Extra production does not necessarily mean extra dollars
The extra and hidden costs of bringing in feed can often mean increased milk production, but not increased operating profit.
Oat milk marketer Oatly Inc is pressing its suppliers to raise production by 50% in the next few months to meet demand. A growing preference for plant-based ‘milk’ appears to be driving the changes. Data from earlier this year show almost 33% of UK consumers aim to quit cow milk in 2018. And 50% of US dairy consumers say they plan to buy vegan milk.
