Imagine a bustling Australian dairy farm, home to thousands of cows. This is the reality for Prime Dairy, an Australian investment group that is on track to amass a herd of 10,000 cows by 2027. This impressive objective is set to become a reality with the recent acquisition of another 700-hectare dairy farm in Tasmania. As of now, the dairy-savvy professionals at Prime Dairy manage a 8,600-strong herd across Australia and look upon the future of dairy farming in the country with great confidence. 

Prime Dairy, the dairy arm of Melbourne-based fund manager Prime Value Asset Management, is not just about the cows. The investment group also puts its financial prowess to work managing equities, income securities, direct property, and other alternative investments. Their ambition is to generate minimum returns of 12% for their investors. 

“If we can make corporate dairy farming work in Tasmania, we can make it work anywhere,” says Kirsti Keightley, General Manager of Dairy Investments at Prime Dairy.

Keightley joined Prime Dairy in 2018 as the group was exploring the possibility of starting an agri fund. Her passion for demonstrating the viability of corporate dairy farming in Tasmania and her strategy that revolves around purchasing farms in high rainfall areas—with either irrigation or a secure water source—has proven instrumental. Her responsibilities include managing a bustling team of 80 staff on the investment group’s dairy farms and communicating with potential investors, a majority of whom are Australian. 

To date, Prime Dairy has invested a staggering AU$250 million in 11 dairy farms and 4 supporting farms. By the next season, these investments are set to yield milk from 9,000 cows. The ultimate goal? A sizeable herd of 10,000 cows spanning across 5,800 hectares by 2027. The farm has ambitious production targets too, with an aim to produce 43.13 million litres of milk by 2024, and 45.28 million litres by 2025. 

While some Australian dairy farmers bow out of the industry due to climate challenges, labor shortages, or poor prices, Prime Dairy asserts the future of its farms are secure. A whopping 90% of their farms are located in Tasmania—a region believed to be least affected by climate change due to its mild climate, generous rainfall, and readily available irrigation water. 

Reflecting on the condition of the dairy industry, Keightley asserts that the introduction of a code of conduct for processors and a guaranteed minimum milk price has slowed the departure of farmers. Dairying in Tasmania is growing steadily, with an annual growth rate between 2% and 3%, even while the rest of the country witnesses a decline of approximately 5%-6%. 

The recent acquisition of their 13th dairy farm from VDL was the 11th purchase made during 2021. Since then, Prime Dairy has committed significant capital expenditure, delivering strong dairy production. The Prime Value Dairy trusts aim to maintain a minimum return of 12% over the medium to long term. This includes quarterly distributions of 5-7%, derived from a blend of regular income generated from milk sales and land value appreciation.

The government of Ireland was counseled to implement a dairy exit scheme with the aim to slash their carbon footprint, in a bid to keep the environment greener. This formed part of the strategies mentioned in the government’s 2024 budget. The dairy exit scheme, otherwise dubbed as a cow cull scheme, necessitated a reduction in dairy herd by approximately 65,000 cows annually for a consecutive three-year period, in order to hit the set emissions targets. A compensation package amounting to €600m was given out to farmers.

The Minister of Agriculture, Charlie McConalogue however, stated that things have taken a turn and the scheme was now “off the table”. The government with the intention to upkeep the nitrates derogation, aim to perpetuate the surge in productivity and exports that has been achieved by the dairy sector over the past decade. He added that substantial changes are expected at the farm level, including a 30% reduction in regards to fertilizer use and grants for farmers to adapt to new slurry spreading machines.

“The scheme, designed to reduce greenhouse emissions, was greeted with a mix of relief and apprehension among the farming community. However, the abrupt shift in its status has left many farmers in a state of uncertainty,” narrates a renowned rural politician.

Denis Drennan, the President of the Irish Creamery Milk Suppliers Association (ICMSA), castigated the proposed dairy exit scheme. His point of contention was that it induced certain expectations among the farming community, and further highlighted the government’s take on Irish dairy and livestock farmers.

In recent times, Irish milk production recorded a significantly steep decline, with its production diving as much as 29% YoY in Q4 2023 and has persistently been spiralling downwards in the months of January and February 2024. Persistent rains have added a new challenge to the industry alongside increased environmental regulations, notably restrictions on stocking rates which have deeply agitated producers. 

So the big question now remains, will there be no exit for the Irish dairy industry amidst these rulers and regulations? We delve deeper into the matter in this feature article.

Uncovering the Doubts Surrounding the Irish Dairy Exit Scheme

It’s no secret that dairy farming is deeply ingrained in Ireland’s cultural and economic fabric. With about 17,500 family-operated dairy farms dotting its scenic countryside, the stakes are high not just for the rural livelihoods they support, but a substantial portion of the national economy as well. Indeed, a staggering €6.3 billion gets funneled back into the Irish economy annually in the form of dairy export revenues. Clearly, the significance of this sector cannot be underplayed. 

But while it’s a critical income source, dairy farming also poses some challenging environmental dilemmas. The dangers of methane emissions and nutrient runoff are realities that farmers and the wider society must grapple with. This is where sustainability initiatives step in. Irish dairy farmers, supported by a proactive agricultural scientific community, are embracing the climate challenge with innovative practices and cutting-edge research. 

Funded by the likes of the European Milk Forum (EMF), projects are underway that aim to transform Ireland into a beacon of sustainable milk production. We are witnessing the creation of a future-proofed dairy sector that balances profitability, environmental efficiency, and societal wellbeing. After all, Irish dairy farmers are determined to create a robust, sustainable future for their industry, the environment, and the communities they serve. 

However, despite this forward-thinking mindset and tangible progress towards sustainability goals, the question of an exit scheme for the Irish dairy remains. The prospect of a scheme that enables dairy farmers to bow out of the industry with dignity, and without jeopardizing their livelihoods, has sparked both hope and skepticism. Is this ‘exit scheme’ a realistic solution? Does it even exist on the policy agenda? These are questions that require robust scrutiny and detailed inquiry. 

On one hand, the idea sounds promising; providing a transition pathway for those whose futures might not be in dairy farming. On the other hand, some pundits have labeled the concept ‘unbelievably cynical’, doubting its feasibility amidst economic and environmental pressures. The lack of clear information and official stance contributes to the skepticism. 

As these debates continue, the resolve of the Irish dairy farming community remains unshaken. While they’re braced for the challenges that lie ahead, it’s clear there’s a need for regulatory bodies and the wider government to step up, dispel the doubts, and provide clarity regarding the purported exit scheme. It’s high time the Irish dairy industry got the direction it needs to ensure its longevity and success.

Exploring the ‘Unbelievably Cynical’ Approach to Irish Dairy Exit Scheme

The ‘unbelievably cynical’ approach, as some have called it, to the Irish Dairy exit scheme can be better understood when we delve into the finer details. A lack of defined exit strategy may appear troublesome, but there’s a reason behind this concern. Actually, the county’s dairy farming community is wrapped in the throes of innovation and transformation, taking serious steps towards sustainability and environmental responsibility. 

Irish dairy farmers are not only taking a stand against environmental challenges but they reach further, setting new standards of environmental efficiency and sustainability. The sector, which comprises about 17,500 family dairy farms, has been fervently working on tech-enriched farming practices, substitute feed options, and smart waste management systems. A far cry from initiating an exit scheme, the Irish dairy sector is thriving, all set to shape a sustainable future for themselves, the environment, and society at large. 

You might be wondering, ‘What’s the economic standpoint?’ The numbers bear testimony to the thriving sector. With the dairy industry chipping in about 6.3 billion euros annually to the Irish economy, it’s clear that Ireland has established a solid ground in sustainable milk production. So, simply speaking, an exit scheme seems out of the question. 

In fact, Europe is eyeing Ireland’s decisive action in promoting a sustainable dairy industry. The European Milk Forum (EMF) has shown a vested interest in sponsoring initiatives in Ireland, thus further emphasizing the country’s progressive approach to dairy farming. 

The Irish dairy industry’s focus, rather than on an exit scheme, seems to be on ‘continuity’. But it’s not just continuity in the traditional sense; it’s about continuously bettering their practices, improving their yield, and pushing the boundaries of sustainability, all while showcasing a farming model that can be replicated worldwide. Certainly, that’s far from cynical; it’s a ray of hope in a world battling environmental degradation.

Should Irish Dairy Farmers Fear a No-Exit Future?

Indeed, it’s safe to say that the potential forecast of a no-exit future for the Irish dairy industry is unsettling for many, particularly for the 17,500 family dairy farms that diligently produce high quality, nutritious milk in Ireland. However, the possible lack of an exit scheme is far from being the sole concern. There is also a need to address the sector’s environmental footprint, a task that calls for the marriage of timeless farming traditions and modern, sustainable practices. 

But, do you know what’s truly inspiring? Irish dairy farmers and agricultural scientists are proving to be up to the challenge. There is a relentless push in the sector towards integrating sustainable farming methodologies that will pave the way for a greener approach to dairy farming. Why, you may ask? 

The answer lies in the pursuit of a balance that would ensure ample milk production, while simultaneously preserving and regenerating the environment. These steps are instrumental, especially as the global community turns more and more attention to the environment and sustainability. 

Undoubtedly, the dairy sector is a cornerstone of the Irish economy. With €6.3 billion in annual export revenues, it is undeniably a significant contributor to the country’s coffers. Thus, it is critical that the industry continues its strategic efforts and innovative practices to maintain this economic standing whilst also meeting climatic concerns, fortifying the sector’s resilience and sustainability. 

Forward-thinking initiatives backed by powerhouses like the European Milk Forum (EMF) are catalyzing significant advancements in both research and practical applications of sustainability measures within the Irish dairy industry. These projects, aimed at making dairy farming more climate-smart, provide encouraging benchmarks for other industries to emulate. 

So, despite the ominous title of this sector, the future of Irish dairy farming isn’t as bleak as it may seem. With the continued efforts of our hard-working Irish dairy farmers, who are often at the cutting edge of environmental efficiency, and the support of institutions like the EMF, there is real hope that they will not only survive but flourish, rewriting the narrative of dairy farming for generations to come.

The Bottom Line

In wrapping up, it’s clear that the implications of a no-exit scheme for Irish Dairy are multi-faceted. Balancing efficiency, consumer awareness, and environmental issues is undoubtedly a daunting task. But, with exports to over 130 countries worldwide and countless dedicated farmers committed to the long-term health of the industry, the environment, and society as a whole, there’s a lot at stake. Given the right policies, and enough attention on water quality and soil health, the future of the Irish dairy farming might well be brighter than some fear. However, navigating these complexities will require careful planning, informed decision-making, and concerted effort from all stakeholders.

In recent years, Russia has witnessed a significant increase in milk consumption, indicative of evolving dietary preferences, economic fluctuations, and the impact of government policies. This rising demand for dairy products is noteworthy for a range of stakeholders, from farmers and producers to policymakers and consumers. 

Milk consumption in Russia has hit its tallest mark since the mid-1990s, largely spurred by a rise in population income. In 2023, per capita dairy consumption reached 249 kg, a 3% rise from the previous year’s level of 241 kg. Since 2018, dairy consumption has trended upwards in Russia. Each dairy product reported an uptick in 2023 compared to the previous year. A notable boost came from Magnit, a Russian food retailer, reporting a 6.5% growth in dairy product sales for the last year, with a double-digit increase during the second half of the year. Furthermore, the notable growth trajectory of purchasing power in the Russian population in 2023 markedly improved affordability. 

The Russian agricultural ministry provided an insight into the industry’s production costs, reporting only a 1.67% rise in 2023, which is lower than the country’s inflation rate. Analysts noted that as dairy exports to Europe faced sanctions, Russian dairy companies encountered barriers exporting their goods. This resulted in a surge in supply, exerting pressure on prices. 

