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The “Greek yogurt effect”:” Impact on milk production and the dairy industry in New York

Wednesday, July 23, 2014: 10:55 AM
3501B (Kansas City Convention Center)
Andrew Novakovic , Cornell University, Ithaca, NY
Abstract Text:

The production of Greek yogurt has nearly quadrupled from 2008 to 2013 in New York.  In the last decade, Greek yogurt has gone from being a relatively obscure product imported from Greece to New York City to an exciting new product that is transforming the retail dairy case, spinning off a host of new products, and capturing the imaginations of consumers around the country.

Long a significant player in the yogurt category, New York rapidly moved to become the dominant player in the Greek yogurt segment and is now the leading manufacturer of yogurt in the U.S.  The large farm milk production sector in New York is an important factor in the development of this product segment, but the proximity of this large production area relative to the demographically large, rich and diverse populations centers of the northern Atlantic coast is even more important. 

The new Greek yogurt category has strong appeal and should be a durable feature in U.S. dairy markets, but this is not without challenges.  New York's role in this burgeoning sector is likely to be durable as well, but it will surely see increased competition as processors expand product lines and develop markets.   The development of this new product category has had a positive impact on dairy sector sales and revenue, but the impact is small when measured against the total dairy sector.  There are significant impacts for local communities in which new plants are located and meaningful benefits to nearby farmers who are able to supply those plants instead of more distant customers. 

Keywords: yogurt, greek yogurt, milk markets, dairy products, dairy demand, milk production, milk prices, new york