Idaho

Idaho’s $4 Billion Dairy Boom: Why the Gem State is Defying West Coast Trends

Tue, 03 Feb 2026 14:05:50 GMT

While milk production across the West Coast faces a period of contraction, Idaho is carving out a different narrative. With USDA reporting the state’s production value near $4 billion in 2024, Idaho has transitioned from a regional player into a global dairy powerhouse. According to Rick Naerebout, chief executive officer of the Idaho Dairymen’s Association, this surge isn’t accidental. It is the result of a unique confluence of business-friendly policy, aggressive vertical integration and a fundamental shift in how dairy cattle are valued.

A Surge on a Massive Base

The sheer scale of Idaho’s recent growth is impressive. Naerebout reports the state has seen consistent growth rates of 5% to 8% per month year-over-year for the last 15 months. For 2025, Idaho is projected to be up 7.5% in total milk production.

“That 7.5% is on a very big base,” Naerebout explains. “It equates to roughly 3.5 million pounds of milk a day more this year than we had last year. We’ve definitely turned on the milk production.”

This growth has been facilitated by two primary catalysts. First, Idaho’s dairy producers are entering the current economic downturn with exceptionally healthy balance sheets following strong financial performances in 2024 and early 2025. Second, and perhaps most importantly, regional processors have finally lifted base restrictions that limited producers to fractional growth for years. With those caps removed, the Idaho dairy industry has surged to meet the available capacity.

The Magic Valley: The Heart of the Industry

The epicenter of this expansion remains the Magic Valley. While growth is visible across the state, approximately 75% of Idaho’s dairy industry is concentrated in this region. The concentration allows for an infrastructure of scale that is difficult to replicate elsewhere.

Idaho’s operations are notably larger than the national average, boasting nearly 2,500 cows per dairy. This scale, combined with a business-friendly climate — including the absence of agricultural overtime pay — allows Idaho producers to maintain lower costs than their neighbors in California or Washington.

Components and the “Black Calf” Phenomenon

Interestingly, the growth isn’t just coming from more cows; it’s coming from “better” milk. According to Naerebout, while volume is up 7.5%, the increase in milk components means the actual yield for processors is closer to 9%. This allows plants to produce more cheese, butter and powder for every pound of milk delivered.

Producers in Idaho, like other states, are also shifting culling practices.

“We’re hanging onto cows because they’ve got a black calf in them, and that calf is worth roughly $1,500,” Naerebout says.

The beef-on-dairy trend has become ubiquitous in Idaho, with adoption rates significantly higher than the national average of 70%. For many Idaho producers, the day-old calf has become a high-value commodity that provides immediate cash flow with minimal risk, as many are partnered with large feedlot operators, like Simplot, or feedlots to take the animals immediately.

Resilience Through Risk Management

The dairy industry is notoriously volatile, yet Idaho has shown remarkable resilience. Over the last 30 years, the state has only seen negative growth twice: in 2009 and 2013. Naerebout attributes this to a sophisticated approach to business that sets Idaho producers apart.

“Our dairymen are very savvy businessmen,” he notes. “We have a higher-than-average use of hedging tools. They insulate themselves from market downturns by making sure they are hedged.”

This financial discipline, coupled with being well-capitalized, allows these large-scale operations to weather economic storms that might shutter smaller farms in other regions.

The Shift to Vertical Integration

Perhaps the most significant structural change in Idaho’s dairy landscape is the move toward vertical integration. Unlike the traditional cooperative structure involving hundreds of members, Idaho has seen the rise of “processor-producers.”

Facilities like Idaho Milk Products and High Desert Milk were founded by small groups of dairy families — sometimes fewer than six — who pooled their capital to build their own processing plants. While Naerebout describes the startup phase of these ventures as “absolute hell” where families nearly lost everything, those who survived are now capturing the margins that previously went to third-party processors.

“They are capturing more margin for their business and using it as a form of risk mitigation,” Naerebout says.

This evolution from simple milk producers to sophisticated industrial processors represents the future of the Idaho dairy model.

Looking Ahead

As the industry faces a tightening economic window, Idaho’s producers remain focused on the long term. The goal for many is not just survival, but the creation of viable, multi-generational businesses. By combining aggressive adoption of technology, sophisticated risk management, and a willingness to invest in the processing side of the value chain, Idaho is proving that even in a mature industry, there is still significant room for a “growth state” to thrive.

“Idaho has been, and will likely remain, a growth area for plants and processors alike,” says Phil Plourd, president of Ever.Ag Insights. “It’s a hospital environment where all the stakeholders seem aligned around growing the industry.”

