The Dairy Industry

Trends & Magnitude

By Mr. Weaver

Top Milk (cows) Producing Countries: (2000)

1. US - 76 million tonnes

2. Russia - 32 million tonnes

3. India - 31 million tonnes

4. Germany - 28 million tonnes

5. France - 25 million tonnes.  

Where Each State Falls

*Top Ten States in Blue

Top Three Dairy States

OREGON COMMODITIES

1. Greenhouse and nursery ($844 million)2. Cattle and calves ($503 million)3. Hay ($372 million)4. Dairy ($363 million)5. Grass seed ($351 million)6. Wheat ($207 million)7. Christmas trees ($143 million)8. Potatoes ($101 million)9. Pears ($77 million)10. Onions ($74 million)

Oregon Dairy Farms

• Award Winning Cheddar• 350 Dairy Farms • 450 head per Dairy Farm• Average milk production per cow 19,000 pounds.

• 5% Holstein / 20% Jersey / 5% other– Milk in Oregon

– 55% FLUID– 45% Cheese, yogurt, sour cream, ice cream, butter, and other

cultured products.– In 2004 Milk Production was 2.5 million pounds.

» 90 MILLION POUNDS OF CHEESE!

How many pounds of fresh milk does it take to make one pound of cheese?

Average U.S. Cheese Consumption (per person)

1970 = 11 pounds

2003 = 31 pounds

Cheese production has GREATLY impacted total Milk Production!

What makes a successful dairy farmer?

1. Patience

2. Willing to work long hours

3. Manage Money – Average milk price has stayed the same over the

past 25-30 years.– Feed Prices have increased.

Average capital investment is very high to start dairy.• $4000-5000 per cow• Dollar returned on money invested 6-9%

The Past 25 Years….

• 1977– Alfalfa = $ 56

/ton – Corn = $ 73 /ton– 44% SBM = $163/ton– Milk = $ 9.71/cwt

• 2002– Alfalfa =

$104/ton – Corn = $ 84 /ton– 44% SBM = $167/ton– Milk = $10.42/cwt

How can farmers make it?

Feed Expenses Increase (Feed is 50% of dairy expense)

Milk Prices Stay the Same

Although _______ are declining, _______ continues to rise.

National Statistics

• Milk Production at all time high!– 179.9 Billion Pounds of milk in 2005– (19,576 pounds) Average Milk per cow.

1. Washington = 23,270 pounds 2. Arizona = 22,957 pounds

• Fewer farms with larger herds– 1954 = 10 cows per herd avg.– 2004 = 111 cows per herd avg.

Why has total milk production increased per cow?

1. Better feed

2. Better breeding

3. Better management of the herd

Typical Herd in 2006

• The typical mix of animals in a dairy herd for 100 milking cows is:– Milking herd:– 92 healthy cows – 4 cows that have recently given birth – 4 cows with special needs – 16-20 dry (not lactating) cows and close-up

heifers (close to calving) – 70-90 replacement calves and heifers

www.epa.gov/oecaagct/ag101/dairyphases.html

U.S. Per Capita Consumption

YearFluid Milk

& Cream ButterFrozen

Dairy CheeseAll Dairy

Products

1975 255 4.4 28 14.1 526

1985 23.8 3.9 27.8 20.1 546

1995 222 4.5 29.4 27.7 589

1999 213 4.7  28.6 29 586.8

YearFluid Milk

& Cream ButterFrozen

Dairy CheeseAll Dairy

Products

1975 255 4.4 28 14.1 526

1985 23.8 3.9 27.8 20.1 546

1995 222 4.5 29.4 27.7 589

1999 213 4.7  28.6 29 586.8

Can You See a Trend?