Innovation, like most industries, is a key to success. Ten-year old Wildbrine and WildCreamery in Santa Rosa just released an oat butter and soon will have a quinoa-based sour cream.
“We have made cultures for plant based items that are derived from the same byproducts by fermenting plants,” co-owner Chris Glab said. Products are usually found in grocery stores mixed in with similar non-plant based items.
Glab said in the United States in the 12 months ending Jan. 24, 2021, compared with the previous 12 months:
• Plant-based cream cheese grew 2.3 times faster than traditional dairy cream cheese (45.1% vs 19.7%)
• Plant-based sour cream grew 3.8 times faster than traditional dairy sour cream (53.8% vs 14.8%)
• Plant-based butter grew 6.6 times faster than traditional dairy butter (133.3% vs 20.3%).
While Renegade Foods has only had plant-based products on the market since 2020, research and design was a decade-long process. The company is headquartered in Berkeley, with production taking place in Petaluma.
The company produces non-meat salami that is all plant-based. Marder would not reveal what future products will be, but said to expect something from Renegade in 2022 that could be found in the deli section.
“Renegade is tailored to the flexitarian; the consumer who is looking to consume less meat,” Marder, the company’s co-owner, said. “We have the same mouth feel and flavors of the meat analogue.”
Those tracking sales of non-meat products say people who identify as vegan or vegetarian are not eating more, it’s the flexitarians who are moving the needle. These are people who are eat less meat each week and more plant-based foods. They may also be using soy or some other milk instead of cow milk.
The dairy struggle
As one food segment grows, it often means another is declining. That is what dairy farmers are worried about — losing even more market share.
The number of dairy farmers is on the decline. According to the American Farm Bureau Federation, “Since 2003, the U.S. has lost more than half of its licensed dairy operations, now just shy of 32,000 dairy operations.”
Even so, the agency reports milk production in the U.S. in 2020 was 223 billion pounds, an increase of just more than 2% from 2019. Butter production increased in 2020 with so many people at home baking during the pandemic.
The dairy vs. non-dairy struggle has landed in the court system.
Some North Bay dairy farmers backed the lawsuit the California Department of Food and Agriculture filed against Miyoko’s Creamery of Petaluma. Miyoko’s won that fight in U.S. District Court in San Francisco in August, thus allowing it to use dairy-centric phrases in its advertising.
For Raudabaugh with Western United Dairies, Miyoko’s First Amendment fight wasn’t a case of big dairy versus the small vegan startup, but about standards of identity that are key to nationalized price points, and the import and export markets.
“Those standards are important. When we make trade agreements, we want to make sure our trading partners are adhering to the same standards of identity,” Raudabaugh said, adding that the formula for butter prices, which is tied to fat percentages, is set by the Chicago Mercantile Exchange. “This is really where the fundamental concern of the U.S. dairy industry comes from.”
Tawny Tesconi, executive director of the Sonoma County Farm Bureau, a local industry group, has been outspoken in her distaste for Miyoko’s Creamery’s tactics, calling owner Miyoko Schinner a hypocrite for what she sees as attacks on the traditional dairy industry.
“I find it very hypocritical that (Schinner) slams animal agriculture, but wants to mimic the names of animal agriculture products,” Tesconi said.
When Miyoko’s won her First Amendment case, using the Animal Defense League attorneys, it further proved to traditional dairy industry insiders that the vegan creamery’s business model is as much about taking down animal-based dairy as it was a fight for free speech.
“She has been very outspoken against animal production,” Tesconi said. “She has been outwardly promoting a reduction or total termination of animal protein — that has really been her mantra. She has been very forthcoming about her belief that there shouldn’t be animals raised for agriculture.”
What Schinner told the Business Journal is she believes there are better ways to raise animals.
“My hope is that we can convince farmers that participating in a compassionate future of food will allow them to stay connected to the land and even evolve the relationship they have with their cows,” Schinner said.
She added, “Any time there is a shift in technology or industry, there will be a battle between the old way and the new. However, dairy farmers, too, are waking up to the truth behind some of their woes—consolidation. It wasn’t the plant-based industry or veganism that put over 30 farmers out of business in the Northeast, it was Danone (a consumer packaged food and beverage company based in Broomfield, Colorado,) consolidating.”
Dairy industry officials acknowledge they have work to do. It’s work that’s ongoing, Raudabaugh said, including efforts to reduce methane gas emissions and water pollution. She said the industry is working with partners in academia to be better stewards of the environment and have reduced methane emissions by 47% in the past decade.
Raudabaugh said most of the farmers Western Dairies represents are also in plant production. She said it doesn’t do the world any good to focus on eliminating dairy or its dairy alternative competition, emphasizing she’s disappointed that’s where the conversation has gone.
“We have to respect the market spaces we all hold, because that’s the key to true nutrition access,” she said.
For Schinner, she is ready for the next battle, believing those who raise and sell animal products for a living are on the attack.
“The battle at the legislative level will become heated as subsidies for animal agriculture start to become challenged by not only activists, but lobbyists for the alt-protein industry as well as some legislators themselves. We are headed for some interesting times when we unravel unfair practices that prop up certain industries while suffocating innovative new technologies,” Schinner said. “These battles will cover everything from nomenclature to subsidies to ag-gag laws that actually protect the incumbent industries and stifle free speech that aims to expose some of those harmful practices.”
Robbins with the Plant Based Foods Association said the push back is from ranchers, pig farmers and dairy ranchers.
“Rather than try to compete on a level playing field, they are constantly trying to undermine the plant-based food industry,” he said. He pointed to the First Amendment struggles like what Miyoko’s Creamery went through. (Schinner is a founding board member of PBFA.) “It plays out in courts, in state legislatures, with Congress and the FDA. It is something we are very engaged in.”
Robbins said companies like Tyson, Nestle and Cargill “are our allies.” He added, “They see consumers moving toward plant based and they are looking to diversify their lineups.”
Consumer demand and feed prices all play a role in the business side of dairy farming. What steps individual farmers will take to remain viable remains to be seen.
Scott Dicker, marketing analyst for the wellness-focused data company SPINS, believes consumers wanting more plant-based foods is having a ripple effect.
“It is causing the meat and dairy industries to be more cognizant so they are claiming more sustainability by saying they are certified humane and organic,” he said.
