Milk and honey: As demand and economic conditions improve, milk prices will stabilize

IBISWorld’s Dairy Farms Industry Research Report contains up-to-date data and analysis, allowing you to identify the strengths and potential weaknesses of major companies in the industry. Build your credibility with clients and prospects by sharing insights into the current and emerging trends driving their industry. Our market research gives you the tools to win new business and keep existing clients.


Market Share of Companies
There are no companies with a dominant market share in this industry
Industry Statistics & Market Size
Annual Growth
Annual Growth

Industry Threats & Opportunities

  • Declines in the price of feed have led to strong profit margins
  • The United States became the largest global exporter of cheese, surpassing New Zealand
  • Reduced government support could have a significant effect on milk prices
  • Industry Analysis & Industry Trends

    In the Dairy Farms industry, the most important success factor is the price farmers receive for raw milk. Over the five years to 2017, the price of raw milk has been highly volatile, causing revenue for the Dairy Farms industry to fluctuate. Meanwhile, the price of feed, which typically makes up about half of the average dairy farm's total expenses, has been falling since 2014, significantly strengthening industry profit margins. Before then, however, the price of feed had increased, causing many farms to either reduce their employment or exit the market. Over the five years to 2022, the industry will likely benefit from stabilizing milk prices and improved downstream demand.

    Industry Report - Industry Key Buyers Chapter

    Low market share concentration characterizes the Dairy Farms industry. US dairy farms are highly fragmented, with most farms consisting of family owned operations. As a result, the industry is made up of many small farms that produce a minority of revenue. Industry concentration is increasing as small dairy farms take losses and leave the industry. Meanwhile, the remaining dairy farmers are growing operations to take advantage of economies of scale and increase their profitability.

    Vertically integrated dairy cooperatives operate downstream from dairy farms to process, market and wholesale dairy products. The cooperatives allow dairy farmers to pool milk production, and the aggregate supply of milk can then be leveraged to assist in raising prices. Dai

    Additional Insights for the Dairy Farms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Dairy Farms Industry are

  • Proximity to key markets
  • Superior financial management and debt management
  • Use of specialist equipment or facilities
  • IBISWorld analysts also discuss how external factors such as Price of milk and Demand from dairy product production in the Dairy Farms industry impact industry performance..

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    Industry Products

    What is the Dairy Farms Industry?

    Establishments in this industry primarily raise cattle for milk. The industry includes only the sale of raw milk and excludes the production of drinkable fluid milk and processed dairy products like butter, cheese and powdered milk. Those value-added activities are covered in the Dairy Product Production industry (IBISWorld report 31151).

    Industry Products
    Manufacturing milk
    Fluid milk
    Industry Activities
    Dairy cattle farming
    Milking dairy cattle

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • Price of milk
  • Demand from dairy product production
  • Price of feed
  • Per capita dairy consumption

  • Current Performance
  • Milk prices, exports and globalization
  • Profit and consolidation
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand and price of milk
  • Barns away
  • Organic opportunities
  • Table: Dairy Farms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Dairy Farms Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Dairy Product Production
  • Ice Cream Production
  • Dairy Wholesaling

  • Key Selling Industries
  • Animal Food Production
  • Beef Cattle Production
  • Cattle & Hog Wholesaling
  • Farm, Lawn & Garden Equipment Wholesaling
  • Fertilizer Manufacturing
  • Livestock Production Support Services
  • Veterinary Services

  • Products & Services
  • Manufacturing milk
  • Fluid milk
  • Chart: Dairy Farms Industry Products and Services Segmentation

  • Demand Determinants
  • Price
  • Population
  • Health concerns
  • Competition from substitutes
  • Innovation

  • Major Markets
  • Dairy cooperatives in other regions
  • Dairy cooperatives in the West
  • Dairy cooperatives in the Great Lakes
  • Dairy manufacturing companies
  • Chart: Major Market Segmentation for the Dairy Farms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Farms

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Dairy Farms Industry

  • Industry Globalization
    Major Companies
    There are no major players in this industry
    Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Dairy Farms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Dairy Farms Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Raw Milk Price (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
  • An organization that is owned, operated and controlled by those who use its services. Dairy cooperatives primarily assist farmers in better marketing and manufacturing their raw milk.
  • Farm Gate Price
  • The value of an agricultural product when it leaves the farm; typically lower than the retail price, as it excludes shipping, marketing and storage costs.
  • Organic
  • Farming that does not involve the use of artificial chemicals, pesticides, fertilizers or genetically modified organisms.
  • Raw Milk
  • Milk that has not been pasteurized or homogenized.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Dairy Farms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Dairy Farms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Dairy Farms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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