Minnesota's dairy industry is on the rebound, after a time period of uncertainty with many dairy farmers facing inflationary pressures. But experts say more improvements are still needed.
Pauline Van Nurden, an Extension Economist for the University of Minnesota says two specific factors play the largest roles in challenging the Minnesota dairy industry.
“I think there are two challenges. That it is the price of milk has come down,” says Van Nurden. “But then also the fact that feed prices have not come down.”
The FDA issued guidance earlier this year allowing popular plant based beverage manufacturers to continue to label their products as milk. With actual milk consumption declining this could pose an issue to the Minnesota Dairy industry.
“Plant-based milks and other things are changing consumer preference,” Van Nurden says.
She adds that dairy farmers should have a rainy day fund to combat future hardships.
Food and Drug Administration officials issued guidance earlier this year that says plant-based beverages don’t pretend to be from dairy animals – and that U.S. consumers aren’t confused by the difference.
Dairy producers for years have called for the FDA to crack down on plant-based drinks and other products that they say masquerade as animal-based foods and cloud the real meaning of “milk.”
The agency recommends that beverage makers label their products clearly by the plant source of the food, such as “soy milk” or “cashew milk.”
The rules also call for voluntary extra nutrition labels that note when the drinks have lower levels of nutrients than dairy milk, such as calcium, magnesium or vitamin D. They would continue to allow labels that note when plant-based drinks have higher levels. Fortified soy milk is the only plant-based food included in the dairy category of U.S. dietary guidelines because of its nutrient levels.
The new guidelines are aimed at providing consumers clear nutrition information, FDA Commissioner Dr. Robert Califf said in a statement.
The draft rules do not apply to nondairy products other than beverages, such as yogurt.