Getting to the next 5 percent and what it means to dairy farmers

Nearly half of all “new” milk produced in this country over the last 13 years has gone to markets beyond our borders. Since 2004, the expansion in U.S. dairy exports alone added an average of $1.25 per hundredweight per year to U.S. farm milk prices. That has meant an additional $36 billion in milk revenues since 2004. In an industry where a few percentage points can make the difference between breaking even and going broke, that is a very big deal. Export gains have lent critical support to U.S. milk production growth and the expansion of the entire U.S. dairy industry over the past decade-plus.If U.S. dairy exports had remained locked at their 2003-2004 level, we would be looking at a much more fragile industry today with far dimmer prospects. Similarly, if U.S. dairy exports remain locked at their current level moving forward, there is little question it would stunt growth and erode the health and vitality of the U.S. dairy industry.