest years available).

Dairy processors report quarterly sales. They increased for Lifeway Foods, Kraft Heinz and Land O’Lakes.

Consumers love their cheese and are clear about what they want. It has to be easy to eat, portable, available in a variety of flavors and all-natural. These are the dominant themes from almost every cheese processor we spoke with. Convenience, flavor innovation, authenticity and freshness are key factors that will drive consumer cheese purchases, according to the Wisconsin Milk Marketing Board, Madison.