While Americans are drinking slightly less plain milk than before, the U.S. dairy industry is churning out record amounts of everything from cheese to butter, revealing a sector that is far from flatlining but is powerfully adapting to consumer tastes.
Key Takeaways
- In 2022, U.S. milk production totaled 226.3 billion pounds, up 1.8% from 2021
- The average U.S. dairy cow produced 24,087 pounds of milk in 2022, an increase of 391 pounds from 2021
- California led U.S. milk production with 41.2 billion pounds in 2022, accounting for 18.2% of national total
- Fluid milk sales totaled 143 billion pounds in 2021
- Per capita fluid milk consumption was 36.5 gallons in 2022, down from 37.2 in 2021
- Cheese consumption per capita reached 40.3 pounds in 2022
- U.S. dairy industry generated $125 billion in cash receipts in 2022
- Dairy farm cash receipts totaled $46.9 billion in 2022
- Milk prices averaged $24.20 per hundredweight in 2022
- U.S. dairy industry employed 950,000 people in 2022 directly
- Dairy farms employ 142,000 workers in 2022
- Processing and manufacturing employ 400,000 in dairy sector 2022
- U.S. dairy exports volume 18.5 billion pounds milk equivalent in 2022
- Dairy export value $9.2 billion in 2022, up 11%
- Mexico top destination for U.S. dairy 30% of exports 2022
In 2022, the U.S. dairy industry grew its production and exports significantly.
Consumption
- Fluid milk sales totaled 143 billion pounds in 2021
- Per capita fluid milk consumption was 36.5 gallons in 2022, down from 37.2 in 2021
- Cheese consumption per capita reached 40.3 pounds in 2022
- Yogurt per capita consumption hit 13.6 pounds in 2022
- Butter consumption per capita was 5.7 pounds in 2022
- Ice cream per capita consumption stood at 20.8 pounds in 2021
- Nonfat milk per capita consumption was 10.2 gallons in 2022
- Whole milk per capita consumption declined to 15.8 gallons in 2022
- Reduced-fat milk consumption per capita was 17.5 gallons in 2022
- Americans consumed 11.5 billion gallons of fluid milk in 2021
- Cottage cheese per capita consumption was 2.1 pounds in 2021
- 75% of U.S. adults consume dairy daily in 2022 survey
- Plant-based milk alternatives captured 12% of fluid milk market in 2022
- School milk program served 4.5 billion half-pints in 2022
- Household penetration of yogurt reached 85% in 2022
- Cheese sales in retail channels grew 3.2% in 2022
- Fluid milk sales volume dropped 3% in 2022 due to alternatives
- Per capita dairy consumption totaled 657 pounds milk equivalent in 2022
- Butter demand surged 5% in foodservice sector in 2022
- Yogurt market value reached $8.7 billion in U.S. retail 2022
- Ice cream consumption highest in Midwest at 25 lbs per capita 2021
- 62% of consumers prefer dairy over plant-based for protein in 2023 survey
- Cream cheese consumption per capita 1.5 lbs in 2021
- Sour cream per capita 2.8 lbs in 2021
Consumption Interpretation
Americans, in a masterful display of optimization, are pivoting from drinking their milk to cheesing it, creaming it, and buttering it, all while the humble glass of white stuff watches from the sidelines with a dwindling audience.
Economic Impact
- U.S. dairy industry generated $125 billion in cash receipts in 2022
- Dairy farm cash receipts totaled $46.9 billion in 2022
- Milk prices averaged $24.20 per hundredweight in 2022
- All-milk price record high of $24.80/cwt in October 2022
- Dairy exports value reached $9.2 billion in 2022
- Processor margins for fluid milk averaged $2.10/cwt in 2022
- Dairy contributed 10% to U.S. agricultural GDP in 2022
- Retail value of dairy products $110 billion in 2021
- Cheese wholesale value $35 billion in 2022
- Fluid milk market value $25 billion at retail 2022
- Dairy industry supports 1 million jobs on farms and in processing
- Farm milk price volatility index averaged 25% in 2022
- Dairy product imports value $2.8 billion in 2022
- Class III milk price averaged $23.50/cwt in 2022 for cheese milk
- Butter price peaked at $3.00/lb in 2022
- Nonfat dry milk price averaged $1.45/lb in 2022
- Dairy farm net income per cow estimated $1,200 in 2022
- Total dairy supply chain economic multiplier 1.8 in 2021 study
- Wisconsin dairy economic impact $47 billion annually
- California dairy contributes $9 billion to state GDP
Economic Impact Interpretation
The U.S. dairy industry is a $125 billion moo-tinational corporation where farmers nervously ride a price rollercoaster, processors skim a steady profit, and everyone's fortunes are spread across a global table that's increasingly hungry for American cheese and butter.
