Midwest Dairy Processing Needs, Trends, and changes

Abstract Text:

The general trend in the US dairy industry over the years has been that of consolidation and this has been reflected in the Midwest as well.  The total number of dairy farms in the US has dropped approximately 668% since 1980.  The whole-herd buyout program that began in 1985 to reduce milk supply in the country and improve prices resulted in a drop in cow numbers by approximately 1 million in just five years.  Subsequently, in the previous two decades there has been a general increase in the demand for milk products, presenting opportunities for the dairy industry.   While there have been definite differences in demand for specific products, the general trends reflect an increase. A recent study by Bliming and Associates, inc., “Path Forward” sponsored by the Midwest Dairy Association, has shown that the Midwest has the potential to capitalize on the growing domestic and global dairy demand opportunities.  According to this study the region’s existing land and water infrastructure, business climate, and capital resource availability are the key ingredients that will help support the anticipated dairy market growth of 15 percent by 2022. Much of this growth has already been occurring in some parts of the Midwest.  For example, in South Dakota after a decline in dairy farm numbers in the period following 1985 from 4,400 to 273 in 2013, and a record low of 79,000 cows in 2004, the cow numbers have increased to 107,000 and are expected to grow further in response to anticipated processing growth and demand for products.  In 2013 there were 8 cheese plants, which include two large cheese and whey processors, a drying facility and several others.  In response to the positive growth opportunities, a new $100 million cheese plant was built in the state in 2014.  Two existing cheese plants have also undergone substantial expansions in cheese and whey processing capabilities.  The state ranks 8^thin cheese production and accounts for approximately 24% of all cheese produced.  These plants collectively manufacture natural commodity cheeses that are exported outside of the Midwest and used as table cheeses or for further processing.  Other products such as dried whey ingredients, including lactose are also manufactured, largely for export.  To support this growing industry there is a strong need for dairy graduates.  Check-off funds sponsored Midwest Dairy Foods Research Center supports the processing industry through cutting edge dairy products research.

Keywords:

Dairy Processing, Midwest, Dairy Education and Research