Milk production up in Midwest, down in West

This may be the first time we’ve written this headline in 30 years or more, which speaks volumes about just how topsy-turvy things have become in the dairy industry these days.

After decades of relentless production decline in the Midwest and unstoppable growth in the West, the regions’ much different business models have obviously been impacted much differently by the unprecedented collapse in milk prices since late last year. The recent July 2009 Milk Production report from USDA-NASS shows just how differently.

Of the nine Western states in the agency’s monthly survey of 23 leading states, seven posted production declines compared to July 2008. The combined reduction of all nine states was 249 million pounds. Fewer cow numbers almost across the board, plus frequently lower production per cow, are why.

Of the eight Midwestern states in the survey, seven posted production increases and the combined increase by all eight states was 227 million pounds. In those states cow numbers were typically higher and production per cow was often much higher.

Percent changes in milk production, Western States vs. Midwest states, July 2009 vs. July 2008:

West
Arizona -8.2%
California -5.0%
Colorado -1.6%
Idaho -3.5%
New Mexico -2.8%
Oregon +1.6%
Texas +1.4%
Utah -1.9%
Washington -1.6%

Midwest
Illinois +3.9%
Indiana +4.0%
Iowa +4.8%
Michigan +4.6%
Minnesota +5.9%
Missouri -0.8%
Ohio +1.4%
Wisconsin +5.8%