Pasture-based dairies saw first-quarter profits between $2.70 and $3.25 per 100 pounds of milk. Most maintained this profitability during the summer. Remaining profitable during severe market downturns makes grazing an appealing option for Georgia dairies. When milk prices rebound, pasture-based dairies stand to earn even more compared to conventional dairies.
All Southeastern states, including Georgia, are milk deficient, meaning the fluid milk produced by local dairies doesn’t meet local consumer demand. Georgia is strategically located to be a production and distribution hub for other milk-deficient states if the industry continues to develop.
Becoming a milk exporter rather than a milk importer reverses the flow of consumer dollars and builds the Georgia economy. University of Georgia research shows that each 1,000-cow dairy farm opened in Georgia generates $2 million in local- and state-tax revenue from farm development. Once farms become operational, sales generate $700,000 in local and state revenue. Georgia grazing dairies should generate $11.2 million in annual tax revenue, helping to improve rural economies.