Dairy prices are not great right now and forecasts don’t show factors that could improve the market. Bank of America national executive for food, wine and agriculture, Cornelius Gallagher, says industry research needs to find value in the waste stream, much like the almond industry does utilizing almond hulls for feed.
“I milked cows as a kid and we separated it,” Gallagher said. “You took the cream and you sold the cream. You took the whey product from skim milk and put in a big tub with oats and other grains. You soaked it and fed it to pigs and they nearly killed you trying to get it.”
Gallagher says that’s what China is doing with some of our products and the U.S. milk industry needs to look at creating added value like that. “The answer is that the growth is going to be in the products,” Gallagher said. “As the population ages, they drink less milk.”