USA: demand dairy may be tempered by a general financial pinch

The Federal Reserve Bank of New York reveals a 1.3% rise in total household debt to reach $17.29 trillion in Q3 2023, with credit card debt surging to $1.1 trillion. This financial pressure is reflected in restaurant traffic decline and an 8% delinquency rate in credit accounts, the highest in over a decade.

President of Ever.Ag Insights, Phil Plourd, emphasizes the impact on consumer spending, noting that while people continue to include dairy in their diets, demand may be tempered by a general financial pinch.

Senior dairy sector analyst at Terrain, Ben Laine, underscores the implications of spending on food at home versus food away from home for dairy markets. As the USDA projects a 2.1% overall increase in food prices in 2024, the trend of allocating a greater share of spending to food away from home is expected to persist.

Dairy Management Inc. (DMI) President and CEO, Barbara O'Brien, reports robust retail demand for dairy, with notable growth in cheese, yogurt, and cottage cheese. General Mills dairy business reveals plans to launch a high-protein, low-sugar yogurt product in 2024, signaling optimism for the dairy industry.