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Changing consumer habits could spell the end of bagged milk
(ottawa.ctvnews.ca)
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There are probably some slight differences between milk used for further processing and milk sold directly to consumers but it's of a very similar quality. A lot of cheese in Canada is made from third party milk rather than milk produced on premises.
You can make the argument that the quality of milk in general is dropping, and that's reflected in the quality of milk products. But to say that poor quality of milk products themselves are driving the decrease in milk consumption? I don't see how the logic follows.