Washington Dairy Farms Face Challenges Amid Holiday Boost in Eggnog Sales

Washington's dairy farms are experiencing significant pressures, with the number of dairy cattle in the state dropping from a peak of 280,000 in 2019 to around 259,000 as of 2024, according to USDA data. Despite these challenges, the holiday season offers some respite, with eggnog sales increasing by 26% in the fourth quarter, according to Dusty Highland, CEO of Smith Brothers Farms.

Amid the industry's struggles, factors such as rising labor and supply costs continue to burden farmers. Virginia Thomas, owner of Clover Mountain Dairy, notes that tariffs and supply chain disruptions have further impacted costs. She emphasizes that farmers are under constant financial strain, having to manage increasing expenses related to supplies, labor, and energy.

Washington's dairy sector also faces competitive pressures from international markets, with Shannon Neibergs from Washington State University highlighting that global milk production is rising, leading to decreased milk prices. The state, once known for having the most productive cows in the nation, is now losing ground as other states expand their dairy operations.

Further complicating the situation, recent floods in Western Washington have affected farms in areas like Snohomish, Skagit, and King counties, adding to the difficulties faced by local producers. However, some farms like Clover Mountain Dairy have managed to capitalize on consumer preferences, with their cheese products remaining highly popular despite financial constraints.

Lastly, the processing sector plays a critical role, with Darigold, a major cooperative, expanding its facilities in Pasco to process up to 8 million pounds of milk per day. While this development represents significant investment in the state's dairy industry, small farmers express concerns over Darigold's market dominance and its impact on milk prices.