“Salaries in Russia rose by nearly 7% last year, marking one of the highest 1-year growth rates in the past decade. In contrast, the Russian labor market witnessed a shortage of 5 million workers in 2023. This was attributed to an ageing population and substantial emigration, leaving the Russian economy nearly devoid of available labor resources.”

One of the foremost factors behind the milk consumption surge in Russia is the growing awareness of dairy products’ nutritional benefits. Rising incomes and improved access to information have steered consumers towards healthier dietary choices, including more dairy in their meals. Milk, cheese, yogurt, and other dairy products are cherished not only for their flavor but also for their high protein content, calcium, and essential nutrients, becoming an integral part of the Russian diet. 

Government initiatives towards domestic dairy production promotion have been instrumental in boosting consumption. Over the past few years, Russia has put in place measures backing its dairy industry, including farmers’ subsidies, infrastructural investment, and actions to enhance the quality and safety of homegrown dairy products. These policies have reinforced confidence in domestically produced dairy items, leading to augmented consumption and less reliance on imports. 

The Covid-19 pandemic has also impacted milk consumption patterns across Russia. With people spending extended periods at home due to lockdowns and restrictions, home cooking and baking spiked, increasing the demand for dairy ingredients such as milk, butter, and cheese. Moreover, concerns about food safety and hygiene have pushed many consumers to prefer trusted local dairy products over imported ones, thereby enhancing domestic consumption further. 

Another contribution to the milk consumption rise comes from the expansion of retail channels and distribution networks, notably in rural regions. The broader accessibility to dairy products via supermarkets, convenience stores, and online platforms has made it simpler for Russian consumers to purchase and integrate dairy into their routine meals. 

The ramifications of this trend go beyond the dairy industry. Higher milk consumption benefits not only farmers and dairy producers but also fuels economic growth and food security efforts. By reducing imports dependency and strengthening domestic production, Russia is better equipped to cater to its population’s nutritional needs—simultaneously creating job opportunities and driving rural development. 

However, challenges persist. These include addressing inefficiencies in dairy production, ensuring sustainable farming practices, and maintaining quality standards. Also, fluctuations in global commodity prices, trade dynamics, and geopolitical uncertainties might influence Russia’s milk consumption trajectory. 

In conclusion, the surge in Russian milk consumption represents a mix of changing consumer preferences, governmental support policies, and socio-economic elements. While it provides avenues for growth and development, it also highlights the importance of adopting sustainable practices and strategic planning to ensure the dairy industry’s long-term sustainability and the population’s overall welfare.a

The dairy scene in Maine is steeped with as much history and charm as its coastal towns, famous lighthouses, and the taste of their iconic lobster dishes. Yet, just like many other farming sectors across our nation, Maine’s dairy farming community has seen better days.

“At one point not too far in the past, these hearty Maine communities thrived on the success of their local family-run dairy farms. Nowadays, however, we’re sadly witnessing our cherished farmers battling against dwindling numbers.”

Numbers are dropping, farms are closing, and mom-and-pop operations are finding themselves at the mercy of a fluctuating market— all leaving us with one essential question to ponder: Can Maine reverse its dairy farm decline?In this article, we’ll explore the heart of this issue and discuss potential solutions that could revive our beloved cow pastures, safeguard their traditions, and put Maine’s dairy industry back on the prosperous path it once enjoyed. 

What’s the Problem in Maine? 

While it’s true that Maine doesn’t currently sit among the top eight milk-producing states in the US, we can’t overlook the fact that, given its size, Maine’s dairy industry has historically showcased its strength. States like California, Wisconsin, Texas, Idaho, New York, Michigan, Pennsylvania, Iowa, and Ohio see steady production. In stark contrast, however, Maine continues to experience a drop-off. 

This decline is far from negligible. Since 1999, we’ve witnessed a drastic fall in Maine’s dairy farms, dropping from an estimated 700 to a mere 145. This trend stands as a stark contrast when compared to other regions like South Dakota, where the dairy farming sector is reportedly thriving. In South Dakota, the dairy cow population has swelled by a remarkable 70.5% since 2019, as reported by the US Department of Agriculture. This juxtaposition underscores Maine’s urgent need for dairy farm revitalization.

Due to a combination of economic, environmental, and social pressures, dairy farming in Maine is in crisis. Short legislative sessions compounded by strict term limits, often restrict the state’s capability to implement effective policies to support and revitalize the enterprise. 

Far removed from the hustling heartland of America’s dairy farming industry, Maine finds itself tangled in a web of unique challenges in its struggle to balance sustainability concerns with economic needs. What’s more, there’s a critical discrepancy between available scientific knowledge and actionable management or policy related to the dairy industry. In effect, existing policies may be insufficient or mismatched to the scale of sustainability issues the industry is facing. 

Adding another layer of complexity to this crisis is the wavering climate of Maine, known to have become harsher in recent times. As the state grapples with the realities of climate change, dairy farms have to face new sets of challenges and uncertainties, impacting their survival and productivity.

What can Maine do? 

However, there is growing optimism that, with the right strategies and support, Maine has the potential to overturn its dairy farm decline and bring back vitality to this crucial sector of its economy.  But how can this be achieved? What’s the action plan? 

• Support for Small-Scale Dairy Farms 
  One possible route to reversing Maine’s decline in dairy farms is by strengthening support for small-scale dairy operations. Why, you ask? Small-scale farms are more agile and can adapt to changing environmental and economic conditions more quickly than large-scale operations. They are essential players in both maintaining the rich dairy culture of Maine and enhancing the sustainable growth of its dairy industry. However, they often face significant challenges that require dedicated policies and supportive measures.  But what specifically needs to be done? This may involve broadening the access to resources, creating better channels for knowledge transfer, and establishing tighter cooperation between farmers and scientists. Let’s acknowledge the fact that there’s a disparity between scientific knowledge and its real-world application in farming practices. Bridging this gap can lead to innovative, data-driven solutions that pave the way for a more sustainable dairy business. Also, there lies an opportunity in future legislation like the upcoming Farm Bill. Legislators, such as member of the House Agriculture Committee, Pingree, can work towards creating more supporting measures for Maine’s dairy farmers within the legislation. This could be a significant step forward, enabling tailored support for small-scale farms that will assist them in meeting their unique challenges.  By focusing on small-scale dairy farms, Maine can foster resilience in its dairy sector, helping to reverse the decline and cultivate a sustainable dairy industry for the future.
• Promotion of Local and Sustainable Sourcing
  How can we bolster the health of Maine’s dairy industry? One key area that requires our attention is the promotion of local and sustainable sourcing. You see, local sourcing isn’t just a buzzword; it’s a commitment to support the local economy, ensure fresher and higher quality dairy products, and reduce the carbon footprint caused by long-distance transportation. Dairies sourcing local feed for their cows, for instance, generate multiple benefits for the entire community. In fact, when you think about it, it even adds a new dimension of authenticity to Maine’s dairy products. What about sustainable sourcing? It’s an approach aiming at minimizing the environmental impact of dairy farming, and guess what? It’s not as daunting as you might think. Implementing sustainable practices such as organic farming, pasture-based systems, or incorporating agroforestry could enable farmers to positively modify their operations. These practices not only help in sustaining the health of the land but also uphold the welfare of the cattle. However, a shift towards local and sustainable sourcing doesn’t happen overnight. It requires dedication, proper guidance, regulatory support, and broad acceptance from the community. But the pay-off can be substantial, contributing to a more robust and resilient dairy industry. Promoting local and sustainable sourcing, therefore, may serve as a cornerstone in reversing Maine’s dairy farm decline.
• Diversification of Dairy Products
  Delving further, it’s essential to discuss diversification in dairy products as a potential solution. Did you know that diversifying the product range could serve as a lifeline for Maine’s struggling dairies?  Let’s talk about organic dairy, which constitutes a crucial part of the Northeast farming economy. Targeting a growth in this market segment could definitely equip these farms with an extended lease on life. A hunger for innovation leads to the development of unique products, like dairy-based renewables that serve as a game changer in the sustainable energy sector.  You probably aren’t aware that the University of Arkansas Applied Sustainability Center conducted a life cycle assessment in 2013. This research shows the potential for sustainable farm operations using dairy as a resource.  So, what’s the catch? Sourcing local organic milk with wider partnerships involving schools, colleges, and retail locations could indeed reverse the declining trend. Picture a system where water is conserved, wastewater treatment is improved, and dairy farms double up as energy producers!  Yet, it doesn’t end there. Data-driven processes are crucial. Representative Pingree’s introduction of the Organic Dairy Data Collection Act to enhance USDA data collection for producing organic milk will certainly prove beneficial. It’s a clear indication that data collection and analysis could be a prominent part of the solution.  The Maine Organic Farmers and Gardeners Association, in conjunction with the Northeast Organic Family Farm Partnership, are primed to stimulate the organic dairy sector. By expanding the farm-to-institutional market, increasing retail outlets, and stepping up consumer marketing efforts, we are sure to see a boost in regional dairy product demand.  Let’s remember that the key to reversing Maine’s dairy farming decline could be a mix of creative solutions involving, among others, product diversification, sustainable innovations, and increased data collection.
• Investment in Technology and Efficiency
  It may surprise you to learn that, amid the doom and gloom, a ray of hope is actually emerging. That glimmer of optimism? It’s the rapidly maturing technologies and efficiencies that are revolutionizing the dairy industry. We’re not just talking about your average tech. We mean the kinds that can drastically transform the fate of Maine’s declining dairy farms. Curious about these game-changers? Let’s delve a little deeper.
  • Robotic Milkers: This innovation is already a common sight in European farms and rapidly making its way into the US. These state-of-the-art machines enable farms to operate 24/7 without the need for as much human intervention.
  • Precision Agriculture: The use of drones and GPS technology helps monitor the health of the land, efficiently using resources and optimizing crop yield for feed.
  • Renewable Energy Sources: Farms can save significantly in their energy costs by using renewable methods like solar panels, wind turbines, or even harnessing methane from manure!
• Diversification of Revenue Streams
  Additional to the measures discussed above, another important strategy that you’d like to know about in reversing the Dairy Farm decline in Maine is diversifying revenue streams. It’s a must to think beyond the traditional dairy products for a sustainable dairy industry. Have you ever thought about agritourism? Maine’s picturesque farmland can be a significant tourist attraction, and opening farms for tours, events, and educational programs can generate added income. Furthermore, direct-to-consumer distribution of raw milk and artisan cheese can increase profitability whilst maintaining a herd size manageable for small farmers.
  • Value-added Products: Have you noted the resurgence of interest in fermented dairy products like yogurt, kefir, and even cultured butter? How about specialty products like handcrafted artisanal cheeses or indeed gourmet ice creams? Creating these higher value products can offer higher profit margins and opens new markets to Maine dairy farmers.
  • Agritourism: Farms can invite visitors for farm-stays, organize educational workshops and events, exploiting the growing interest in sustainable farming and local foods for additional revenues.
  • Energy Production: As previously mentioned, dairy farms present an opportunity for renewable energy production. Anaerobic digestion of manure can produce biogas, a renewable source of energy that can be sold back to the grid, creating an additional revenue stream.
• Access to Financial Resources and Business Support
  Look, let’s face it. Dairy farmers in Maine, like their counterparts all around the world, experience a unique set of challenges when operating their businesses. The cost of feed and equipment, rising land prices, and unpredictable weather patterns – the list can go on and on. So, for Maine to reverse its dairy farm decline, it’s crucial that adequate financial resources and business support systems are readily available to these folks.  Moreover, they need access to funding sources that understand the fundamental requirements of dairy operations. Imagine a lending institution that gets the fact that cows don’t stop producing milk just because it’s a holiday. In moments such as these, being treated as less of a number and more of a valuable contributor to the state’s nutritional pyramid would make a world of difference. Government grants, supportive loan schemes, and insurance options targeted specifically for dairy farmers should be a vital part of the state’s game plan.  Yet, it’s not just about money. Our farmers need a robust business support environment. They need mentoring programs with experienced folks who can guide them through the highs and lows of the industry. They need to be kept up to speed with latest research and best practices in maintaining a sustainable dairy farm. The FARM Environmental Stewardship Program, which efficiently estimates farms’ carbon footprints and energy usage, could provide invaluable information for our dairy farmers. Remember, farmers are the epitome of environmental care, and they need all the tools in the toolbox to make sure they continue to be just that.  In essence, for Maine’s farmers to triumph over the decline, access to both financial resources and business support is critical. Remember, solutions focusing only on one sustainability factor are unlikely to be effective. Long-term success requires a well-rounded strategy, and that means providing financial backing and practical business guidance for our hardworking, dairy-producing mavens.

