US Dairy Industry Sees Fewer Cows, Higher Production Efficiency

In 2023, there were 26,290 licensed dairy herds, a notable decrease from the 70,375 herds recorded in 2003. This consolidation trend has not hindered milk production; instead, it has become more concentrated and efficient. The total milk production in 2023 reached 226.4 billion pounds, a 33% increase from the 170.3 billion pounds produced in 2003.

Very large dairy farms, those with more than 2,000 head, have become increasingly significant in the industry. These farms now account for 39% of the nation’s milk supply. This shift towards larger operations has played a key role in driving production efficiency and output.

California and Wisconsin continue to lead US milk production, jointly accounting for one-third of the total national output. Their dominance underscores the importance of these states in the dairy sector, benefiting from favorable conditions and well-established dairy farming infrastructure.

The restructuring of the US dairy industry has resulted in fewer, larger, and more productive dairy farms. This transformation has allowed for a substantial increase in milk production, despite the decrease in the number of licensed dairy herds. As the industry continues to evolve, large-scale operations and key production states like California and Wisconsin will likely maintain their crucial roles in meeting the nation's milk supply needs.