Dairy- Not Fairing So Well...

Everyone in the fair industry knows about it because everyone in agriculture is talking about it: the dairy farming situation.  Agribusiness is the number one industry in the Commonwealth of Pennsylvania, and dairy is the largest segment of this industry (www.mmb.pa.gov).  

Americans are drinking 28 percent less milk than they drank in 2000, 42 percent less than 1970.  The high supply and low demand for fluid milk have driven operating costs up and prices down for PA farmers.  There exists a delicate balance between a fair fee for farmers and a fair price for consumers.  In the midst of this price/cost environment, Walmart recently announced their contract cancellation with dairy farmers in order to build and control their own dairy farms/processing facilities to produce and package milk for distribution at Walmarts. 

So what are dairy farmers in PA doing in the current market?  Some are shuttering their doors, some are ramping up their herd, some are streamlining their milking practices to realize efficiencies, and some are getting downright creative.  In 2018, one farmer in Richland, PA resorted to painting his wrapped hay bales with advertising information about local milk in an effort to educate the local population about dairy products.  Some farmers are turning their efforts to raw milk production and sales (which is substantially more profitable than pasteurized milk production). 

The nationwide chatter surrounding the dairy industry does appear to be gaining volume, however.  Glenn Thompson (R-Pennsylvania) co-introduced a bill in January of 2019 that, if approved, would allow whole milk back into school cafeterias as a beverage choice.  In March 2019, Governor Tom Wolf approved funding for 20 Pennsylvania counties to support dairy farm and processing facility expansions.   Legislation was re-introduced also in March to regulate the labeling of foods with regard to whether or not the food is in fact a dairy product.

Forecasts for milk prices and feed costs show that turning a profit as a dairy farmer will continue to be a challenge for the foreseeable future.  Pennsylvanians can take a few small steps to ensure they are supporting dairy products produced in Pennsylvania:

-Buy products with a  the PA-Preferred label

-Buy products with a plant code (5-digit code on the label or top of the carton container) starting with “42”