Employment
- U.S. dairy industry employed 950,000 people in 2022 directly
- Dairy farms employ 142,000 workers in 2022
- Processing and manufacturing employ 400,000 in dairy sector 2022
- Dairy supports 2.4 million total jobs including indirect 2022
- Average dairy farm wage $18.50/hour in 2022
- 28% of dairy farm workers are foreign-born in 2021 census
- Cheese manufacturing employs 65,000 people in 2022
- Fluid milk processing jobs 45,000 in 2022
- Dairy labor productivity up 2.5% annually since 2000
- 1,200 dairy training programs nationwide in 2022
- Turnover rate in dairy processing 25% in 2022
- Women comprise 25% of dairy farm workforce in 2022 survey
- H-2A dairy visas issued 10,000 in 2022
- Dairy vets number 15,000 nationwide in 2022
- Truck drivers for dairy 50,000 employed 2022
- Dairy retail jobs 300,000 in 2022
- Apprenticeships in dairy processing grew 15% in 2022
- Average dairy manager salary $75,000 in 2022
- Youth employment in dairy 4-H programs 6 million members 2022
Employment Interpretation
The U.S. dairy industry, a massive economic engine that supports millions of jobs, is both a cultural cornerstone and a complex business, constantly churning as it relies on a diverse, evolving workforce—from the farmer earning $18.50 an hour to the 10,000 workers on H-2A visas and the 65,000 cheese artisans—all while battling a 25% turnover rate and striving to stay productive in the face of its own creamy, chaotic reality.
Production
- In 2022, U.S. milk production totaled 226.3 billion pounds, up 1.8% from 2021
- The average U.S. dairy cow produced 24,087 pounds of milk in 2022, an increase of 391 pounds from 2021
- California led U.S. milk production with 41.2 billion pounds in 2022, accounting for 18.2% of national total
- Wisconsin produced 31.8 billion pounds of milk in 2022, second highest in the U.S.
- U.S. butter production reached 5.15 billion pounds in 2022, up 2.4% from prior year
- American cheese production was 14.66 billion pounds in 2022, comprising 37.8% of total cheese output
- Nonfat dry milk production hit 1.78 billion pounds in 2022
- Dry whey production totaled 687 million pounds in 2022
- U.S. yogurt production increased to 2.8 billion pounds in 2021
- Fluid milk production was 200.5 billion pounds in 2022, down slightly from previous years
- Herd size averaged 9.35 million head in 2022
- Milk per cow reached a record 24.2 thousand pounds annually in 2022
- Organic milk production grew to 5.2 billion pounds in 2021
- Ice cream production totaled 2.9 billion pounds in 2021
- Cottage cheese output was 816 million pounds in 2021
- Cream cheese production hit 500 million pounds in 2021
- Sour cream production reached 1.4 billion pounds in 2021
- Milk fat content averaged 3.72% in 2022 production
- Milk protein content averaged 3.22% in 2022
- Number of dairy farms decreased to 31,185 in 2022 from 31,359 in 2021
- Idaho milk production rose to 16.4 billion pounds in 2022
- New York produced 15.5 billion pounds of milk in 2022
- Pennsylvania milk output was 10.5 billion pounds in 2022
- Texas dairy production reached 10.2 billion pounds in 2022
- Minnesota produced 10.8 billion pounds in 2022
- Total U.S. cheese production was 15.2 billion pounds in 2022, up 1.5%
- Italian cheese varieties production was 3.15 billion pounds in 2022
- Mozzarella cheese output reached 5.5 billion pounds in 2022
- Cheddar cheese production totaled 3.9 billion pounds in 2022
Production Interpretation
While the number of dairy farms continues to dwindle, each remaining cow is working overtime—turning out record-breaking rivers of milk that California proudly leads into an ocean of cheese, butter, and yogurt, proving America's dairy appetite is only getting bigger even as its farmsteads get smaller.
Trade and Exports
- U.S. dairy exports volume 18.5 billion pounds milk equivalent in 2022
- Dairy export value $9.2 billion in 2022, up 11%
- Mexico top destination for U.S. dairy 30% of exports 2022
- China dairy imports from U.S. $1.5 billion in 2022
- Skim milk powder exports 1.2 billion pounds in 2022
- Cheese exports reached 1.1 billion pounds in 2022
- Lactose exports 450 million pounds in 2022
- U.S. dairy trade surplus $6.4 billion in 2022
- Canada receives 15% of U.S. dairy exports 2022
- Southeast Asia dairy exports grew 20% to $800 million 2022
- USMCA dairy trade volume $5 billion annually 2022
- Dairy imports mainly from New Zealand 40% in 2022
- Whey protein concentrate exports 600 million pounds 2022
- EU dairy imports from U.S. $500 million in 2022
- Japan dairy market share U.S. 25% in 2022
- Total dairy imports 4.2 billion pounds equivalent 2022
- Butter imports 150 million pounds in 2022
- Export growth rate 12% for dairy products 2022
- Middle East/North Africa exports $1.2 billion 2022
- U.S. rank 3rd global dairy exporter behind NZ/EU 2022
Trade and Exports Interpretation
America's dairy farmers are proving you can have your cheese and eat it too, exporting a staggering 18.5 billion pounds' worth of milk magic to a world so thirsty for our butter, powder, and whey that even lactose can't slow down a $6.4 billion trade surplus built one pint, pound, and protein shake at a time.
Sources & References
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