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A New Era for Michigan Dairy: Chobani’s $567 Million Bet on La Colombe

Wed, 25 Mar 2026 16:23:51 GMT

In the heart of west Michigan, a transformation is brewing. It is a story of coffee and cream, but more importantly, it is a story of economic resurgence and a deepening commitment to the U.S. dairy farmer. Chobani, the company that revolutionized the yogurt aisle, is now setting its sights on the rapidly evolving ready-to-drink (RTD) coffee market with a massive $567 million expansion of its La Colombe facility in Norton Shores, Mich.

This announcement does not exist in a vacuum. It is the third act in a high-stakes play of capital investment that has seen Chobani pour billions into the U.S. dairy manufacturing landscape. Just one year ago, the company announced a $500 million expansion of its Twin Falls, Idaho, plant. Months later, it broke ground on a staggering $1.2 billion facility in Rome, N.Y. Now, Michigan takes center stage, signaling Chobani’s acquisition of La Colombe in December 2023 for $900 million was not just a brand purchase — it was the catalyst for a total category disruption.

The Scale of the Ambition

The Norton Shores expansion is a multi-phase project designed to meet a surging demand that shows no signs of slowing. The project will add more than 200,000 sq. ft. of production space, effectively doubling the facility’s footprint. However, the true impact is measured in people and product.

Currently, the facility employs 312 workers. This expansion is expected to add approximately 340 new positions, nearly doubling the local workforce. For the community of Norton Shores and the broader west Michigan region, these aren’t just statistics; they are good-paying jobs that provide a pathway to the middle class, supported by Chobani’s industry-leading wages and benefits.

Michigan Governor Gretchen Whitmer noted the significance of the move.

“It shows the world that Michigan is the best place to grow stuff and build a thriving agricultural economy,” she says. “From the dairy farm to the production floor and the shelves of our grocery stores, let’s keep working together to help more workers, businesses and families ‘make it’ in Michigan.”

A Watershed Moment for Michigan Dairy

While the construction and job numbers are impressive, the most significant figure for the agricultural community is $615 million.

Before this expansion, the Norton Shores facility used approximately 30 million lb. of milk annually to produce La Colombe’s signature RTD lattes. As the new production lines come online, that number is projected to skyrocket to 615 million lb. of milk per year. This represents a twenty-fold increase in demand for local Michigan dairy.

This surge in demand is met by a state that is already a heavyweight in the industry. Michigan is home to more than 900 permitted dairy farms that collectively produce approximately 12 billion lb. of milk annually. Perhaps most impressively, Michigan ranks first in the nation for milk production per cow, with each animal producing an average of more than 27,000 lb. of milk per year. By expanding in Norton Shores, Chobani is tapping into the most efficient dairy infrastructure in the United States.

For Michigan’s dairy farmers, this is a generational win. In an era where market volatility can often cloud the future of family farms, Chobani is providing a massive, stable and growing outlet for their product.

Hamdi Ulukaya, founder and CEO of Chobani, has long championed this connection between the factory and the farm.

“There’s something special here — in the hardworking spirit of the people, in the pride of Michigan’s farmers who produce high quality, delicious, farm-fresh milk,” Ulukaya says. “For us, growth is about more than numbers — it’s about supporting the community, creating opportunity and building something that lasts.”

From Philadelphia Roots to Michigan Manufacturing

The journey of La Colombe is a classic American success story. Founded in Philadelphia in 1994 as a high-end café experience, the brand spent decades perfecting the art of the roast. In 2016, they made a pivotal move into the RTD category, attempting to bring the coffeehouse experience to a portable format.

By using cleaner ingredients, less sugar and better nutrition than the legacy players in the space, La Colombe redefined what canned coffee could be. When Chobani acquired the brand, they saw a mirror of their own history: a disruptor focused on quality and accessibility. By integrating La Colombe into the Chobani ecosystem, the company is now leveraging its massive supply chain expertise to ensure a latte made with Michigan milk can be found in every corner of the country.

Purpose-Driven Expansion

Beyond the stainless-steel tanks and the logistics of milk shipments, Chobani is positioning this expansion as a force for good. The company has a long-standing reputation for putting humanity first, a philosophy that stems from Ulukaya’s own journey as an immigrant and entrepreneur.

In Norton Shores, this means doubling down on workforce development programs, partnerships with local schools and grants aimed at food access. The company views the facility not as an island, but as a part of the neighborhood. This people-first approach is intended to ensure as the company grows, the community does not get left behind.

As the 2025 groundbreaking in Rome, N.Y., and the ongoing work in Idaho and Michigan illustrate Chobani is no longer just a yogurt company. It is a diversified food and wellness powerhouse. With the recent acquisition of Daily Harvest and the continued scaling of the La Colombe brand, Chobani is building a vertically integrated empire that starts at the farm gate and ends in the consumer’s hand.

The $567 million investment in Norton Shores is a clear signal: the future of coffee is white, creamy and sourced directly from the dairy heartland of Michigan.

DFA Awarded $46 Million USDA Grant to Advance Dairy Conservation and Small Farm Markets

Wed, 18 Feb 2026 15:28:29 GMT

Across the American heartland, the steady rhythm of the milking parlor marks the start of another day for thousands of dedicated dairy families. For the 9,500 farmer-owners of Dairy Farmers of America (DFA), this morning routine is a testament to a deep-rooted legacy of stewardship and hard work. However, in an era of fluctuating milk prices and a rapidly changing global marketplace, the pressure to evolve has never been higher. For many, especially the smaller family-run operations, the desire to implement cutting-edge conservation practices often hits a financial wall.

Earlier this month, that wall became a little easier to climb.

The announcement came from Kansas City: DFA has been awarded a landmark $46 million grant from USDA’s Advancing Markets for Producers (AMP) program. This wasn’t just a financial injection; it was a multiyear commitment to the future of American dairy, designed to bridge the gap between traditional farming and the emerging demands of a green economy.

Lowering the Barriers

For a small-scale dairy producer, the cost of new conservation technology — whether it’s advanced manure management, soil health initiatives or carbon-reduction tools — can be prohibitive. While the heart is willing, the capital is often tied up in the day-to-day survival of the farm.

The AMP grant specifically targets these barriers. By dedicating a significant portion of the $46 million to empowering small farms, the program ensures sustainability isn’t a luxury reserved only for the largest operations. It levels the playing field, providing the resources necessary for every DFA member to implement practices that protect the land while strengthening their bottom line.

From Stewardship to Market Leadership

Sustainability is no longer just an environmental goal; it is a market requirement. Modern consumers are increasingly looking for products that align with their values, and major retailers are responding by seeking out climate-smart dairy.

Hansel New, DFA’s assistant vice president of sustainability strategy and programs, views this grant as a vital tool for navigating these shifting waters.

“Our farmers have a long history of environmental stewardship — these practices aren’t new to them,” New says. “But this support provides even greater opportunity to explore, enhance and adopt new or expanded conservation practices.”

By accelerating the adoption of these practices, the grant helps DFA farmers position themselves at the forefront of value-added market opportunities. It connects the work done in the pasture to the premium prices offered in emerging markets, creating a diversified revenue stream that can help buffer against the volatility of standard milk prices.

A Resilient Future

The impact of this $46 million investment will be felt for years to come. As a voluntary program, it invites farmers to be partners in progress rather than subjects of regulation. It fosters an environment where innovation can thrive on the farm, leading to healthier soils, cleaner water and a smaller carbon footprint — all while ensuring the farm remains profitable for the next generation.

In a time when the dairy industry faces significant economic headwinds, this USDA funding serves as a vote of confidence in the American farmer. It recognizes that the path to a sustainable food system runs directly through the dairy barn.

As the sun sets on another day of hard work, the future for DFA’s 9,500 owners looks a bit more secure. With the support of the AMP grant, they aren’t just maintaining their farms; they are building a more resilient, competitive and sustainable industry that is ready to lead the world.

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Agropur Announces $130 Million Investment in South Dakota and Wisconsin Dairy Plants

Fri, 13 Feb 2026 16:50:05 GMT

Agropur is signaling a high-conviction bet on the future of North American dairy, announcing a strategic $130 million investment across its Midwestern footprint. The move, unveiled during the cooperative’s annual general meeting on Feb. 11, targets high-growth markets for whey proteins and milk concentrates while capitalizing on the explosive production growth in South Dakota.

South Dakota: The New Frontier of Dairy Growth

The centerpiece of the expansion is a $60 million modernization of Agropur’s Lake Norden, S.D., facility. This investment is perfectly timed to coincide with South Dakota’s emergence as a national dairy powerhouse.

Over the last decade, South Dakota has transitioned into one of the fastest-growing dairy states in the U.S. While national milk production has faced headwinds, South Dakota has seen consistent year-over-year growth — often in the double digits — fueled by a favorable regulatory environment and the expansion of the I-29 corridor.

Production Surge: South Dakota recently broke into the top 15 dairy-producing states, with milk production jumping nearly 7% in 2023 alone.
Processing Powerhouse: The Lake Norden dryer upgrade will allow Agropur to pivot its portfolio toward value-added products like milk concentrates and whey proteins, meeting a global surge in demand for protein-enriched ingredients.
Economic Impact: Governor Kristi Noem’s support for the dairy industry due to the addition of more than 118,000 cows in the last 12 months contributes nearly $4 billion annually to the state’s economy.

Strengthening the Wisconsin Hub

Simultaneously, Agropur is committing $70 million to three Wisconsin plants: Weyauwega, Luxemburg and Little Chute. These funds are earmarked for increasing whey processing and valorization capacity. By turning what was once a byproduct into high-value nutritional ingredients, Agropur is maximizing the milk check for its members through operational efficiency.

Financial Resilience and Member Returns

These investments are backed by a stellar 2025 fiscal performance. Agropur reported:

Revenue: $8.9 billion (a 2% year-over-year increase).
EBITDA: $686.4 million (a 12.6% increase from 2024).
Patronage Returns: $70 million distributed back to member dairy producers.

“In 2025, Agropur delivered solid financial results, strengthening its ability to continue growing and investing in its future,” says Agropur president Roger Massicotte.

CEO Émile Cordeau emphasizes the strategy is built on resilience. By focusing on value-added products to meet the strong market demand for protein-enriched products, Agropur is positioning itself not just as a processor, but as a specialized ingredients partner in a competitive global market.

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AMPI to Convert Wisconsin Cheddar Plant into Massive Cottage Cheese Facility

Tue, 03 Feb 2026 20:49:19 GMT

In the heart of Wisconsin’s dairy country, a significant transformation is brewing that signals a major shift in consumer demand. Associated Milk Producers Inc. (AMPI) has announced a strategic pivot for its facility in Blair, Wis., transitioning the plant from traditional cheddar cheese production to high-capacity cottage cheese manufacturing.

