According to the USDA, fluid milk consumption for the month of October increased 1.9 percent (84 million pounds) from the previous year and increased 9 percent (386 million pounds) from the prior month to 4.7 billion pounds. Fluid milk consumption, on a quantity basis, has not reached this level since March 2011. In addition, this is the largest year-over-year increase in more than three years. Although one month's increase cannot be counted as a trend, it still comes as encouraging news to an industry that has been worrying about declining fluid milk consumption for many years.

USDA numbers showed that last year Americans drank an average of 20.2 gallons of milk, a decline of 3.3 percent from the previous year and the biggest year-over-year slide since at least 1975.

And so far this year, sales volume at U.S. food retailers for all types of liquid milk, including nondairy varieties, has fallen 2.9 percent from a year earlier, and total dollar sales have slipped 2.2 percent, according to the Wall Street Journal article. Sales volume for the biggest milk category – skim and low-fat milk – has dropped 4 percent.

The reasons for the decline in consumption include the rise in popularity of bottled waters and other non-dairy beverages, as well as the concern of some consumers that milk is high in calories.

The USDA numbers for October showed that all fluid milk categories increased year over year, except fat-free milk (skim). Reduced fat (2 percent) milk, which makes up the largest share or 33 percent of total fluid milk sales, was up 1.7 percent from a year ago to 1.5 billion pounds.

Both flavored and organic whole milk, although only making up 1.1 percent of total fluid milk sales, showed the largest incremental increase of 14.6 percent from last year. PD

—Compiled from DFA Today and Wall Street Journal article (Click here to read the full article.)