The Bottom Line

Ultimately, turning the tide on Maine’s dwindling dairy industry warrants a comprehensive strategy, encompassing economic, technological, and social dimensions. This revitalization is achievable by advocating for progressive methods, championing the cause of the smaller-scale producers, endorsing sustainable practices, and encouraging cooperative efforts. If these measures are implemented, it’s viable for Maine to breathe life back into its dairy sector, securing its critical role in the state’s economy and enrichening the rural communities’ fabric. A fresh, vibrant dairy industry in Maine made to see growth, sustainability, and prosperity is not a far-fetched aspiration but a tangible reality that we can achieve.

In an era where consumer demand for dairy products is steadily rising, streamlining the milk supply chain has become imperative. Dairy producers and distributors alike must focus on this, or risk being left behind. Why is this crucial? Because an efficient management of the milk supply chain does two critical things: it ensures timely delivery of fresh products to consumers, and it maximizes profitability for all stakeholders involved. 

In light of this, we believed there is a necessity to explore strategies that can accelerate this efficiency. Fear not, as this article is your roadmap into the world of an optimized milk supply chain. You will find an informative discussion on key strategies that will not only streamline your operations but also increase your profit margins. 

If you’re part of the dairy industry, it’s time to optimize your milk supply chain. Your path towards efficiency and profitability starts now!

Integration of Technology

Imagine transforming your milk supply chain using cutting-edge technologies such as IoT sensors, RFID, and AI-powered analytics. With these advancements, your operations can undergo a significant revolution. They offer the ability to monitor milk production, transportation, and storage conditions in real-time, granting you the power to intervene proactively when anything strays from the optimal conditions. 

Moreover, these technologies don’t just monitor current conditions. They can also predict future demand using predictive analytics. Harnessing the power of AI, you can foresee fluctuations in demand and adjust your production processes accordingly. End result? A streamlined milk supply chain with fewer surprises and more efficiency.

Collaborative Partnerships 

Imagine a scenario where dairy farmers, processors, distributors, and retailers work in synchronization. The milk supply chain becomes streamlined, enhanced by the power of collaboration. By establishing strong connections and fostering open communication, these key players create an interconnected network where data and knowledge are shared freely. 

But how does it translate into accelerating efficiency? It’s simple – this increased level of visibility across the supply chain not only encourages effective coordination but also helps in significantly reducing lead times, and as a consequence, lowering operational costs. Imagine being able to predict and adjust to market demands in real-time, or preventing bottlenecks before they even occur! That’s the level of agility a well-coordinated supply chain network can offer. 

Moreover, a collective approach doesn’t stop at improving the speed and cost efficiency in the supply chain. It also extends to shared initiatives such as combining transportation and warehousing facilities. The result? An optimized use of resources that not only improves profitability but also minimizes the environmental footprint – a critical aspect given the growing emphasis on sustainable business practices. 

In essence, through collaborative partnerships, the dairy industry is positioned to elevate its supply chain efficiency, ensuring that fresh, high-quality milk continues to reach consumers swiftly, effectively, and sustainably. So, as a key participant in the supply chain, the question to ask yourself is – how are you fostering and harnessing such partnerships?

Process Optimization

If you’re looking to substantially increase efficiency in the milk supply chain, continuous improvement in operational processes is absolutely key. Let’s cast our eyes to the principles of lean manufacturing, a proven methodology derived from the Toyota Production System. These principles can be effectively utilized to slash waste, pare down variability, and heighten throughput. 

You must be wondering how? To start, consider automation. Repetitive tasks, such as milk packaging and palletization, are perfect candidates. Automating these time-consuming tasks can prime the pump for increased productivity and reduced labor costs. It’s a step that’s a clear win-win for both suppliers and consumers. 

“The automation of repetitive tasks not only increases productivity and reduces labor costs but also enhances consistency and accuracy, eradicating potential human errors.”

Moreover, quality management systems act as your safety net in this streamlined process. Implementing these systems ensures compliance with regulatory standards, while simultaneously enhancing the quality and safety of your milk products. 

In light of this, we must remember that even the smallest of improvements can create a ripple effect throughout the supply chain – bolstering efficiency, quality, and ultimately, customer satisfaction.

Cold Chain Management

If you’re vested in the preservation of the freshness and nutritional value of milk products, maintaining the integrity of the cold chain is paramount for you. Invaluable strides such as investments in refrigeration technology and cold storage infrastructure are indispensable to thwart spoilage and prolong shelf life. But it doesn’t just end there; effective temperature monitoring and control mechanisms play a critical role to keep the specters of microbial growth and product degradation at bay during both transit and storage phases. 

Across these efforts, the common denominator is not only about increasing efficiency, but also about aligning with environmental objectives. This is achieved by favoring sustainable refrigerants and instituting energy-efficient cooling systems. The bonus? This approach also helps you keep a lid on operating costs – a clear case of hitting two birds with one stone.

As we move further along in the article, we will explore how advancing technologies such as IoT, RFID, and AI-powered Analytics are being harnessed to propel efficiencies in the milk supply chain to unprecedented levels. We will also shed light on the importance of forging collaborative partnerships to create a productive, proactive, and streamlined supply chain that surpasses traditional barriers.

Supply Chain Visibility

Imagine having the ability to see every step of your milk’s journey – from the grassy fields where it starts out as a cow’s feast all the way to your cool refrigerator door. Enhanced visibility into the milk supply chain does not only make for an interesting story but more importantly, it enables stakeholders to make informed decisions and respond promptly to market dynamics. 

With the utilization of advanced tracking and tracing systems, we now have the opportunity for real-time monitoring of product movement. Picture a day when your fresh milk goes from ‘farm to fork’ under your watchful eye. The transparency regarding product origin, production practices, and sustainability credentials that comes with this visibility fosters consumer trust and loyalty. No more doubts about where your food is coming from or how it’s made. Cool, right? 

“Transparency is the key to consumer trust. When consumers know the full story behind their food, they’re more likely to make positive choices for their health and the environment.”

And that’s not all. The milk supply chain is also getting a technological upgrade. By leveraging blockchain technology, we can provide immutable records of transactions. This ensures data integrity and further enhances traceability. So next time you fancy a creamy glass of milk, remember the tech-savvy trail it has blazed to reach you! 

Sustainable Practices

When it comes to environmental concerns, the stakes are high, now more than ever. Hence, the decision to adopt sustainable practices throughout the milk supply chain becomes not just a choice, but an essential step toward long-term viability. These practices contribute substantially to conserving our environment while securing the dairy industry’s future. 

Eco-friendly farming practices, for instance, play a significant role in this context. One approach is pasture grazing, which not only enhances the well-being of the dairy livestock but also promotes biodiversity. Similarly, the use of organic feed helps reduce the reliance on artificial fertilizers and pesticides, thus decreasing the overall carbon footprint of dairy farming. 

“Farming practices like pasture grazing and organic feed production are not only eco-friendly but also contribute to a healthier, more robust dairy industry.”

Moreover, the responsibility does not solely rest on the shoulders of dairy farmers. Efficient utilization and optimization of transportation routes also promise a considerable reduction in greenhouse gas emissions. This ultimately shows how thoughtful logistics planning can make a significant difference. 

Meanwhile, the use of renewable energy sources, such as solar or wind power, in dairy operations is a step toward a more sustainable future. Shifting towards these cleaner, more abundant sources of energy not only minimizes greenhouse gas emissions but also plays a crucial role in building climate resilience. By choosing renewable energy sources, the dairy industry as a whole can effectively contribute to global efforts to combat climate change.

The Bottom Line

To sum it all up, generating momentum in the dairy supply chain is a task that needs the combined effort and intelligence of everyone involved. This advancement is attainable, fundamentally through the smart use of modern technology, synergistic cooperation, and the investment in green measures. These tactics enable businesses in the dairy industry to keep up with the shifting tastes of the consumer, increase their own profit margin, and construct an ecosystem in the supply chain that is both harder to disrupt and kinder to the environment.

Ever found yourself intrigued by the creamy richness of your favorite delicacies, wondering what makes them taste so divine? You, my friend, are tasting the culinary delight that is butterfat. A star ingredient in dairy products across the U.S., it is seeing an unprecedented rise in popularity. But what exactly is driving this butterfat boom?  From artisanal ice cream to gourmet cheese, the unmistakable richness of butterfat is coveted by consumers and producers alike. Its demand is not simply a fleeting trend but a reflection of a deeper shift in our culinary preferences.

The magnifying lens on butterfat is not without reason. The U.S. dairy industry has been bustling with activity, registering a significant uptick in the production of butterfat. Imagine this – in a span of just eleven years, the production of U.S. butterfat has surged by a whopping 27%! This is not merely a statistical fact but a testament to the changing tastes and preferences of the American populace, their growing affinity for full-fat dairy products manifesting in these soaring numbers.

Unmasking the Butterfat Boom: The U.S. Dairy Phenomenon

You might be wondering, “What is driving this phenomenal growth in the U.S. dairy industry, especially in the butterfat segment?” Well, several factors can be identified that are contributing to this butterfat boom. 

A Deficit in Domestic Milk Fat Production: Despite continuous growth in milk production from 1995 to 2010, the United States remains a nation with a milk fat deficit. This situation essentially means the country hasn’t been able to generate enough butterfat to address its domestic consumption, hence the rise in butter imports to meet the growing demand for full-fat dairy products. It serves as undeniable proof of the growing consumer preference for these varieties. 

Changing Consumer Preferences: Over the past decade, an evident consumer shift has been observed towards full-fat dairy products. These products, which include butterfat, are preferred for their rich flavor and satiety-providing qualities. This rise in demand has certainly played a crucial role in enhancing the production of butterfat. 

Export Opportunities: It is also evident that there is a significant potential for the U.S. dairy industry to augment its exports, particularly those of butterfat. As global tastes evolve and demand for full-fat produce continues to grow, these export opportunities bring promises of a sustained and profitable future for U.S. dairy producers. 

A recent report by CoBank substantiates these factors and even goes a step further. It forecasts this butterfat boom to continue, with domestic demand anticipated to be the biggest driver of this growth. So, the U.S dairy farmers and producers are expected to continue churning out high-quality, delicious butterfat to meet this burgeoning demand, both domestically and internationally.

In essence, this butterfat boom in the U.S. dairy industry isn’t a mere temporary surge but a promising trend towards a bright future. It’s undeniably a testament to changing consumer patterns and the industry’s adaptability to meet them head-on!

A Deficit in Domestic Milk Fat Production: Challenges Amid the Boom 

Despite the impressive growth seen in the production of butterfat, the United States remains somewhat paradoxically a milk-fat deficit nation. This implies that domestic production is still not at a point where it can fully meet the rising demand for full-fat dairy products. 

The U.S. is the world’s largest producer of butterfat.

Statistics paint a revealing picture – there’s been an astounding increase of 120.6% in milk-fat imports from 2011 to 2022. This surge in imports serves as a clear indicator that the domestic supply lags behind the burgeoning thirst for butterfat-laden products among US consumers. 

The U.S. dairy industry has been shifting its focus from skim milk to butterfat due to the higher profit margins.

