The dairy market is experiencing a surge in production. But why? Do Americans drink more milk than at other times? Not necessarily. However, Greek Yogurt has become quite fashionable. It is perceived to be healthier than other types of yogurt and at the same time seems luxurious.
Two of biggest producers in the Greek Yogurt market have facilities located in the state of New York. Because of such high demand there are plans for building even more plants to keep up. The growing Greek Yogurt market has lead to an increase in demand for its key input: milk. Greek Yogurt requires more milk to produce than regular yogurt. It takes 3 lbs. of milk to produce l lbs. of Greek Yogurt Greek Yogurt Boom. Luckily for New York Dairy Farmers this provides a reliable buyer for their milk. New York Diary Farmers would have to increase milk production by %15 in the next two years to keep up with demand Greek Yogurt Boom. Milk producers have begun increasing their herd sizes. Because of the proximity of the growing milk market transportation prices have fallen dramatically.
Perceptions have a lot of power for change “It’s nutritious. It’s safe, it’s healthy and it’s delicious. How can you be any better?” - John Sanford, a dairy regulator with the Tennessee Department of Agriculture Greek Yogurt Boom
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