But it is going to cost more. The USDA forecasts less milk in 2017 but a growing supply through the year 2024 along with steadily increasing prices. Its economic assumptions include moderate growth in GDP and inflation, and low unemployment.

In searching for signs of life in the fluid milk category, one can find a pulse. Sales of whole milk rose 4.1% from 2014 to 2015. Sales also increased for 1% milk (4.6%), whole flavored milk (6.4%), other flavored milk (1.3%) and buttermilk (5.2%). These segments represent opportunities for fluid milk processors.

Starting in April, Australia’s a2 Milk Co. will begin selling milk that has  a “digestive advantage” in California supermarkets and independent stores.