A recent USDA study highlighted changes in the U.S. dairy industry.
Facing the moo-sic: The number of dairy farms are declining. Yet U.S. milk production continues to rise as industry consolidation and technological advancements increase output.
The USDA’s study showed that larger dairy farms have been able to take advantage of a general lower cost per unit of milk produced. Additionally, they have broadly adopted advanced technology, management practices, and production systems that have increased efficiency.
High costs and low returns between 2017 and 2022 led to a profound decline in dairy herds.
By the numbers: Structural changes the industry underwent over the past two decades include a:
- 63% reduction in the total number of dairy herds licensed to sell milk
- 33% increase in total U.S. milk production
- 29% increase in average pounds of milk per cow per year
When breaking down costs, farms with fewer than 50 cows incurred total overhead and opportunity costs up to $15.76 per 100 pounds. Farms with more than 2K cows faced costs as low as $0.47 per 100 pounds.
Soundbite: “Not only have dairy farms become larger, but they have become more specialized in dairy production, lowering their production of other farm commodities and depending more heavily on purchased rather than homegrown feeds.” — USDA’s Economic Research Service
Moo-ving forward: Noticeable financial stresses in the dairy industry have led to various federal policies and further discussions about updating current programs.
But don’t worry, Wisconsin: you’re still the leader for the total number of dairy farms.
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Congress to EPA: What’s Your BEEF with Meat Packers?
The Environmental Protection Agency (EPA) is considering new regulations that take aim at meat and poultry processors.
And some members of Congress have a BEEF with the EPA’s proposals.
The proposed rules: In late January, the EPA released the details of its proposed “Clean Water Effluent Limitations Guidelines and Standards for the Meat and Poultry Products Point source category.”
Huh?
Basically, the EPA formally published its proposals to combat wastewater contaminants that come from slaughterhouses.
Okay… that makes more sense.
At the heart of the rules proposal is a concern from environmental groups about nitrogen and phosphorus pollutants that originate from slaughterhouses. In some cases, the wastewater goes directly into waterways. In other cases, the water goes to municipal wastewater treatment facilities.
But not everyone is on board with the EPA’s suggestions…
Congress responds: Last week, two U.S. representatives—Eric Burlison (MO) and Ron Estes (KS)—pushed back against the EPA and introduced the “Banning EPA’s Encroachment of Facilities (BEEF) Act.” If passed and signed by President Biden, the law would prohibit the EPA from finalizing, implementing, or enforcing the rule.
According to the lawmakers, the proposed rules place undue burden on small processors—costs that can be absorbed by larger companies.
Soundbite: “The… proposed regulation isn’t just an attack on family-run small businesses, it’s an attack on rural communities,” said Burlison. “These meat and poultry processors are the lifeblood of our communities. The BEEF Act… lets these hardworking Americans do what they do best, produce safe, affordable food for our families.”
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