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Dairy Farms in the US: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Dairy Farms Market Research Report | NAICS 11212 | Jan 2017

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

IBISWorld’s Dairy Farms market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

Report Snapshot
Market Share of Companies
There are no companies with a dominant market share
Industry Statistics & Market Size
Annual Growth 12-17
Annual Growth 17-22
Annual Growth
Industry Threats & Opportunities
  • Declines in the price of feed have led to strong profit margins
  • The average farm will require more automated equipment
  • Reduced government support could have a significant effect on milk prices in the coming years
  • ... purchase to read more

Industry Analysis & Industry Trends

Dairy farmers' most important success factor is the price they 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. However, the price of feed had increased leading up to 2014, causing many farms to either reduce their employment or exit the market. However, loses were contained by federal subsidies, which, according to agricultural policy, have sought to reimburse dairy farmers once raw milk prices fall below a certain threshold... ... 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. In .. ... purchase to read more

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... purchase to read more


    Industry ProductsRelated Reports

    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 milkFluid milk
    Industry Activities
    Dairy cattle farmingMilking 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
  • Chart: Cost Structure Benchmarking – Sector vs Dairy Farms
  • Basis of 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
  • Includes:
  • 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; it is 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
    • Quickly build competitive intelligence
    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 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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