Colorado’s dairy industry should remain solid in 2023, thanks to increases in exports and the success of the dairy-to-beef breeding program.
A series of speakers at the Colorado Farm Show in Greeley spoke last week during “Dairy Day,” outlining the challenges ahead for the state’s growing dairy farms. According to the U.S. Farm Data Service, there are 303 dairies in Colorado. Logan County is the third largest dairying county in Colorado with 13 dairies following Weld with 78 and Morgan with 17.
While dairy consumption nationally is the highest in 60 years, demand for plain white milk continues its years-long decline.
Bill Keating of Dairy MAX told the audience overall dairy consumption was up more than 1% from 2019 to 2021, with the biggest increases seen in cheese, butter and yogurt. Keating said the average American consumes roughly 40 pounds of cheese a year in various forms.
On the other hand, demand for white milk is down as families grow smaller. According to the U.S. Department of Agriculture, white milk consumption has dropped by nearly half since 1970.
“Families are having fewer children, and deliveries to schools have reflected that,” Keating said. “At home, parents are looking for alternatives, like almond and soy products, or looking for other fluids altogether.”
The movement away from white milk may be driven partly be a new priority being placed on health and happiness, largely as a response to the COVID-19 pandemic.
“There’s a strong pursuit of happiness in reaction to the pandemic (and to) uncertainties and volatility in the world,” Keating said. “That translates into consumer action on their personal health and well-being.”
That trend reaches far beyond U.S. borders and is driving a growing global demand for dairy fats such as butter, cream, whole milk powder and anhydrous milk fat for a variety of consumer products.
Megan Sheets of the U.S. Dairy Export Council told the group taste is the No. 1 purchase driver of cheese globally, and different regions of the world prefer different flavors and textures. In Korea, for example, the preference is for milkier, creamier cheeses, while consumers in the Middle East look for sharper-flavored and slightly drier cheeses.
Sheets said the U.S. has roughly 25% of the global market share in dairy products, and 18% of U.S. mill production is going overseas.
Consumers are interested in more than just what they get from dairy; they also want to know about sustainability.
“There’s a growing global consensus that sustainability is important,” Sheets said. “That means environmentally, using renewable energy and maximizing recycling. There’s also strong interest in animal welfare on dairy farms.”
Brian Larson, vice president of American AgCredit, said the economic outlook for dairies is strong. He said the U.S. dairy herd is remaining stable at about 9.4 million head and reiterated that cheese remains one of the largest economic drivers in the industry. Larson said milk prices should average in the low $20 range per hundredweight, and while feed and alfalfa prices may rise some, they will soon level off.
The morning sessions were followed on Wednesday by a legislative update and on enhancing beef production from dairy herds.
