Dairy Industry Gained No Long-term Sales, Competitive Advantage From rbST-Free Milk
A study conducted by the research company that supports the “Got Milk” campaign found that only 8-12% of consumers are concerned enough about hormones in milk (rbST) to change their purchasing or consumption behaviors. Moreover, milk-processing companies adopted rbST-free policies without adequate analytical assessment for fear of losing retail accounts to competitors who had already made such a move.
Based on interviews with senior executives at milk-processing companies and a review and analysis of more than 15 consumer studies, the authors of this report conclude that the shift to rbST-free milk is questionable in terms of business results and consumer response.
Milk processors reported that total milk sales have not experienced any discernible sales bump from the changeover, which should have occurred if consumers were reducing or eliminating milk consumption due to concerns about hormones. According to quantitative research, no more than 15% and as few as 8-12% of consumers are concerned about the issue enough to change their purchasing behaviors. One-third of these people already satisfy this desire with organic milk.
The evidence suggests that an rbST-free, value-added tier would have satisfied the limited consumer demand for a product, while keeping the remainder of the milk supply available at lower cost. The study did not address the animal welfare implications of treating cows with growth hormones that increase milk production.