Organic dairy farms grow amid high feed and operation costs
By Jamie Martin
The landscape of U.S. dairy farming has evolved significantly with organic milk production increasing sharply over the past thirty years. This shift reflects a growing consumer preference for organic products despite the high costs associated with organic dairy farming.
From 1992 to 2021, the number of organic dairy cows expanded from just 2,265 to 352,289, marking a substantial increase and accounting for about 3.8% of all dairy cows in the country. Sales of organic fluid milk soared by 78% between 2009 and 2022, according to the U.S. Department of Agriculture (USDA).
While the organic sector has enjoyed higher returns compared to conventional dairy farms, it hasn’t been without challenges. High costs for organic feed, which make up over 40% of total expenses, have persisted as a significant hurdle. In 2021, these costs reached $16.35 for every 100 pounds of milk produced, a 4% increase from 2016.
The scarcity of organic feed grains in the U.S., where less than 1% of all corn and soybeans are certified organic, has forced many farmers to import feed or grow it themselves, further elevating expenses. Labor and overhead costs have also risen, compounding the financial pressures on organic dairy producers.
Despite these challenges, states like Texas and Idaho have emerged as leading producers, overtaking traditional leaders like California.
The industry's growth is driven by not only profitability but also stringent certification standards that emphasize animal welfare and sustainable practices.
This ongoing trend highlights the commitment of both producers and consumers to sustainable and ethical farming practices, signaling a robust future for the organic dairy industry in the United States.
Photo Credit: gettyimages-dimasobko
Categories: National