USA: Dairy Industry Flourishes with Over $7 Billion Invested in Expanding U.S. Processing Facilities
Source: The DairyNews
In a recent revelation, the International Dairy Foods Association discloses an impressive influx of over $7 billion into processing expansions sweeping across the United States.
Michael Dykes, President and CEO, shared this insight during the Dairy Forum 2024, indicating a robust outlook for the industry. Notably, almost three-fourths of dairy CEOs, as per the association's annual survey, express intentions to escalate investments within the next three to five years.
Dykes emphasized the dynamic shifts underway, citing investments in cheese plants, aseptic processing, and ultrafiltration. "We're witnessing a transformation in the dairy landscape—more ingredients, increased milk fractionation. Contrary to decline narratives, dairy is on an upward trajectory, with consumers favoring dairy consumption over traditional beverages," Dykes stated during the forum.
Encouraging a forward-looking perspective, Dykes urged farmers and processors to adopt a growth mindset. He commended the efficiency of U.S. dairy producers, pointing out fewer but larger farms achieving remarkable increases in milk production per cow. The industry experiences notable trends such as vertical integration, consolidation, and concentration, reflecting ongoing changes.
Despite witnessing a decline in the number of cows compared to 60 years ago, U.S. farmers are producing double the amount of milk, showcasing continuous advancements in efficiency. Looking ahead, the U.S. Department of Agriculture (USDA) anticipates a significant upswing, projecting a 20-billion-pound increase in milk production by 2030. Dykes emphasized the importance of gearing up for increased exports, estimating a need for at least a four percent growth in milk movement abroad over the next six years.
Dykes emphasized the dynamic shifts underway, citing investments in cheese plants, aseptic processing, and ultrafiltration. "We're witnessing a transformation in the dairy landscape—more ingredients, increased milk fractionation. Contrary to decline narratives, dairy is on an upward trajectory, with consumers favoring dairy consumption over traditional beverages," Dykes stated during the forum.
Encouraging a forward-looking perspective, Dykes urged farmers and processors to adopt a growth mindset. He commended the efficiency of U.S. dairy producers, pointing out fewer but larger farms achieving remarkable increases in milk production per cow. The industry experiences notable trends such as vertical integration, consolidation, and concentration, reflecting ongoing changes.
Despite witnessing a decline in the number of cows compared to 60 years ago, U.S. farmers are producing double the amount of milk, showcasing continuous advancements in efficiency. Looking ahead, the U.S. Department of Agriculture (USDA) anticipates a significant upswing, projecting a 20-billion-pound increase in milk production by 2030. Dykes emphasized the importance of gearing up for increased exports, estimating a need for at least a four percent growth in milk movement abroad over the next six years.
