Scale Economies Provide Advantages to Large Dairy Farms Web4th nationally in milk produced per cow per year Bee Colonies, Honey Production and Value, 2003-2012 1 Year Bee Colonies Yield Per Colony Production Average Price Value Per Unit 2 1,000 Pounds 1,000 Pounds /Lb. We divided the data on cows per FTE into three groups: less than 41 cows per FTE, 41 to 50 cows per employee, and greater than 50 because farm numbers split well across those three ratios (Figure 1). This year-over-year decline in the number of dairy operations continues a long trend of dairy farmers deciding to sell the cows and close the barn doors. As a result, milk cows and production are increasingly moving to much larger dairy farms. January Milk Production up 1.2 Percent In 1934, 24.6 million milking cows on 5.2 million farms produced 10.7 billion gallons of milk. USDA USDA It means that farmers have learned how to take care of their cows better. USDAs Milk Production report showed that annual milk production in the United States in 2020 was 223 billion pounds, increasing just over 2% from the 218 billion pounds produced in 2019. Since the end of 2014, dairy farmers have struggled with low prices followed by an industry-disrupting pandemic that increased milk price volatility and rendered risk management tools mostly ineffective. January Milk Production up 1.2 Percent According to the report, there were approximately 9.4 million milk cows in the United States in 2022, down from about 9.45 million milk cows in 2021. There are many moving parts, many people doing important jobs, and many opportunities to assess labor priorities. May 08, 2020. Dairy Has Changed A separate milk production report published by NASS showed that 8.7 million cows in the top 23 milk producing states produced 202.5 billion pounds of milk or 23.5 billion gallons in 2017. NASS most recent monthly Milk Production report showed yet another decline in the number of licensed dairy operations in the U.S., and one of the largest year-over-year percentage declines registered since 2003, when the data was first collected. Farms with at least 1,000 head today account for most cows and This is the first time the nations dairy herd pushed past the 300-cow mark as average herd size grew by 20 head from the prior years 297 cows. Changes in the Size and Location of Dairy Farm Sizes In 1992, the nation had 9.7 million dairy cows. Dairy Dairy farm labor efficiency Thats 84 gallons a year or 1.6 gallons each week for each of the 126.4 million people in the United States. A .gov website belongs to an official government organization in the United States. However, even this is not a simple measure. Labor cost per cwt., shown in Figure 2, is inversely related to cows per FTE. Milk Production 02/20/2020 - National Agricultural Statistics Surveys from the U.S. Department of Agriculture (USDA) have identified economies of scale and lower unit costs as herd size increases. Milk produced per cow in the U.S. averaged 23,777 pounds for 2020, 382 pounds above 2019s 23,395, marking a strong year-over-year gain. Dairy Cows Changes in the Size and Location of Eighty-three years later, the National Agricultural Statistics Service (NASS), which conducts the Census of Agriculture today, documented in the 2017 Census of Agriculture that there were 2.0 million farms on 900 million acres with an average size of 441 acres. ISO Topic Categories: farming, Data was obtained from 20 dairy farms that range in herd size from 80 cows to more than 3,000 cows. The average dairy farm size in the US has gone up. USDA People had flying, self-driven cars and robotic housekeepers. Check out the Michigan Manure Hauler Certification Program! Data was obtained from 20 dairy farms that range in herd size from 80 cows to more than 3,000 cows. The average dairy farm size in the US has gone up. Reference to commercial products or trade names does not imply endorsement by MSU Extension or bias against those not mentioned. The largest producer of milk is the USA producing over 87 million tonnes per annum (source FAOstat 2012). Web The global average for milk production is approximately 2,200 litres per cow (source FAOstat 2012). The West grew from 263 cows in 1992 to 1,413 cows in 2021, while the Midwest shifted from 51 to 225 cows per herd in the past 30 years. Unlike the fluctuating overall number of cows, milk production per cow has steadily increased approximately 11.5% from 2011. The average dairy herd size reached a record high of 316 head in 2021. It raises questions about why it takes more people to handle cows on some farms versus others. Place your emphasis on other measures to see how one year compares to the next. Eight farms are represented by the first bar (less than $3 per cwt.) U.S. dairy farmers enter 2021 still in a state of flux following the disruptions caused by COVID-19 throughout 2020 and uncertainty on how new food assistance programs may impact milk and dairy commodity prices. In agriculture, we use 2,500 hours per year as FTE. Dairy farm Milk is used for making cheese, butter, ice cream, and yogurt in addition to drinking milk and other dairy products. This year-over-year decline in the number of dairy operations continues a long trend of farmers deciding to exit the dairy business. Eighty Share sensitive information only on official, secure websites. In 1992, Hoards Dairyman partnered with the American Farm Bureau Federation