AG INSIGHT Dairy product mix, farmer strategies change significantly The dairy industry product mix has changed in what may seem like surprising ways over the years but especially during the past two decades, according to a study by the U.S. Department of Agriculture’s Economic Research Service (ERS). Among other things: • The average percentages of both milk fat and skim solids in farm milk (cows’ milk from dairy farms) have risen. In 2000, U.S. farm milk contained 3.68% milk fat and 8.72% skim solids on average. By 2020, the milkfat percentage had grown to 3.95%, and the skim-solids percentage had increased to 8.94%. For skim solids, content increased gradually from 2000 to 2020, while milk-fat content began rising in 2011, after remaining relatively steady from 2000 to 2010. • Cheese is the dairy product category accounting for the largest percentage of the U.S. milk-fat supply, and that percentage has been growing. • Fluid beverage milk is the dairy product category accounting for the largest percentage of the U.S. skim-solids supply, but that percentage has been declining. • In response to an increase in demand for products with high milk-fat content, dairy farmers have selected breeds, adjusted feeds and made use of improved genetics to increase milk fat produced by dairy cows. The average milk-fat content of fluid milk varied over the 20-year period, reflecting shifting consumer attitudes toward dietary trends for this dairy product. Fluid milk’s fat content averaged 2.01% in 2000 and fell gradually, reaching a low for the 20-year period of 1.83% in 2012. The decline was due to falling sales volumes of whole milk and rising sales volumes of lower fat milks. However, since then consumers began to look at milk fat more favorably, whole milk sales increased and sales of lower fat milk varieties decreased. In 2019, the total supply of skim solids available for dairy processing and manufacturing was 19.5 billion pounds, 33% more than in 2000. Fluid milk accounts 8
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for the largest portion of skim-solids use, but that allocation has been declining over time. If this trend continues, cheese may overtake fluid milk as the largest use of skim solids within the next few years.
Funding available for multistate specialty crop program The U.S. Department of Agriculture (USDA) has announced that $10 million is available for competitive grant funding in the Specialty Crop Multi-State Program (SCMP). “This program is an important resource to strengthen the competitiveness of our nation’s specialty crop industry,” said Bruce Summers, administrator of USDA’s Agricultural Marketing Service, which manages SCMP. “By working across state lines, grant recipients can share resources and collaboratively address challenges for specific crops.” Grants are awarded to state departments of agriculture to fund collaborative, multistate projects that address food safety, plant pests and disease, research, crop-specific common issues, and marketing and promotion for specialty crops including fruits and vegetables, tree nuts, dried fruits, and horticulture and nursery crops, including floriculture. State departments must partner with organizations located in at least two different states to qualify. Partner organizations include specialty crop producer
