Editor’s Note: This is one article in a series that is included in the 2024 Farm Journal’s State of the Dairy Industry report. The full 16-page report will appear in the May/June issues of Dairy Herd Management and Milk Business Quarterly and will be published in this space over the next several weeks. To download the full report for free click here.
As the dairy industry continues to change at lightning speed, Farm Journal recently surveyed 210 dairy producers throughout the U.S. – ranging from a 100 to 20,000-cow herd size – asking participants about challenges and opportunities that face them. We asked what growth looks like for their dairies and ultimately what they envision their operations to look like in the next 5-7 years. Our 2024 Farm Journal’s State of the Dairy Industry report provides several data and insights, including:
Technology
Nearly a third of dairy operations surveyed intend to invest in technology such as heat and health monitoring detection systems, parlor automation and updates, or data analytics to monitor and capture efficiency opportunities within their operations. Between 24-32% of our surveyors shared that they intend to invest across at least five areas of technological focus in the coming years.
Succession Planning
The overall concern as to how to pass the baton from one generation to the next is real, as 46% of respondents stated they do not have a succession plan or are unaware of the operations plans.
The majority of respondents of all herd sizes shared that they do plan to add a family member or bring a partner into their dairy in the next five years. This includes 74% of the 5,000+ cow herd sizes, saying they plan to bring family or partners into their dairy operations.
Sustainability
If there is one clear area or need among the participants, it is that of enhancing on-farm stewardship activities. In five of seven areas probed, the majority of respondents cite a need for additional stewardship resources. Also, 86% of respondents felt the dairy industry will see greater pressure to lower environmental impact.
Alternative Profit Sources
Diversification appears to be an essential ingredient to the modern dairy. Of all the respondents, only 20% designated their operation as dairy-only, while others described their operations as including growing crops and using beef for revenue. We asked surveyors what avenues they are exploring to generate added profit to help with their farm’s overall profitability and the results showed that branded beef and agritourism are leading the way.
Beef-on-Dairy
With the cattle market skyrocketing in recent years, dairy farmers have capitalized on higher beef prices. In fact, 46% of the respondents stated that they sell their beef-on-dairy calves within their first week of life and nearly 20% say they plan on marketing their own beef product in the next 3-5 years.
Processor-Producer Relationships
Roughly half of respondents said they are not confident in their processor relationship. When asked about their confidence in the future of their existing milk market, the overall response was softer yet. However, 70% of surveyors believed the dairy industry has future opportunities when it comes to innovation and processing.
Despite the mountain of challenges that producers face, the outlook appears to be promising. More than two-thirds of dairies reported 5-year profitability, and more than half have a growth mindset with plans to grow in one way or another in the next five years.
