How the Gas Pump Impacts Dairy

Article by Karen Bohnert on Dairy Herd Management

The glow of the digital numbers at the gas pump has a strange way of curdling a consumer’s appetite long before they ever reach the grocery store. For the American household, the current economic landscape feels like a series of interconnected tripwires. As fuel prices climb and inflation settles into the bones of the economy, a quiet shift is occurring in the way people eat.

To the casual observer, it might look like a boycott of the dairy case. Sales volumes are shifting, and the industry is bracing for impact. But as Ben Laine, senior dairy analyst with Terrain, points out, the reality is far more nuanced than a simple trade-down. Consumers aren’t necessarily falling out of love with milk, cheese and butter; they are simply changing the stage upon which they consume them.

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