With all of this talk about dairy farm expansion, Concentrated Animal Feeding Operations (CAFOs), and the proposed biodigester in Kewaunee County, it got me wondering what’s driving this push for big dairy? All I’ve heard over the past year has been how low milk prices are, so it can’t be short-term profitability. But it turns out, dairy prices may be on an upswing and it’s no thanks to dairy producers in the United States.
Of the seven largest dairy producing markets in the world, six of them are contracting production. The only one that is not is the United States. Wisconsin is leading the charge in increasing milk and cheese production, with a nearly 27 percent increase through historic highs and lows since 2005.
Meanwhile, dairy prices have been at five-year lows for most of the year, with a slow climb starting in November that has dairy producers optimistic.