While the move positions the Blair facility to become one of the largest cottage cheese plants in the U.S. by early 2027, the transition comes with a temporary cost for the local workforce.

The Great Cottage Cheese Renaissance

For decades, cottage cheese was often viewed as a vintage diet food, but it is currently experiencing a massive cultural and economic resurgence.

In 2023 alone, U.S. cottage cheese sales surged by 16.6%, driven by a new generation of health-conscious consumers. Last year, cottage cheese grew to nearly 1.2 billion pounds for the first 10 months of the year, the highest level since 1989.

This renaissance has been fueled largely by social media platforms like TikTok, where cottage cheese has gone viral as a versatile, high-protein superfood. From cottage cheese ice cream and bread to high-protein pasta sauces, the product has moved from the back of the fridge to the center of the plate. Brands leading this charge have seen sales exceed $200 million annually, proving that the demand isn’t just a fad; it’s a fundamental market shift.

AMPI’s decision to overhaul the Blair plant is a direct response to this double-digit growth. By the time the project is completed in late 2026, the facility will be an industrial powerhouse, capable of meeting national demand on a scale that few other plants can match.

“Cottage cheese demand is growing rapidly as consumers seek high-protein, low-fat, minimally processed foods. We know AMPI’s globally recognized cheesemaking expertise makes us an excellent fit for producing high-quality cottage cheese,” Sarah Schmidt, AMPI Vice President of Marketing said. “U.S. cottage cheese capacity is stretched and insufficient to accommodate projected growth. AMPI has the capacity and flexibility to transition to cottage cheese production and benefit the co-op’s dairy farmer-owners.”

Temporary Pause for the Workforce

To achieve this vision, AMPI has filed a Worker Adjustment and Retraining Notification (WARN) letter indicating a temporary mass layoff effective March 31, 2026. The layoff will impact 86 employees as the facility undergoes the necessary retooling and infrastructure upgrades.

While the news is a challenge for the Blair community, there is a silver lining of stability:

Recall rights — The majority of affected workers are represented by Teamsters General Union Local 662. Under their collective bargaining agreement, these employees maintain layoff and recall rights, ensuring they have a path back to their jobs once the plant resumes operations.
Timeline — AMPI expects the plant to be back online and ready for regular operations by early 2027.

This transition is more than just a renovation; it is a testament to the agility of the Wisconsin dairy industry. By shifting away from commodity cheddar and toward high-growth power foods, AMPI is securing the long-term viability of the Blair facility. When the doors reopen in 2027, Blair won’t just be making cheese; it will be leading a national market trend from the heart of the Midwest.

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MMPA's Bold Move: Acquires Leprino Foods Plant, Expands into Cottage Cheese and Fortifies Dairy Future

Tue, 09 Dec 2025 20:30:46 GMT

In a significant leap toward reinforcing its foundational values and augmenting its product offerings, the Michigan Milk Producers Association (MMPA) just announced the acquisition of the Leprino Foods plant in Remus, Mich. This strategic endeavor not only highlights MMPA’s dedication to its member-owners but also marks an impactful expansion in the cooperative’s product lineup with the introduction of cottage cheese production.

Commitment to Growth and Community
“This acquisition represents a meaningful step forward in MMPA’s long-term strategy to grow our cooperative, invest in Michigan’s dairy industry and deliver increased value to our members,” Joe Diglio, president and CEO of MMPA said.

The move is underpinned by the support of the Michigan Economic Development Corporation, further enhancing MMPA’s ability to innovate while remaining deeply connected to the Remus community.

The Remus plant, enriched with a longstanding relationship with MMPA since its original purchase in 1983, speaks volumes of a historical saga intertwined with the present. In a shift aligning with Leprino Foods’ business needs, MMPA has adeptly maneuvered to acquire this asset, ensuring it remains a vital community contributor and a catalyst for continued growth.

Lance FitzSimmons, president & CEO of Leprino Foods, noted: “We are pleased that we have been able to successfully transfer ownership of the Remus facility back to MMPA, where it will have the opportunity to be a productive asset for the community and for Michigan dairy farmers for many years to come.”

Ultrafiltered milk technology

(Michigan Milk Producers Association)

Advancements in Dairy Production
Established in 1916, MMPA stands as the ninth-largest U.S. dairy farmer-owned cooperative. With its deep-seated roots in producing high-quality, award-winning dairy products, MMPA serves members across Michigan, Ohio, Indiana and Wisconsin.

In tandem with the latest acquisition, MMPA is fortifying its ultrafiltered milk production at its Ovid facility, an expansion that adds a remarkable 3 million pounds of daily processing capacity. These enhancements fortify MMPA’s already robust ultrafiltered milk capabilities in Constantine, Mich. Doug Chapin, MMPA board chairman, celebrated these developments, highlighting the cooperative spirit and its competitive readiness to meet resurging market demand.

“These projects are a direct result of the commitment and investment of our member-owners,” he stated, underscoring the resilience and dedication reflected in MMPA’s high-quality standards, ensuring long-term value for its members.

The dual projects, supported by MEDC’s funding, are a testament to MMPA’s leadership in producing high-protein dairy ingredients and responding to ever-growing consumer demands. Quentin L. Messer, Jr., CEO of the MEDC, expressed gratitude toward MMPA’s continued investment in Michigan, spotlighting the economic vibrancy contributed by the agricultural industry.

As MMPA strides toward fortifying its strategic goals, the focus remains on expanding its manufacturing footprint, enhancing production capabilities, and nurturing a strengthened dairy supply chain. These initiatives are firmly anchored in a legacy nearly 110 years strong, defined by member-focused leadership and a commitment that begins on the farm and extends through MMPA’s processing facilities.

In pursuing these bold initiatives, MMPA reaffirms its dedication to innovation, community and growth, securing its pivotal role in the dairy industry of today and tomorrow.

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Global Market Cannot Absorb Growing Milk Production

Thu, 25 Sep 2025 11:13:44 GMT

With milk production rising in nearly all major dairy exporting regions, something’s got to give in milk markets. Looking at the top-five export markets, year-to-date output through July is up about 1%, relative to the first seven months of 2024, according to calculations by Betty Berning, market analyst with the Daily Dairy Report.

That means there’s approximately 3.7 billion pounds more milk this year than last, highlighting the huge growth occurring globally. Berning adds that the increase is enough to make 370 million pounds of additional cheese, or 150 million to 200 million pounds of additional butter, assuming 4.3% butterfat and 82% fat butter.

“While dairy demand is rising in the developing world, this increase in milk volumes is more than these markets can absorb and will continue to overwhelm the balance sheet until producers somewhere cut back on production, or prices get low enough to spur additional buying,” Berning says. “Historically, during times of surplus, milk production has not adjusted overnight or even in a month, and given that the Southern Hemisphere is headed toward peak and U.S. producers are still making money, the tidal wave will likely continue to grow through the end of 2025 before a correction occurs.”

Impressive global supplies are exacerbating price decreases as milk collections swell. In the EU-27, year-over-year milk volumes rose between April and July, and July’s 0.8% gain, pushed year-to-date totals into positive territory, according to CLAL data. In New Zealand, with three months of data reported in the 2025-26 season, milk solids were up 4.25% compared to the same three months in 2024. And this year’s output in Argentina was up nearly 11% through August compared to last year’s poor showing. Among the major milk exporters, only Australia has posted lower output.

“At some point yet this year, markets will likely have to adjust, although it seems more likely that this will happen in other parts of the world because U.S. producers have some cushion in their cash flows,” Berning says. “In Europe, producers could exit or retire due to increased regulations. Some Aussie producers have already switched to beef, and that trend will continue, while New Zealanders will likely feed less palm kernel expeller and cull earlier if profitability wanes. And U.S. producers could eventually take advantage of high cull cow prices and adjust the herd downward from its current multiyear high.”

According to the Dairy Margin Coverage program’s income-over-feed-cost calculation, margins have ranged from $13.85 to $10.40 per cwt, but these strong levels are forecast to drop to an average of $9.80 per cwt next year, based on futures prices and USDA forecasts. The cost of labor and replacements will absorb most of the income over feed costs, but the money producers are making from crossbred calves and cull cows has provided dairy producers with an estimated $4 per cwt in additional income, Berning calculates.

“That means producers could maintain the current upswing in production longer if profitability is sustained,” she says.

For U.S. producers to truly feel the pinch of lower milk prices, Berning calculates the average All-Milk price would need to drop to $16 per cwt, which would equate to Class III and IV prices between$12 and $14 per cwt. And that means, for example, that CME spot Cheddar blocks would need to drop to $1.4 per pound with whey priced at about 50¢ per pound for the Class III price to drop to $13.10 per cwt. And for Class IV to drop to $14.07 per cwt, CME spot butter would need to fall to $1.80 per pound and nonfat dry milk would need to be priced at about $1.10 per pound.

“While this may not seem plausible relative to where current futures prices are trading, fundamentals are in a state of disequilibrium, and the problem could get worse before it gets better,” Berning says.

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The Dairy Boom: 2025’s Year of Milk, Momentum and More

The Dairy Boom: 2025's Year of Milk, Momentum and More

Tue, 23 Sep 2025 12:01:45 GMT

The buzz in the dairy countryside is palpable: More milk is needed, and the industry is responding with enthusiasm. Leaders like Michael Dykes, President and CEO of the International Dairy Foods Association (IDFA), have sparked a surge of excitement with the need for unprecedented growth in dairy processing.

“Our farmers want to grow and so do our processors. If we aren’t growing, if we aren’t looking toward the future, we’re going to get surpassed by others,” Dykes said earlier this year at the IDFA Dairy Forum in San Antonio.

This excitement has spread from boardrooms to barns, driving remarkable growth in milk production across the U.S.

Dairy Leaders Set the Pace for Growth

With more than $8 billion committed to developing new dairy processing facilities, the U.S. dairy sector has thrown open the gates for expansion. This commitment is evident in the latest USDA Milk Production Report, which details a vigorous increase in milk output.

In August, the 24 major dairy states produced a massive 18.8 billion pounds of milk, reflecting a 3.3% rise from the previous year. Nationally, production reached 19.5 billion pounds, a testament to the sector’s enhanced productivity and efficiency per cow.

Driving Forces Explained

Phil Plourd, president of Ever.Ag Insights, sheds light on the factors at play, noting more cows, more milk and more momentum is unfolding across the U.S. dairy countryside.

“Market pricing and conditions encouraged additional production going into this year, and now it’s here, with historic force,” he says. “As is often the case with on-farm production, it probably took longer than some thought (or hoped) to get going, and now it will probably take longer than many think (or hope) to slow down.”

