Dairy co-op impact continues to grow

The proportion of milk produced by members of dairy co-ops continues to grow. During 2007, co-op members produced 152.5 billion pounds of milk, which was 82.6 percent of all milk marketed in the U.S. Dairy co-op activity is summarized every five years, with the recent report being Marketing Operations of Dairy Cooperatives, 2007 published by USDA’s Rural Development section.
There were 155 dairy cooperatives in 2007, compared to 195 in 2002. Forty-five of the co-ops processed and manufactured dairy products. They had a total of 193 plants. However, 98 co-ops had no milk handling facilities, and 12 operated receiving stations only.
Dairy co-ops produce 94 percent of the nonfat dry milk and skim milk powders made in this country. They also make 71 percent of the butter. Co-ops bottle 7.4 percent of the nation’s fluid milk, but that proportion will decline as some co-op fluid plants have been sold to proprietary firms.
Dairy co-ops are producing less of the nation’s cheese. The co-ops’ share of cheese production in 2007 was 26 percent, down from 34 percent in 2002. Dairy co-ops produce 20 of the condensed buttermilk, 14 percent of the sour cream, 11 percent of the yogurt, 13 percent of ice cream mix, and 4 percent of the ice cream.
Co-op members produce nearly all of the milk in the west north central (97 percent) and east north central (91 percent) regions. These areas include the Dakotas, Nebraska, and Kansas east to Ohio and Michigan. Co-op membership also is high (94 percent of the milk) in the south Atlantic area. The proportion of milk produced by co-op members is lowest in New England and the Northeast (76 percent) and in the western states (76 percent).
The web link provides historical summaries of previous dairy co-op studies.