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Dairy Trends and Implications to the Dairy Industry¹

Department of Agricultural Economics, University of Wisconsin, Madison 53706

ABSTRACT

Milk production in the United States has declined for live consecutive years, and this year production will be about 9% below the record 1964 output of 127 billion pounds. Only 12 states had increases in milk production in 1968, and 30 states had decreases. Eight had no change. And there is little prospect for substantial production increases in the foreseeable future.

What do these numbers mean? Is dairying on the decline and should dairy farmers around the country begin thinking of shifting to some other source of livelihood? If so, dairy plants would have increasing difficulty in getting milk: My answer is a categorical No. Dairying is a solid industry, and dairy farmers and dairy plant operators alike, with operations large enough to capitalize on economies of scale, and who apply themselves, will fare very well in the future. This is especially true in major dairy states, such as Wisconsin, Pennsylvania, Minnesota, New York, California.

¹ Paper based on talk given at Sixth Annual Marschall Invitational Italian Cheese Seminar, Madison, Wisconsin, April 30, 1969.