NASHVILLE, TENN. (RFD-TV) — U.S. milk production is on pace to reach a record high this year, even as overall fluid milk consumption continues to decline. One potential bright spot for the industry could come from a renewed effort to allow whole milk back into schools.
Legislation aimed at reversing restrictions on whole milk is still awaiting full consideration by both the House and Senate. Supporters say the change could provide a meaningful boost for dairy demand while giving students more nutritious options.
American Farm Bureau Federation (AFBF) Economist Danny Munch joined us on Thursday’s Market Day Report to discuss the Whole Milk for Healthy Kids Act’s potential impact on the dairy industry.
In his interview with RFD-TV News, Munch explained why whole milk was initially restricted in schools and provided insight into current consumption trends. He said recent years have seen a steady drop in fluid milk consumption, driven by evolving consumer preferences and competition from alternative beverages.
Previously, Munch explained, whole milk was removed from schools due to dietary trends that favored a reduction in children’s intake of saturated fat, but that science has since been disproved. However, he also noted that the proposed legislation would not require schools to serve whole milk — merely give them the option to do so.
Munch also noted that returning whole milk to school cafeterias could have positive effects on both student nutrition and dairy producers, helping to stabilize demand and support farm income.
Currently, Munch said, the 2% and nonfat milk served in schools account for approximately 8% of total fluid milk demand. Adding whole milk to the mix would also increase butterfat demand for whole milk. Great news for the U.S. dairy industry, which has recently experienced domestic production booms that have reduced stocks.
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