According to Plourd, market signals are changing, for sure, with “real-time” Class III and Class IV values down by about $2.30 and $3.50 per cwt., respectively, since mid-August.

“But it will take some time for producers to experience the impact in their milk checks and to respond to the evolving incentives,” he says. “Plus, we don’t really know how soaring beef income will play into the equation.”

Impact of Beef-on-Dairy

A fascinating development within the dairy sector is the rise of the beef-on-dairy market. Laurence Williams from Purina highlights the substantial increase in prices for beef-on-dairy calves — averaging $1,400 today compared to $650 three years ago. This trend presents new income opportunities for dairy producers.

Ken McCarty of McCarty Family Farms underscores beef-on-dairy’s role in enhancing profitability and genetic selection intensity, contributing significantly to their farm’s income.

“This certainly has helped bolster profitability while also enhancing the long-term productivity and profitability of our farms through increased genetic selection intensity,” he says. “We don’t see tremendous downside risk in the beef-on-dairy market anytime soon.”

Daniel Basse from AgResource Company expresses optimism about the profitability and sustainability of U.S. dairy beef in the years ahead.

Financial Incentives and Strategic Adaptation

On the financial front, dairy consultant Gary Siporski emphasizes the contribution of beef-on-dairy cross calves to profit margins, adding $1 to $2 per cwt in earnings. This newly established profit line has quickly become vital for funding capital investments across U.S. farms, creating a substantial revenue stream previously overlooked.

As the dairy sector evolves amid changing market conditions, the ability for producers to remain informed and adapt strategically will be crucial. By staying agile and proactive, dairy producers can manage growth effectively while sustaining profitability.

In an era teeming with opportunities, the dairy industry stands ready to embrace its future — one gallon of milk and one beef-on-dairy cross calf at a time.

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Exciting Developments at Darigold: Leadership Changes and Strategic Growth

Thu, 18 Sep 2025 16:20:33 GMT

Darigold, Inc., a major dairy cooperative headquartered in Seattle, Wash., who serves as the processing and marketing subsidiary of the Northwest Dairy Association, is paving the way for an exciting chapter in its history with significant leadership changes and strategic expansion plans.

On October 1, Amy Humphreys will take over the helm as the company’s new chief executive officer, bringing with her a wealth of experience that spans various sectors, including food manufacturing and petroleum. Her appointment follows the departure of Allan Huttema, who admirably steered Darigold through transformative times and will now return to his dairy farm in Idaho.

A Proven Leader for a Vibrant Future
Humphreys is no stranger to Darigold, having served as its chief financial officer from 2015 to 2018. Her reputation is built on a proven track record of leadership in vertically integrated food businesses, fostering business performance and sustainable practices. Darigold shares that Humphreys also serves as a board director for private and publicly held companies, as well as on the Economic Advisory Council for the Federal Reserve Board 12^th District and on CoBank’s nominating committee.

She earned an MBA from the University of Washington Foster School of Business, as well as a bachelor’s degree in accounting and finance from Puget Sound University.

According to Tim Kuenzi, Darigold’s board chair, Humphreys is precisely the leader needed to drive the company forward as it continues modernizing its operations. Under her leadership, the company aims to focus on responsible resource management and transformative growth.

“Amy is the right leader for our company as we begin this important chapter,” Kuenzi says. “Allan stepped in at a critical time, and we made some significant progress under his leadership – standing up Pasco [its newest facility], improving operations and strengthening our already capable leadership team.”

Challenges with Confidence
Darigold’s journey isn’t without its challenges. Earlier this year, the Seattle-based cooperative announced substantial financial adjustments, affecting its 250 member farms across the Northwest. These changes include a deduction of $4 per hundredweight, with $2.50 of this earmarked for the development of a new plant in Pasco, Wash. Although this decision has sparked concern among farmers, there’s a shared belief that these short-term sacrifices will yield long-term benefits.

Fourth-generation dairy farmer Jason Sheehan, who runs J&K Dairy — a 3,000-cow dairy in eastern Wash., — and supplies milk to Darigold, voices a mix of concern and optimism.

“It’s going to be a rough road to get there for the next year or so,” he says. “We are hurting right now. When milk price is down, coupled with these deducts, it starts to sting.”

Sheehan shares going from 11 plants to 12 plants is a big transition.

“Eventually, you’ve got to get to a lower cost to keep up these plants. A lot of our plants have been high cost,” he says. “It’s like a dairy farmer who expands by buying smaller dairies. Eventually, at some point in time, you can’t run a bunch of double six parlors. You’ve got to consolidate and build a facility. That’s kind of what Darigold chose to do.”

A Vision for Sustainable Growth
As we look to the future, Humphreys’ diverse expertise and leadership capabilities will be crucial in navigating these times of change. Darigold’s decision to invest in infrastructure while implementing financial deductions reflects a wider strategy designed to reduce operational costs and enhance profitability. The anticipation and apprehension among stakeholders serve as a reminder of the resilience and adaptability inherent in the dairy farming community.

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Are We Seeing Signs of Herd Rebuilding?

Mon, 15 Sep 2025 16:41:54 GMT

The U.S. beef cow inventory has reached its lowest point since 1962, marking what appears to be the bottom of the current cattle cycle. Tight supply is driving the strong pricing environment beef producers are enjoying today.

“For cow-calf producers right now, things are as good as they’ve probably ever been,” says Troy Rowan, University of Tennessee assistant professor. “Even though things are really good, producers are conscientious and vigilant about potential challenges,” Rowan summarizes.

Agreeing with Rowan, South Dakota cattleman Ken Odde adds while profits are currently strong, inflation quickly erodes economic gains. He stresses the importance of risk management and diversification.

Early Signs of Herd Rebuilding?

This is the million-dollar question: Are there encouraging signs of expansion?

“The beef industry is not currently in herd expansion mode, with producers hesitant to retain heifers due to high costs and economic uncertainties,” says Dave Weaber, Terrain senior animal protein analyst.

In Drovers State of Industry Report to be released the week of Sept. 15, we breakdown the July USDA cattle inventory and cattle on feed reports. While the USDA reports showed the smallest U.S. herd in history and continuing tightening numbers on feed, analysts predict producers have not experienced the highest cattle prices, yet.

“Our national herd size has the industry at an interesting point,” Rowan says. “Prices are at all-time highs, inputs are reasonable and more cow-calf enterprises are profitable than ever. When the industrywide rebuild will happen remains up in the air, but producers are keeping in mind that the high-flying industry right now is not going to stick around forever. They’re starting to adopt new technologies, leveling up their crossbreeding programs and expand opportunities for non-cattle related income on their ranches.”

Weaber adds producers need to be intentional about herd expansion, understanding the financial implications of adding new cattle.

Beef-on-Dairy Fills the Beef Supply Gap

“The current dynamics of supply is going to be a challenge,” says Jarrod Gillig, Cargill senior vice president, managing director for beef.

Gillig summarizes the cattle industry is experiencing a critical period of transition. He doesn’t expect the cow herd to return to previous peak levels of 32 million head. Instead, he predicts the gap in supply will be filled by beef-on-dairy calves.

Nick Hardcastle, Cargill senior director of meat grading and technical specialist, explains how the beef-on-dairy calves are an upgrade to the traditional Holstein steer and the positive impact they are making on beef supply.

“Beef-on-dairy is more desirable because it helped overcome several Holstein difficulties,” he says. “Improvements include red meat yield — more meat to a consumer — as well as improved acceptance in branded programs.”

Hardcastle says the beef-on-dairy cattle are filling the supply gap by filling pens in the Plains states where feeders are needed, and they are widely accepted by feeders and packers.

Defining Future Beef Producer Success

Odde says the beef industry is not just surviving but positioning itself for significant transformation.

“Producers who remain flexible, technologically savvy and strategic in their approach will be best positioned to thrive in this changing environment,” he says.

Weaber agrees saying successful producers will be those who can adapt, manage costs effectively and align themselves with evolving market trends.

“Don’t let cost get away from you,” Weaber warns, emphasizing that “being a low-cost, high-productivity producer means you get to make money seven, eight or nine years of the cycle.”

He stresses the importance of understanding financial implications, particularly during market transitions.

“If we’re not working on the business, we can’t work in the business,” Weaber adds, summarizing his philosophy regarding producers’ need to adopt more strategic, data-driven approaches.

The State of the Beef Industry Report includes input from nearly 500 beef producers. The annual report provides information to help producers when making decisions. Click here to download the full report.

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The Urgent Rescue to Save Millions of Pounds of Milk in the Northeast

Fri, 12 Sep 2025 19:00:16 GMT

Pennsylvania recently showcased its commitment to agriculture and dairy farmers by leading a multistate response to avert a potential crisis in milk spoilage, following an unexpected shutdown at the Great Lakes Cheese plant in Franklinville, N.Y. This swift action ensured millions of pounds of milk were redirected, preventing waste and supporting the regional economy.

A Multistate Collaborative Effort
The Pennsylvania Department of Transportation (PennDOT) played a pivotal role in this operation by collaborating with counterparts in New York and several key players in the dairy industry. By rapidly issuing single trip permits to haul milk to Pennsylvania’s processing plants, PennDOT exemplified the power of public-private partnerships. This effort allowed milk that would have otherwise been disposed of to reach consumers, preserving both the product and the livelihood of dairy farmers.

“This is an incredible story of building bridges between the public and private sectors,” says PennDOT Secretary Mike Carroll. “Thanks to the work of everyone here, millions of gallons of milk that would have potentially been wasted will be safely transported to Pennsylvania processors.”

Pennsylvania is known for its strong agricultural roots, contributing significantly to the region’s economic stability. Home to the second-highest number of dairy farms in the U.S., the state boasts a dairy industry that supports over 47,000 jobs and contributes $11.8 billion annually to its economy. Therefore, even a temporary disruption like the Great Lakes Cheese plant shutdown in its neighboring state can have far-reaching effects.

Governmental Support and Proactive Measures
Secretary Russell Redding of the Pennsylvania Department of Agriculture emphasizes the importance of immediate solutions to mitigate the impacts of plant closures. This incident is a testament to the Shapiro administration’s dedication to fostering a responsive government that reduces bureaucratic barriers and aids businesses during unexpected challenges.

The cooperative approach extended beyond state lines, with New York State Agriculture Commissioner Richard A. Ball acknowledging the collective effort to mitigate the impact on New York’s dairy farmers and the supply chain. New York State Department of Transportation Commissioner Marie Therese Dominguez also commends the teamwork and seamless collaboration, reflecting how vital agriculture is as an industry in both states.

