Dairy Doesn’t Spoil in Economic Crisis

As plenty of markets take spills in the midst of international economic downturn, one industry is managing to thrive: the dairy industry.

The Packaging Machinery Manufacturer’s Institute (PMMI; Arlington, VA) has released a recent study, "Dairy Industry Market Research Study 2009," in which the industry proves to be making considerable profit. PMMI’s study evaluates the perspectives of 34 leading dairy processors, accounting for 68% of the total dairy industry. While some doubt comes with the prospect of raw materials and price fluctuations in the future, the study still bodes well for the industry.

The study affirms that, even with a price increase of 9%, dairy product sales have gone up 2% within the last year. U.S. dairy production is expected to move to the West Coast and to centralize in a greater number of mega dairies, according to PMMI. Production methods are also expected to change, with a greater vested interest in energy sustainability. Such cost-effective moves in production would, in effect, make up the projected capital expenditures (expected from 71% of dairy processors) on packaging and machinery investments that will continue as long as dairy is a thriving industry.

PMMI’s full study can be read at www.pmmi.org.