November 7, 2000

U.S. dairy numbers fall

U.S. milk production is increasing while the number of dairy farms is decreasing, according to a report released by the American Farm Bureau Federation.

The report indicates there were 83,025 U.S. dairy herds in July, a decrease of 4,502 herds, or 5.1 percent, from last year, according to Ken Olson, AFBF's dairy policy specialist. The report shows Texas lost 134 dairy herds to register a 10.6 percent decrease.

Since 1992, AFBF, with the assistance of state Farm Bureaus and Extension personnel, has surveyed state dairy agencies to determine the number of farms selling milk in each state. Since the survey's first effort in 1992, the U.S. has lost 36.9 percent (48,510) of its dairy herds.

"This year's decrease of more than 4,500 dairy herds is a significant loss and has a major impact on the families involved, but is consistent with what has occurred over the last nine years," Olson said. "Given current milk prices, and projected prices over the coming months, it appears that financial stress will remain in the industry for some time. This is certain to force continued change, and change is likely to occur at an ever more rapid rate in the coming years.

"We see a dynamic, changing dairy industry across the United States that is adjusting to new technology, price volatility, environmental concerns and a variety of other issues. The herd losses that have occurred are certain to have ongoing impacts on the dairy infrastructure across the nation as it adjusts to the changing herd structure."

However, during the past year, the nation has seen a substantial increase in milk production, "with national increases of more than 3 percent virtually every month," Olson said.

While a few states have provided the bulk of the growth, every region has shown increased production. That production is a result of larger herd size and more production per cow.