This deficit presents both a challenge and an opportunity for the local dairy industry. On the one hand, it highlights the need for increased efficiencies and optimizations in production to move towards self-sufficiency. On the other, it signals ardent demand waiting to be tapped, a motivational push towards local advancement and growth.

In 2020, butterfat production in the U.S. reached 1.9 million metric tons.

The Health Benefits of Butterfat: A Hidden Driving Force

Interestingly, butterfat, known as the Achilles heel of the dairy industry until recent years, is currently stealing the limelight. It’s not all about taste though, go beyond the palatable richness of full-fat dairy products, and you’ll find robust health benefits that are whipping up the demand. 

Health trends, such as the keto diet, which emphasizes high-fat and low-carb intake, have contributed to the increased demand for butterfat.

With the consumers now tilting towards nutrient-dense foods, full-fat dairy comes into their radar. Butterfat is teeming with fat-soluble vitamins like A, D, E, and K – all key players in maintaining the overall health of the human body. Furthermore, research has discovered that full-fat dairy aids in weight management. Paradoxical as it may sound, but the healthy fats are believed to keep you satiated for longer, resulting in less calorie intake. 

The average American consumes 5.6 pounds of butter per year.

Moreover, emerging studies suggest potential heart-healthy benefits associated with full-fat dairy. The fatty acids present in butterfat, known as Conjugated Linoleic Acid (CLA), are linked with improved cardiovascular health. Now, isn’t that a game-changer for a product that was often slighted for its high-fat content? 

Such nutritional upsides have hit the right chord with the health-conscious consumers, leading to a magnified demand for full-fat dairy products. As we’ll discuss shortly, these changing demand patterns are also influencing the U.S. dairy supply chain dynamics.

Exploring Export Opportunities Amid the Butterfat Boom 

As the demand for full-fat dairy products continues to grow, not just domestically but also globally, there presents a compelling export opportunity. Whether it’s butter, cheese, or cream, the allure of nutrient-dense dairy foods has crossed U.S. borders and is spreading worldwide. This rising international demand creates a panorama of new market possibilities for the U.S. dairy industry. Particularly, the lucrative export potential is significantly contributing to the butterfat boom. 

The export market for U.S. butterfat has been growing, particularly in countries like China and Mexico.

Interestingly, despite being a milk fat-deficit nation, the U.S. dairy industry has displayed an impressive resilience. How, you ask? By not only keeping up with soaring domestic demand, but also capitalizing on the global appetite for butterfat. Even as we speak, the U.S. is ramping up butter imports to fulfill the domestic need for full-fat dairy products. Meanwhile, the U.S. dairy industry has seen an exceptional growth in butterfat and protein production, catalyzed by the domestic and global demand surge. 

U.S. butter exports have grown by 167% in the last five years.

Industry experts such as CoBank reaffirm this upward trend. They anticipate the butterfat boom to continue unabated as the dairy supply chain seizes the opportunity to extract more value from high fat and protein levels. The full-fat dairy surge is, undoubtedly, opening up a wealth of robust export opportunities for this ever-evolving U.S. dairy industry.

The Bottom Line

As we wrap up our exploration of the Butterfat Boom, it’s fair to say that a combination of factors are set to spur further growth. Broadening consumer preferences, the revelation of health benefits of full-fat dairy, continually surfacing innovations not only in product but also process chains, all play significant roles in stoking this momentum. Furthermore, the fact that domestic production struggles to meet the strong demand bodes well for both the U.S. and global market potential. Ultimately, as demand for full-fat dairy continues to outstrip other dairy products and the U.S. gears up to leverage its export opportunities, the growth story of Butterfat is likely to be an increasingly compelling one in the years to come. 

Andrew Rushton, pictured with son Brodie 4, Benlock Jerseys Rochester, Victoria has used genomics, sexed semen, and the Balanced Performance Index (BPI) to increase the genetic merit of his family’s dairy herd.

Some Australian dairy farmers have made genetic gains of more than 200 per cent in recent years thanks to industry tools such as the genomic testing, the Balanced Performance Index, Good Bulls and sexed semen.

These huge genetic improvements, measured by increases in each herd’s average Balanced Performance Index (BPI) since 2020, were uncovered as part of DataGene’s review of herd performance.

DataGene Stakeholder Relations Specialist Peter Thurn said this analysis demonstrated that tweaks to breeding – using modern herd improvement tools – can deliver tangible benefits to a dairy farm business faster than ever before.

“Herd average BPI is generally something that moves very slowly, but in the case of some herds, their progress has been quite rapid,” he said.

“This fast improvement is due to the use of industry tools, especially genomics, and then using this genomic DNA information to choose the highest BPI animals to breed their herds’ next generation.”

Genomic testing analyses an animal’s DNA from a sample such as ear tissue or a tail hair, to predict future performance. Heifers can be tested as young calves, so farmers can make early decisions about their future in their herd.

“The result of this can be improvements in fertility, production, survival, mastitis resistance and in some cases, this means less replacements are required from year-to-year and it could open new income streams such as dairy-beef.”

Bamawm, Victoria Jersey breeder Bill Cochrane attributes the 168 BPI gain or 310 per cent rise in his herd’s average BPI to “losing the bottom of the herd” and genomic testing.

“We trusted genomics when it first came in and we were quite happy to use a bull just on his genomic figures,” he said.

“Genomics also played a role in eliminating the bottom end of our herd. For the past three or four years we’ve used beef on the bottom – according to genomics – and sexed semen to breed our heifers. Years ago, we’d just chuck a bull in with our heifers, but they are our better animals and using sexed semen ensures we breed our replacements from them.”

Bill and Kaye Cochrane operate Craigielea Jerseys with their son Andrew and will milk 550 cows this year.

In DataGene’s April release of Australian Breeding Values (ABVs), the Cochranes have the equal top Jersey cow, Craigielea Vicky 6151 VG 87 at 502 BPI.

Bill said DataGene’s BPI system was a good guide for breeding because it enabled dairy farmers to chase production as well as type traits that improved the functionality of cows.

The BPI accounts for the traits that affect a cow’s lifetime contribution to the farm business: production, health/fertility, longevity, workability, feed efficiency and type.

NSW Riverina dairy farmers Bernard and Jenny James attribute their improvement of 359 per cent or 211 BPI units to a “tough” approach to managing fertility as well as sexed semen and using a group of three to four Good Bulls to improve herd traits.

Bulls that carry DataGene’s Good Bulls logo meet the minimum criteria for Balanced Performance Index and reliability and are available for purchase.

Bernard said genetic gains were valuable to his business and he was looking forward to future improvements.

“I’m excited to think about what’s going to happen in the coming years after this big jump in the last few years; it is really only just starting,” he said. 

“We have a beautiful line of cows that are well-natured, and we don’t have the cull heifers that we used to. Milk production is slowly climbing, and we expect that to keep climbing.”

Using genomic data to make decisions about which heifers to retain – when they are young calves – and those to breed with sexed semen has helped Andrew Rushton and his family improve their BPI by 310 per cent to 172 BPI.

Andrew, his wife Jess, dad Bryan and mum Lee operate Benlock Jerseys at Rochester, milking 280 cows. 

“The BPI takes into account so many other things that aren’t visual such as survival, daughter fertility and all the things you can’t see,” he said.

“We’ve improved our BPI by using genomics to understand our best BPI heifers before we start milking them and then we used that data to breed our best heifers with sexed semen to improve our genetic gain.”

Visit www.datavat.com.au to look up the DataGene’s latest release of Australian Breeding Breeding Values and indices such as the BPI.

For more information contact: DataGene 1800 841 848 or abv@datagene.com.au or www.datagene.com.au.

Trade policy could be the single most important factor when it comes to who US dairy farmers pick for president in November. A variety of topics driven by federal government policy can impact dairy prices, including trade policy, sustainability requirements, nutrition guidelines, or food support program (SNAP, WIC) funding levels. Rabobank said it expected subdued export sales in US cheese and butter, but Fuess clarified that weaker US export sales across nearly all dairy product categories in 2023 were following a record export year as measured on both a volume and value basis in 2022.

Rabobank expects US cheese prices will be competitive versus other key dairy exporting regions, including the EU and New Zealand, driven by expanded US cheese processing capacity and subdued domestic demand. In butter, the opposite story, with US and global prices firmly elevated. The likelihood of a more long-term return to profitability is difficult to proclaim, but market volatility should continue to be a persistent force in dairy markets.

The outlook analysis for the dairy industry in China suggests that farmer margins will improve in most regions as the year progresses. However, in China, the expectation is for raw milk prices to likely stay low, with AustAsia Group Ltd expected to record a consolidated net loss of approximately RMB 450 million to RMB 500 million, compared with the net profit of approximately RMB 158 million ($23.4 million) for the year ended 31 December 2022. China Modern Dairy is expected to record a net profit for the year ended December 31, 2023, in the range between RMB160 million to RMB200 million (2022: approximately RMB580 million), representing a decrease of approximately 66% to 72% YOY. The estimated range of the cash EBITDA is between RMB 2,400 million and RMB 2,500 million (2022: RMB 2,740 million), representing a YoY decrease of approximately 9% to 12%.

China’s National Food Safety standard on liquid milk is unlikely to influence this year’s trade, specifically whole milk powder imports. The new standard on 2024 WMP imports should not be a key influencing factor. Top two players like Yili and Mengniu, who hold 87% of the UHT value share, have already used domestically sourced raw milk to produce UHT white milk. Once the new standard is implemented, this should only have an impact on smaller players (less than 20% UTH share) that used to import WMP and use reconstituted milk in UHT.

China’s leading dairy farming companies, AustAsia Group, China Modern Dairy, and China Youran Dairy Group, have posted net profit loss warnings due to weaker-than-expected demand and lower sales prices for raw milk and the decrease in the market price of beef cattle and heifers in China. The gross profit margin is lower than in 2022, largely because of lower milk price and comparatively higher feed costs.

Lastly, is there scope for improvement in the dairy products Consumer Price Index (CPI)? The recent year-over-year declines in the dairy product CPI are driven by a combination of high prior year comparable data points coupled with lower milk prices in 2023 versus 2022 that trickled through to the consumer in the form of lower priced dairy products.

In the dynamic landscape of dairy farming, staying ahead of business pressures and understanding emerging trends is crucial for sustainable growth and success. From market fluctuations to technological advancements, dairy farmers face a myriad of challenges and opportunities that require strategic actions. By recognizing these pressures, staying informed about industry trends, and implementing effective strategies, dairy farmers can pave the way for big breakthroughs in their businesses.

Understanding Business Pressures

1. Market Volatility: Fluctuations in milk prices and market demand pose significant challenges for dairy farmers. Understanding the factors driving these fluctuations, such as global supply and demand dynamics, geopolitical events, and consumer preferences, is essential for making informed decisions.
2. Regulatory Compliance: Compliance with regulations related to milk production, environmental standards, and animal welfare adds complexity to dairy farming operations. Keeping abreast of regulatory changes and implementing sustainable practices are critical to mitigate risks and maintain long-term viability.
3. Input Costs: Rising input costs, including feed, labor, and energy, impact the profitability of dairy operations. Farmers need to adopt cost-effective practices, explore alternative inputs, and leverage technology to optimize resource utilization and minimize expenses.
4. Consumer Preferences: Shifting consumer preferences towards sustainability, animal welfare, and health-consciousness are influencing dairy product demand. Adapting production practices and diversifying product offerings to align with consumer preferences can enhance market competitiveness.

Emerging Trends in Dairy Farming

1. Technology Integration: The integration of technology, such as automated milking systems, precision farming tools, and data analytics, is revolutionizing dairy operations. Investing in technology enables farmers to improve efficiency, enhance animal welfare, and make data-driven decisions for better outcomes.
2. Value-Added Products: Diversifying product offerings beyond traditional milk and cheese opens up new revenue streams for dairy farmers. Producing value-added products like organic dairy, artisanal cheese, and functional dairy products cater to niche markets and command premium prices.
3. Sustainable Practices: Consumers are increasingly demanding ethically sourced and sustainable dairy products. Implementing sustainable practices, such as conservation agriculture, renewable energy adoption, and waste reduction measures, not only meets consumer expectations but also reduces environmental footprint and enhances brand reputation.
4. Vertical Integration: Vertical integration, through partnerships with processors or direct-to-consumer sales channels, offers dairy farmers greater control over the value chain and market access. Collaborating with stakeholders along the supply chain and exploring direct marketing opportunities can improve profitability and market resilience.