With strong components, high-value beef-on-dairy calves and a business environment that rewards scale, Idaho is well-positioned to remain the cornerstone of Western dairy production for the foreseeable future.

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New $20 Million Feed Mill Expansion Unveiled in Idaho

Mon, 09 Sep 2024 15:34:21 GMT

Beef and dairy producers throughout Idaho may soon be receiving steamflaked corn and calf grains from a newly expanded feed facility in the state. Scoular, a global agribusiness company based out of Nebraska, recently completed a $20 million expansion of its state-of-the-art feed blending facility located in Jerome, Idaho.

According to the company, the expansion adds a 120-feet high concrete feed mill, boosting the facility’s production capacity by 35% and delivers a 40% increase in storage capacity.

“Scoular’s mission is to deliver safe, reliable and innovative solutions to our feed and food customers around the world,” Scoular CEO, Paul Maass, said in a company. “This new investment is a perfect example of meeting our customers’ demands and bringing forward the ideal solutions. We are thrilled to continue to make growth investments in this important region and industry.”

Updates to the facility will help provide two new capabilities, including:

A steamflaking process that processes corn and barley into flakes and makes the feed more digestible for cattle. The corn is steamed, heated, then pressed into a flake.
A pellet mill to make feed pellets. Pellets are easy to transfer, handle and proportion for optimal nutrition. Feed pellets are typically used for feeding calves and beef cattle.

“The expansion shows Scoular’s customer-focused approach,” said Jeff Ackerman of Bettencourt Dairies. “Scoular is helping us provide the right nutritional profile to the animal at the right time. Tailor-made feed blends are essential.”

As the dairy sector continues to grow in the state, this expansion will provide both beef and dairy producers with an additional resource for purchasing feed.

“To see a company like Scoular expand means good news for producers,” added Rick Naerebout, CEO of the Idaho Dairymen’s Association. “It gives producers more options for how they want to handle feed on their farms.”

This expansion not only provides more choices for producers but also reinforces Scoular’s commitment to bolstering the local agricultural community.

“Agriculture drives the Magic Valley’s economy, and Scoular has made it a priority to support the industry through innovation, state-of-the-art facilities and programs that support local producers,” said Andy Hohwieler, a Scoular Regional Manager based in Twin Falls. “With our latest investment, we look forward to creating new feed products that create solutions for end-users.”

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Idaho Cooperative Announces Massive New Expansion, Branches into Ice Cream

Tue, 03 Sep 2024 18:09:12 GMT

Idaho Milk Products, a global leader in milk proteins and sustainable milk processing, recently announced its plans to broaden its business by constructing a $200 million dual ice cream and powder blending facility at its Jerome, Idaho campus.

According to the company, the processor’s entry into the ice cream business comes with a focus on premium indulgent and functional recipes in both bulk and novelty formats, while blending capabilities will support the ice cream business and create capabilities to provide custom formulations to both existing and new customers.

“We have the freshest, best quality cream in the market, and the project was initially born out of the conviction to add incremental value to a portion of that product stream. The inclusion of a blending facility in the new plant creates new ways to service our customers and add to the benefits of our vertically integrated model,” Kevin Quinn, Vice President of Sales and Marketing, said in a company press release.

Idaho Milk Products states that this business venture is a natural extension of its existing model and has the potential to create one of the world’s most sustainable ice cream businesses.

“We work hard every day to maintain our position as a global leader in Milk Protein Concentrates (MPC) and Isolates (MPI),” said Daragh Maccabee, CEO of Idaho Milk Products. “Our commitment to this core business remains. At the same time, we constantly seek out new ways to add value to our milk, always doing so in a way that is sustainable for the longer term. Our vision for this plant is to build on the strength of our existing business, leverage our Milk Innovation Center, the strength of our R&D team and the unique synergies that this business will create.”

Construction of the 183,000 square foot plant will commence within the next two months and should be substantially complete by early 2026 with full commercial production by May 2026, according to John Murphy, Vice President of Operations at Idaho Milk Products.

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Strange Bird Flu Outbreak, HPAI, Now Detected at Idaho Dairy

Thu, 26 Sep 2024 19:10:38 GMT

The Idaho State Department of Agriculture (ISDA) announced that HPAI, known as highly pathogenic avian influenza, or bird flu, has been found in dairy cattle in Idaho. This now brings the number of affected states to four, adding more evidence the virus may be spreading cow to cow.

The cows were recently brought into the Cassia County dairy from another state that had found HPAI in dairy cattle, according to the ISDA.

The USDA Animal and Plant Health Inspection Service (APHIS) announced that an investigation into mysterious illnesses in dairy cows in three states—Kansas, New Mexico, and Texas—was due to HPAI and that wild birds are the source of the virus.

