Dairy Report: U.S. Herd Continues to Shrink, a2 Milk Company Grows

The Dairy Report 082719
Cow comfort is an important part of animal welfare ( Mike Opperman )

As cow numbers continue to shrink across the country, milk production is picking up speed. Record Growth has also been experienced at The a2 Milk Company. AgDay’s Clinton Griffths explains more in the video above. 

A Mixed Report About Milk Production

A new USEA production report shows milk production was up slightly for July, but the nation’s herd continues to shrink. The total number of milk cows on farms was down 82,000 from July last year and down 9,000 from last month. Production per cow continues to be up 17 lb. from last year, but despite that number several states continue to improve their overall output. Check out these maps to see how your state fared. 

a2 Milk Company Experiences Record Growth

The a2 Milk Company announced record financial results with record U.S. net sales of $23.2 million (US$) a 160% rise driven by increased investment in distribution growth and brand awareness. Globally, total revenue hit another record at $1.3 billion (NZ$), up 41.4%. 

According to Blake Waltrip, CEO of The a2 Milk Company U.S., the growth has been due to aggressive investment to take advantage of consumer demand for a2 products. Future investments will continue to increase product awareness to expand sales and spur growth.

By the close of its fiscal year on June 30, 2019, the a2 Milk Company U.S. had gained national distribution, expanding its network to more than 13,100 stores. In addition to adding Vons (Southern California), the company expanded its relationships with Kroger, Walmart, Costco, and Albertsons/Safeway. While distribution continues to grow, the company is doubling down on its focus to drive in-store consumer purchases.

The company remains confident of the opportunity for continued growth in the U.S. given the high consumer propensity for premium wellness products and strong retailer support.

a2 Milk® comes from cows that naturally produce only the natural A2 protein and no A1. The a2 Milk Company works with local U.S. dairy farmers to identify cows that naturally only produce the A2 protein type and process their milk separately. The a2 Milk Company pays a premium to its farmers and all U.S. farms are certified by Validus for animal welfare.

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