An analyst weighs in on Walmart’s decision to open a dairy plant during a time of reduced milk consumption:
“The retail landscape is changing rapidly with the likes of Aldi, Lidl and Kroger all ramping up price wars, and milk, even with a declining market share is still a big business with annual refrigerated fluid whole milk and skim/low fat milk sales of $8 billion in 2016. However to give you the sense of how steep the decline has been, according to USDA and the Economic Research Service, in 1975 per capita availability was 247 pounds (the measurement used by the USDA) and as of June 2017 declined to 155 pounds almost a 38% difference. So we have to wonder why Walmart is entering this business and what is the impact of losing business from the largest grocer on companies like Dean Foods.”
What do you think of Walmart’s decision? Do you use dairy-based ingredients in your products?
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