This is Part II of the series defining ways to increase producer revenue. Part I covered increased components. This post will cover the state-by-state milk per cow and the annual percent increases in milk per cow. More milk per cow can deliver more components and add revenue with minimal cost.
To set the scene, Table I lists the five largest milk producing states. Together they produce 54% of U.S. milk. The five largest are California, Wisconsin, Idaho, Texas, and New York. California is the largest by far with Wisconsin as second. The remaining three are major milk producing states, but they produce less than half the volume compared to Wisconsin.
The highest ranked states in milk per cow are listed in Table II. Michigan is setting the pace for the most milk per cow, with Colorado, Texas, Wisconsin, and New York at less than 10% behind.
Table III lists the three lowest milk per cow among the major milk producing states. It is surprising to see that California, the largest milk producing state is in this list just slightly better than Minnesota and Pennsylvania.
How much is milk per cow increasing? In June of 2020 the annual percent increase in milk per cow in the U.S. was high, reaching an increase of 1.8% (Chart I). Since then, the increase in milk per cow has dropped and is currently averaging around .5%.
Wisconsin (Chart II) has accomplished a consistent monthly increase in milk per cow. Over five years, there have been no monthly decreases. Milk per cow has jumped from 2005 pounds per month per cow to 2127 pounds, a 6% increase. At the current Class III price of $20 per cwt., and a herd of 500 cows, that is worth $146,000 per year.
Using the tested and verified sciences to increase component levels is available to all. Why would any producer not utilize these tools to increase revenue?
The state of New York has increased milk per cow by 7% over the five years in Chart III. As shown above in Table II, New York state is now averaging 2127 pounds of milk monthly and is in the top five states in milk per cow.
Using the same calculations as used above for Wisconsin, the New York revenue increase for a herd of 500 cows is worth $158,000 a year.
Using the tested and verified sciences to increase component levels is available to all. Why would any producer not utilize these tools to increase revenue?
Texas was increasing milk per cow at a rate of 6% to 8% annually. But beginning in 2023 that rate of increase has dropped steadily to a decrease of -2.4%. They have now broken the downward trend with a current small increase.
By the same calculation made for Wisconsin, the increase in revenue is worth $179,000 annually.
The biggest fall in milk per cow is California. Their milk per cow numbers have been dropping for over two years. They changed from a 2.1% annual increase in June 2020 to an annual negative growth rate of -2.2% in December 2023.
WHAT DOES THIS ALL MEAN?
The amount of milk per cow is growing, but it is slower than in 2020 and 2021. Only two states, Wisconsin and New York show a continuous annual improvement in in milk per cow. Over the five-year span, both states increased milk per cow by over 6%. They have also increased total milk production continuously.
There are many ways to increase milk per cow. There are positive economics as more milk brings additional components and revenue. Being a producer in the U.S. requires constant improvement.
