Idleness in Wisconsin dairy state continues

The number of dairy farms in the US state of Wisconsin has shrunk by 10% last year. The sharp contraction is a result of the low milk price, which has since recovered. However, the decline is likely to continue. 

As of January 1, Wisconsin had 7.292 dairies. This is 818 less than at the beginning of 2019, or a contraction of 10%. In 2018, Wisconsin also lost 7% of its dairy farmers. 

Mark Stephenson, director of dairy policy at the University of Wisconsin, says a 4% annual contraction is normal. According to him, due to the low milk prices between 2014 and 2019, more dairy farmers than usual have thrown in the towel. 

Milk price up again
In the meantime, the American milk price has again climbed considerably to above €40 per 100 kilos. Nevertheless, Stephenson expects that many dairy farms will close their doors in 2020. The bad period will be felt for a long time, according to the director. 

Bob Cropp, a professor at the same university as Stephenson, hopes the contraction will turn out lower in 2020. "We are guaranteed to have a higher milk price this year. This will reduce the number of quitters," he says. According to him, there are also farmers who have stopped and are considering going 'back in business' again. Stephenson expects less of this, as the land and businesses of the retired farmers have often been bought over by other dairy farms. 

More milk despite shrinkage
Stephenson further states that the image of Wisconsin as 'the dairy state of the United States' is not endangered. Despite the decline in the number of farms, the state produces more milk than in previous years. In other words: there is an increase in scale. This also supports the statistics. The number of cows remained virtually the same at 1,27 million last year, while milk production increased slightly. 

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