“We’re grateful to our neighbors at the Pennsylvania Department of Agriculture and Department of Transportation, our New York State Department of Transportation and all of our partners for their swift action in temporarily modifying hauling regulations to allow for the transportation of New York milk,” Ball says. “This not only mitigates the impact to our dairy farmers in New York but also ensures minimal disruption in the supply chain for consumers.”

Ensuring Continuous Supply Chain Operations
The milk redirected due to the temporary shutdown was accommodated by several processing facilities in Pennsylvania, including Dairy Farmers of America centers in Tioga, Berks, and Lawrence counties, Leprino Foods in Bradford County, and Upstate Niagara Cooperative in Lycoming County. This movement helped prevent economic loss for both producers and consumers.

The proactive measures taken by Pennsylvania and its neighbors underscore the state’s pivotal role in ensuring the stability and continuity of the agricultural sector. By acting swiftly to redirect milk supplies and collaborate across state lines, Pennsylvania not only helped its own economy but also established a blueprint for managing agricultural disruptions effectively.

Founded on Faith: The Copper Cow Creamery Fulfills the Dream, Sustains the Dairy

Thu, 11 Sep 2025 11:44:23 GMT

The numbers had stopped adding up long ago — the hours in a day, the equity left to spend, the credit available to just keep things going. For the Reece family, there was a time when almost nothing was left. It was at Justin and Siska Reece’s lowest point that an act of faith changed everything.

Siska Reece’s family began building their Idaho dairy when she was just 12, surrounded by five brothers. They began milking cows in 1999, and by 2018 a decision had to be made between her and one of her brothers as to who would be the next generation. The best option was to split, leaving Siska and Justin Reece to take over the farm.

Entering 2020, the Reece family was struggling through the buyout.

“It seemed like we could barely hold our head above water,” Siska Reece recalls. “COVID was disastrous for the dairy industry. We had used up all of our equity, all of our extra feed, and I had sold all of our extra heifers. We thought, ‘how much longer can we go backwards without losing the farm?’”

It was time to either sell while they could still pay off the debt or figure out a different way to make money. Reece and her husband prayed fervently for the right answer, and she says it was that act of faith that gave them the clarity they needed.

“Separately, we each felt we weren’t meant to be done with the dairy yet,” Reece says. “The terrifying part was we still didn’t know how to make money.”

Yet within weeks, many friends and neighbors were asking, “When are you guys going to start selling your own milk? Making your own cheese? Why can’t I just buy my ice cream from you?” This had been the dream for 20 years, but her ever-transparent response was always, “Yes, someday when the dairy starts making enough profit, then we can invest in a new business.”

Reece had a feeling once again that a plan greater than her own was at play.

“We thought, ‘maybe God’s trying to tell us something. We should look into it at least,’ so the first call I made was to planning and zoning, and every single question I asked, every step I tried to take, God had completely opened the pathway before I even made the call,” she says.

The miraculous opportunities kept coming. From acquiring a building they loved and could afford, to unheard-of timing on the well drilling to having final permits in place just hours before opening, there was no question this had been the right choice. The Copper Cow Creamery was ready for its first customers in less than eight months.

Today, the creamery produces non-homogenized A2A2 milk, cheese and ice cream using milk from their Jersey herd. The drive-thru also serves espresso drinks and breakfast items — a lifelong dream coming to fruition.

Encouraged by friends to sell directly to consumers, The Reece Family found new life for their dairy.

(The Copper Cow Creamery)

“I designed the coffee shop model at age 15 in the back of my mom’s car on the way to Idaho,” Reece says.

The results have far exceeded the dream. Customer demand quickly outpaced their original setup, growing into a full-time operation open six days a week, with a staff of 15.

“I had expected that we would be there selling milk and cheese to one customer per hour, and the rest of the day I would take turns homeschooling my kids one at a time,” Reece says. “But in the first week, I needed five employees in there. I remember crying in happiness — not only is our dream coming true, but it’s profitable, sustaining itself and doing amazing.”

While everything with the store fell into place better than planned, life didn’t stop. The Reeces homeschool their five sons on top of managing the dairy, the creamery and store, ag tourism activities, a small herd of Scottish Highlands, and countless sports, church, and 4-H activities.

“There are always points of burnout,” Reece says. “Every day something breaks down or some fire needs to be put out. Often times, I’m exhausted. Sometimes it feels like I’m running ragged on getting supplies and parts, learning to run all the equipment, managing people-facing employees instead of cow-facing employees, so I daily learn to rely on God to help me through it all.”

Thankfully, the Reece family has an incredible support system, especially within their own family.

“I can’t tell you how many times I’ve woken one of my kids up at 4:30 and said, ‘Hey, somebody called in, you’re going to go serve coffee and cinnamon rolls,’ and they cheerfully do it. They know it’s our livelihood, I know I can count on them and that’s why we can function,” Reece says.

She also credits her parents, in-laws and hardworking employees.

“Their commitment to the creamery and constant support has been unmatched,” she says. “We could never have done it without them.”

On top of managing their dairy, the creamery and their kids’ activities, the Reeces also host ag tourism activities for the community.

(The Copper Cow Creamery)

On the long days, Reece grounds herself in her goals for her family and remembers: It’s just a season.

“The buyout and going through COVID — it was just a season. Any one of us can do anything for a season,” she says. “I know I’m not going to have to work 23 hours a day indefinitely. Soon I’ll be able to homeschool more like a regular homeschool mom again.”

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Dairy Expansion Continues: Global Giant Danone Makes Massive Investment in Ohio Yogurt Plant

Fri, 05 Sep 2025 16:50:33 GMT

At Danone’s Minster, Ohio, yogurt facility, a new era of growth and innovation is underway. Known for producing beloved brands such as Oikos, Activia, Dannon and Danimals, this facility stands as a beacon of quality and progress. Driven by the increasing demand for nutrient-rich food options, the French-owned, U.S.-based subsidiary is set to embark on a path of expansion that is both exciting and transformative.

The Expansion
Amid relentless market demands, Danone plans a formidable 48,000-sq.-ft. augmentation to its Ohio plant, complemented by a cutting-edge production line and modernized existing lines. This multimillion-dollar venture not only augments capacity but promises approximately 30 additional full-time jobs, significantly bolstering the local economy.

“Our commitment to American manufacturing runs deep, with 90% of our ingredients and packaging materials bought here,” says Dan Magliocco, president, Danone North America. “Fulfilling our mission to bring health through food to as many people as possible, means producing nutrient-rich foods with U.S. ingredients in American factories that are benefiting local communities. I want to thank our team at Minster and our many partners in the Ohio community, including Governor DeWine, for their hard work to get to this point, and for the work to come as we expand this great facility.”

Community Impact and Partnerships
The forthcoming expansion extends well beyond infrastructure; it’s a testament to Danone’s collaboration with the Ohio community and its imperative role in the growth of the local dairy industry.

“Danone’s Minster plant was one of the corporation’s first operations in North America, demonstrating how Ohio’s rural towns can provide a competitive advantage for the world’s most successful companies,” says Ohio Governor Mike DeWine.

“Danone is a globally recognized food and beverage leader that continues to invest in its Minster yogurt facility, where the company has premier access to Western Ohio’s talent and dairy industry,” says J.P. Nauseef, JobsOhio president and CEO. “The new manufacturing line will create 30 new jobs and upgrade existing technology at the plant that will improve efficiencies and deliver more product options for its customers.”  

Danone’s enhanced collaboration with dairy farmers is particularly impactful, with plans to acquire 60% more milk over the next couple of years, boosting regional agriculture and supporting existing supplier partnerships.

Employment Opportunities and Benefits
In addition to job creation, Danone is championing its workforce’s well-being through competitive wages and comprehensive benefits. This includes their parental bonding leave policy, which generously allows up to 18 weeks of paid leave for new parents.

“We are excited to continue growing our team and presence in Minster, Ohio,” says Heiko Gerling, chief operations officer for Danone North America.

Danone’s Minster facility expansion is a cornerstone of not just corporate success but community evolution. By investing in local talent, partnering meticulously with regional suppliers and crafting nutrient-rich products, Danone continues its legacy of innovation and sustainability.

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Land O’Lakes, Inc. Champions Innovation in Agriculture with AgRogue Growth Partners

Fri, 05 Sep 2025 18:00:04 GMT

Land O’Lakes, Inc. recently unveiled its strategic launch of AgRogue Growth Partners, an ambitious initiative designed to harness the inherent strengths of the cooperative model. This project aims to fast-track the discovery, investment and adoption of breakthrough technologies to benefit farmers, their businesses and their communities.

“We are taking a very deliberate approach to the topic of venture capital,” says Jason Trusley, chief strategy officer at Land O’ Lakes. Trusley is leveraging his “outside in” strategy leaning on his experiences at Nike, Columbia and Nordstrom and now applying it to his work with the Land O’ Lakes team.

AgRogue includes an investment of up to $7 million in each of 10 to 15 companies focused on innovations in categories spanning:

crop inputs
ag data
supply chain processes
business models

The first participants should be selected by the end of October.

“Our market access through the 800+ retailer partners, and putting skin in the game to help scale these investments is quite different than what we’ve seen in growth equity. We want to invest at the point of inflection, and we believe our system can help find the momentum and then rapidly scale,” Trusley says.

Brett Bruggeman, chief operating officer and executive vice president of ag business at Land O’Lakes, highlights Ag Rogue Growth Parnters is “co-authored” with some of its retail partners.

“Our retail partners are half investors,” Bruggeman says. “The idea was sourced from our CEO council, the largest retailers in our system, two years ago. Right now, we have six retail partners engaged, but more can come on.”

Current retail partners in AgRogue include:

Alabama Farmers Cooperative (Alabama)
Central Valley Ag (Nebraska)
Farmers Cooperative – Dorchester (Nebraska)
Farmward Cooperative (Minnesota)
GreenPoint Ag (Alabama)
Keystone Cooperative (Indiana)

“AgRogue Growth Partners represents an exciting new chapter in agricultural innovation, driven by a commitment to farmer success. By uniting our strengths, we will focus on creating new opportunities for farmers to thrive, providing them with the new tools and resources they need to overcome industry challenges and grow a more reliable, abundant food supply,” Kevin Still, president and CEO of Keystone Cooperative, said in a company press release.

AgRogue Growth Partners will have another partner in Radicle Growth, who will manage the program and vet the startups.

Trusley says there are four themes AgRogue will address:

optimize farm income
improve grain quality/find premium markets
resiliency and soil health
help grow the retail business through systems, innovations and partnerships

“We are seeking pre-market innovation. And for example, Cooperative Ventures (CHS and Growmark’s initiative) could be potential partners as we transition closer to the growth curve,” Trusley says. “Cooperation is important to drive change in agriculture, and cooperation is especially complex with cooperatives. We are trying to create more diversification and greater scale to the funding to solve the broader set of issues for farmers.”

