HISTORY • 1600’s: First dairy cows arrive from Europe to the Plymouth

• 1864: Pasteurization was invented by Louis Pasteur

• 1879: First milking machine patented

• 1890’s: Milk Homogenizer is patented/ Babcock Test

• 1930’s: Animal Nutrition was revitalized

• 1936: Artificial Insemination began in U.S/ Storage Advancements

• 1983: Dairy Act of 1983 • (created mandatory milk checkoff program- 15 cents per cwt.)

FACTS ABOUT DAIRY CATTLE • There are 5 main breeds: Holstein, Jersey, Brown Swiss, Ayrshire and Guernsey

• On avg. dairy cows can live for 6 ½ years

• On avg. a dairy cow in U.S. produces 21,000lbs. of milk per year (roughly 2,500 gallons)

• Diet: (consume over 50lbs. of dry matter and roughly 30-50 gallons of water) • Mixed ration feeds (TMR’s) includes: corn, soybean by-product, sorghum, silage and

other grains to provide additional nutrients and fiber.• Intensive Rotational Grassing • Mixture of grassing and Supplemental rations

PRODUCTION LAYOUT • Milking Parlor Types:

• Herringbone • Parallel • Rotary • Swing (Mainly in New Zealand)

• Housing (bedded w/ sand, straw, shavings)• Free- Stall • Pack Barn

WHERE NC RANK’S • Rank’s 29th in U.S. for # of Dairy Cattle • Rank’s 28th in U.S. for milk production • Rank’s 21st in U.S for milk output per cow • Milk Production: 985,000,000 lbs. or 20,957 lbs./ head

MARKET PRICE • Class I (Fluid Milk) as of 2/23/17 was $16.90 per

cwt., up 17 cents from last month and $3.12 from a year ago.

• Class II (ice cream. Cottage cheese) was $16.36 per cwt., up $1.10 from previous month

• Class III (cheese) was $16.77 per cwt., down 63 cents from previous month and up $3.05 from a year ago

• Class IV (butter/ powder) was $16.19 per cwt., up $1.22 from previous month and up $2.88 from a year ago

U.S. & GLOBAL PRODUCTION • Top States: California, Wisconsin, New

York, Idaho, Pennsylvania, Minnesota

• Top Countries: U.S., India, China, Brazil

OVERVIEW OF TRADE • Main Exporters: U.S., E.U., New Zealand

• Main Importers: Mexico, Russia, China

U.S. DAIRY EXPORTS/ IMPORTS • Total value of U.S. dairy exports: $5.2B

• Milk Solids Exported: 3.65B or 14% of all U.S. milk production

• Mainly Mexico & China

• Total value of U.S. dairy imports: $1.2B• Milk Solids Imported: 4% of all U.S. milk

production

• Mainly cheese from E.U.

• Overall, U.S. is a net exporter of dairy

WHAT IS TRADED• Dry whole milk & skim milk powder

• Cheese

• Butter/ Butterfat products

• Whey (byproduct derived from cheese)

• Casein (used for both food and non food purposes)

• Ice Cream

TRENDS • Global

• Estimated 36% increase in dairy consumption in next decade.

• U.S. • Slight increase in demand for dairy

products.• Decrease in fluid milk consumption,

however, increase in yogurt and whey products.

• More shift to alternatives or niche products (ex. organic, nut based milk)

CURRENT ISSUES • Legislation

• Dairy Pride Act: potentially would prompt the FDA to enforce existing labeling requirements, specifying foods labeled as “milk” or “cheese” have to come from dairy animals. (Bill sponsor: Sen. Baldwin (D-WI))

• Immigration Reform (currently no program established to aid the dairy industry)

• Trade

• Canada’s Protectionist Dairy Policy: enables Canada to sell dairy ingredients below cost in international markets causing U.S. dairy exports to decrease

• According to NMPF it has already cost the U.S. $150 million in exports

• Animal Welfare Issues/ Consumer Misconceptions

• Emerging Research

• A2 type beta casein protein

Questions?