US Dairy Farm Size Set to Maintain an Upward Trajectory

Dairy farm size in the United States (US) looks set to increase further during the period ahead, as economic pressures within the sector grow, as per Nathan Thomas, who milks both pedigree Holstein and Jersey cows near North Lewisburg in Ohio.

Thomas, who has officiated at shows across North and South America, as well as Mexico, Australia, and Europe, judged all the competition classes at the 2024 Royal Ulster Winter Fair.

"Milk prices have held up quite well in the US during 2024. However, over the long-term, margins per cow are falling. As a result, those farmers who want to stay in milk have no option but to increase cow numbers," he noted.

Thomas emphasized that US dairy farmers are producing milk for both home and export markets. While the climate is currently not a direct issue impacting dairy farming operations, manure management is, which has led many farmers to invest in anaerobic digestion operations.

Dairy Trends and Market Observations

Dairy breeding trends are evolving, with a focus on breeding moderate-sized cows with high milk production capacity and qualities like good feet and legs, fertility, and resilience.

Having visited several dairying operations across Europe, Thomas expressed particular admiration for the dairy stock in Ireland, noting that many of the cows at the Winter Fair would compete well internationally.

Recent months have seen significant farm gate milk price increases in Northern Ireland, driven by stronger dairy product markets and winter milk bonuses from processors. Despite this, there is cautious optimism for stable markets into 2025, with processors highlighting the importance of investing in added-value products due to the unpredictability of commodity markets.

Another key goal for processors is flattening the dairy production curve, which would allow more efficient use of current processing capacity across the sector.