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Milk Production Soars: Record-Breaking Growth for Dairy Industry in Four Years

Fri, 22 Aug 2025 17:18:51 GMT

The latest USDA’s July Milk Production report highlights an impressive jump in milk output, reaching a 3.4% year-over-year increase. This surge marks the largest growth we’ve seen since 2021.

A significant factor contributing to this climb is the substantial 3.8% increase in California’s milk production. According to Kathleen Noble Wolfley, the market intelligence director at Ever.Ag, California’s mild summer was a key driver in boosting productivity. Interestingly, the highly pathogenic avian influenza (HPAI) didn’t impact California until September, which suggests the results from this summer are quite standalone. With these influences and circumstances at play, further substantial gains seem likely for the state.

Expanding Herds and New Capacity Areas
Cow numbers are also on the rise, with an increase of 10,000 head from June, raising the total cow count by 159,000 compared to last year. The growth isn’t evenly distributed, with Kansas, Texas and South Dakota witnessing substantial increases. These states have added a combined total of 92,000 head year-over-year, supported by the construction of new plant capacities. This regional growth is contributing to production increases of 18.6%, 8.4% and 10.6%, respectively.

Tom Peterson, executive director of South Dakota Dairy Producers, expressed his excitement over the rapid expansion of the state’s dairy industry.

“In the early 2000s, cow numbers in this state were fewer than 80,000 head,” he says. “Much of that growth has taken place in the last five years, all with 150 permitted class A farms.”

Phil Plourd, president of Ever.Ag Insights shared with Dairy Herd Management last month “at the same time, generally speaking, producers have been seeing decent margins and new capacity means plenty of interest in additional milk supply,”

Although Noble Wolfley notes that milk prices have pulled back in recent weeks, but weaker feed costs and elevated beef incomes should continue to support farm margins.

“That combined with an aim to fill new capacity and weaker year-to-year comparisons in California should keep milk output expanding through yearend,” she says.

Milk production in the 24 major states during July reached 18.8 billion pounds, marking a 3.5% hike from July 2024. This comes after June’s revised production of 18.5 billion pounds, up 3.4% from the previous year. Though seemingly small, the June revision adds up to an increase of 5 million pounds or less than 0.1% over the initial estimates. When you look at production per cow, the average in the major states was 2,081 lb. for July, a 36-lb. improvement over last year.

Future Outlook
Nationally, the U.S. reported a total milk production of 19.6 billion pounds in July, reflecting the consistent 3.4% increase from July 2024. Cows in the U.S. averaged 2,063 lb. each for the month, up by 34 lb. compared to last year. The U.S. cow herd expanded by 159,000 head year-over-year, supporting this increase.

Plourd says the scenario spells a lot of cow power and decent milk production growth over the next several months is likely to unfold.

This snapshot from USDA underscores the dynamic nature of the dairy industry and the factors driving growth in different regions. Stakeholders in the dairy industry share the enthusiasm for the growing cow numbers and milk production capacity. This robust trend of growth in the dairy sector is driving economic benefits across multiple states, with continuous improvements in cow management and production strategies as key drivers. The influx of processor investments (some 8 billion plus dollars) across the U.S. countryside underscores the high demand for this increased milk supply.

Surge in Exports
The dairy sector is not only thriving domestically but also on the international front. June dairy exports also witnessed a big surge with year-over-year milk solids equivalent volume up by 15%, elevating total U.S. dairy exports by 1.2% on a year-to-date basis. The surge in exports has also been mirrored in export value, which increased by 15% to reach $4.72 billion, underscoring the strong international demand for U.S. dairy products.

Monica Ganley, senior director of global trade analysis with the U.S. Dairy Export Council, attributes the uptick to improved U.S. milk production alongside tepid domestic demand, which has kept U.S. product prices affordable for global buyers. In particular, cheese has stood out, with international markets showing a voracious appetite for U.S. offerings.

“This combination has resulted in plentiful supply as well as very competitive prices for U.S. products compared to other international suppliers. In some cases, especially cheese, international demand has also been robust, which has further helped to drive export sales to a record high in June in the case of cheese,” she says.

The USDA’s report paints a positive picture of the dairy industry’s growth trajectory, highlighting the factors fueling its expansion. From increasing herd sizes to robust export growth, the industry is poised for continued success, backed by effective production strategies and substantial investments across the U.S. countryside.

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Dairy Farmers of America Newest Acquisition is Revolutionizing Hispanic Cheese Production

Mon, 04 Aug 2025 17:03:48 GMT

In a move that underscores its commitment to innovation and growth within the cheese industry, Dairy Farmers of America (DFA), a farmer-owned global dairy cooperative, has just announced the acquisition of W&W Dairy in Monroe, Wis. This acquisition encompasses the W&W Dairy business, its licensed brands and a state-of-the-art manufacturing facility dedicated to producing an array of traditional Hispanic cheese products including queso fresco, cotija, queso blanco, quesadilla, panela and para freir.

Strategic Growth in the Hispanic Cheese Market
Ken Orf, president of the cheese, taste, and flavors division at DFA, highlights the significant growth potential within the Hispanic cheese market.

“The growth trajectory for the Hispanic cheese market is more than three times that of the cheese category,” he says. “This strategic acquisition adds a second plant in our network focused solely on producing Hispanic cheese, moving DFA into a stronger position for growth with this important dairy category for both our owned brands and our customers’ brands.”

The Monroe facility joins DFA’s existing plant in Houston, Texas, home to the respected La Vaquita brand, renowned for its premium Hispanic cheeses, cremas and drinkable yogurts. With the addition of Monroe, DFA can now create operational synergies that enhance product diversity and market reach. Despite the change in ownership, daily operations at the Monroe facility will remain uninterrupted, with current management staying in place and employment opportunities extended to its 97 employees.

Expanding Cheese Capabilities
Earlier this year, DFA expanded its capabilities with the acquisition of Winona Foods’ Lineville facility in Green Bay, Wis. This plant expands DFA’s product offerings to include processed cheese products, cheese sauces, cheese spreads and non-dairy sauces and condiments. According to Orf, these strategic investments not only bring value to their farmer-owners but also drive new innovation in the cheese category, keeping DFA ahead of evolving consumer tastes and market trends.

With these acquisitions, Dairy Farmers of America continues to demonstrate its dedication to enhancing its cheese capabilities across diverse consumer segments. DFA’s forward-thinking approach will undoubtedly strengthen its market position, enabling the cooperative to deliver greater value to its farmer-owners while meeting the ever-changing preferences of consumers.

Through these strategic moves, DFA exemplifies the innovative spirit and commitment to growth that defines its approach to the dairy industry, positioning itself as a leader in both traditional and emerging cheese markets.

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Boost in U.S. Milk Production: The Reasons Behind June’s Impressive Surge

Wed, 23 Jul 2025 13:38:48 GMT

Milk production in the 24 major U.S. states reached an impressive total of 18.5 billion pounds in June, marking a 3.4% increase compared to a year ago. This upward trend is not an isolated incident; May’s figures also showed significant growth with a revised production of 19.3 billion pounds, reflecting a 2.4% increase from the previous year. This revision indicates an upward adjustment of 136 million pounds, approximately 0.7%, from the preliminary estimates.

For June, production per cow averaged 2,045 pounds, a notable rise from the previous year, adding 33 pounds of milk per cow.

Although Phil Plourd, president of Ever.Ag Insights says that they expected to see comparatively strong performance in June, given weak comps from 2024 (-1.7%) and anecdotal reports of solid output in California.

“But +3.3% counts as a surprise,” he says. “At the same time, generally speaking, producers have been seeing decent margins and new capacity means plenty of interest in additional milk supply.”

A Growing Herd
This boost isn’t just in output per cow; the number of milk cows has also seen a rise. June reports show 9.03 million head of milk cows in the leading states, an increase of 146,000 compared to June 2024, and a slight rise from May 2025 by 3,000 head. The 50-state cow number growth totaled an increase of 146,000 head.

“The big deal for the months ahead is that we have a lot of cow power, with the milking herd up by 146,000 head year-over-year,” he says. “That means we will almost certainly have decent milk production growth over the next several months.”

Plourd notes that California’s year-over-year growth can be attributed to HPAI being in the rearview mirror, weak performance last year (-2.1%) and great weather this June all led to a “robust performance.”

State Leading the Way
Leading the last quarter’s growth were Kansas, South Dakota and Idaho, with significant year-over-year increases of 19%, 11.5% and 9.7%, respectively. These states exemplify the effectiveness of target-driven strategies in agricultural management and foresight in adopting advanced farming techniques.

Tom Peterson, executive director of South Dakota Dairy Producers, expressed his excitement over the rapid expansion of the state’s dairy industry.

“In the early 2000s, cow numbers in this state were fewer than 80,000 head,” he says. Much of that growth has taken place in the last five years, all with 150 permitted class A farms.

Rick Naerebout, CEO of Idaho Dairymen’s Association, Inc., notes that Idaho is up 5% if you average the data going back to Q4 of 2024.

“This report is looking at an increase over a bird flu month from last year,” he says. “Five percent is still a big number, and that is being driven by a temporary lifting of base programs (those all seem to be going back into place) and good economics. It doesn’t take much to encourage our dairymen to turn on milk.”

Stakeholders in the dairy industry share the enthusiasm for the growing cow numbers and milk production capacity. This robust trend of growth in the dairy sector is driving economic benefits across multiple states, with continuous improvements in cow management and production strategies as key drivers. The influx of processor investments (some 8 billion plus dollars) across the U.S. countryside underscores the high demand for this increased milk supply.

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A Surge in U.S. Milk Production: Insights to What States Stood Out

Fri, 20 Jun 2025 20:50:19 GMT

The landscape of U.S. milk production is experiencing dynamic changes and developments, as highlighted in the May 2025 USDA Milk Production report. This report reveals cow numbers have increased by 5,000 head from last month and by 20,000 compared to the last report — marking the largest herd size since 2021. This growth is largely attributed to light culling rates.

Driving Factors for Herd Growth
Katie Burgess with Ever.Ag highlights two primary reasons for this upward trend in cow numbers:

Replacement heifers have become very expensive, altering the breakeven point for replacing an animal.
The high value of beef-on-dairy calves makes it financially worthwhile to retain cows for their calf-bearing potential.

Notable Regional Performances
According to the report, there was a 1.6% year-over-year increase in U.S. milk production for May, which Burgess says aligns with industry expectations.

