Industry Analysis & Industry Trends
Volatile milk prices have significantly affected dairy farmers in recent years, causing revenue for milk producers to rise and fall dramatically. However, improvements in raw milk prices and increasing consolidation activity will help revenue and profit improve. Demand for milk will also continue to rise as the US population grows and consumers become more aware of the health benefits of calcium... purchase to read more
Industry Report - Industry Investment Chapter
The Dairy Farms industry exhibits a high level of capital intensity, and this level is higher than the rest of the farm sector. Dairy farmers typically use more machinery and capital resources than hired farm labor. Dairy farming requires substantial amounts of capital equipment: milking machines, feeding systems, waste management equipment, computerized monitoring tools and refrigeration for bulk milk storage. Labor is required for operating milking machines, caring for the dairy cows and managing farm operations, such as feeding strategies, quality control measures and investments. Capital intensity is increasing as dairy farms shift toward more automated and high-tech operations, while smaller farms merge and labor is further consolidated... purchase to read more