Goat Milk

A new product from Country Crock labeled as “dairy-free butter” has sparked growing concern within the dairy industry.

The dairy industry urges FDA action against ‘dairy-free butter’ labeling, citing federal standard violations and consumer confusion.

The dairy industry is mounting a strong pushback against the use of traditional dairy terms, particularly the word “butter,” on plant-based alternatives. The American Butter Institute (ABI) has formally requested the U.S. Food and Drug Administration (FDA) to take decisive action against products like Country Crock’s “dairy-free butter.” The ABI argues that such labeling is misleading and violates federal standards, which define butter as a product made exclusively from milk or cream.

This intensifies the ongoing struggle within the agribusiness sector to control the narrative around butter labeling. Christopher Galen, executive director of the ABI, contends that plant-based manufacturers are attempting to “leverage the premium perception of real dairy butter.” He labels the term “butter” for plant-based products as a “total oxymoron,” which could undermine the integrity of food labeling. The dairy industry’s argument hinges on federal identity standards, which legally define butter as a milk-derived product.

By allowing “fake butters” to use the term, they argue, the regulations are breached, and it potentially misleads consumers within the dairy product market. This debate is not new. The National Milk Producers Federation raised similar objections in 2019 regarding plant-based butter labeling. The dairy industry maintains that only milk-origin products should use dairy-specific terms.

The outcome of the FDA’s decision on this matter could greatly affect the competitive dynamics between dairy and non-dairy markets, highlighting the growing regulatory challenges faced by both traditional dairy producers and plant-based innovators.

Galen emphasized that labeling a non-dairy item as butter is a direct violation of federal standards. Galen remains hopeful that the Trump administration will give the complaint careful consideration and respond with greater sympathy to their concerns.

A newly released 2025 report from the International Dairy Foods Association (IDFA) unveils the remarkable economic contribution of the U.S. dairy industry.

According to the report, the dairy sector not only supports an impressive 3.05 million jobs across the nation but also contributes nearly $780 billion to the U.S. economy. This comprehensive economic impact underscores dairy’s role not just as a food supply, but as a crucial economic driver and job creator.

The vast interconnectedness of dairy farms, processors, and related industries highlights the sector’s influence on the broader economic fabric. The financial contributions from this industry also extend to public finances, generating $83 billion in taxes that bolster public services and infrastructure nationwide.

Moreover, the U.S. dairy industry’s export capabilities further solidify its stature, with $8.2 billion in annual exports, enhancing the nation’s international trade position. These findings emphasize the sector’s substantial influence, making it an essential component of both national economic health and global market presence.

In response, the IDFA aims to broaden awareness of the sector’s contributions through increased engagement in industry and public discussions.

Bega Group has expressed interest in acquiring Fonterra’s Oceania operations, a move that aligns with Fonterra’s strategy to focus on dairy ingredients and foodservice.

Australian food and dairy company Bega Group is pursuing an informal merger clearance from the Australian Competition and Consumer Commission (ACCC) for a potential acquisition of Fonterra’s Oceania business unit. This unit includes operations in New Zealand and Australia and was put on the market last year, as part of Fonterra’s strategy to exit its consumer-facing operations and concentrate on dairy ingredients and foodservice channels.

Bega Group believes an acquisition of these assets would enhance outcomes for both the company and the wider dairy industry in Australia. However, Bega Group will be competing with other potential buyers, including French dairy giant Lactalis, which has already submitted a proposal to acquire Fonterra’s assets.

Other speculated bidders for Fonterra’s assets include Canada’s Saputo, Japan’s Meiji Holding Co., and the US investment company Warburg Pincus, although these have not been confirmed. Meanwhile, Bega Group intends to work closely with Fonterra Group on this potential acquisition.

Bega Group, headquartered in Bega, New South Wales, is known for its popular brands such as Vegemite and Bega Peanut Butter. The company reported a revenue increase of 3% to A$1.8 billion and a 44% rise in normalized EBITDA to A$110.3 million for the first half, with net profit after tax growing to A$35.9 million from A$13.3 million a year earlier.