California: Milk production in California fell short of expectations, experiencing a decrease of 1.8%. Despite an increase of 2,000 in cow numbers from the previous year, the lower-than-expected milk-per-cow production is attributed, presumably, to lingering impacts of HPAI (Highly Pathogenic Avian Influenza).

Kansas: Kansas showed a remarkable milk production output increase of 15.7% in May, with April’s data also revised higher at 15.5%.

Texas and South Dakota: Both states demonstrated significant positive gains in milk production, with increases of 8.9% and 9.5% respectively.

Industry Expansion in Processing Capacity
The dairy industry’s expansion is further underscored by significant developments in processing capacity:

In March, Hilmar Cheese Company marked the official opening of its new cheese and whey processing facility located in Dodge City, Kan.
Bel Brands announced an increase in its production capacity in Brookings, S.D., with a substantial 100,000-square-foot addition to its plant.
New facilities like the Leprino Foods plant in Lubbock, Texas, and a Walmart plant in central Texas are coming online.

Michael Dykes, CEO of International Dairy Foods Association, highlights how producers and processors have a similar goal in mind.

“Our farmers want to grow and so do our processors. If we aren’t growing — if we aren’t looking toward the future — we’re going to get surpassed by others,” he says.

These developments are part of a projected $9 billion plus expansion in U.S. milk processing, highlighting a promising and dynamic future for the industry.

“The US dairy industry has reached the spring flush at a higher than expected level of 19.1 billion pounds. It’s now up to demand to pull milk prices higher through the summer,” Dan Basse, president of AgResources Company says.

The May 2025 USDA Milk Production report reflects significant growth and expansion in the U.S. dairy sector, driven by strategic management of herd sizes and processing capabilities. As the industry continues to evolve, these trends point toward a robust and sustainable future for U.S. milk production.

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Multiple DFA Manufacturing Plants Experienced Ransomware Attack

Wed, 18 Jun 2025 16:27:40 GMT

In recent news, Dairy Farmers of America (DFA), the largest dairy cooperative in the U.S., revealed that multiple manufacturing plants within their network experienced a ransomware attack.

“We immediately contained the threat and were swiftly able to get impacted facilities operational to continue receiving and processing milk,” DFA shared in a statement to Dairy Herd Management. “We are working diligently with our IT professionals and cybersecurity experts toward full recovery as quickly and safely as possible.”

The Growing Role of Technology in Farming
With the integration of digital technologies in dairy farming, cybersecurity has become an increasingly crucial aspect of farm management. Modern dairy farms now use interconnected systems to perform tasks such as milking, feeding and monitoring animal health. The same can be said with dairy companies of all sizes, shapes and purposes. These technological advancements to dairies and companies also increase the sector’s vulnerability to cyberattacks.

The Threat of Ransomware
Ransomware attacks, like the one experienced by DFA, pose significant threats to farm operations. These attacks can disrupt activities that are critical for animal welfare and can lead to operational downtime and substantial financial losses. Ransomware locks organizations out of their systems or encrypts crucial data, demanding payment for access. Such attacks have the potential to devastate farm operations, highlighting the urgent need for robust cybersecurity measures.

Preparing for the Future
To safeguard against these threats, implementing comprehensive cybersecurity strategies is essential for dairy farms. Without proper protection, farms risk data breaches, financial theft and catastrophic operational disruptions. It is crucial for farms to regularly update their security protocols, train staff to recognize threats and invest in advanced cybersecurity solutions.

As farms become increasingly dependent on digital technology, safeguarding these systems becomes paramount. The recent incident with DFA serves as a stark reminder of the existing vulnerabilities and the critical nature of being prepared. The need for cybersecurity in agriculture is more pressing than ever. Dairy farms must remain vigilant, proactive and ready to face the challenges that accompany the digital transformation of the industry.

The integration of technology in dairy farming promises increased efficiency and productivity, yet it also requires a steadfast commitment to cybersecurity. By learning from incidents like DFA’s recent ransomware attack, farms can better prepare and protect themselves, ensuring a safer and more resilient future for the industry.

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Celebrate with a Scoop! Tillamook's New Facility Brings More Flavor to Illinois

Thu, 05 Jun 2025 15:18:15 GMT

Tillamook Ice Cream, the fastest-growing family-size ice cream brand in the United States, celebrates a significant milestone with the launch of their new manufacturing facility in Decatur, Ill. This marks Tillamook County Creamery Association’s (TCCA) first owned-and-operated site outside of Oregon, underscoring their ambitious national expansion endeavors.

(Provided by Tillamook)

Strategic Growth and Expansion
David Booth, president and CEO of TCCA, expressed excitement about this development, highlighting the strategic benefits Decatur offers with its accessibility to the expanding consumer base. As of 2024, Tillamook’s reach has grown astonishingly with over 1 million new consumers — including 600,000 from the Eastern United States — and contributing to a remarkable 13% increase in dollar sales in just one year.

“This is an exciting step forward for our co-op, and we are energized by the new opportunities the Decatur manufacturing plant opens for TCCA,” Booth said. “Decatur offers strategic access to our growing customer and consumer base, and we hope this new production facility will help enable Tillamook to become the ice cream of choice for consumers in the Eastern United States.”

The $65 million remodeled Decatur facility, which is now operational, is a testament to TCCA’s commitment to growth. With projections to produce 15.5 million gallons of ice cream, the plant is poised to enhance production capacity and drive supply chain efficiency. The facility has already generated 50 jobs locally, with plans for workforce expansion as production scales up.

“The Decatur plant is well-equipped to serve our valued customers with increased production capacity, while driving supply chain efficiency from the plant to a growing footprint of national and regional retail outlets,” Mike Bever, executive vice president and chief supply chain officer of TCCA said.

(Provided by Tillamook)

Building Tomorrow, Today
Julie Moore Wolfe, mayor of Decatur, welcomed Tillamook’s presence as a valuable addition to the city’s business landscape, reflecting shared values and goals. The collaboration with the community is paving the way for a revitalized economic environment, transforming previously vacant spaces into thriving centers of innovation and growth.

“The jobs being created and the co-op’s early community support reflect the strong alignment between TCCA and our city’s values. We look forward to continuing to work together as TCCA becomes an integral part of our thriving business community,” she said.

In alignment with the co-op’s commitment to community enrichment, TCCA is actively engaging with the Decatur community through local philanthropy with recent commitments, including a $25K donation that was matched by JP Cullen – the general contractor on the TCCA plant project – to deliver a total of $50K to support local Decatur initiatives. This includes:

$20,000 to the Decatur Park District to sponsor local youth recreation and community events like the Ice Cream Safari at the Scovill Zoo and Trees on the Tees
$20,000 to support the food security efforts of the Good Samaritan Inn. The non-profit organization is expanding its urban food garden from 1 acre to 5 acres in 2025 to further bring fresh produce to those in need.
$5,000 to the Northeast Community Fund to support their food security efforts and sponsor their upcoming Farm to Fund event.
$5,000 to the Macon County Fair to support the livestock and open class shows.

(Provided by Tillamook)

“Decatur isn’t just where we are making more ice cream — it’s where we’re building new community partnerships, supporting revitalization and laying the groundwork for future growth,” Booth stated.

While ice cream remains a central focus, with ambitious production goals at the Decatur plant, Tillamook’s influence extends to being the fastest-growing cheese and cream cheese brand nationwide. Officials say the plant is initially set to produce 19 flavors of Tillamook Ice Cream but will expand to 32 flavors at full capacity. In 2024, their products have reached one in four American households, showcasing Tillamook’s breadth and potential. For more insights into TCCA and their product lines, visit www.tillamook.com.

(Provided by Tillamook)

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Unlock The Creamy Future: Surplus Dairy Like Never Before

Tue, 03 Jun 2025 12:48:56 GMT

The U.S. dairy market is going through significant transformations, with emerging trends beginning to surface, according to Terrain dairy analyst Ben Laine. At the heart of these changes is the elevated fat content in U.S. farm milk, which has surpassed the requirements for cheese manufacturing and led to an oversupplied cream market.

Understanding the Surplus: Fat vs. Protein
Recent years have seen a steady climb in the fat content at the farm level due to advancements in cattle genetics and nutrition. While this has improved the quality of milk, it has also resulted in leftover cream that exceeds demand, driving down cream multiples. Particularly in the Western U.S., this surplus has led to reduced prices, reflecting the abundant availability of cream early in the year.

Laine explains on the production level, farmers are achieving higher fat milk outputs, which, when sent to cheese plants, results in surplus cream that must be redirected elsewhere. Cream multiples, a pricing factor relative to butter, have reached historical lows not seen since the 2020 pandemic disruption.

The Role of Butter and its Market Dynamics
Butter has traditionally acted as a buffer, capable of being stored for later use, especially during peak holiday demands. However, the current environment of plentiful cream is pushing down prices, even as butter churns exploit the availability of cheap cream. This scenario raises concerns about whether the cream surplus could transform into a butter surplus, potentially limiting the price escalation we have witnessed in previous years.

Nevertheless, strong butter exports are mitigating these potential downsides. Despite the ongoing surplus, international demand remains robust, cushioning the market from a dramatic downturn in butter prices. Still, the high fat values that have been driving market incentives are unlikely to diminish rapidly.

“So far, we’ve lucked out in the fact that we’ve seen really strong butter exports,” Laine says.

Exports: A Beacon of Opportunity
In fact, amidst domestic challenges, the U.S. dairy export volume — measured in milk solids equivalent (MSE) — grew by 3% in March. This marks the highest monthly export volume since February 2023. The year-on-year surge in butter exports is noteworthy, with March seeing a 171% increase, particularly supported by rising exports to Canada, Saudi Arabia and South Korea.

Mexico also marked a significant increase on the Anhydrous Milk Fat (AMF) side, with exports growing exponentially. These figures reflect a favorable competitive pricing landscape for U.S. butter internationally. If domestic surplus persists, the market may increasingly pivot toward enhancing export programs to manage excess butter and cream — despite the traditional challenges associated with exporting U.S. butter due to international standards.

“You might see a shift in the focus on fat versus protein, however, I think we’re going to still see high component levels at the farm,” Laine shares. “There’s still really strong demand overall for dairy fat. I don’t think that’s changing. I think there’s going to be a little bit of a reshuffling as we manage the surplus cream.”

This ongoing reshuffling in the U.S. dairy market suggests a need to find sustainable solutions for managing surplus cream. While it remains uncertain exactly how these surpluses will be absorbed, continued strong export performance provides a silver lining. The industry may increasingly focus on international markets to maintain a balance, especially as traditional domestic outlets adjust to the evolving supply conditions.

