Dairy
Trends for 2008
As 2007 fades out and 2008 rolls in, Wisconsin's
dairy industry is poised to enjoy another year of steady
growth as dairy farmers and dairy processors continue
to pour significant private investment into their operations.
With increased milk production, explosive growth in
the state's dairy exports,
an increase in the number of dairy manufacturing plants, and an increase in the
number of dairy cows, no other state in the union can boast the quality, quantity
or staying power of Wisconsin's family dairy farms, cheesemakers and dairy
processors.
 Milk production in Wisconsin climbed three percent
in 2007, with milk production per cow setting a record
every month in 2007, compared to the same month the
year before. In addition, dairy exports reached record levels for the first
nine months of 2007, driving a soaring demand in developing
countries in Asia and
Latin America. The dollar value of Wisconsin dairy exports increased from $59
million to $127 million during this time—a 114 percent increase.
These trends promise to continue in 2008, as milk prices
are expected to remain steady and as dairy producers
continue to expand and modernize their operations.
Whether it is a 60-cow dairy that is installing a new low-cost parlor in
a remodeled barn, or a multi-generational family dairy
operation planning to
add 200 cows
to their herd, the strength of the state's dairy markets favor significant
growth in production.
The number of dairy manufacturing plants grew in 2007
from 140 to 154, according to the Wisconsin Department
of Agriculture, Trade and Consumer Protection.
This ten percent increase is driven, in part, by demand for high-end specialty
and
signature cheeses. At least six additional specialty dairy plants—ranging
from farmstead milk bottling operations to world-class artisan cheese operations—are
poised to open in 2008.
Existing dairy plants aren't sitting still either. Since
2004, 45 dairy plants have expanded operations. This number is expected
to grow
again in 2008,
with the recent announcement by Wisconsin Governor Jim Doyle of a $1.3
million dairy plant investment tax and cheese cooperative credit available
to Wisconsin
dairy processors.
Other dairy developments to watch for in 2008:
- Bio-Technology:
More dairy producers will install or participate in
on-farm and community bio-energy projects. Wisconsin
leads the nation in methane digester
technology, with 22 digesters installed on dairy farms around the state.
- Green
Certification: Dairy farms and processors aspiring
to differentiate themselves through environmental methods
will increasingly partner with the Wisconsin
Department
of Natural Resources to sign "Green Tier" charters, delivering
superior environmental management.
- More Cheese Varieties: Wisconsin's
1,222 licensed cheesemakers already make more than 600 varieties,
types and styles of cheese—watch
this number grow to 700 in 2008, as more artisan cheesemakers invent,
craft and age a growing
number of award-winning signature cheeses.
All told, Wisconsin's dairy producers and processors
have invested nearly $1 billion to modernize operations
in the past four years, with recent survey
results showing they plan to invest another $1 billion in the coming
five years. These entrepreneurs are on the leading edge
of production, bio-energy and environmental
technologies. The next year promises to be an exciting time for America's
Dairyland.
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Late in 2007, Governor Doyle launched his "Next
Generation Agriculture Plan," which includes
a $33 million package to provide Wisconsin's dairy and
agriculture
with resources
to modernize and innovate, and seize new green opportunities. According
to Governor Doyle, "the
next generation of agriculture must match the needs of
a competitive global market with efficiency, stewardship,
and creativity."
Some of the several growth areas outlined in the Governor's
plan include nutrient management programs, grazing lands
conservation
initiative, dairy plant investment tax credits, and cheese
cooperatives credits.
One of Wisconsin's most critical emerging markets is
renewable energy, an area where the state plans to invest
$150 million over the next 10 years. Wisconsin dairy
and ag producers will play a major role in these efforts.
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Story
Leads
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Wisconsin
Dairy Family Launches Farmstead Cheese.
Yellowstone
Cheese, Wisconsin's newest farmstead cheese
plant and retail store, has opened its doors to a
resounding welcome in the Cadott area. Dairy farmers
Jeremy and Heidi Kenealy, who have dairied since
1994 and currently milk 70 cows, are now turning
their milk into 25 varieties of specialty cheeses
in their on-farm processing plant. Large viewing
windows allow visitors to watch cheese production,
while the on-farm retail store features a variety
of Wisconsin-made products. Located at 24105 County
Hwy MM, Cadott. For more information, contact the
Kenealys at 715-289-3800.
New State-of-the-Art Dairy Complex Under
Construction
A new $5 million dairy complex is under
construction and set to open in June 2008 at the
Arlington Research Station, north of Madison. This
modern, 538-cow facility with two freestall barns
and a double-12 milking parlor will replace the UW-Madison
Dairy Science Department's outdated milking
facility. For more information, call Bill Stangel,
Assistant Superintendent, at 608-846-3761.
Remember the Milkman? He's Back.
The
milkman is making a comeback in Wisconsin, as more
farmstead-based dairies establish delivery routes
to homes across the state where consumers are increasingly
willing to pay the typical $1.50-$2 premium for a
gallon of home-delivered milk. In the past few years,
five dairies in Wisconsin have launched home-delivery
routes in three corners of the state.
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