MINNESOTA DAIRY INDUSTRY PROFILE

Transcription

1 MINNESOTA DAIRY INDUSTRY PROFILE Prepared by: Su Ye Agricultural Marketing Services Division Minnesota Department of Agriculture 21

2 TABLE OF CONTENTS PAGE National Ranking. 2 Production Trend. 3 Cash Receipts. 4 Farm Numbers. 5 Milk Yield. 6 County Ranking. 7 Prices. 8 Export. 9 Feed Use. 1 Economic Impact

3 National Ranking Minnesota is the 6 th largest dairy state in the U.S. In 29, Minnesota had 469, head of dairy cows, about 5% of the U.S. total. Many large dairy states have seen decreases in cow numbers in the past decades; Minnesota, however, has achieved increases in cow numbers from 27 to 29, a three-year consecutive growth after a long period of decline. U.S. Top 1 Dairy States (29) Number of Dairy Cows All other 27% CA 19% OH 3% WI 14% NM 3.5% MI 3.9% TX 4.6% MN 5% PA 5.9% ID 6% NY 7% U.S. Top 1 Dairy States (2 & 29 comparison) 1, Head 2, 2 1,8 29 1,6 1,4 1,2 1, CA WI NY ID PA MN TX MI NM OH - 2 -

4 Production Trend Minnesota produced 9 billion pounds of milk in 29, about a 3% increase from 28. After years of decline, the past five years have seen an annual production growth averaging 2%. From 2 to 29, milk production in Minnesota decreased by 5% while dairy cow numbers decreased by 13%. U.S. Top 1 Milk Producing States (29) Billion Pounds MN CA WI NY ID PA MN TX NM MI WA MN Dairy Production and Dairy Cows (2-29) Production 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Milk production (million lb.) Dairy cows (1, head) Cows - 3 -

5 Cash Receipts Dairy is Minnesota s second largest livestock sector (after hogs), contributing 27% of the state s total livestock cash receipts. Dairy s cash receipts decreased slightly from 27 to 28, from $1.69 billion to $1.66 billion, due to decrease in milk prices between 27 and 28. From 2 to 28, dairy marketing achieved an average annual growth rate of 5%. Minnesota Livestock Cash Receipts by Sector (28) Sheep/lamb.3% Cattle/calves 18% All other 1% Hogs 34% Poultry 2% Dairy 27% Minnesota Livestock Cash Receipts (199-28) Million $ $2,2 $2, $1,8 $1,6 $1,4 $1,2 $1, Cattle/calves Hogs Dairy Poultry $8 $6 $4 $

6 Farm Numbers Farms numbers are decreasing in Minnesota, and livestock and dairy farms are no exception. Minnesota has fewer dairy farms today than a decade ago. Due to industry consolidation, the average size of dairy farms also increased, from less than 5 cows per farm in 199 to 9 cows per farm in 27 (latest data available). 35, Minnesota Livestock Farms: Change in Numbers 3, 25, , 15, 1, 5, Cattle/calves Dairy Hogs Poultry Sheep Source: Ag Census Minnesota Dairy Cow Inventory by Farm Size (% inventory) 1% <2 head 9% >2 head 8% 7% 6% 5% 4% 3% 2% 1% % Source: Ag Census - 5 -

7 Milk Yield In Minnesota, milk yield per cow increased by 8% from 2 to 29, from 17,777 pounds to 19,23 pounds. Minnesota ranks No. 24 in milk yield among U.S. dairy states. Minnesota Milk Production and Yield (2-29) 1, Milk production (mil lb.) Yield/cow (lb.) 2, 18, 8, 16, 14, Production 6, 4, 2, 12, 1, 8, 6, 4, 2, Yield U.S. Top States: Milk Yield (29) - Pounds 25, 22,5 2, 17,5 15, 12,5 1, 7,5 5, 2,5 NM WA CO AZ MI ID CA NV KS UT TX MN MN - 6 -

8 County Ranking Stearns County is the largest dairy county in Minnesota, followed by Winona, Morrison, Wabasha, and Otter Tail. Among the top 1 dairy counties, Stearns, Morrison, Wabasha, and Stevens are the four counties that achieved production increases from 2 to 28. The others had production declines. Minnesota Top Dairy Counties (28) Million Pounds 28 Rank County Change 2 Rank 1 Stearns 1,343 1,257 1,25 1,155 1,154 16% 1 2 Winona % 3 3 Morrison % 4 4 Wabasha % 6 5 Otter Tail % 2 6 Goodhue % 5 7 Stevens % 47 8 Todd % 7 9 Benton % 11 1 Fillmore % 8 All other counties 4,132 4,193 4,125 4,11 5,51-18% State total 8,782 8,656 8,364 8,195 9,493-7% Top 1 Counties: Milk Production (Million lb.) 1,4 1,2 1, Stearns Winona Morrison Wabasha Otter Tail Goodhue Stevens Todd Benton Fillmore - 7 -