to begin tracking commercial dairy farm numbers by obtaining milk permit data from each state. India has the greatest number of dairy cows in the world with over 40 million cows. Therefore, one FTE may not be directly comparable to another FTE unless a farm business quantifies all work performed by all individuals. The largest producer of milk is the USA producing over 87 million tonnes per annum (source FAOstat 2012). By the end of 2020, there were just 31,657. Thanks to agricultural innovations, we have seen remarkable increases in production efficiency to feed a growing global population. Phil Durst, Michigan State University Extension - We believe that this data reveals that efficiencies can be gained at all farm sizes. It means that farmers have learned how to take care of their cows better. The reality is that some teams function at a higher level than others and that can be on large farms or small to mid-size farms. WebMilk Production ISSN: 1949-1557 Released February 20, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). of milk (measures of labor input) and gross revenue per FTE (a measure of output per unit of labor). Again, the range in farm size with increasing revenue per employee has no clear pattern until the largest farm sizes are reached. Its a number that has grown steadily from the WebBetween 1970 and 2006, the number of farms with dairy cows fell steadily and sharply, from 648,000 operations in 1970 to 75,000 in 2006, or 88 percent (g. If each of the cows were milked every day, each would have produced about 433.9 gallons per year or about 1.2 gallons per cow each day. Dairy Cows Large dairy operations have significant financial advantages over small and midsized farms, primarily because of lower average production costs per pound of milk produced. Many owners and some salaried employees dont punch a time clock. Unlike the fluctuating overall number of cows, milk production per cow has steadily increased approximately 11.5% from 2011. While production has grown in most of the country, since 2010 it has declined in certain regions, such as much of the Southeast. ISO Topic Categories: farming, For a deeper analysis, complete with tables for each state, turn to page 148 in the March 2022 edition of Hoards Dairyman. Web The global average for milk production is approximately 2,200 litres per cow (source FAOstat 2012). It would be good for farms to track several measures of labor efficiency with the understanding of the limitations of each. If greater efficiencies are both beneficial and possible, then how can they be achieved? As tempting as it is for us to set a goal for each measure, the better solution is for you to set a goal for each measure. Regionally, the West (+437%) and the Midwest (+340%) have seen the largest percentage gains in herd size. Number of dairy farms 3,430. Through 2021, the average number of milk cows for the nations total dairy herd grew by 0.6% to 9.45 million head. Large dairy operations have significant financial advantages over small and midsized farms, primarily because of lower average production costs per pound of milk produced. The standard is FTE or full time equivalent. While cow numbers in the nations dairy herd held steady, dairy farm numbers did not follow the same course. Each measure tells a story and using multiple measures provides some balance to the limitations of individual measures. One thing to keep in mind when looking at milk production is the ever-increasing productivity of the milking cows. The middle bar is represented by seven farms with a range of 80 to around 1400 cows, and a mean of 662 cows. Pennsylvania and Wisconsin were the next most resilient group, down 4.2% and 4.8%, respectively. The last three years of data show larger year-over-year declines than any other decline in the last 13 years. Higher functioning teams are more productive. ISO Topic Categories: farming, WebNumber of Milk Cows: Number of Milk Cows 1933 to current year: Milk Production per Cow: Milk Production per Cow 1933 to current year: Milk Production: Milk Production 1933 to current year: Number of Milk Cow Herds: Number of Milk Cow Herds 2004 to current year: Number of Dairy Herds Including Sheep & Goats: Number of Dairy Herds U.S. dairy farmers enter this year still in a state of flux following the disruptions caused by COVID-19 throughout 2020. 1). The average milk production by each cow has gone up. Place Names: Agriculture, Vermont, Wisconsin, New York, Minnesota, California, South Dakota, Nevada, Rhode Island, North Dakota, Iowa, u000bcattl. According to the report, there were approximately 9.4 million milk cows in the United States in 2022, down from about 9.45 million milk cows in 2021. Based on work with farms on labor management for years, Stan and I believe the answer is not in driving employees harder or eliminating employees and making others work more hours. WebNumber of Licensed Dairy Herds: 5,983 herds (May 1, 2023) Number of Dairy Cows: 1,269,000 dairy cows (May 2023) Average Number of Cows Per Dairy Farm: 212 dairy cows (May 2023) Total Monthly Milk Production: 2.79 billion pounds (May 2023) Monthly Milk Production Per Cow: 2,195 pounds or 255 gallons. The loss of licensed dairy farm operations during 2020 closely aligns with Chapter 12 farm bankruptcies especially in Wisconsin, Minnesota and in the Northeast (Farm Bankruptcies During 2020). This article was published by