A Value-added Opportunity: Market Potential for Specialty Cheeses in Select New York Markets
Gloy, Angela; Stephenson, Mark W.
The specialty foods market is experiencing considerable growth. Within this category, value-added dairy products are estimated to generate $6.35 ($7.83) billion dollars in sales in 2004 (2007) (Sloan, 2004). In New York (NY), where dairy production resources are plentiful, specialty dairy food production is an attractive market development opportunity. Dairy producers interested in on-farm specialty food processing may find it a viable means of enhancing farm-level returns, particularly in the face of volatile commodity prices, and where dairy producers exhibit a complementary skill set advantage. This project characterizes key marketing dynamics associated with providing specialty dairy products to select NY markets. This project is motivated by the notion that there are value-added food processing opportunities available to NY State dairy producers that not only compliment existing NY food and drink enterprises, but also enhance non-food stakeholder interests through benefits associated with business and rural economic development. Despite the varied reasons for entering the specialty dairy products market, this report maintains that economic viability is necessary for long-term market involvement and that attention to marketing responsibilities is an integral part of venture sustainability. The report addresses market and product identification, distribution, and promotional activities associated with supplying value-added dairy products to NY State wineries and New York City (NYC) restaurants and specialty/gourmet shops. These three potential market outlets were surveyed to determine market potential for value-added cheeses.