A dairy analyst says dairy herd numbers have remained strong over the past six months in key producing states.
Ben Laine with Rabo AgriFinance tells Brownfield while farmers cut cow numbers in the early months of COVID-19, government payments along with improved milk prices has led to above trend growth.
“We’re back toward levels we haven’t seen since the ‘90s,” he says. “States where you’re seeing production increases and cow number increases, like Texas, Idaho, and Colorado, are places where the focus has been on achieving scale.”
He says areas favorable to larger farms and close to processing have seen the greatest growth as farmers use economies of scale to whether increasing volatility in the industry.
