Dairy Farms in the US
In the Dairy Farms industry, the most important success factor is the price farmers receive for raw milk. Over the five years to 2018, the price of raw milk has been highly volatile, causing revenue for the Dairy Farms industry to fluctuate. In 2016, an oversupply of dairy products caused revenue to decline 4.5%. However, demand for dairy products began to rise again in 2017, and demand is expected to further increase in 2018. Meanwhile, the price of feed, which typically makes up about half of the average dairy farm's total expenses, has declined since 2014. While this decrease would typically cause growth in profit margins, increases in the price of milk have resulted in profit declines during the latter half of the five-year period. Over the five years to 2023, the industry will likely benefit from stabilizing milk prices and improved downstream demand. Government assistance will continue to support profit, while continued economic recovery and population growth will drive demand for dairy products.
Establishments in this industry primarily raise cattle for milk. The industry includes only the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk. Those value-added activities are covered in the Dairy Product Production industry (IBISWorld report 31151).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.