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South Dakota's Continued Dairy Boom: Bel Brands USA Expands Brookings Facility

Wed, 28 May 2025 14:52:50 GMT

South Dakota’s dairy industry is experiencing significant growth, with Bel Brands USA helping lead the charge through a major expansion of its Brookings facility. The development underscores South Dakota’s status as one of the fastest-growing dairy states in the U.S.

Bel Brands is set to double its production capacity with a 100,000-square-foot addition at its plant. This expansion is not just about boosting output; it also promises job creation and increased demand for dairy farming. Jacob Anderson, plant director, says the expansion will require about 650,000 pounds of additional milk daily, with the hiring of 160 new employees for the Brookings workforce anticipated.

The Governor’s Office of Economic Development is supporting the project with a $2.57 million grant. This ties into broader state initiatives focused on spurring rural job creation and enhancing value-added agriculture.

A Leader in Dairy Growth

South Dakota has seen its dairy cow population more than double over the past decade, marking a 117% increase, according to the USDA. Tom Peterson, executive director for the South Dakota Dairy Producers, says the growth is a result of strategic planning and collaboration among stakeholders. The surge is closely tied to the expansion of processing facilities, fueling increased demand for dairy cows.

In the last five years alone the number of dairy cows has surged by 88,000, or 69%, positioning South Dakota as a national leader in dairy cow inventory growth.

“Leaders and stakeholders came together to develop a plan not only to ensure dairy survived in South Dakota, but with aspirations of creating a dairy destination for the state,” Peterson says.

In economic terms, South Dakota’s dairy industry generates $1.1 billion in wages and contributes significantly to both federal and state tax revenues. The sector supports 15,000 jobs, underscoring its integral role in the state’s economy.

Driving Factors and Future Outlook

Phil Plourd, president of Ever.Ag Insights, credits South Dakota’s growth to its favorable agricultural conditions, including access to water and feed. The state offers a business-friendly environment conducive to farming success.

“All things considered, it’s an easy place to do business with a lot of people that have ‘win-win’ attitudes,” he says. “That bodes well for future investment. Thinking about the future in other places, it’s fair to wonder how things measure up in the ‘easy’ department. The regulatory and cost environment in California, for example, doesn’t seem favorable. States such as Wisconsin are somewhere in the middle.”

South Dakota Gov. Larry Rhoden says the Bel Brands expansion is emblematic of the type of development the state aims to support, with projects like these reinforcing agriculture’s key role in the state’s economy and promising continued prosperity in the dairy industry.

As construction begins on Bel Brands’ expansion, and as milk demand rises, the investment marks both a milestone in strategic planning and a catalyst for continued growth. While the recent rapid growth may soon stabilize, optimism persists within South Dakota’s dairy industry. As Peterson says the industry expects “solid, balanced growth into the future.”

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Financial Squeeze: How Darigold's Decision Will Impact Milk Prices

Tue, 20 May 2025 12:45:37 GMT

In the world of dairy production, fluctuations in milk prices are all too common, yet when paired with sudden financial deductions, the impact can be overwhelming. Recently, dairy producers in the Northwest have been caught off guard by unexpected deductions from their processor, Darigold. This Seattle-based cooperative recently announced significant financial adjustments, leaving its member farmers grappling with uncertainty and seeking solutions.

Announcement and Implications
Darigold, with approximately 250 member farms distributed across Washington, Oregon, Idaho and Montana, has declared a substantial deduction of $4 per hundredweight. This cost will be felt by all its members throughout the remainder of the year. Of this deduction, $2.50 is specifically allocated for the construction of a new plant in Pasco, Wash., while the rest aims to offset operating losses. This announcement has spurred a wave of concern among farmers already striving to maintain their livelihoods.

Firsthand Impact on Farmers
For farmers like Krista Stauffer, whose family milks 100 cows and has been supplying milk to Darigold since 2009, these adjustments present a formidable challenge. With an initial deduction of $1.50/cwt., Stauffer shares financial viability was already marginal.

“The $4.00 deduct, combined with all the other standard deductions, has made it impossible for us to cash flow,” she says. “Farmers were informed via a mailed notice dated April 18, with the deductions set to initiate with the April milk checks, leaving little time for strategic planning.”

Stauffer underscores the significance of diversifying farm operations, a path her family has ventured down by establishing an on-farm creamery, although this endeavor faces its own set of obstacles due to restrictions on processing Class I products.

“We started building our on-farm creamery in the summer of 2024 with the intent of making products on the side while supplying the bulk of our milk to Darigold, like other farms are currently doing. We launched our first products in March 2025,” she shares.

Strained Relationships
Despite longstanding dedication and effort toward Darigold, many farmers feel frustrated. Stauffer recounts having been told, “If you want to do your own thing, just leave.”

“We have spent 16 years with this cooperative through the highs and lows. We have paid all the retains along the way and have quite a bit of equity sitting there — with the likelihood of being paid back slim to none. Maybe our kids will see it in the future.”

Fourth-generation dairy farmer Jason Sheehan runs J&K Dairy — a 3,000-cow dairy in eastern Wash., — and also ships to Darigold. He believes there is a bright future ahead for his operation.

“It’s going to be a rough road to get there for the next year or so,” he says. “We are hurting right now. When milk price is down, coupled with these deducts, it starts to sting.”

Sheehan shares this Darigold situation makes it difficult to cash flow and with high cow values right now, some producers are opting to sell out.

“Especially when you have an uncertain future,” he adds.

The issues facing Darigold are not isolated and represent a microcosm of broader challenges within the dairy industry in Washington State. Since 2009, over half of the state’s dairy farms have ceased operations.

Ben Laine, dairy analyst with Terrain, says one of the primary benefits of being part of a cooperative is access to collective processing assets. This advantage allows co-op members to balance supply internally, which is invaluable in maintaining stable operations and ensuring production remains consistent.

However, this very advantage can also pose significant challenges.

“When a co-op needs to make critical investments, whether it be in technology or infrastructure, the funding must come from the same pool of producers within the cooperative. This can sometimes create tension, particularly in years where margins are tight, and producers face financial difficulties,” he says.

Long-term Benefits vs. Immediate Hardships
For cooperatives, the decision to invest in processing plants like butter and powder facilities is no small feat. Long-term, these investments often prove worthwhile to help balance supply and enhance cooperative capabilities.

“Yet, it’s important to acknowledge the short-term hardships. Investment decisions can be incredibly challenging for farmers during tight years. When the farm level economy is strained, proposing additional contributions for expansions or upgrades can be met with understandable resistance from those within the cooperative,” Laine says. “At the same time, when you do need to make investments, it can be tough, because it does need to come out of that same pool of producers. It’s always a challenge.”

Sheehan believes Darigold’s short term hurdles will become long term benefits for their patrons.

“We’re going from 11 plants, and we built the 12^th plant. Eventually you’ve got to get to a lower cost to keep up these plants. A lot of our plants have been high cost,” he says. “It’s like a dairy farmer who expands by buying smaller dairies. Eventually, at some point in time, you can’t run a bunch of double six parlors. You’ve got to consolidate and build a facility. That’s kind of what Darigold chose to do.”

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Brenda Dehart Named New President and CEO of Foremost Farms USA

Tue, 06 May 2025 20:46:38 GMT

Foremost Farms USA has announced a leadership change. Brenda Dehart, who has been serving as the cooperative’s Chief Financial Officer, has been appointed as the new President and CEO, effective immediately. Dehart will continue her role on the executive leadership team, marking a new chapter for the cooperative as it capitalizes on recent successes.

Leadership Transition
The board of directors and the executive leadership team express strong confidence in Dehart’s capabilities and strategic vision. This transition follows the recent departure of former CEO Greg Schlafer, who is now the CEO of Hilmar Cheese.

“The board of directors is proud to name Brenda as our next CEO. Brenda brings an authentic passion for delivering maximum value to our farmer-members,” Joel Eigenbrood, chairman of the board says.

Career and Contributions
Since joining Foremost Farms in February 2024, Dehart has been a pivotal figure within the organization. Her focus on financial transparency and long-term growth strategies has already yielded significant benefits for the cooperative’s member farms. Before her tenure at Foremost, she served as CFO at Edlong and held various leadership roles in finance, operations and quality at Sensient Technologies and Kerry Inc.

Dehart hails from a rural Illinois background with deep roots in dairy farming, which aligns with the cooperative’s values and mission. Alongside her professional achievements, she brings substantial expertise from her academic background, holding an MBA from the University of Phoenix and a bachelor’s degree in finance from Concordia University Wisconsin. She also contributes her leadership to the board of directors of Female Strong Chicago.

Expressing her excitement for her new role, Dehart says, “I am deeply honored to lead this incredible organization. Foremost Farms has a proud heritage and a promising future, and I look forward to working side by side with our employees, members and partners to create long-term value across the entire value chain.”

With Dehart at the helm, Foremost Farms USA looks forward to building on its current momentum and continuing to deliver value to its members and partners. The cooperative anticipates strong cross-functional collaboration and results-oriented leadership to navigate and thrive in the evolving agricultural industry.

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California Dairies, Inc. Opens Valley Natural Beverages Plant

Fri, 02 May 2025 12:55:30 GMT

California Dairies, Inc. (CDI), the largest dairy farmer-owned cooperative in the state, recently marked a significant milestone with the grand opening of its newest venture, Valley Natural Beverages (VNB), located in Bakersfield, Calif. This state-of-the-art manufacturing plant represents a bold step forward in dairy innovation and sustainability.

A Transformational Investment in Innovation
The new 200,000-sq.-ft. greenfield facility epitomizes a transformational investment by CDI’s member-owners. It’s a testament to their commitment to shaping the future of the dairy industry and meeting the increasing demand for innovative fluid milk products both domestically and globally. Designed for vertical integration, VNB is set to process approximately 116,000 gal. of local milk, underlining the commitment to leveraging California’s rich dairy farming tradition.

During the ribbon-cutting ceremony, notable figures such as California Lieutenant Governor Eleni Kounalakis and California Secretary of Agriculture Karen Ross were in attendance. Joined by Kern County Supervisor David Couch, local officials, community leaders, and CDI executives, the event highlighted the significance of this new plant.

“We are thrilled to officially open this cutting-edge facility,” says Brad Anderson, president and CEO of CDI. “This investment underscores our commitment to innovation and sustainability. The new plant will allow us to increase production capacity, expand our product offerings, improve efficiency, and create next-generation jobs for the local community.”

Future Expansion Plans
The VNB facility showcases advanced robotics and energy-efficient technologies, all aligned with an environmental sustainability ethos that includes renewable energy sources and waste conservation. Initially, three processing lines will produce conventional extended shelf life (ESL) and ultra-high temperature (UHT) dairy beverages. Future expansion plans aim to increase this to 10 to 12 processing lines, tripling the plant’s capacity to 400,000 sq. ft. and processing up to 600,000 gal. of fresh milk daily.