Michigan State University Extension. Total dairy cows fell from 12 million in 1970 to 9.1 million in 2006, so the average herd size rose from just 19 cows per farm in 1970 For example, the seven farms represented by the first bar ($100,000 to $200,000 revenue per FTE) range in size from around 80 to 450 cows, and the second bar ($201,000 to $300,000), eight farms from around 140 to 1400 cows. After many years of depressed prices, some dairy farmers faced an extremely tough year as the industry struggled with a global pandemic, negative Producer Price Differentials and Federal Milk Marketing Order de-pooling while others enjoyed near record milk prices due to volatility in cheese prices (More Negative PPDs and De-Pooling Reignite Federal Milk Marketing Order Debate). Using that data, the corresponding average individual herd size nationwide changed from 129 cows per farm in 2003, to about 300 cows per farm today. The bars indicate the middle range (second and third quartiles) of farm size in each ratio. In early 2020, the dairy price environment was very favorable, and despite the craziness of the pandemic, milk-feed price ratios throughout much of 2020 were favorable for dairy herd expansion. Dairy farm labor efficiency Web The global average for milk production is approximately 2,200 litres per cow (source FAOstat 2012). That year, there were 70,375 farms in the United States producing milk commercially. Again, we divided labor costs (all costs including owner draw) into three ranges based on farms per each group. Cows per FTE is a simple measure that reflects efficiencies related to farm set-up and organization, as well as parlor type and standardization of management. California was the leading U.S. state in terms of the overall number of milk cows, with a total of over 1.7 million milk cows as of 2022. Data In 1934, 24.6 million milking cows on 5.2 million farms produced 10.7 billion gallons of milk. When we look at the productivity side of labor, we see similar results. Data was obtained from 20 dairy farms that range in herd size from 80 cows to more than 3,000 cows. dairy The second bar, 41 to 50 cows per FTE was data from seven herds ranging from 140 cows to around 1100 cows, with a mean of 522. Eighty https://www.canr.msu.edu/dairy/business_management/labor-management, 1998 Childrens Online Privacy Protection Act (COPPA). WebMilk Production ISSN: 1949-1557 Released February 20, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Eighty In addition to a higher cow inventory at the end of 2020, the January cattle inventory report showed a decline in heifers being retained for milk cow replacement. WebThese files include data on supply and allocation of milk fat and skim solids; dairy per capita consumption; fluid milk sales; milk supply by State and region; milk production and factors affecting supply and utilization of milk in all dairy products; and numbers and size of milk bottling plants. There is certainly an impact of farm size on efficiencies including labor; however, the results obtained do not show a clear linear relationship between labor efficiency measures and number of cows milked, except with the very largest farms. WebThe average number of milk cows in the United States during the quarter was 9.51 million head, 47,000 head more than the January - March quarter, and 141,000 head more than the same period last year. Average Number of Dairy Cows per Farm There are approximately 270 million cows in the world that are used for their milk, and cows milk has long been a staple of the American diet. Using that data, the corresponding average individual herd size nationwide changed from 129 cows per farm in 2003, to about 300 cows per farm today. Using that data, the corresponding average individual herd size nationwide changed from 129 cows per farm in 2003, to about 300 cows per farm today. The average milk production by each cow has gone up. Scale Economies Provide Advantages to Large Dairy Farms If each of the cows were milked every day, each would have produced about 433.9 gallons per year or about 1.2 gallons per cow each day. Dairy There are no perfect measures of labor efficiency and this database has limitations in comparing farms to one another. Labor as a cost of production is usually the second greatest cost on the farm after feed. As a result, milk cows and production are increasingly moving to much larger dairy farms. Farms with at least 1,000 head today account for most cows and Dairy Has Changed Milk Cows and Production by Quarter - United States: 2020-2021 [May not add due to rounding. While dairy milk is often seen as a wholesome product for the whole family to enjoy, it might be seen differently if more people were aware of how the dairy industry operates. MSU is an affirmative-action, equal-opportunity employer, committed to achieving excellence through a diverse workforce and inclusive culture that encourages all people to reach their full potential. WebNumber of Milk Cows: Number of Milk Cows 1933 to current year: Milk Production per Cow: Milk Production per Cow 1933 to current year: Milk Production: Milk Production 1933 to current year: Number of Milk Cow Herds: Number of Milk Cow Herds 2004 to current year: Number of Dairy Herds Including Sheep & Goats: Number of Dairy Herds Michigan State University Extension helps farmers not only evaluate their efficiency, but also provides guidance to improve it.