Symptoms of HPAI in cattle include:

Drop in milk production
Loss of appetite
Changes in manure consistency
Thickened or colostrum-like milk
Low-grade fever

At this stage, there is no concern about the safety of the commercial milk supply or that this circumstance poses a risk to consumer health. The pasteurization process of heating milk to a high temperature ensures milk and dairy products can be consumed safely.

The ISDA encourages all dairy producers to closely monitor their herd and contact their local veterinarian immediately if cattle appear to show symptoms. HPAI is a mandatory reportable disease, and any Idaho veterinarians who suspect cases of HPAI in livestock should immediately report it to ISDA at 208-332-8540 or complete the HPAI Livestock Screen at agri.idaho.gov/main/animals/hpai/ .

For more on HPAI, read:

Idaho Dairy Demo Center Planned

Wed, 22 Mar 2023 13:41:19 GMT

The University of Idaho is building a massive dairy research center focused on the industry’s sustainability.

The Idaho Center for Agriculture, Food and the Environment (“CAFÉ”) will feature a modern dairy facility, with the size and scale of a commercial dairy, plus adequate farming acres to grow and study crops used for dairy nutrition.

With dairy sustainability as a priority, researchers at the facility also will focus the biodiversity of crops grown in the region, optimization of natural resources, and value-added revenue streams in dairy production like bio-based products and carbon credits.

Food science research and agricultural workforce development are additional priorities of CAFÉ, which also will feature a state-of-the-art, interactive outreach and research center. Design and funding are a collaborative effort between the University of Idaho, the Idaho Dairymen’s Association, the state of Idaho, and industry partners.

Education partnerships also are in place with the College of Southern Idaho, Brigham Young University, and Boise State University.

Three Idaho communities within and approximate 60-mile radius will host the project. The dairy facility will be based near Rupert; the outreach and education center near Jerome; and the food processing education center on the College of Southern Idaho campus at Twin Falls.

The $45-million, multiphase project is slated to start milking cows by the end of 2024. Once fully operational, it will simulate a 2,000-cow dairy. Cargill and Redox Bio-Nutrients both have pledged $500,000 to the capital campaign.

Its developers say the project eventually will be “the most significant research hub in the U.S. for dairy sustainability and innovation.” Idaho ranks third in the nation in both dairy cow numbers and milk production.

Idaho One Step Closer to Building Nation’s Largest Research Dairy

Wed, 21 Sep 2022 18:00:00 GMT

The University of Idaho took a big step on Tuesday in efforts to build the nation’s largest research dairy and experimental farm.

Idaho Gov. Brad Little and two other statewide-elected officials on the Idaho Land Board approved the university’s plan to use $23 million to buy roughly 640 acres of farmland in south-central Idaho, the heart of the state’s dairy industry, according to the Associated Press.

The state, which is typically known for its potatoes, is also the third-largest dairy producer in the nation, sitting behind California and Washington. The state’s dairy industry has supported the plan to build the new research farm and has donated more than $8.5 million to date, according to state officials.

“The research that we do there is going to help us improve the water quality within the state,” says Scott Green, president of the University of Idaho. “It’s going to help us utilize waste products from the dairy industry in a way that’s beneficial to the environment and to agriculture.”

If the plan is completed as envisioned, the operation would include an experimental farm and 2,000-cow research dairy in Minidoka County. Classrooms, labs and faculty offices would be constructed in Jerome County near where Interstate 84 and U.S. Route 93 intersect. A food processing pilot plant with a workforce training and education facility would also be located at the College of Southern Idaho campus in Twin Falls County.

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Chobani Donates $1 Million to Help Launch Largest Research Dairy in the U.S.

Some Southern Idaho Residents Worry About Proposed University Dairy

Fri, 20 Nov 2020 03:01:01 GMT

Some Jerome County residents are worried that plans for a big new University of Idaho-operated dairy could befoul the local air.

Judy Holland lives a mile south of Interstate 84 in the southern Idaho town of Eden. Holland told The Times-News that she and others are furious and don’t want a stinky dairy near the freeway. But Jerome County commissioners say such hostility is premature because the University of Idaho hasn’t yet purchased land or chosen a location for its planned $45 million world-class agricultural research facility.

Once UI decides where it would like to build the Center for Agriculture, Food and the Environment, it will need to go through the local permit and zoning process.

The Idaho legislature has set aside $10 million for the project this year and is expected to throw in another $5 million.

Idaho Conservation Group Files Complaint Against Waste Pit

Fri, 20 Nov 2020 03:00:42 GMT

An Idaho conservation group has filed a complaint to several state agencies asking officials to inspect a wastewater pit used by a Nampa cheese-making plant.