“This facility is a testament to the innovation and resilience of California’s dairy farmers. It represents a bold investment in the future of agriculture — one that supports sustainability, strengthens our rural economy, and showcases California’s leadership in dairy,” says Lieutenant Governor Eleni Kounalakis.

Peter Ernster, senior vice president of ingredients and fluid products, emphasizes the facility’s role in catering to market demand.

“Value-added dairy products like ESL and UHT are popular options in today’s changing marketplace,” he says. “This facility allows us to meet that demand with innovative products.”

Investing in the Future Workforce
CDI has created 90 full-time positions at the VNB facility, offering competitive market compensation and benefits, contributing to the proliferation of next-generation Industry 4.0 jobs. These efforts highlight CDI’s commitment to not only advancing the dairy industry but also to fostering economic growth and sustainability within the local community.

As the largest member-owned milk marketing and processing cooperative in California, CDI, co-owned by nearly 300 dairy producers, annually produces 17 billion pounds of Real California Milk. With renowned brands such as Challenge and Danish Creamery, California Dairies’ commitment to quality butter, milk products and milk powders remains globally recognized.

In essence, the inauguration of Valley Natural Beverages marks a significant leap forward in both the technological domain and sustainable practices within the dairy industry, reaffirming California Dairies, Inc.'s leadership and dedication to a future-oriented agricultural landscape.

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Feel the Power of Amarillo’s Milk Boom Where Over 1,100 Loads Leave Daily

Thu, 17 Apr 2025 14:01:36 GMT

In the heart of the U.S., a dairy revolution is thriving. The ongoing migration of dairies to the midsection of the country represents both a challenge and an opportunity for the industry. Gregg Doud, president and CEO of National Milk Producers Federation (NMPF), highlights the logistical hurdles faced by dairies out west, where the railroads complicate commodity transportation. Despite these obstacles, the midsection — particularly around Amarillo, Texas — is experiencing a surge.

“If you draw a 300-mile radius around Amarillo, Texas, today, that’s 1,100 semi loads of milk a day,” Doud explained at the 2025 Western Dairy Management Conference in Reno, Nev., further projecting it’s likely closer to 1,500 loads.

Cultivating New Opportunities
Producers are not just focused on dairy — they’re strategically expanding into forage production across southwest Kansas, western Nebraska, and the Texas Panhandle. As Doud notes, “They need to grow more forages and import the corn from nearby states.”

This approach not only fortifies the local economy, but also sets the stage for broader livestock industry expansion in these regions. The future of the dairy industry is being seeded today, with an eye on increased production and sustainability.

“That’s where I see the future of the dairy industry lies,” he says.

Investing in Infrastructure
Michael Dykes, the president and CEO of the International Dairy Foods Association (IDFA), shares an optimistic perspective on the industry’s trajectory, fueled by an $8 billion-plus investment in processing infrastructure. He emphasizes not only the nutritional value of dairy products, but also the adaptability and ingenuity of American dairy farmers.

“Never underestimate the American dairy farmer,” Dykes insists. “If there’s a call for milk, dairy farmers will have milk.”

Challenges and Global Perspectives
Doud sheds light on China’s faltering economy and decreasing dairy demand. Just five years ago, half of New Zealand’s dairy products were funneled to China, but due to sluggish economic growth and a drop in disposable income, this is no longer the case.

“Per capita consumption in China is not really real,” he observes, marking this trend as a potential concern for global dairy demand.

The Economic Sphere of Dairy
Within domestic borders, the dairy industry is redefining its economic potential.

“Dairy’s time is now,” Doud states.

Beyond the milk check, the industry is discovering innovative revenue streams. Particularly noteworthy is the value represented by beef-on-dairy calves: $800 to $900 for a day-old black calf.

“What an enormous value that is,” Doud notes, highlighting the dynamic nature and economic possibilities accessible to today’s dairy farmers.

The U.S. dairy industry stands at a crossroads, bolstered by strategic investments and resilient farming practices. As global challenges persist, the heart of the industry continues to beat strongly, driven by innovation and a steadfast belief in the potential of American farmers. As we look to the future, the adaptability and vision of the dairy sector highlight not just a story of survival, but one of thriving against the odds.

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Chobani's Bold Expansion: A $500 Million Commitment to Twin Falls, Idaho

Fri, 21 Mar 2025 13:50:24 GMT

Earlier this week, Chobani made headlines by unveiling plans for a significant expansion of their Twin Falls, Idaho plant, already heralded as the world’s largest yogurt factory. This ambitious project involves a $500 million investment designed to increase production by 50% and add over 500,000 square feet to the facility. More than just a physical expansion, this move is deeply tied to Chobani’s mission: “to bring good food to more people.”

Building on Strong Foundations
Reflecting on their journey, the company expressed on social media platforms like LinkedIn, “Back in 2012, we didn’t just open a manufacturing plant; we set down roots to build something incredible. This news isn’t just about adding space, it’s about deepening our commitment to the people of The Magic Valley.”

Since its inception in 2012, the Twin Falls Chobani plant has played a pivotal role in the yogurt industry, leaving its mark on store shelves both nationally and internationally while providing over a thousand jobs to the community in the Magic Valley.

The Impact of Leadership
Idaho Governor Brad Little noted the company’s intuitive understanding of consumer needs.

“He (Hamdi Ulukaya) knows what the American consumer, what the world consumers, wants. That’s what he is producing here,” he says.

Hamdi Ulukaya, CEO of Chobani, adds, “This dream has been successful, it worked. It provided what we said it would, making the most delicious natural food that is accessible not only in Idaho but across the country, and people can’t get enough of Chobani.”

The Expansion Details
Chobani’s upcoming expansion will not only aim to increase production but also significantly boost their usage of local resources.

“At this space, there is going to be warehouses, we need more warehouses. On the other side, it will be more production capabilities,” Ulukaya explained. “Basically, we’re going to double our milk usage and then we’re going to be tripling it. Right now, we’re getting about four million pounds of milk a day, this will get us to over 10 million pounds per day.”

A Partnership That Works
Twin Falls Mayor Ruth Peirce celebrated the expansion as a testament to a longstanding partnership between Chobani and the city.

“We’re very excited, and we have a great partnership between the city of Twin Falls, the Urban Renewal Agency, and Chobani, and this big expansion is a result of hard work from all three organizations,” she said in a statement.

Looking Ahead
Construction work on the Twin Falls expansion has already commenced and is slated for completion within a year, signaling a new era of growth and opportunity for everyone involved. As Chobani continues to expand, their commitment to quality, community, and sustainability remains unwavering.

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Navigating the Shifting Tides of the Dairy Market: What 2025 Holds for Milk Prices

Wed, 19 Mar 2025 14:36:28 GMT

The U.S. dairy market is experiencing dynamic changes, influenced by various factors ranging from international trade relations to evolving consumer behaviors. Recently, Katie Burgess, the dairy market advising director with Ever.Ag, offered an in-depth examination of these ongoing developments at the Oregon Dairy Farmers Convention in Salem, Ore. Her insights shed light on the potential trajectories for the dairy industry in 2025.

The Importance of Exports for the U.S. Dairy Market
A key takeaway from Burgess’s presentation is the critical role exports play in the U.S. dairy market. In 2024, while exports started off slowly, they ultimately achieved record cheese export months, providing a crucial buffer for maintaining milk prices. Notably, cheese exports hit an all-time high last year, signaling growing global consumer interest in American dairy products—a trend particularly crucial as domestic production increases.

“This is really good news that consumers around the world are finding value in American dairy products, because as we grow here domestically, that’s going to be the key,” she said.

Impact of Tariffs on Trade Relations
The imposition of tariffs by the U.S. on countries like Canada, Mexico, and China has stirred significant repercussions, with these countries preparing retaliatory tariffs on American dairy products. This development poses a considerable risk, especially concerning Mexico, which accounted for nearly 40% of U.S. cheese exports in 2025. Burgess expressed concerns about a potential decline in export volumes to Mexico due to higher consumer costs there, although milk powder exports remain unaffected by Mexican tariffs, offering some reprieve.

“We do think that our export volumes to Mexico could be subject to pulling back a bit as they get more expensive from a Mexican consumer perspective,” she says.

Investment in Cheese Processing Capacity
Investment in the U.S. dairy industry is another critical factor at play. Significant expansions, such as the Leprino plant capable of processing 8 million pounds of products daily and the Valley Queen expansion in South Dakota, are set to elevate cheese production capacity further. Burgess points out the possible consequences of this growth, cautioning that the U.S. may face an abundance of cheese if exports do not keep pace. This situation could necessitate an increase in domestic cheese consumption, which typically grows by 1-2% annually.

“If we can’t get the cheese exported, and we’re making a lot of it, it means we’re going to need to eat a lot more cheese,” she says.

Consumer Behavior Trends in a Shifting Economy
Amidst these industry shifts, consumer behavior is also evolving. As food inflation impacts U.S. households, there is a noticeable trend towards reduced eating out, with more people opting for home-cooked meals. This shift, observed since 2024, persists into 2025 and drives increased grocery sales.

“It’s part of a continued trend that we saw across 2024 less foot traffic into food service. Grocery sales looked pretty solid as people rotated to eating at home. And this has really continued here into 2025, I think, with the uncertainty in the economy right now,” she says.

Predictions for Milk Production in 2025
Looking forward, milk production is forecasted to rise this year despite previous contractions in supply, partly due to factors like HPAI in key states like California. However, the dairy sector faces a unique challenge as the expected number of dairy heifers calving in 2025 reaches its lowest point in over 20 years. This production increase will likely vary across regions with new processing plant capacities.

“So even though our forecast shows milk production will grow this year, I think it’s going to be kind of a mixed story that we expect milk to grow in spots with new plant capacity,” she shares.

Risk Management Amidst Uncertainty
Given the pervasive uncertainties symbolizing the current economic climate, Burgess emphasizes the need for rigorous risk management strategies. Over the last decade, Class III prices often surpassed $19 per hundredweight, but at least once each year, market prices dipped below $16 per hundredweight. For many, a breakeven point higher than $16 necessitates protective measures to manage risks when prices fall. As Burgess aptly notes, “Hedging is not gambling. Hedging is when we take risk away.”

As we navigate the milk market’s changing dynamics in 2025, stakeholders must remain vigilant and proactive. Strategic investments, diversification of export markets, and effective risk management will be essential strategies to harness opportunities and mitigate challenges within this complex and evolving industry landscape.

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