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FCC 2022 food report focuses on dairy products

Dairy product revenues grew in 2021 but were lower than anticipated due to softer demand, according to FCC’s 2022 food report exploring dairy products and their market.

Revenue gains in food services outweighed declines from retail, FCC said in a news release. The progressing rebound in restaurant and hospitality demand is forecast to support growth in 2022. Higher prices will help, but we’re anticipating softer grocery volumes. In the face of inflation, the growing threat of alternative dairy products like oat and almond milk should be monitored as they expand their offering into value-added products.

Industry sales grew 0.8 per cent in 2021 year over year. Higher prices drove growth as volumes are estimated to have decreased slightly. Demand remains strong for products like creamers, ice cream and cheese and these will likely be the drivers of growth in 2022, the report suggested.

The report highlights a very challenging labour market, noting that a tight labour market meant longer hours worked per employee and higher overtime costs, eating into profitability.

Read the full report.