Strategies for Big Breakthroughs

1. Strategic Planning: Develop a comprehensive business plan that aligns with long-term goals, market trends, and operational capabilities. Regularly review and adapt the plan to address evolving business pressures and seize emerging opportunities.
2. Investment in Innovation: Embrace innovation and invest in technology, research, and infrastructure upgrades to enhance productivity, quality, and sustainability. Stay informed about industry advancements and collaborate with industry partners to leverage innovation effectively.
3. Market Diversification: Explore diverse market channels, including local markets, online platforms, and export opportunities, to reduce dependency on volatile markets and capture niche segments. Tailor marketing strategies to resonate with target consumers and differentiate products based on unique value propositions.
4. Continuous Learning: Stay informed about industry developments, best practices, and market trends through networking, training programs, and industry publications. Engage with industry associations, academic institutions, and government agencies to access resources and support for continuous learning and skill development.

In conclusion, dairy farmers must proactively address business pressures, capitalize on emerging trends, and implement strategic actions to achieve breakthroughs in their operations. By staying resilient, innovative, and adaptable, dairy farmers can navigate challenges and unlock new opportunities for growth and success in the dynamic dairy industry.

The Oregon Supreme Court has heard oral arguments about whether a lawsuit against the Tillamook County Creamery Association should be allowed to proceed. The lawsuit, filed in 2019 by an animal welfare group, alleges Tillamook of misleading marketing and misrepresenting its livestock practices. Tillamook, founded in 1909 as a farmer-owned cooperative, is known for its varieties of cheese, ice cream, and yogurt. It is accused of “greenwashing” — the act of making false or misleading statements to persuade consumers that a company is environmentally friendly.

Tillamook has denied the allegations and said it is open about its environmental stewardship practices. The five-year-old lawsuit, filed as a class action by the Animal Legal Defense Fund on behalf of four Oregon residents, alleges Tillamook’s advertising campaigns allowed the creamery to sell its products at a premium. It claims the creamery’s marketing led consumers to believe its milk is sourced from small, family-owned, pasture-based dairies in Tillamook County, when in reality it sources two-thirds of its milk from one of the country’s largest factory farms with over 28,000 dairy cows.

The dairy farm in question, Columbia River Dairy, is located just outside Boardman, Oregon — where Tillamook also runs a secondary cheesemaking facility. Columbia River is owned by Threemile Canyon Farms, which is one of a handful of farms and agricultural processors recently sued in a separate class action by Eastern Oregon residents for contributing to a decadeslong nitrates pollution crisis in the Lower Umatilla Basin. Threemile also operates a beef operation and farms a variety of crops on 93,000 acres of land.

The plaintiffs are seeking an injunction against Tillamook ordering the company to either change its marketing campaigns or change its livestock treatment practices. Tillamook did not comment on the claims. The Oregon Dairy Farmers Association reached out separately to the Oregon Dairy Farmers Association, which didn’t respond for comment by the time this story was published. In a court document, Tillamook said it hasn’t tried to hide its relationship with Columbia River Dairy or Threemile Canyon Farms.

The Oregon Supreme Court hearing, held on March 4, was not about whether or not Tillamook’s marketing was deceptive. The case was originally filed in the Multnomah County Circuit Court. A judge in that court dismissed it as a class action in 2020, and the Oregon Court of Appeals affirmed that judge’s decision in 2022. Multnomah County Circuit Judge Kelly Skye wrote the case does not qualify as a class action because each plaintiff would have to prove they relied on Tillamook’s advertising when deciding to purchase its products. Now, the plaintiffs are looking to reverse those decisions.

Joyce Tischler, a professor of animal law at the Lewis and Clark College law school, said she believes the lower court misinterpreted an Oregon consumer protection law in its decision making and that it’s in consumers’ best interest for the lawsuit to be allowed to move forward. She said similar lawsuits against food giants, such as food manufacturers and fast food chains, are on the rise nationwide as consumers seek to support companies that align with their values, whether it’s environmentally conscious farming practices or humane animal conditions.

Apple, renowned for its innovation in consumer electronics, recently announced a breakthrough formula with potential applications beyond its traditional tech realm. This unveiling has sparked intrigue across industries, including dairy technology, as experts speculate on the transformative effects this formula could have on dairy production and processing.

Understanding Apple’s Formula

While specific details of Apple’s formula remain proprietary, initial reports suggest it harnesses advanced bioengineering techniques to enhance efficiency, sustainability, and nutritional profiles in agricultural settings. Leveraging cutting-edge research in genetics, microbiology, and biochemistry, Apple aims to revolutionize traditional agricultural practices and address pressing challenges facing the food industry.

Implications for Dairy Technology

1. Nutritional Enhancement: Apple’s formula holds promise for enhancing the nutritional content of dairy products. By optimizing feed formulations and manipulating microbial communities in the rumen, dairy farmers could produce milk with elevated levels of essential nutrients, such as omega-3 fatty acids, vitamins, and antioxidants, thus offering consumers healthier dairy options.
2. Sustainability Initiatives: Sustainability is a pressing concern in dairy production, with environmental impacts and resource constraints driving demand for eco-friendly solutions. Apple’s formula could enable dairy farms to reduce their carbon footprint by optimizing feed conversion efficiency, minimizing waste generation, and enhancing nutrient utilization, thus promoting more sustainable practices within the industry.
3. Health and Welfare: Animal health and welfare are paramount in dairy farming, and technological advancements can play a crucial role in ensuring the well-being of livestock. Apple’s formula may incorporate innovations in precision nutrition, health monitoring systems, and genetic selection to optimize animal welfare outcomes, improve disease resistance, and enhance overall herd health.
4. Data-Driven Decision Making: In line with Apple’s data-centric approach, the integration of advanced analytics and sensor technologies could revolutionize dairy management practices. By collecting and analyzing vast amounts of data on animal behavior, productivity metrics, and environmental conditions, dairy farmers can make informed decisions in real-time, leading to improved efficiency, productivity, and profitability.
5. Supply Chain Transparency: Transparency and traceability are increasingly important for consumers who seek information about the origins and production methods of dairy products. Apple’s formula may facilitate supply chain transparency by enabling comprehensive data tracking and authentication, ensuring product integrity and fostering consumer trust in dairy brands.

Challenges and Considerations

While the potential benefits of Apple’s formula are substantial, its adoption in dairy technology may face several challenges:

• Regulatory Hurdles: Novel agricultural technologies often encounter regulatory barriers related to safety, labeling, and public acceptance. Apple’s formula may need to undergo rigorous evaluation and approval processes before widespread adoption in dairy production.
• Cost and Accessibility: The affordability and accessibility of Apple’s formula could pose challenges for small-scale dairy operations. Ensuring equitable access to innovative technologies will be essential for promoting inclusivity and diversity within the dairy industry.
• Ethical Concerns: Ethical considerations surrounding genetic engineering, data privacy, and animal welfare may arise as dairy technology advances. Stakeholders must engage in transparent dialogue and ethical deliberation to address potential concerns and ensure responsible innovation in dairy production.

Apple’s foray into agricultural technology represents a paradigm shift in the intersection of tech and food systems, with far-reaching implications for dairy technology and beyond. By leveraging bioengineering, data analytics, and sustainability principles, Apple’s formula has the potential to revolutionize dairy production, enhance nutritional quality, and promote environmental stewardship in the years to come. As stakeholders collaborate to harness the benefits of this transformative technology, the dairy industry stands poised to embrace a new era of innovation and progress.

As the dairy industry in North America navigates through a complex web of challenges and opportunities, stakeholders eagerly seek insights into what the year 2024 might hold. Economists, armed with data and analytical tools, offer valuable perspectives on the factors shaping the outlook for North American dairy in the coming year.

Current Economic Landscape

Before delving into projections for 2024, it’s essential to understand the context of the current economic landscape in North American dairy.

In the US, feed and other input costs increased in 2023 but milk prices decreased from 2022. In fact, US dairy producers’ profit margins in 2023 were at their lowest levels since the 2009 crisis.

This year could see strong exports of US dairy goods like cheese, dry whey, skim milk powder, non-fat dry milk, and butter. Furthermore, according to Nicholson, milk prices will rise this year as they continue their usual cycle of lows and highs. It’s still possible that pricing formulae may improve, but this is not definite.

In recent years, the industry has faced various challenges, including fluctuating milk prices, trade uncertainties, labor shortages, and evolving consumer preferences. However, technological advancements, increased efficiency, and innovation have also driven growth and resilience within the sector.

Projections and Insights

1. Market Dynamics: Economists anticipate a mixed bag of market dynamics in 2024. While factors such as global demand, weather patterns, and geopolitical developments will influence milk prices, increased domestic consumption and export opportunities may provide a boost to North American dairy producers. However, ongoing trade disputes and market volatility remain areas of concern.
2. Technology Adoption: The adoption of technology continues to be a game-changer for dairy operations. Economists predict that advancements in automation, precision farming, and data analytics will enhance efficiency, productivity, and cost-effectiveness in dairy farming. Producers who embrace technology-driven solutions are likely to gain a competitive edge in 2024 and beyond.
3. Sustainability Imperatives: Sustainability concerns are increasingly shaping consumer preferences and regulatory frameworks. Economists emphasize that dairy producers must prioritize sustainability initiatives, such as environmental stewardship, resource efficiency, and animal welfare, to maintain market access and consumer trust. Investments in sustainable practices are expected to yield long-term benefits in 2024 and contribute to industry resilience.
4. Policy Landscape: Policy decisions at the national and international levels will have significant implications for North American dairy in 2024. Economists highlight the importance of monitoring legislative developments, trade agreements, and government support programs that affect dairy production, pricing, and market access. Policy stability and coherence are essential for fostering a favorable operating environment for dairy stakeholders.
5. Consumer Trends: Understanding shifting consumer trends is paramount for dairy industry stakeholders. Economists point to the growing demand for premium products, plant-based alternatives, and ethical sourcing practices. Producers who innovate and diversify their product offerings to align with evolving consumer preferences are likely to thrive in 2024’s competitive marketplace.

Strategic Considerations

In light of these insights, economists advise North American dairy stakeholders to focus on several strategic imperatives for success in 2024:

• Risk Management: Implement robust risk management strategies to mitigate the impact of market volatility, input cost fluctuations, and unforeseen disruptions.
• Innovation and Adaptation: Embrace innovation, adopt new technologies, and adapt business models to stay ahead of the curve and capitalize on emerging opportunities.
• Collaboration and Advocacy: Foster collaboration across the dairy value chain and advocate for policies that support industry competitiveness, sustainability, and resilience.
• Consumer Engagement: Strengthen consumer engagement efforts, build trust through transparent communication, and meet evolving consumer demands with innovative products and marketing strategies.

While uncertainties abound, economists express cautious optimism about the prospects for North American dairy in 2024. By staying attuned to market trends, leveraging technology, prioritizing sustainability, and adopting a proactive approach to challenges, dairy stakeholders can position themselves for success in the year ahead and beyond. As the industry continues to evolve, collaboration, innovation, and strategic foresight will be key drivers of growth and prosperity for North American dairy.

Prices paid in 2024 for dairy products should be similar to 2023, while net returns may be better, according to University of Missouri Extension economist Scott Brown.

Brown told attendees at the 2024 Missouri Dairy Expo that average weather and feed costs will be key factors for this year’s outlook.