9 Prices In 29, milk prices received by Minnesota growers averaged $13.6/cwt., a 3% decrease from $19.1/cwt. in 28. Milk prices fluctuated wildly from 2 to 29, ranging from a low of $1.7/cwt. (July 22 and March 23) to a high of $22.1/cwt (December 27). As of April 21, milk prices were reported at $15./cwt., just above the 1-year average point of $14.88/cwt. Production 11, 1, 9, 8, 7, 6, 5, 4, 3, 2, 1, Minnesota Milk Production and Prices (2-29) Production (mil. Lb.) $2. Prices ($/cwt.) $18. $16. $14. $12. $1. $8. $6. $4. $2. $ Prices Minnesota Milk Prices - Monthly (2-29) All Milk - Prices Received by Growers ($/cwt.) $23. $22. $21. $2. $19. $18. $17. $16. $15. $14. $13. $12. $11. $1. Jan- Jul- Jan-1 Jul-1 Jan-2 Jul-2 Jan-3 Jul-3 Jan-4 Jul Jan-5 Jul-5 Jan-6 Jul-6 Jan-7 Jul-7 Jan-8 Jul-8 Jan-9 Jul-9 Jan-1

10 Export Minnesota is the fifth largest dairy exporter among all U.S. states. In 28, Minnesota exported $191 million dairy products, up from $113 million in 27, a 69% increase. Minnesota s dairy export products include dry and condensed milk (51%), cheese (35%), butter (9%), and frozen dessert (3%). Mexico is Minnesota s largest dairy export market, followed by Canada and China. MN Largest Dairy Export Markets (28) All other 32% Mexico 29% Vietnam 2.5% Indonesia 2.9% Philippines 3.4% Korea 3.4% Japan 5.8% China 6.4% Canada 16% Source: USDA-BICO $2 Minnesota Dairy Export Trend - Million $ $18 $16 $14 Trendline $12 $1 $8 $6 $4 $2 $

11 Feed Use by Dairy Production Dairy production supports crop farming through feed utilization, a significant market for Minnesota s corn and soybean crops. In 29, dairy production consumed 42 million bushels of corn, about 3% of Minnesota s total corn crop. Dairy production also consumed 141,6 tons of soybean meal in 28, about 15% of total soybean meal fed to all livestock. Dairy cows are the second largest feed users of corn and third largest feed users of soybean meal in Minnesota. MN Corn Utilization (29) Corn: Feed Use by Dairy (29) Residual* 7% Export 37% Poultry 17% Beef 15% Other 1% Hogs 46% Processing 38% Feed Use 17% Dairy 21% *Residual: all other uses Source: PRX and MDA/AMS MN Soybean Utilization (29) Soybean Meal: Feed Use by Dairy (29) Export 38% Residual* 4% Dairy 15% Beef 9% Other.4% Hogs 42% Crush 57% Poultry 34% *Residual: all other uses Source: PRX and MDA/AMS - 1 -

12 Economic Impact* Minnesota s dairy industry includes both dairy production and processing, with a combined total annual output value of $5.6 billion. Every dollar from dairy production and processing generates about $2 in statewide economic activities. The multiplier effect of Minnesota s dairy industry to the state economy: o Total economic output: $11.5 billion o Total employment: 38,13 jobs. Output Impact of Dairy Production & Processing: $11.5 billion Economic activities generated by increased income: $1.4 billion Additional production activities: $4.8 billion Dairy production/ processing: $5.6 billion Source: MDA/AMS Output Impact (Billion $) Employment Impact (# of jobs) $1. $9. $8. $7. $6. $5. $4. $3. $2. $1. $. $11.5 $5.6 $4.8 $1. Direct Indirect Induced Total 4, 35, 3, 25, 2, 15, 1, 5, 38,13 18,859 11,11 8,54 Direct Indirect Induced Total Source: MDA/AMS *Economic impact includes Direct, Indirect, and Induced impacts. Direct Impact represents dairy production and processing output. Indirect Impact represents the production activities of all other economic sectors related to dairy production and processing. Induced Impact represents the additional economic activities generated by the expenditures of new income from the direct and indirect impacts. Total Impact is the sum of direct, indirect and induced impacts

13 Minnesota Department of Agriculture (MDA) Our mission is to enhance Minnesotans' quality of life by ensuring the integrity of our food supply, the health of our environment, and the strength of our agricultural economy. The MDA s Agricultural Marketing Services Division (AMS) works to develop and diversify Minnesota's agricultural industries, markets and products through market research, market promotion, education and technical assistance. Division programs focus on developing domestic and international market opportunities for Minnesota producers and marketers. For more information, please contact: Agricultural Marketing Services Division Minnesota Department of Agriculture 625 North Robert Street, St. Paul, MN Tel: , Fax: su.ye@state.mn.us Web: Updated May 21 TDD: An Equal Opportunity Employer and Provider