The Idaho Statesman reports that the Idaho Conservation League has raised concerns that Sorrento Lactalis may be violating the state’s waste-disposal and groundwater-protection regulations.

The pit is currently being used to feed cattle.

Idaho Conservation League Program Director Justin Hayes says the liquids deposited in the pit are exposed year round and the pit is likely serving a “petri dish” than a storage area for cattle feed.

A spokesman for the company did not return a request for comment.

Officials with the Idaho Department of Agriculture and the Department of Environmental Quality say they plan on investigating the group’s complaint.

Dairy Group says it didn't Intend to Deny Access

Fri, 20 Nov 2020 02:47:52 GMT

An Idaho dairy industry group said Tuesday it didn’t intend to deny media access to dairies when it mailed a letter to about 500 members urging them to turn down interview and tour requests.

The letter from the United Dairymen of Idaho was sent anonymously to The Associated Press late last week.

In it, co-chairs Tom Dorsey and Tony Vanderhulst advised dairy producers that there’s been an increase in requests from media groups seeking to film on-farm footage since a law passed earlier this year making it illegal to secretly film animal abuse at agriculture operations.

The men recommended that dairy producers either turn down media requests or refer members of the media to dairy industry groups.

Late Tuesday, the organization’s CEO Karianne Fallow issued a prepared statement saying the group wasn’t trying to stop media access.

“In hindsight we understand how our Aug. 13 letter to United Dairymen of Idaho members might make someone think otherwise, but it is not the intention of the United Dairymen of Idaho to deny media access to Idaho dairies,” Fallow wrote.

Dairy farm families often host tours for media, school students, health professionals and others, and organizing on-farm tours is one of the primary roles of United Dairymen, Fallow wrote.

“Our goal is to do so in a coordinated way and provide assistance to our farmers in support of the Gem State’s dairy industry,” Fallow wrote.

Earlier this year Idaho lawmakers passed a law making it a criminal offense for people to secretly film animal abuse at agricultural facilities. Opponents of the law, including the American Civil Liberties Union of Idaho, are suing the state contending that it curtails free speech rights.

But agriculture groups say the law is needed to prevent animal rights groups from unfairly targeting certain businesses and to protect private property rights.

The letter, which was labeled confidential, states that there has been heightened interest from the news media as a response to the legislation.

“We are working to confine and contain the nature of the requests, but encourage you to remain alert for unexpected visits to your farms,” the men wrote in the letter.

The letter also provided four suggested responses if dairy farmers are contacted by the news media, including three ways to turn down requests and one way to refer reporters to the industry groups.

“Animal hygiene and farm safety are critical to my operation. We simply don’t conduct tours like the one you’re requesting,” reads one response.

Cindy Miller, the spokeswoman for United Dairymen of Idaho, confirmed Monday that the letter was sent to about 500 dairy families statewide.

“We had some requests for dairy tours by some groups, and we just wanted to let our farm producers know what we could do to help them,” Miller said.

Bob Naerebout, director of the Idaho Dairymen’s Association, said Monday that the letter wasn’t intended to block news media from covering the industry. Rather, he said, the industry groups wanted to let members know they had options.

“Our dairymen need to focus and want to focus on what they do best: Producing a high quality work product,” Naerebout said at the time. “And they’re not, shall we say, comfortable with the media.”

Ritchie Eppink, an attorney for ACLU-Idaho, said the agriculture groups that pushed for the law frequently told lawmakers the dairy industry has nothing to hide.

Eppink hasn’t seen the letter but was read portions of the letter during an interview with the AP.

Eppink said the suggested responses are troubling because many dairies offer tours to school children or other groups, and the letter appeared to encourage dairy farmers to misrepresent whether they give tours when speaking to the press.

“If there’s really a problem with the press and others visiting these farms, then the IDA should be figuring out why that’s a problem,” Eppink said. “There shouldn’t be anything that they’re scared to show people — this is our food supply.”

Idaho's Governor Signs Tough “Ag Gag” Law

Fri, 20 Nov 2020 02:44:40 GMT

Idaho Governor Chuck Otter signed into law today what may be the toughest ‘ag gag’ law in the nation to prevent animal activist groups from surreptitiously gaining access and filming farm operations.

Known as the Dairy Security Act, the bill covers wrongful entry and criminal trespass onto farms, theft of records, obtaining employment by wrongful means , taking recordings of workplace activities without the owner’s consent and intentionally interfering with the farming operations.