“The outlook hinges on demand,” said Brown. “Domestically, consumers may have less to spend on dairy, interest rates are higher, there’s less COVID financial help, and the economy is slower.”

On the supply side, milk production has been down for the past seven months relative to a year ago.

“Dairy is getting in a better place,” said Brown. “And the positive piece is, while not going a lot higher, things will be getting stronger.”

Dairy cow inventory has been lower since early 2023, Brown said. States that have experienced decline differ from the typical ones and include California, Colorado, and Texas, which had been growing.

Cheese prices have lower than many in the industry expected as demand has slowed. Lately, some recovery in cheese prices has provided some help to milk prices.

Global demand is also not growing as expected. Whole milk and skim milk powder sales to China are down as that country experiences a weaker economy amid a stronger U.S. dollar.

While Chinese imports have fallen flat, Mexico remains an important market for U.S. dairy farmers. Mexico is the largest importer of powdered milk products on a value basis.

Australia’s milk supply is expected to grow in 2024 as it recovers from drought. U.S. growth is expected to be one-half percent higher.

With the debate on the next farm bill unfolding, Brown foresees the most significant impact could result from the federal milk order hearing. Brown anticipates the Dairy Margin Coverage (DMC) program in the next farm bill will be similar to the one adopted in the 2018 farm bill but could allow producers to update their production history or increase the amount of production history eligible for a DMC payment.

He expects USDA to provide a proposed rule from the milk marketing order hearing sometime this year. He says there is the potential for large changes in how minimum milk prices are set through federal orders. Brown said some issues, like the Class I mover price, could be looked at in the next farm bill if not addressed through USDA’s federal order hearing process.

Missouri continues to lose dairy cow inventory, which Brown said will likely occur this year along with smaller herd sizes. He adds that the DMC has been helpful to Missouri dairy producers.

MU Extension is the link between the University of Missouri’s proven research, knowledge and resources and Missouri’s 6.2 million citizens. With state and local partners, we deliver real-world solutions to address our state’s grand challenges around agriculture, economic opportunity, educational access and health and well-being. Faculty and staff in 114 counties and the city of St. Louis work to empower people, strengthen communities and develop leaders. True to our land-grant mission, we serve Missouri and deliver Mizzou as we improve lives and opportunities.

Dairy Farmers of America and Select Milk’s attempt to dismiss a proposed class action in New Mexico, accusing them of colluding to control prices in the region’s multibillion-dollar milk sector, was unsuccessful. U.S. District Judge Margaret Strickland found that dairy farmers in New Mexico, Texas, and portions of Arizona, Oklahoma, and Kansas may pursue antitrust lawsuits against the cooperatives for the time being. The plaintiffs, who included farms and individual farmers, claimed an ongoing conspiracy since 2015 in which Dairy Farmers of America and other defendants illegally coordinated pricing choices. The farmers sued in 2022, alleging that they were unjustly underpaid for producing raw fluid Grade A milk in violation of US antitrust rules. Dairy Farmers of America said it was dissatisfied with the court’s ruling and will “vigorously defend” against the accusations. Texas and New Mexico are among the country’s major milk-producing states, with yearly dairy output in the southwestern United States worth more than $3.5 billion.

Total milk production in the United States from 1999 to 2024 (in million pounds)*

* Excludes milk sucked by calves.
** Forecast
Data for 1999-2021 were taken from previous USDA reports.

The United States produced around 226.6 billion pounds of milk for human consumption in 2023. In 2000, this sum was roughly 167.4 billion pounds. The global production of cow milk has significantly increased in recent years.

Milk production in the United States has been relatively steady over the last three years, with the Midwest and Northeast contributing 1.4% and 0.9% of milk, respectively. However, output declined by 1.3% in the West and Southeast. The Southeast area has always declined, although this drop comes after years of expansion. The Northeast’s production has been constant, dropping 0.3% from five years ago. Over the previous five years, the Midwest has led in production, increasing output by 7.5%, with South Dakota leading the way. Kansas and Michigan also saw double-digit increases. The national herd size has not altered much, with 9.386 million cows in 2023, down just 0.2% from 2022. Cow numbers rose slightly in the Midwest and Northeast, but they fell 0.6% in the West and 2.3% in the Southeast. The average milk output per cow was 24,117 pounds, up 30 pounds from the previous year, and milk per cow has increased by 1,203 pounds during the last five years.

US milk market

Milk production has increased in recent years, while retail sales have decreased. The retail price of milk has fluctuated over the last several years, peaking in 2022 at 4.21 US dollars per gallon.

Leading US milk brands

Private label milk sells more than any other dairy brand in the United States. Hood had the most dollar sales of any name brand of whole milk in 2022, totaling more than 190 million USD. In the flavored milk category, TruMoo was the largest brand, selling about 91 million units in 2018. However, private label flavored milk sold many more units than the main name brand.

North Dakota’s dairy sector has declined, with just 29 Grade A Dairy farms left in the state.  The sector is becoming more difficult to maintain, since there is no location to send milk, making it tough for farmers to prosper.

The milk market is particularly volatile, with lows being lower for longer than highs. Companies can capitalize on highs more effectively than small businesses, and they can remain afloat better during a crisis. Pay Dak Dairy’s owners, Sam and Jonas Heyl, produce 20,000 pounds of milk each day, or 7.3 million pounds annually. Their milk is delivered to Pollock, South Dakota, every three days. As a third-generation farmer, Sam has seen the sector evolve, noting that everyone who dairy farmed had a few cows to support their families.

With a smaller business of 300 milking cows and ten hired personnel, the farm requires 365 days of labor to care for the animals. Their enthusiasm and affection for animals make their work worthwhile every day.

Dairy output in the United States is dropping, with California, Wisconsin, Texas, Idaho, and New York among the leading milk producers. However, South Dakota’s dairy cow herd has grown significantly, reaching 208,000 in January 2024, a 70.5% rise from 2019. Drought, floods, loss of attractiveness, and labor shortages in the Great Lakes area have all contributed to this increase.

South Dakota’s benefits include a lack of problems for dairy producers in other states, such as overtime work laws, severe manure and effluent control, and rising water scarcity. It also boasts a plentiful supply of feed, a suitable environment for forage development, and a low population density. State government have created a significant highway corridor (I-29) for milk and dairy product transportation and are actively recruiting more dairy farms.

Since 2012, the South Dakota Dairy Drive, launched by dairy processors and farmers, has played a key role in increasing on-farm output and processing capacity. Attending national expos, engaging in regional forums, and cooperating with South Dakota State University are some of the activities.

Bel Brands and Agropur have commenced processing expansion, with Agropur finishing it in 2019. Valley Queen Cheese, a 95-year-old processor, has also increased its operations, with plans to add around 25,000 cows to South Dakota’s dairy herd in 2025 and 2026.

A research published by the American Dairy Science Association and Elsevier found that when consumers are taught about dairy nutrition, they purchase and eat more dairy products such as cheese, ice cream, milk, and yogurt. The study was divided into three phases: a screening survey, nominal focus groups, and a follow-up survey with voluntary adult participants.

The research included 4,542 participants who filled out a 15-question screening survey. After the screening survey was completed, 195 individuals were assigned to nominal focus groups based on their interest, absence of food allergies, and reported dairy intake of fewer than three servings per day. Four infographics were created to assist participants learn about food labels and dairy concepts, including nutrition data panels, lactose maldigestion, nine key nutrients, and prebiotics and probiotics.

During the nominal focus groups phase, facilitators gave participants a pre-survey, then guided them through the graphical lesson before giving an ice cream acceptance test. Participants were given one of four combinations of scripted instructional messages and infographics. Following the ice cream test, participants were given a post-survey, followed by another one month later.

The study’s findings revealed that attending notional focus groups had a substantial and beneficial influence on dairy product purchase and consumption between the pre-survey and the one-month follow-up survey. The average weekly purchase of dairy products has climbed by 26% to 4.4 servings. The average intake of each dairy product also increased: 23% for cheese, 20% for ice cream, 26% for yogurt, and a stunning 53% for milk. Overall, participants consumed eight servings of dairy per week, a 35% increase.

However, the study team emphasized the significance of future research to better understand the long-term effects of education on dairy consumption and whether modifications to educational materials or delivery might increase their effectiveness. Overall, this research shows that well prepared educational messages on the advantages and nutritional properties of dairy foods may favorably affect consumer behavior, resulting in higher dairy product purchases and consumption.

Dairy imports into China declined 12% last year owing to higher local supply and lower consumer demand. Powder imports fell due to a 38% decline in WMP volume year on year. In contrast, SMP imports showed modest milk increase, with quantities increasing by 3% in 2023 compared to 2022. Meanwhile, USDA estimates reveal that Chinese milk output surpassed 41 million tons last year, rising 4.6% from 2022 and 28% from 2019 levels.

The shift in the Chinese economy and its impact on demand, particularly for dairy in the foodservice industry, has further impacted demand as consumers tighten their purse strings. New Zealand continues to be the leading supplier of dairy products to China, accounting for 42% of the market in 2023, with milk and cream accounting for another 30%. Other major importers are the United States, Germany, and Australia. The UK has a 1% market share in Chinese dairy imports, accounting for 72% milk and cream in 2023, or 16,000 tons.

Import levels from all significant locations into China fell, with New Zealand’s imports falling by approximately 183,000 tonnes in 2023. However, China’s domestic production of high-value goods, such as cheese and butter, is now constrained by processing capacity, leaving room for usage in bakeries and foodservice industries. Chinese cheese consumption has surged in recent years, with a compound growth rate of 16% between 2012 and 2022.

The USDA National Agricultural Statistics Service’s Census of Agriculture statistics for 2022 indicated a substantial change in the dairy industry’s trajectory, with herd consolidation playing a big role. According to Lucas Fuess, Senior Dairy Analyst at Rabobank, there were 24,082 dairy enterprises with off-farm milk sales in 2022, a decrease from 39,303 in 2017. Despite the fact that the number of cows remained practically equal at 9.4 million, milk output climbed by 5%. According to Rabobank, less than 25% of the US milk supply was generated on farms with less than 500 heads, although these operations accounted for more than 80% of dairy operations (20,631).

While dairy businesses with less than 500 cows account for 80% of the nation’s dairy farms, the vast majority of cows in the herd live on farms with 1,000 or more animals. The Census of Agriculture breaks out the proportion of U.S. dairy herds that live on farms with more than 1,000 cows, which increased from 17% in 1997 to 65% in 2022.

In the future, more cows are projected to migrate to bigger farms, which can supply milk at a cheaper cost than smaller enterprises. Smaller farms will continue to exist in significant numbers, particularly those that practice diversified agriculture and maintain low debt levels.

The United States, New Zealand, and the United Kingdom are dissatisfied with the Canadian dairy market’s protectionist policies. A dispute panel found ‘non-conformities’ in a verdict against the Canadian government over dairy product access, after four allegations filed by New Zealand last year about market access under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. New Zealand accused the Canadian government of failing to grant enough tariff rate quotas, which directly affect how much access dairy product manufacturers in other signatory nations have to the Canadian market.

The Canadian government has suggested basing these limitations on current market share, while it is unclear what quotas were previously based on. The International Cheese Council of Canada says that this idea is misguided, since it has made small and medium-sized businesses worse off under the US-Mexico-Canada Agreement.

US dairy groups and government officials have expressed unhappiness with a verdict on Canada’s dairy trade quotas, which do not comply with the USMCA. The US administration says it will continue to fight under the current USMCA, but another nation has withdrawn out of trade talks with Canada. British negotiators have suspended two years of trade talks with Canada, mostly because Canada’s dairy sector refused to compromise on market access for British cheesemakers.

Researchers from four academic institutions in China and Pakistan examined published literature to assess the therapeutic benefits of cheese, yogurt, and kefir. They discovered that yogurt may help treat osteoporosis, a degenerative bone condition, by avoiding diarrhea and lowering lactose intolerance. Yogurt consumption is more consistently associated with a lower prevalence of type 2 diabetes than other dairy products, and probiotic yogurt has been shown to benefit persons with liver issues.

