Milk Production Report Shows Geographical Shift

Milk production in Wisconsin during June 2024 totaled 2.73 billion pounds. That’s up 1 percent from the previous June according to the National Agricultural Statistics Service.

The average number of milk cows during June, at 1.27 million head, didn’t change from last month. But it’s up 3,000 from June 2023. Monthly production per cow averaged 2,145 pounds, up 15 pounds from last June.

While Wisconsin is America’s Dairyland, California has been producing more milk than Wisconsin since 1993. But California’s lead is slowly waning. In the past few years, Wisconsin has seen year-over-year gains in milk production. Meanwhile, California has seen year-over-year declines, explains Ever.Ag Risk Manager Katie Burgess.

“The cost of doing business, the cost of building a dairy in California, has gotten more and more expensive,” she says. “When we talk to our customers out in California… if they’re going to build another dairy… they’re not looking at reinvesting in California.

Milk production in the 24 major milk-producing states during June totaled 18 billion pounds, down 0.8 percent from June 2023. New Mexico saw the greatest loss year-over-year. Burgess says the Southwest part of the U.S. is seeing major dairy sellouts, primarily due to water availability.

“We’ve seen a lot of growth a while ago in Arizona, Texas, New Mexico… people could get lots of land for fairly cheap and put up a dairy,” she explains. “But now, the realization is that if you don’t have a lot of water to water those crops or keep those cows fed and with drink, it’s a spot where all of a sudden we’re seeing contraction.”

She adds that as those dairies come up for sale, it’s hard to find a buyer.

“People know that long term, New Mexico just isn’t a great spot,” Burgess says.

Meanwhile, the Midwest sees growth in milk production with South Dakota seeing the most growth year over year.

Production per cow in the 24 major milk-producing states averaged 2,025 pounds for June, 8 pounds below June 2023. The number of milk cows on farms was 8.89 million head, 37,000 head less than June 2023, but 2,000 head more than May 2024.