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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
Revenue
$36bn
Annual Growth 12-17
-2.0%
Annual Growth 17-22
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Profit
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Employment
143,903
Businesses
48,182
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 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.. purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

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


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