Goat Milk

General Mills has reported its fiscal second-quarter results, surpassing Wall Street expectations with adjusted earnings of $1.10 per share, above analysts’ projections of $1.02. Despite facing challenges from the sale of its yogurt business in North America, the company’s shares rose by 1.17% following the announcement. Net sales for the quarter ending November 23 reached $4.9 billion, exceeding the consensus estimate of $4.78 billion, though representing a 7% year-over-year decline.

The divestment of the yogurt business, which included the Yoplait brand, led to a 10% decrease in sales for the North American Retail segment, which saw a 13% fall in net sales. This strategic move is part of General Mills’ shift towards higher-margin categories with less competition from private labels, which have affected their fresh dairy market share. The yogurt segment, with its high perishability and logistical costs, has faced profitability pressures in mature markets due to consumer shifts towards plant-based or premium functional products.

Organic net sales, excluding acquisitions and divestitures, dropped by only 1% year-over-year, demonstrating the resilience of the remaining portfolio. Jeff Harmening, CEO of General Mills, noted that investments in product innovation, premium packaging, brand communication, and omnichannel execution are driving organic volume growth in North America, enhancing competitiveness across all segments.

The North American Pet segment saw an 11% increase in net sales, benefiting from the acquisition of Whitebridge Pet Brands. The International segment experienced a 6% growth, driven by strong performance in Brazil, China, India, and North Asia. This geographic diversification helps offset domestic market weaknesses, where private-label competition and consumer preferences for fresh, local, and less-processed foods pressure traditional categories like cereals and baking mixes.

General Mills has reaffirmed its fiscal 2026 outlook, expecting organic net sales to range between -1% and +1%, with adjusted operating profit and diluted earnings per share projected to decrease by 10% to 15% in constant currency. This cautious guidance reflects a transitional year post-dairy divestment, prioritizing reinvestment in strategic brands over short-term margin expansion.

According to the latest research report released by Fact.MR, the global mozzarella cheese market reached a size of US$38.6 billion in 2024 and subsequently expand at a CAGR of 5.9% over the next 10 years (2024 to 2034).

Mozzarella cheese, also known as curd cheese, can be sliced and used in food products. Mozzarella is popular for a variety of reasons, including its ease of melting, elastic and bouncy consistency, and smooth and soft texture.

The mozzarella cheese market is projected to grow at a steady pace. This growth is driven by mozzarella’s nutritional benefits, including its high calcium, protein, and vitamin content, which are increasingly recognized for supporting bone health and overall wellness. As the population becomes more health-conscious. Diabetic food manufacturers continue to consume a significant amount of mozzarella cheese.

Major contributors to this market expansion include key players such as Groupe Lactalis, known for its reduced-fat innovations, and Fonterra, which excels in export-grade mozzarella. The Grande Cheese Company is also a significant player, focusing on shreddable forms and clean-label certifications.

By application, food & beverage processing leads the market with a 44.23% share in 2024, valued at $17.07 billion, and is forecasted to reach $29.97 billion by 2034 at a 5.8% CAGR. Supermarkets and hypermarkets are the dominant sales channels, accounting for 50% of the market in 2024, expected to rise to $34.2 billion by 2034.

Regional dynamics reveal that North America holds a 24.7% global market share in 2024, with the U.S. leading at $7.07 billion, projected to grow to $11.63 billion by 2034. Meanwhile, East Asia is expanding its market share, driven by urbanization and rising incomes, with Japan at the forefront.

Recent market developments include Saputo‘s August 2022 launch of ‘Frigo Cheese Heads Swirls‘ and Dalter Alimentari’s March 2021 debut of cheese matchsticks, emphasizing the market’s focus on innovation and versatility.

A Glimpse into the Future of Dairy

With projections of a global protein deficit, dairy products emerge as strategic players in global food security.

During the World Dairy Summit 2025 in Chile, Cooprinsem’s president, Arturo Gebauer Bittner, issued a stark warning: “The world will face a 70% shortfall in protein by 2050.” This alarming prediction places dairy products in a strategic position within global food security, highlighting the reevaluation of animal-sourced protein—particularly dairy products—and underscoring the need for producers and the supply chain to ensure consumers understand they are consuming a product of “excellent quality.”

Why the Projected Deficit Affects the Dairy Sector?

1. Growing Demand for Protein: Population growth, urbanization, and changing dietary habits are increasing pressure on global  production of high-value nutritional foods.
2. Dairy as an Efficient Solution: Dairy products can efficiently convert raw materials into quality protein, positioning them as a crucial alternative.
3. Opportunities for Value Addition: It’s not just about producing milk liters but creating protein-rich dairy products with functionality and premium positioning to better capture future demand.

Importance of Trust and Quality: As Gebauer notes, the industry must convey to consumers that they are ingesting “excellent quality” products while reinforcing traceability and safety in the dairy supply chain.

Implications for the Regional Industry

For Latin America’s dairy sector, this projection brings significant implications:

• Opportunity: The global deficit opens doors for external markets or niche dairy protein markets if the sector is prepared.
• Challenge: It demands modernization, genetic improvement, nutrition, efficiency, and logistics to meet demand and ensure competitiveness.
• Strategic Call: Producers, cooperatives, and the transforming industry must plan to participate in the future not only in volume but also in quality, branding, and added value.

Ultimately, the “70% less protein by 2050” message should not only be read as an alert but also as a strategic signal for the dairy sector to position itself in advance.