Whether you are environmentally conscious or lactose intolerant, it is frustrating to see the $5 latte (which is already outrageous, but that’s for a different conversation) turn into $6 with a non-dairy milk substitute. And, this is not including the syrups and extra espresso shots. It’s like a debate between paying the extra dollar, a bathroom trip, or, even, being environmentally conscious. I took it upon myself to check out the milk and alternatives prices at UCSD’s Target: $3.49 for a gallon of 2% milk, $4.29 for half a gallon of Silk soy milk, $5.99 for half a gallon of Oatly oat milk, and $3.99 for half a gallon of Silk almond milk. Even the cheapest substitute — almond milk — is twice as expensive as cow’s milk!
Your dairy-based latte isn’t cheap, but the price could very well be higher. The dairy industry is supported by the U.S. government, and prices are regulated more so now due to the COVID-19 pandemic. The Agricultural Marketing Agreement Act of 1937 aims to help establish a sustainable marketing condition with a dairy margin coverage when the difference between the U.S. milk price and the national average feed cost is under a specific dollar amount. In addition, the consumption of dairy in the U.S. has dropped by 40% per person since 1975, showing the growing need for aid in the industry. This subsidy aims to help dairy farmers and producers; $43 billion and $36.3 billion were given in 2016 and 2017, respectively. However, this aid was not provided for the non-dairy milk industries.
While plant-based milk has existed for a long time, such as soy milk in China, it was not until the late 20th century that it started to commercialize. Due to the novelty of this line of products, much research and development has gone into commercialization and the essential nutrients the milk should contain. Furthermore, plant-based milk is marketed more heavily than dairy milk, which is also reflected in the increased cost you and I pay. The industry plans on expanding and successfully growing 5% in the milk industry in 2019.
Depending on where in the world you are, your dairy milk prices could vary. In the United Kingdom, dairy milk is cheaper than in the U.S., meaning that English lattes are cheaper than American ones – the only thing, besides producing good rock bands, that they are better than us at. The price difference is due to the production cost: American cows are kept indoors while English cows are not, increasing energy costs. How pretentious of us.
Coffee chains are slowly either removing the extra charge for plant-based options or making plant-based milk the default. Blue Bottle Coffee is an example of a coffee chain that made oat milk the default, resulting in a 45% increase in plant-based milk sales. Since their drink prices start at $5.50, I would assume that the cost of oat milk is included in their costly drinks.
The environmental impact of the type of milk varies, from the high level of methane released from cows to the high volume of water needed to grow and produce almond milk. This is a complex topic and we must get down to the nitty-gritty before determining the best milk product. Even so, it varies from country to country. At the end of the day, a large part of the cost originates from government subsidies and the research & development of plant-based milk. So now you know why your oat lattes are so expensive, and you now know you could go to the U.K. for a cheaper soy latte.
Cattle need a lot of room to graze, too: Plant-based milks use about a tenth as much land to produce the same quantity of milk. And it takes almost a thousand gallons of water to manufacture a gallon of dairy milk—four times the water cost of alt-milk
alt-milk
A milk substitute is any substance that resembles milk and can be used in the same ways as milk. Such substances may be variously known as non-dairy beverage, nut milk, grain milk, legume milk, mock milk and alternative milk.
So why is oat milk from the store so expensive? There are many factors at play here, adding up costs that get passed to the consumer at the grocery store: Labor, oat crop shortages, cost of fuel and fertilizer, as well as additives for taste, mouthfeel, and stability.
Globally milk costs just over 1 cent per pound while oats costs 69 cents per ounces. It's facilitating that oats are more expensive to produce. Malone points out that oats are not sold in isolation.
Experts explain that dairy milk is generally much cheaper partly due to economies of scale. “It's an exceptionally efficient supply chain. The dairy farms in the United States have been around for a long time. They've been working on breeding cows in ways that actually can reduce the cost of production quite a bit.
This year it seems to be due to the lower level of milk production and the perception that milk supply will tighten as the year progresses. The current level of milk production is lower than last year due to reduced cow numbers.
Despite their explosion in popularity, they remain substantially more costly compared to dairy milk. Coffee shops often still charge extra money for dairy-free cappuccinos, and in US supermarkets plant-based milk costs an average of $7.27 (£5.73) a gallon compared to $4.21 (£3.32) a gallon for cow's milk.
“Milk is pretty close to what comes out of the cow,” explains Carolyn Dmitri, a food systems economist at New York University. Almonds and oats and soybeans “need more processing to become milk, so that means higher production costs.”
This may be because the price of plant-based milk is more expensive. According to The Guardian, vegan milk costs twice the price of cow's milk, despite the fact that research suggests they are better for our health, the planet, and for animal welfare, too.
Due to the novelty of this line of products, much research and development has gone into commercialization and the essential nutrients the milk should contain. Furthermore, plant-based milk is marketed more heavily than dairy milk, which is also reflected in the increased cost you and I pay.
Plant-based milks are generally lower in calories than cow's milk, which is part of their appeal. But calories aren't everything. Some of these beverages have less fat and fewer carbs than cow's milk, but almost all of them are also lower in protein.
Skimmed milk is cheaper than regular milk since its butterfat content is low. The milk producers pay the farmers based on the components that are available in the milk, including the butterfat and the milk proteins.
That's because organic milk costs more to produce. Farms are required to pay for certification—a USDA accreditation that's required to market and sell any food product as organic—and source or grow 100% organic feed.
Milk prices at the farm level are determined fundamentally by wholesale commodity prices for cheese, butter, nonfat dry milk, and dry whey in combination with federal milk marketing orders and interaction with the federal dairy price support program.
Due to higher dairy product prices, the all-milk price for 2024 is forecast at $21.60 per cwt, up $0.40 from last month's projection. For 2025, the all-milk price is expected to be $21.50 per cwt, up $0.60 from the previous forecast.
The goal of the federal orders was to ensure reasonable prices for farmers and consumers and ensure an adequate supply of milk for consumers. Federal milk marketing orders are regional markets that enforce a classified pricing structure.
Some nutritional aspects of many plant-based milks are similar to cow's milk, such as sodium and potassium. But according to the American Society of Nutrition, most milk alternatives are a healthier choice when it comes to fat and calories.
Less Calcium than Most Dairy Products. The disadvantage of plant-based dairy products is that they contain less calcium than animal-derived dairy products. ...
Many Contain Added Sugar. Another disadvantage is that many plant-based dairy products contain added sugar. ...
Is it cheaper to make your own plant milk? Yes and no. If you're making nut milk and using a ton of nuts to make only a few cups of milk, then yes, it's quite pricey. However, if you're making oat milk, it would end up being even cheaper than buying it from the store.
Almond milk is one of the most commonly consumed plant-based milks, known for its delicate flavor and creamy texture. In terms of pricing, oat milk tends to be slightly more expensive than almond milk due to the higher cost of sourcing and processing oats compared to almonds.
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