If convicted, individuals face up to $5,000 in fines, a year in jail and financial judgments of up to twice the economic damage they caused, says Bob Naerebout, executive director of the Idaho Dairymen’s Association. And, under Idaho “aiding and abetting” laws, organizations that employ such offenders can also be held liable.

The bill cleared the state House of Representatives earlier this week on a 56-14 vote. It was passed by the state Senate 25-10 earlier this month.

In signing the bill, Gov. Otter released the following statement: “Senate Bill 1337 is about agriculture producers being secure in their property and their livelihood. My signature today reflects my confidence in their desire to responsibly act in the best interest of the animals on which that livelihood depends.

“No animal rights organization cares more or has more at stake than Idaho farmers and ranchers do in ensuring that their animals are healthy, well treated and productive.”

Putting a Premium on Quality Milk and Help

Thu, 12 Nov 2020 05:41:33 GMT

Climate, facilities and animal handling are just a few of the things that can have an impact on the somatic cell count (SCC) of a dairy. First and foremost, however, is employee commitment and motivation.

Dairy producer Adrian Kroes has seen the SCC in his herd continue to improve since moving from Chino, Calif. to Nampa, Idaho in 2002. Kroes liked the Idaho climate for cows to produce milk and he also had family in the area.

“In California, we felt good if we were under 200,000 cells/mL,” Kroes says. He estimates the SCC level was around 180,000 when he left. In Idaho, Kroes has regularly seen a range of 50,000 to 70,000 cells/mL at SunRidge Dairy, LLC – a family partnership with his brother-in-law, Mike Siegersma – for the past five years.

During January, SunRidge Dairy reached a record level at a mark of 47,000 cells/mL for the 3,000 milking cows.

There are lots of considerations to make when it comes to that low of SCC, but Kroes attributes much of the success to his employees.

“I think honestly, really good management,” Kroes says for the credit in the improvement. The herd manager has been with Kroes since 1984 in California where half of the cow-herd originated from. Likewise, he has a great assistant herdsman.

“One of the things our herd manager strives for is not having the cows locked up longer than necessary,” Kroes says. Two people are sent out in the breeding van to reach cows quicker and reduce stress on the animals.

Along with the management team, SunRidge Dairy has milker trainings that are performed with local consultants directly at the dairy. “You just continue to have training schools periodically just to reinforce things,” Kroes adds.

Employees also stick to the fundamentals by following a set protocol at milking. Because of the high milk quality, SunRidge Dairy has been seeing increased revenue from a somatic cell bonus program at the local Sorrento Lactalis cheese plant.

“There is a real incentive for us to produce a high-quality milk and gain that bonus. They actually pay 60¢/cwt. under 100,000 cells/mL,” Kroes says.

While there is no added bonus for being under 50,000 cells/mL, Kroes is proud of the work being done by his crew. If the milk reaches the bonus mark SunRidge Dairy shares the bonus money with the milkers to reward them for their hard work.

“Everybody has some incentive,” Kroes relates. “We’ve offered that somatic cell bonus for a number of years. I think that has been appreciated by them too.”

In addition to paying employees for milk quality, the dairy shifted from two milkings per day to three as a way to aid in employee retention.

“We feel the 3X a day schedule with 8-hour shifts might lend itself better to finding milkers,” Kroes says. “Rather than having longer shifts 2X per day, we felt like 3X a day schedule might make it easier to find milkers.”

The three milkings per day correspondingly matches the schedule of three additional dairies SunRidge Dairy, LLC has partnered with or leased.

Swan Falls Dairy near Kuna is an open lot dairy that is leased by SunRidge with 100% ownership in the cows. Currently, the SCC there has been around 180,000 cells/mL, which is higher than normal. Kroes believes the wetter winter could be to blame for the increase. Historically, the dairy has been around 100,000 cells/mL.

“Black Cat Dairy, which we’re 50% partners in, is an open lot dairy with 1,500 milking cows. That dairy is around 100,000 to 110,000 right now on somatic cell,” Kroes says.

Sun Ridge Dairy, LLC just got involved in a 4th dairy with some additional family members on 50:50 partnership. That the open lot facility just reported a 90,000 cells/mL count.

Meanwhile, the home farm at SunRidge Dairy is the only free-stall facility within all of the business.

“I get to see the different results for a free stall versus an open lot,” Kroes says. “There are pros and cons for both.”

Kroes says open lots have their advantages, particularly in the spring and summer when it isn’t as wet. However, when it is raining, he enjoys the comfort of being in the barn.

The free-stall barns are bedded with compost and new bedding is added twice per week.

“We’ve been real happy with the compost bedding. This is the high desert so we can get it nice and dry,” Kroes says. “Comfortable cows do well.”