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Greek yogurt is a booming $2 billion a year industry with popular brands including Chobani and Dannon. But it produces millions of pounds of waste that industry insiders are scrambling to figure out what to do with, Modern Farmer reports.

Greek yogurt is strained, unlike other varieties of yogurt, and the byproduct is a thin, runny, acid whey that cannot be dumped because it becomes toxic as it decomposes, robbing rivers and streams of oxygen, author Justin Elliott writes.

New York’s Greek yogurt industry tripled in size over the last five years with companies in the state producing a total...