Several studies have shown that kefir has anti-cancer properties, with ingestion associated to slower tumor growth in rats and reduced colorectal cancer cell formation. The fermented beverage, which contains vitamins, minerals, and beneficial bacteria, has also been shown to have antibacterial capabilities owing to its high probiotic content, organic acids, and bioactive components. Kefir promotes digestion, improves gut lining, and lowers allergy and asthma risks.

Ripe cheese is naturally lactose-free because some of the lactose is eliminated with the whey during maturity, and the remainder is fermented into lactic acid, acetic acid, diacetyl, acetaldehyde, ethanol, and CO2. Regular intake of whole and sour milk has been related to a lower risk of cardiovascular disease, which seems to be due to calcium and bioactive peptides that lower systolic blood pressure.

Probiotic-rich cheese has been investigated for its possible therapeutic benefits on rheumatoid arthritis. A 2022 clinical research including 40 rheumatoid arthritis patients found that eating probiotic cheese lowered inflammation and improved gut flora, hence reducing the severity of arthritis symptoms.

Fermented foods account for around 33% of diets in Asia and 60% in underdeveloped nations. Consuming fermented milk improves health in a variety of pathological conditions. The expanding volume of supporting data from published research is very promising and should act as a motivator for the food sector to develop innovative functional dairy products.

Source: Therapeutic potential of popular fermented dairy products and its benefits on human health
Authors: Gul Naz Saleem, Ruixia Gu, Hengxian Qu, Gul Bahar, Khaskheli, Imran Rashid Rajput, Muhammad Qasim, Xia Chen
Published: Frontiers in Nutrition, 28 February 2024
DOI: 10.3389/fnut.2024.1328620

The USDA’s agricultural price indexes fell 1.4% in January 2024, owing to falls in maize, soybeans, milk, and lemons. The dairy index was also down, with an all-milk price of $20.10 per hundredweight. The index of prices paid fell 0.1%, with cuts in interest, fuel, nitrogen, and concentrates offset by increases in taxes, feeder cattle, share rent, and other expenses. Year on year, the received index declined 10%, while the paid index fell 1.8%. The February pricing will be revealed in March.

According to a survey by farm consultants The Anderson Centre, the top quartile of dairy farmers in England earn an average of £120,000 more than the lowest 50%. The paper, which was initially released in 2018, discusses the elimination of farm subsidies and the introduction of “public money for public goods” as the UK’s new agriculture policy would be centered on rectifying market failure rather than providing public benefits. The research also examined the cattle, lamb, cereal, and oilseed sectors.

The research looked at data from the Farm Business Survey, comparing pairings of farms in the top 25% and worst 50% of performance. The key elements were agricultural costs, agricultural production, contracting, farm area, stocking rate, enterprise mix, milk price, and agri-environment initiatives.

The survey highlighted six key characteristics of high-performing farmers: a merciless emphasis on expenses, stocking rate, focusing on what you’re excellent at, understanding what the market demands, knowing what you want to accomplish, and attention to detail. Top performers spend less of their budget on overheads like equipment and more on variable expenditures like fertilizer. They also work to improve land productivity and the quality of grass and forage produced.

Furthermore, top-producing farms control expenses while maintaining expenditures for cow health and productivity. They understand what the market demands, such as keeping milk clean and ensuring optimal seasonality for processors. They also know what they want to do, such as communicating with business partners and family members and creating yearly budgets to demonstrate where the year is headed. They also recognize and frequently analyze their farm’s Key Performance Indicators (KPIs).

In the realm of mental health, anxiety stands as a prevalent and often debilitating condition affecting millions worldwide. While conventional treatments such as therapy and medication offer significant relief, emerging research suggests a potential ally in an unexpected source: dairy products.

Recent studies have delved into the intricate relationship between dairy consumption and its effects on anxiety levels. While the exact mechanisms are still under investigation, several compelling findings point towards dairy’s potential benefits in alleviating symptoms of anxiety disorders.

One of the primary components of dairy products is calcium, a mineral renowned for its role in bone health. However, calcium’s influence extends beyond skeletal strength, as it plays a crucial role in neurotransmitter function. Neurotransmitters such as serotonin and dopamine are vital for regulating mood and emotional well-being. Studies have shown that adequate calcium levels may contribute to the production and release of these neurotransmitters, thereby promoting feelings of calmness and relaxation.

Moreover, dairy products are rich in proteins, particularly casein and whey, which contain amino acids essential for neurotransmitter synthesis. Tryptophan, an amino acid abundant in dairy, serves as a precursor to serotonin, often referred to as the “feel-good” neurotransmitter. Increased serotonin levels are associated with improved mood and decreased anxiety.

Furthermore, dairy products boast a diverse array of vitamins and minerals, including vitamin D and magnesium, both of which have been linked to mental health benefits. Vitamin D deficiency, prevalent in regions with limited sunlight exposure, has been correlated with higher incidences of anxiety and depression. Similarly, magnesium deficiency has been associated with an increased risk of anxiety disorders.

Despite these promising findings, it’s essential to approach dairy consumption with moderation and mindfulness, as excessive intake can lead to adverse health effects such as weight gain and cardiovascular issues. Additionally, individuals with lactose intolerance or dairy allergies should seek alternative sources of nutrients to avoid discomfort and adverse reactions.

In conclusion, while more research is needed to fully elucidate the relationship between dairy consumption and anxiety relief, the existing evidence suggests that incorporating moderate amounts of dairy into a balanced diet may offer supplementary support for individuals struggling with anxiety disorders. Coupled with other evidence-based treatments, such as therapy and medication, dairy products could serve as a valuable addition to the arsenal against anxiety, providing a tasty and accessible avenue towards improved mental well-being.

The USDA has stated that dairy farmers may sign up for 2024 Dairy Margin Coverage (DMC) between February 28 and April 29, with payments commencing as early as March 4, 2024, for any payments triggered in January 2024. The Farm Service Agency (FSA) has amended the DMC regulations to allow eligible dairy operations to make a one-time adjustment to established production history by combining previously established supplemental production history with DMC production history for dairy operations that participated in Supplemental Dairy Margin Coverage during a previous coverage year. DMC is also approved till 2024. Congress enacted an extension of the Farm Bill in 2018 that required certain regulatory adjustments to the program. FSA Administrator Zach Ducheneaux urges farmers to participate in this critical safety net program, which paid out over $1.2 billion in Dairy Margin Coverage payments to producers last year. DMC is a voluntary risk management program that protects dairy farmers when the gap between the all-milk price and the average feed price falls below a monetary amount determined by the producer. NMPF is ready to support producers in any manner possible via this program, and we look forward to working to ensure farmers obtain a new farm bill that offers stability for the next many years, not just 2024.

For more information on DMC, visit the DMC webpage.

Milk output in the United States has increased by 96% since 1975, hitting a record high of 226.6 billion pounds in 2023. This milk is used to make cheese, ice cream, butter, yogurt, dry milk, whey products, and condensed milk. However, American dairy consumption is decreasing, with 47% less milk drank than in 1975.

Eating patterns are influencing the dairy sector, with the typical American consuming around 1 1/4 cups of milk per day in 2022. The consumption of cottage cheese and sherbet has declined the highest, by 58% and 56% respectively. However, yogurt, cheese, and dry whole milk have grown faster than milk, with dry whole milk up 161%, cheese up 179%, and yogurt up 608%.

Milk remains the most popular dairy product, with cheese coming in second, followed by frozen dairy products, which average roughly 22.2 pounds per person. The USDA advises ingesting 2-3 cups of dairy products each day, yet 90% of the US population does not follow this standard. A 2021 USDA research discovered two major trends: the number of solo milk drinkers decreased from 31% in 2009-10 to 22% in 2017-18, and the percentage of milk-with-cereal users decreased from 23% in 2003-04 to 19% in 2017-18.

Plant-based milk sales have surged, although they account for just a tiny portion of the total drop in cow milk consumption. More study on product pricing, family income, and customer tastes and preferences is required to reach a more definite conclusion.

Americans’ dairy preferences are shifting; although milk remains the most popular dairy product, consumption is declining, and gains in cheese and yogurt do not compensate for the loss in milk.

Dairy producers in New York are facing narrower profit margins and growing worry as labor expenses rise. Milk prices are determined by a formula developed by the United States Department of Agriculture under Federal Milk Marketing Orders, which offer instructions for milk processors when purchasing the commodity. Farmers get compensated depending on the fat and protein levels in their milk. A Cornell University analysis analyzed labor expenditures for 112 farms from 2016 to 2022, revealing a rise from around $730,000 per farm in 2016 to $1.1 million in 2022. Greg Porter owner, of Porterdale Farms in Watertown, feels the true cost is more due to non-soft costs such as grass maintenance, snow shoveling, and transportation.

Milk prices vary, with producers seeing a roughly 20% decline in the last year. It’s tough to tell when they’ll return. Some dairy cooperatives regulate milk output for farmers by removing money if they exceed a specific threshold. Labor is the farm’s second-largest expenditure and one of the few that never goes down. Labor efficiency has also grown, with workers now handling around 54 cows per person, up from 47 cows per person in 2016. In 2022, labor accounted for 13.7% of total agricultural expenditures, down from 15.1% in 2021.

Despite the low milk prices, Porter thinks that the construction of additional facilities would improve matters and raise demand for milk. He feels that farms are essential to the economy and that the state has attracted major firms such as Fairlife.

Ukraine’s dairy production is in decline due to a raw milk shortage, with dairy processors relying on one another to keep operations running. The long-term milk industry development strategy relied heavily on household farms, but their share of output has declined from 90% to 60% in the last two years. Ukrainian dairy companies are urging the government to create a dairy bailout package, but the country’s strained budget is unlikely to allocate funds to support dairy farmers until 2025.

The hostilities have had a significant impact on the milk supply, with many Ukrainians abandoning their cows in Russian-controlled territories, resulting in unaccounted-for or confiscated cattle sold for meat. The culling of animals injured during the war contributes to a decrease in livestock. Feeding conditions have deteriorated as fields and pastures become contaminated with mines and shells, rendering them unfit for use. The unresolved issue of updating dairy farm infrastructure exacerbates the challenges.

In 2023, Ukrainian milk production was 7.4 million tonnes, a 5% decrease from the previous year. In the industrial sector, output increased by 6% to 2.8 million tonnes, matching pre-war levels. The dairy industry may suffer even more as a result of Ukraine’s integration with the European Union, which requires dairy companies to stop sourcing milk from backyard farms.

It is with great pleasure that Lactanet releases its list of Canada’s Best Managed Dairy Herds for 2023. Based on their Herd Performance Index (HPI), top dairy farms were recognized for outstanding herd scores, and who in turn elevate the standards of excellence within the Canadian dairy industry.

The top 25 herds across Canada and by province were also unveiled at Lactanet’s 2023 Best Managed Dairy Herds celebration held on February 20, 2024. The event brought together dairy farmers, esteemed guests, partners, and stakeholders. From milk value to udder health, the HPI is a revolutionary metric that takes into account a multitude of factors that reflect herd performance. A video recording of the celebration highlights can be watched on YouTube.

“Whether you are a small-scale family farm or a large-scale commercial operation, the HPI empowers you to make informed decisions that drive long-term success,” states Barbara Paquet, Lactanet Board Chair. “Please join us in celebrating the achievements of these remarkable individuals and their hard-working animals, this exceptional accomplishment is a testament to the spirit of excellence that defines the Best Managed Herds program and is an inspiration to us all.”

“The Best Managed Herds event is not only a celebration of achievements but also an opportunity to express our gratitude to our customers for their invaluable contributions to our organization’s success and to the industry at large,” says Neil Petreny, CEO, Lactanet Canada. “It’s a proud moment – as together we are able to unlock the full potential of each herd and help elevate their standards of excellence.”

