Optimism in the dairy industry’s future expansion was voiced by IDFA CEO Michael Dykes at the 2024 International Dairy Forum in Phoenix, Arizona. How well current farmers can contribute to meeting the need for milk production is the major concern in light of the anticipated processing investments totaling over $7 billion. Dykes maintains that American dairy farmers are unparalleled in their efficiency; compared to 60 years ago, they can now harvest twice as much milk from half the number of cows.
But, the expense of money is only one of several pressure points that farmers have while running their dairy business model. The CEO of the Idaho Dairymen’s Association Inc., Rick Naerebout, brought attention to the fact that farmers are attempting to reorganize their debt for the first time in almost twenty years. Many farmers will need to make adjustments to their methods because, as he argues, producing more milk will not be as effortless as it was five or seven years ago.
Dairy companies also face issues with heifer inventories and expenses. Now that dairy farmers are getting a huge check from beef on dairy, the turnaround time to produce additional milk isn’t as fast as it used to be. The market for excess heifers and fresh cows has seen price increases due to the lowest heifer availability in decades.
The middle and upper parts of the nation, which do not have the problem of water shortage, will see their milk output rise. With no plans for extra capacity, sales manager Evan Grong predicts growth in South Dakota’s I-29 corridor to be slower in 2024.
