ECONOMY

Windfall for Fage with US school meals

Greek dairy giant Fage stands to benefit considerably from a recent decision by the US Department of Agriculture to introduce Greek yogurt at schools in New York, Tennessee, Arizona and Idaho, in a pilot program for the replacement of meat in subsidized meals as of September.

Fage has flourished in the US through its local subsidiary despite having to fight numerous court battles with rivals over the “Greekness” of various brands.

The USDA decision, however, also poses a challenge as it concerns four states that have different proximities to yogurt manufacturers and it plans to test distribution through various warehousing models.

Crucially, the program could expand to a national scale if the pilot is successful, potentially bringing Greek yogurt to every school in the US, subsidized by the state.