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Briefing Rooms

Dairy

Contents
 

Overview

Milk has a farm value of production second only to beef among livestock industries and equal to corn. Dairy farms, overwhelmingly family-owned and managed regardless of size, are generally members of producer cooperatives. Dairy products range from cheese, fluid milks, yogurt, butter, and ice cream to dry or condensed milk and whey products, used mostly as ingredients in processed foods. Cheese and fluid milk products now use most of the milk supply.

Government traditionally has regulated both sanitary and market aspects of the dairy industry. International trade of dairy products has only occasionally been important for the relatively isolated U.S. industry.

ERS provides research and analysis on milk production; the marketing and consumption of dairy products; international dairy trade; and government programs.

Features

2008 Farm Bill Side-By-Side presents a title-by-title summary of key provisions of the 2008 Act in a side-by-side comparison with previous legislation. The side-by-side includes links to related ERS publications and to analyses of previous farm acts. New features include a user's guide, an A-Z list of major provisions, and a search function.

Dairy Backgrounder reports that shifts over time in consumer demands, the location and structure of milk production, industry concentration, international markets, and trade agreements have dramatically altered the U.S. dairy industry and changed the context for dairy policies and the sector as a whole. In the future, the U.S. dairy industry is likely to become more fully integrated with international markets.

Recommended Readings

Current World Production, Market, and Trade Reports provide information and data on world markets and trade for dairy, livestock, and poultry.

Economic Effects of U.S. Dairy Policy and Alternative Approaches to Milk Pricing shows that the effects of dairy programs on markets are modest and that current dairy programs are limited in their ability to change the longterm economic viability of dairy farms. Other forces—technology, changing consumer demand, and changes in the marketing and processing sectors—while difficult to measure, are likely to have more impact. (This file is 1.5 MB in size and may take time to download.)

Low Costs Drive Production to Large Dairy Farms reports that average production costs per hundredweight of milk produced fall sharply with herd size. Large dairy farms earn substantial profits, while most smaller operations experience economic losses. Given the cost advantages, the shift of dairy production to large farms contributes to rising industry productivity and lower real dairy prices. For the full report, see Profits, Costs, and the Changing Structure of Dairy Farming.

See all recommended readings...

Recommended Data Products

Most recent tables from Livestock, Dairy, and Poultry Outlook in Excel format.

Dairy Yearbook presents annual data on production, supply, use of milk and manufactured dairy products; also includes wholesale and retail price indexes, prices received by farmers, milk production costs, and regional shares of U.S. milk production.

Newsletter

Livestock, Dairy and Poultry Outlook provides key dairy data, market outlook, and forecasts; issued each month.

Related Briefing Rooms

Animal Production and Marketing Issues
Agricultural Baseline Projections
Farm Income and Costs
Farm Structure
Farm and Commodity Policy
U.S. Agricultural Ttrade

Related Links

Agricultural Marketing Service. Information on Federal milk marketing orders, grading, dairy market news, marketing and economic research, promotion and research, standardization, and Federal rulemaking.

National Agricultural Statistics Service. Historical data, publications, and the 2002 Census of Agriculture.

World Agricultural Outlook Board. World Agricultural Supply and Demand Estimates (WASDE) reports and Agricultural Outlook Forum speeches.

See all related links...

Also at ERS...

Latest Publications

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Latest Data Sets

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Season-Average Price Forecasts
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For more information, contact: Roger Hoskin

Web administration: webadmin@ers.usda.gov

Updated date: August 26, 2007