Diving overview:
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total number of Dairy industry declines 7% in Minnesota Last year proved to be a tough season for farmers, according to state data.
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As of December 1, 2023, the state, the nation’s sixth-largest dairy producing state, reported 1,825 licenses for cow, goat, and sheep dairy operations. This is a decrease of 146 cases compared to January 1, 2023, according to the latest data. Minnesota Department of Agriculture Dairy Inspection Program.
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The agency said seasonality and multiple permits for a single location can inflate reports. Nevertheless, Lukas Sjostrom, executive director of the Minnesota Milk Producers Association, said: star tribune That’s “not seen” [a monthly decline in permits] I have been over 50 for a long time. ”
Dive Insight:
Many farmers across the country have been forced to sell their dairy products as producers grapple with high operating costs.
In August, Jack Hamm, a dairy farmer in San Joaquin, Calif., told the American Farm Federation: Dairy products are sold weeklyit was as bad as the 2009 recession.
“Right now, it’s hard to make ends meet,” Ham said. “But this is not the first time we have experienced something like this.”
The value of milk has plummeted due to Economic slowdown. On the other hand, food prices are rising; According to the U.S. Department of Agriculture, demand for milk and dairy products is slowing. But in recent months, prices for corn, alfalfa hay and other raw materials have fallen, suggesting some input cost relief for farmers.
The end of the year is typically a time when more farmers permanently or temporarily stop milking their cows as they prepare silage and feed for next year, the Star Tribune reported.
Minnesota’s biggest losses this year occurred in the state’s central dairy hub. In Stearns and Morrison counties, the number of permits in December was 27 and 21 fewer than last January, respectively, the Star Tribune reported.
At one time, there were more than 5.2 million dairy farms across the United States, but industry consolidation forced them to expand, leaving many locations unable to accommodate them. today, Less than 28,000 The USDA says the licensed dairy herd remains.