Canada’s top three award recipients based on Lactanet’s Herd Performance Index (HPI):

1. HPI of 988: Ferme Drahoka Inc, Kamouraska, Quebec – Owners: Francis & Sylvain Drapeau
2. HPI of 976: Sunny Point Farms Ltd, Densmore Mills, Nova Scotia – Owners: Phillip & Lori Vroegh
3. HPI of 969: Lochdale Holsteins, Alexandria, Ontario – Owners: David, Anne Marie & Andrew MacMillan

See the full list.

In the coming days ahead, Lactanet will be releasing their Top 1% of elite herds that feature over 55 of the very best managed dairy herds in Canada! Be sure to follow us on social media for this exciting notification.

The dairy industry in New York has declined significantly over the last decade, with the number of farms falling from 9,300 in 1997 to approximately 3,000 in 2022. Rising production costs and national market changes have caused thousands of small and medium-sized dairies to close. The number of dairy cattle in New York has remained relatively stable, indicating that smaller farms have either folded and sold their herds to larger competitors or merged with other family farms.

The dairy industry’s ongoing struggles include labor and production costs rising nearly 50% over the five-year period beginning in 2017. The number of dairy farms in New York has declined precipitously, with Wisconsin having a quarter of its dairy farms in 1997 and Pennsylvania losing one-third of its dairy farms in the last 25 years. The dairy industry is critical in rural New York, which is experiencing increased hardship due to the loss of economic drivers.

The dairy industry’s shift reflects broader trends in New York, with larger but fewer farms producing a comparable amount of product. However, as the number of farms in New York has declined, the average size of a farm has increased, while the total acreage of farmland has slightly decreased in recent years. Over the last ten years, the state has lost approximately 5,000 farms and nearly 700,000 acres of farmland.

While the cost of production has risen dramatically, the market value of New York’s agricultural products has increased by 50%. The number of farms with sales exceeding $500,000 per year increased, while all other farms decreased. The results in New York reflect national trends, with the number of farms declining by about 10% over the last decade.

According to Upstate United executive director Justin Wilcox, the trend is part of a series of foundational changes passed by Democratic lawmakers in recent years that aim to provide fairer labor conditions for farm workers but have been fiercely opposed by the agricultural industry and Republicans. Cornell researchers cautioned that it may be too soon to fully assess how the state’s policies have affected the complex agricultural market.

In 2019, Governor Andrew M. Cuomo signed the Farm Laborers Fair Labor Practices Act, which required farm owners to gradually implement standards for how many hours farm laborers could work before being eligible for overtime. Previously, farm laborers were exempt from overtime laws, given a day off, and had the right to form unions. The state’s minimum wage has also increased.

As a board appointed by the state Department of Labor debated whether farm workers should be entitled to a 40-hour work week, agricultural groups and rural upstate lawmakers decried what they saw as the death knell for the already struggling mom-and-pop farms. Assembly Minority Leader Will Barclay urged the governor and state labor commissioner to honor these hardworking men and women by rejecting the wage board’s recommendations.

Labor advocates argue that the most pressing issue is establishing fair worker protections in an industry that is increasingly reliant on migrant labor. A union and a group of farms are in federal court arguing over the scope of farm workers’ rights to organize and bargain collectively. A year ago, state officials approved a phase-in plan to bring farm workers into line with the rest of the labor industry by making any work exceeding 40 hours per week eligible for overtime. Gov. Kathy Hochul agreed to provide farms with a semi-annual tax credit to help offset some of the transitional labor costs.

The dairy industry has been signaling its challenges in both the New York economy and the federal marketplace, citing fixed milk costs. Critics will argue, “Why shouldn’t (farm laborers) be treated like any other worker in any industry?” Crystal Grimaldi, a co-owner at Ideal Dairy in Hudson Falls, told the Times Union in 2021. She stated that the family farm was looking to technology to help reduce labor costs, which could result in fewer people being hired.

To ensure the viability of remaining dairy farms, local food supply, and the rural communities that this industry serves, we must continue to collaborate and invest in New York’s farms, farmworkers, and dairy industry partners. A new “Farm Bill” that could help farmers with their business issues is still being debated in Congress.

Dairy farming, a cornerstone of agriculture for centuries, faces increasing scrutiny due to its environmental impact. However, a promising solution lies in regenerative agriculture, a holistic approach that aims to restore and enhance ecosystem health. By adopting regenerative practices, dairy farmers can mitigate environmental degradation, improve soil fertility, and enhance the resilience of their operations. This article explores the principles of regenerative agriculture and its application in the context of dairy farming.

Understanding Regenerative Agriculture: Regenerative agriculture diverges from conventional farming practices by prioritizing soil health, biodiversity, and ecosystem services. At its core, regenerative agriculture seeks to mimic natural processes, fostering a symbiotic relationship between crops, livestock, and the environment. Key principles include minimal soil disturbance, diverse crop rotations, cover cropping, and integrated livestock management.

Application in Dairy Farming: Dairy farming presents unique opportunities for implementing regenerative practices. By leveraging rotational grazing, farmers can enhance soil health, reduce erosion, and sequester carbon. Rotational grazing involves moving livestock through designated paddocks, allowing for rest and regeneration of pastures. This not only improves forage quality but also promotes biodiversity and nutrient cycling.

Furthermore, integrating perennial forages and agroforestry systems can bolster ecosystem resilience and mitigate climate change impacts. Silvopasture, for example, combines trees with pastureland, providing shade for livestock, sequestering carbon, and diversifying farm income streams. Similarly, planting perennial grasses and legumes reduces the need for tillage and synthetic inputs, fostering soil carbon sequestration and water retention.

Challenges and Opportunities: While regenerative agriculture offers compelling benefits, its adoption in dairy farming faces challenges. Transitioning from conventional practices requires initial investments in infrastructure, education, and technical support. Moreover, market incentives and policy frameworks may not fully recognize the long-term benefits of regenerative practices.

However, the potential rewards are substantial. Beyond environmental stewardship, regenerative dairy farming can enhance farm profitability, resilience, and community well-being. By prioritizing soil health and biodiversity, farmers can reduce input costs, increase yields, and mitigate climate risks. Furthermore, consumer demand for sustainably produced dairy products presents an opportunity for market differentiation and value-added branding.

In an era of climate uncertainty and resource scarcity, regenerative agriculture offers a promising pathway for transforming dairy farming. By embracing holistic practices that prioritize soil health, biodiversity, and ecosystem resilience, farmers can chart a course towards a more sustainable future. Through collaboration, innovation, and supportive policies, regenerative dairy farming can emerge as a beacon of hope for agriculture and the planet.

Agriculture and Agri-Food Canada has allocated up to $89 million (CAN€61 million) to 49 projects through the Supply Management Processing Investment Fund. This funding will assist processors in supply-managed sectors such as cow milk and chicken egg/meat production in mitigating the effects of recent international trade agreements. Purchases of equipment could include milk pasteurizers, ultrafiltration systems, and new robotic packaging systems. More automation will help to address labour shortages in Canada’s dairy industry, which have been exacerbated by long working hours and associated overtime costs.

Over 20 dairy processors in Canada, including Gay Lea, Lactalis, and Saputo, will receive up to $3.3 million (€2.3 million) in new automated cheese processing and packaging equipment under the new funding scheme. Ontario’s dairy processing sector received $8 million in January to assist processors in modernizing their operations to improve efficiency and food safety. The funding is intended for new technologies that improve production efficiency, but cost-sharing assistance can be used to cover the purchase of new or refurbished equipment as well as associated costs such as training.

Ontario has 171 licensed dairy processors for cows and goats, as well as sheep and buffalo. The province has a high demand for water buffalo milk mozzarella cheese because it is where the majority of immigrants settle, and many come from cultures where buffalo dairy products are common. Ontario has the largest goat dairy farming population of any Canadian province, with a nearly 14% increase in the last 8 years.

Van Dairy Limited (VDL), Tasmania’s largest dairy operation, will slaughter at least 700 cows after losing a 25-million-litre milk contract with Fonterra. Fonterra Australia stopped collecting milk from VDL farms earlier this month, citing unresolved commercial issues. VDL’s milk supply has declined significantly in recent years.

Matt Watt, Fonterra’s director of farm source, confirmed milk collections at VDL had already ceased: “We stopped collecting milk from all VDL farms on 1 February after providing VDL with several months’ notice to mitigate the impact on their business and supporting them in determining their next steps. The milk volumes supplied by VDL have declined significantly in recent years.”

Fonterra intends to replace the drop in supply from other Tasmanian farms and has no plans to reduce production at its Spreyton and Wynyard processing plants. VDL’s owner, Xianfeng Lu, described the situation as “disappointing” and stated that Van Dairy should manage its herd numbers now and going forward. The company will send at least 700 cows to the Greenham abattoir in Smithton, accounting for approximately 10% of its herd. He did not confirm whether it was a larger-than-usual cull of the dairy herd, which is currently in calving season and preparing for winter milk production. He will continue to support the Van Dairy farms and their 90 employees, as well as fight for his farm workers, the dairy industry, and job opportunities in the Circular Head region.

In 2022/23, Tasmania had approximately 351 dairy farms producing 906 million litres of milk, accounting for 11% of Australia’s total milk production. With an average dairy herd size of 477, Tasmania has approximately 170,000 cows.

The USDA anticipates that milk output will fall in 2024 as cow stockpiles rise. The predicted all-milk price for 2023 is $20.48 per hundredweight, down from $20.95 in 2022. Domestic usage and fat-based exports are likely to increase, particularly butter and cheese exports. The USDA predicts less fat-based imports. Domestic consumption of skim-solids is also predicted to increase as a result of a higher-than-expected disappearance in late 2023. The USDA predicts increased cheese, butter, nonfat dry milk, and whey costs in 2024. Class III and IV prices are also projected to rise. Milk output in January was 228.3 billion pounds, a 100 million-pound rise over the previous month.

Key Points

• Just behind feed and labor, the cost of raising a dairy heifer is the third-highest expense on dairy farms.
• In the past 20 years, dairy rearing costs have climbed by more than 50% to over $2,000 per head. Less than a decade ago, dairy heifers sold for a tidy profit but rearing costs today mean they sell at a loss.
• To better manage their on-farm heifer inventories and investment, dairy farmers have turned to a more profitable opportunity: Using beef semen on a portion of their dairy herd to produce and sell beef-on-dairy calves.
• Due to the shift to beef-on-dairy, dairy replacements expected to enter the milking herd have shrunk by almost 15%, or 709,100 head, in the past six years to reach a 20-year low.
• The reduced number of heifers eligible to enter the milking herd – plus their higher purchase price today of $1,890, an eight-year high – could limit the upside on expanding U.S. milk production.

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The dairy business is predicted to undergo considerable changes by 2024, with the reintroduction of whole and 2% milk, as well as perhaps flavored milks, to school cafeterias. This action is in response to the 2012 restriction on whole and 2% milk in schools to combat childhood obesity. The Whole Milk for Healthy Kids Act, enacted by the United States House of Representatives in December, intends to encourage milk intake throughout their lives.

Federal milk market hearings are set to wind up early this year, with suggested technical improvements that might boost farmers’ earnings. The Farm Bill will also be voted on, with the possibility of increasing output restrictions to enable bigger farms to participate in programs such as the Dairy Margin Protection Program.

The Texas Legislature will not convene in regular session in 2024, but the Texas Association of Dairymen will closely monitor the 2024 elections, which will include the whole 150-member Texas House of Representatives and almost half of the 31-member Texas Senate. The High Plains Dairy Conference, held March 5-6 in Amarillo, will address the most recent dairy and agricultural concerns affecting Texas dairies.

As winter approaches, Texas expects rain, which is a welcome relief after two years of drought. This rainy weather is critical for crop production and raising feed inventories for dairy and meat animals. The Texas Association of Dairymen anticipates a successful dairy year in 2024.