U.S. Dairy Industry Restructures: Fewer Farms, Higher Milk Production
Source: The DairyNews
In a generational shift, two out of every three U.S. dairy farms have disappeared, yet milk production has surged by a third. The number of dairy cows has decreased nationwide, but each cow now produces more milk, and very large dairy farms, housing over 2,000 head, contribute 39% of the milk supply.
California and Wisconsin continue to lead U.S. milk production, representing one-third of the total output. However, the dairy industry has undergone substantial restructuring over the past 20 years. USDA analysts report that the number of licensed dairy herds dropped from 70,375 in 2003 to 26,290 in 2023. Meanwhile, milk production increased from 170.3 billion pounds to 226.4 billion pounds over the same period, marking a 33% rise.
During this time, Texas and Idaho have expanded their production to join the ranks of the top five dairy states, each contributing 7% to the national output. California’s production share fell to 18%, a decrease of 3 percentage points, while Wisconsin's share rose to 14%, up by 1 percentage point from 2002. The trend towards fewer but more productive cows and larger dairy farms, especially in the West, has continued.
“Dairy farms have not only grown in size but have also become more specialized, focusing predominantly on dairy production and relying more on purchased feed rather than homegrown feed,” stated the Economic Research Service report. “Larger dairy farms have adopted the most advanced technologies, management practices, and production systems more readily than smaller farms.”
During this time, Texas and Idaho have expanded their production to join the ranks of the top five dairy states, each contributing 7% to the national output. California’s production share fell to 18%, a decrease of 3 percentage points, while Wisconsin's share rose to 14%, up by 1 percentage point from 2002. The trend towards fewer but more productive cows and larger dairy farms, especially in the West, has continued.
“Dairy farms have not only grown in size but have also become more specialized, focusing predominantly on dairy production and relying more on purchased feed rather than homegrown feed,” stated the Economic Research Service report. “Larger dairy farms have adopted the most advanced technologies, management practices, and production systems more readily than smaller farms.”
